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Saturday, April 26, 2014

Can a lobbyist ethically work for both the Koch brothers and their opposite numbers?

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Koch Company and Labor Unions: One Degree of Separation
By Russ Choma, April 22, 2014

The influence industry sometimes produces strange bedfellows. Case in point, according to recently filed lobbying disclosure reports from 2014's first quarter: The same lobbying firm that represents Koch Companies Public Sector and the U.S. Chamber of Commerce in their efforts to keep the IRS from tightening up regs on dark money groups also represents one of the biggest names in organized labor.

Of course, organized labor is not necessarily unfriendly to the idea of outside money groups; unions have made great use of super PACs and have been linked to liberal dark money groups like Patriot Majority. But the prevailing narrative of partisan politics puts unions on the opposite side of the battlefield from the billionaire brothers David and Charles Koch (and by extension the conglomerate they own, KCPS).

Last week, the lobbying firm Siff & Associates filed disclosures indicating it was paid $50,000 by KCPS to lobby on H.R. 3547, specifically a provision to "prevent the IRS from using funds to target groups based on their political views, or spending public money " as well as a proposed IRS rule to add more oversight to dark money groups. The firm described this activity as lobbying for "General oversight of IRS efforts to curtail public education by 501(c)(4) entities on issues contrary to the positions of the Administration."

While KCPS did not return multiple requests for comment, representatives of the company have previously gone to great lengths to insist that the company's own lobbying expenditures are not reflective of the political interests of the Koch brothers. This case may be an exception: The Koch brothers are arguably the two most prominent enthusiasts of the 501(c)(4) dark money model. And given the level of vitriol aimed at them -- the brothers, their dark money groups and the company they own -- by prominent Democrats and groups like the union-linked Patriot Majority, it is surprising to see Siff & Associates' other first quarter clients.

Besides the U.S. Chamber of Commerce's affiliate, the Center for Capital Markets Competitiveness, Siff & Associates had three union clients: the Sergeant's Benevolent Association of New York City, which represents 13,000 police sergeants (active and retired); the Federal Law Enforcement Officer's Association (which represents 25,000 federal cops) and the United Brotherhood of Carpenters and Joiners.

The Carpenters happens to be one of the largest unions -- second only to National Education Association in terms of political spending by unions so far this cycle -- and one of the most influential and well-connected in Democratic circles. The union's own super PAC affiliate, Working for Working Americans, has given $1 million this cycle to the Fund for Jobs, Growth and Security -- a super PAC run by a former aide of Senate Majority Leader Harry Reid (D-Nev.) -- to support Democrats in New Jersey state elections. Working for Working Americans has also given $250,000 to Senate Majority PAC (the super PAC supporting Senate Democrats, also helmed by close associates of Reid) and House Majority PAC (which supports House Democrats).

In recent weeks, the Koch brothers have become a major talking point for Reid, who accuses them of corrupting the political system. But more than sending money to groups affiliated with prominent opponents of the Koch brothers, money from the Carpenter's union coffers has wound up directly opposite from money strongly suspected to have Koch ties. A $100,000 donation from Working for Working Americans wound up with WIN Minnesota, a super PAC backing Sen. Al Franken (D-Minn.), who has been attacked by American Encore, a dark money group run by Shawn Noble, the architect of the sprawling dark money network in 2012 funded, at least partially by Koch money.

Chris Granberg, who represents all three of the unions for Siff & Associates, did not return requests for comment, nor did a Carpenter's union representative.

The Carpenters union spent $20,000 on lobbying in the first quarter, and spent $320,000 in all of 2013. 

KCPS, on the other hand, spent $10.4 million last year on lobbying.

One of Siff & Associates' other union clients -- the Sergeants' Benevolent Association -- lobbied on 501(c)(4) oversight, according to reports filed by the firm. The language is similar to what Siff used in the Koch filing -- albeit taking the tack that the legislation and oversight could hinder union political activity.
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