OKLAHOMA CITY – To the uninitiated, it’s all “soft money” spent on ads clearly trashing or extolling a candidate without specifically telling people who to vote for, with only a wink at campaign reporting or disclosure. To regulators, there are key distinctions, with each type of campaign-related expenditure subject to different requirements.

According to Open Secrets, a campaign disclosure Web site of the Center for Responsive Politics, during the 2005-2006 election cycle, advocacy groups spent more than $208.5 million nationally. These are known as “527s,” a name taken from the section of the Internal Revenue Service code that outlines their tax-exempt status.

Their “issue ads” often blatantly oppose or support a candidate, but they never tell the listener how to vote.

Open Secrets reported that the Democratic Party raised about $327.5 million in “hard money,” spending $255 million. According to the Web site, the Republican Party raised $437.6 million, spending $356.7 million.

Marilyn Hughes, executive director of the Oklahoma Ethics Commission, said that true soft money was traditionally received by political parties for get-out-the-vote efforts, party-building and related endeavors.

“Nobody can take soft money,” Hughes said.

The 2002 federal Bipartisan Campaign Reform Act generally prohibits national parties from raising soft money.

However, as Hughes points out, state parties can set up so-called Levin funds – named after the U.S. senator who came up with the idea. Levin funds can be combined with “hard money” and used on voter registration, get-out-the-vote efforts and similar activities.

“It was intended to replace soft money,” Hughes said.

Oklahoma has adopted the federal Levin-fund limit, which is $10,000 per person, per calendar year.

“BCRA allowed the states to set their own limit, if they chose to,” Hughes said. “Oklahoma kept it at the BCRA limit.”

Hughes said the Oklahoma Democratic Party has a Levin fund and the Oklahoma Republican Party is working on establishing one.

Oklahoma Republican Party Chairman Tom Daxon said his organization has opened a Levin account.

“I don’t know that we’re going to do anything with it, but we have opened the account,” he said.

Daxon said he does not believe there are any funds in the account yet.

Daxon noted the regulatory limitations on fundraising under the 2002 federal law.

“When you’re doing things politically, that’s always a major effort, to raise the money to make it successful,” he said. “But so far, it’s going well. So, I think we’re going to be in good shape and the fewer of these exotic things we need to use, the better off we are.”

Oklahoma Democratic Party Chair Lisa Pryor said her organization’s Levin fund was set up before she came on board.

Pryor said her party limits use of these funds strictly.

“Levin funds are really highly restricted to get-out-the vote efforts,” she said. “We can’t spend it for anything other than GOTV activity.”

Hughes said Oklahoma regulators are working on a set of Oklahoma reporting requirements.

“We’re still advising the parties,” she said. “They’re working on their Levin funds. We don’t have any current reports.”

Hughes stressed that only political parties can set up Levin funds.

Hughes said a third category, independent expenditures, can advocate in favor of voting for or against someone.

She said such expenditures are more heavily regulated than others.

“It has to be made by a PAC,” she said. “There still is no limit on what can be spent on them. And it has to be totally independent from the candidate or candidate committee or any agent of the candidate.”

Hughes said independent expenditures must be disclosed by the PACs that sponsor them, or by anyone who does them within 15 days of an election.

Before the recent Republican primary in the 5th Congressional District, a radio ad written like a news report had Lt. Gov. Mary Fallin purportedly criticizing Oklahoma City Mayor Mick Cornett.

Fallin’s campaign spokesman said the lieutenant governor had no involvement with the ad and alerted Cornett’s campaign about it.

Hughes, asked about a generic critical radio ad, said that would be an issue ad.

However, congressional campaigns are covered by the FEC, not the state commission.

Hughes said there is no limit to the amount that can be spent on issue ads. But under BCRA, she said, “We are able to require disclosure.”

A new wrinkle in the Oklahoma election game flared up recently when Americans for Job Security, a 501(c)(6) business trade organization, made phone calls to voters criticizing Fallin and Oklahoma Corporation Commissioner Denise Bode.

Bode and Fallin brought the calls to the attention of Attorney General Drew Edmondson.

The attorney general’s office is investigating to determine whether the calls may be covered by a federal telephone consumer protection law.