WASHINGTON – The House of Representatives today passed Sens. John Kennedy (R-La.) and Chris Van Hollen’s (D-Md.) bill to protect American investors and their savings from foreign companies that operate on U.S. stock exchanges while refusing to submit to Securities and Exchange Commission (SEC) oversight. The Senate passed the bill unanimously in May.

“Communist China is right now using U.S. stock exchanges to exploit American workers and families—people who put their retirement and college savings in public companies. U.S. policy is letting China flout rules that American companies play by, and it’s dangerous. Today, the House joined the Senate in rejecting a toxic status quo. I’m thankful to Sen. Van Hollen and my colleagues on both sides of the aisle for supporting this commonsense solution to a threat that’s never been more urgent. President Trump has led the way in calling Chinese Communist dishonesty to account, and I’m glad to see this bill head to his desk,” said Kennedy.

“Millions of American families rely on modest investments to retire, send their kids to college, and weather financial emergencies. But many have been cheated out of their money after investing in seemingly-legitimate Chinese companies that are not held to the same standards as other publicly listed companies. This bill rights that wrong, ensuring that all companies on the U.S. exchanges abide by the same rules. I’ve been proud to work with Senator Kennedy on this bipartisan legislation, and I’m glad to see it pass the House with such strong support. I urge the President to sign this bill into law immediately,” said Van Hollen.

The Holding Foreign Companies Accountable Act prohibits securities of a company from being listed on any of the U.S. securities exchanges if the company has failed to comply with the Public Company Accounting Oversight Board’s (PCAOB) audits for three years in a row.

The bill would also require public companies to disclose whether they are owned or controlled by a foreign government, including China’s communist government. 

Many Americans invest in U.S. stock exchanges as part of their retirement and college savings, and dishonest companies operating on the exchanges put Americans at risk, as Luckin Coffee did. This legislation protects the interest of hardworking American investors by ensuring that foreign companies traded in America are subject to the same independent audit requirements that apply to their competitors in America and other countries.

“ASA applauds Senators Kennedy and Van Hollen, and congressional leaders on both sides of the aisles, for coming together to protect American investors and retirement savers from fraudulent companies controlled by the Chinese Communist Party (CCP). For far too long, the CCP has exploited American investors to finance its cyber army, its technology-driven elimination of civil liberties, its human rights abuses, and its destruction of the environment,” said American Securities Association CEO Chris Iacovella. 

Background:

Congress established the PCAOB to inspect audits of public companies, ensuring the information companies provide to the public is accurate, independent and trustworthy.

Currently, China’s communist government refuses to allow the PCAOB to inspect audits of companies registered in China and Hong Kong. Such companies represent a keen risk to American investors as nearly 11 percent of all securities class action lawsuits in 2011 were brought against Chinese-owned companies accused of misrepresenting themselves in financial documents.

According to the SEC, 224 U.S.-listed companies are located in countries where there are obstacles to PCAOB inspections. These companies have a combined market capitalization of more than $1.8 trillion.

In the last 10 years, the number of Chinese companies listed on U.S. stock exchanges has increased significantly, as those firms take advantage of the capital available in America.

The bill text is available here.

WASHINGTON – Sen. John Kennedy (R-La.) today introduced legislation to protect jobs and drilling opportunities in the Gulf of Mexico and the conservation efforts they fund. Sens. Cindy Hyde-Smith (R-Miss.), Bill Cassidy (R-La.), Ted Cruz (R-Texas), John Cornyn (R-Texas) and Roger Wicker (R-Miss.) are original cosponsors of the Conservation Funding Protection Act.

The Conservation Funding Protection Act would ensure that American oil producers would retain access to critical energy reservoirs on the Outer Continental Shelf. That energy production funds conservation, coastal restoration, hurricane preparedness, wetland mitigation and public land maintenance.

“Louisianians and other energy producers help keep America running and keep America safe. If Americans aren’t allowed to use U.S. resources to fuel our economy, we’ll be dependent on nations that don’t share our values and that even oppose our interests. We can’t afford to lose the energy independence our country has earned, the Louisiana jobs that make it possible or the coastland conservation that it funds,” said Kennedy.

“The Conservation Funding Protection Act is important to help ensure Mississippians continue to have access to well-paying jobs, while also continuing to provide the state with oil and natural gas revenues for vital conservation projects in Mississippi and on a national level,” Hyde-Smith said.

“Many Louisiana families depend on energy production and the jobs it produces. This bill keeps the Gulf open for business and ensures these workers won’t be threatened by radical environmental agendas,” said Cassidy.

“The preservation of energy production in the Gulf of Mexico is vital to the economic and national security of the United States. Not only does offshore drilling employ thousands of Americans and help fuel our economy and energy needs, but it contributes millions of dollars to environmental conservation projects on land and reduces our reliance on foreign powers. I am proud to support this legislation to ensure that that United States remains a global leader in energy production for years to come,” said Cruz.

“Ensuring continued access to energy resources in the Gulf of Mexico is critical to funding conservation efforts and important storm mitigation projects along the Texas coast. This bill would help keep us from a return to the days of relying on our adversaries to meet our energy needs,” said Cornyn. 

“The Gulf of Mexico’s bountiful natural resources have been a cornerstone in the resurgence of American energy independence. Revenues generated from federal leases have also supported a multitude of critical conservation and restoration projects along the Mississippi Gulf Coast. The Conservation Funding Protection Act would guarantee our valuable resources are managed responsibly and that states can continue to invest in projects that will sustain their coastlines for generations to come,” said Wicker.

In order to ensure that the Gulf region can steward the shelf’s resources, the Conservation Funding Protection Act would require at least two area-wide lease sales per year on available acreage in the Western and Central Gulf of Mexico. The Outer Continental Shelf Lands Act currently directs the Secretary of Interior to establish a schedule for lease sales on the Outer Continental Shelf but does not mandate the number of lease sales the department is required to hold.

This bill would maintain all current environmental laws and ensure that the Department of Interior conducts the environmental reviews required by law within clear time frames. The legislation does not alter environmental regulations for lease sales, rig operations or exploration.

Background:

With the recent extension of a drilling moratorium off Florida waters lasting until 2032, there is growing concern that access to leasing opportunities on the Outer Continental Shelf could evaporate, at great cost to American jobs and energy independence.

Some projections estimate that a permitting ban on natural gas and oil leasing and development projects on federal lands and waters—such as the Outer Continental Shelf—would result in the loss of nearly 1 million oil and gas related jobs within the first 12 to 24 months of the ban. Louisiana is home to 48,000 of those jobs. Such a ban would decrease offshore oil production by 44 percent and natural gas production by 68 percent within the next decade.

Support for this legislation includes the Louisiana Mid-Continent Oil and Gas Association, American Petroleum Institute, National Ocean Industries Association, International Association of Drilling Contractors, Consumer Energy Alliance, International Association for Geophysical Chemistry, Petroleum Equipment and Service Association and others.

“We applaud Senators Kennedy and Hyde-Smith for introducing this bill that will protect so many benefits for the Gulf region. The Conservation Funding Protection Act is critical to protecting existing energy production in the Gulf of Mexico and the livelihoods of thousands of hardworking citizens across the Gulf coast. Oil and gas leasing and production in the Gulf of Mexico is also the primary source of funding for conservation projects across the country, and, importantly, for Louisiana's hurricane protection systems and coastal restoration efforts,” said Tyler Gray, Louisiana Mid-Continent Oil and Gas Association President.

“The Conservation Funding Protection Act is critical for maintaining energy development in the Gulf of Mexico, the primary revenue driver for America’s largest federal conservation program. Royalties from offshore oil and natural gas development fund most of the Land and Water Conservation Fund, supporting and protecting national parks and wildlife habitat. Continued support for oil and natural gas production on federal lands and waters is imperative for maintaining these vital conservation programs,” said Lem Smith, American Petroleum Institute Vice President of Upstream Policy.

The bill text is available here.

WASHINGTON – Today Sen. John Kennedy (R-La.) introduced the Youth Mental Health Services Act to improve mental health services for students in primary and secondary schools.

“It’s a lot harder being a kid in 2020 than when I was growing up. Young people need helping hands and listening ears as they face new social and societal pressures. Kids deserve reliable access to high-quality mental health resources, and the Youth Mental Health Service Act would make it easier for them to get that support in their communities,” said Kennedy.

The Youth Mental Health Services Act would allow school districts to use Title IV funds authorized under the Every Student Succeeds Act to put in place new mental health resources for students. The services would follow a model that gives students access to mental health resources in their communities rather than limiting access to schools, which reduces the stigma that often comes with receiving services in a school setting.

The bill also allows states to use their Title IV funds to improve existing mental health services. States would be able to use these funds to do any of the following:

• promote best practices for mental health first aid, which helps people understand mental illness and supports intervention;
• help improve and execute emergency planning, which schools often lack;
• partner with local health agencies to improve the coordination of services; and
• expand telehealth services through private providers.

The bill text is available here.

MADISONVILLE, La. –  Today Sen. John Kennedy (R-La.) praised the Department of Transportation’s (DOT) Pipeline and Hazardous Materials Safety Administration for issuing two final rules reducing burdensome regulations. The revisions modernize hazardous materials requirements that have negatively impacted shippers and manufacturers.

“Louisiana’s shippers and manufacturers have struggled for years under regulations that are unclear and unfair. I’m glad to see DOT finalize rules that make it easier for these companies to operate efficiently, create jobs and plan for the future. Smart policies support economic growth while keeping communities safe, and that’s finally what’s going into effect here,” said Kennedy.

These final rules contribute to a safer workplace for individuals who produce or transport certain hazardous materials, and Kennedy has long advocated for these policy updates.

One of the rules finalizes specifications for rail tank cars carrying hazardous materials. It promotes enhanced safety specifications for cars carrying materials, such as chlorine, that are poisonous when inhaled.

A second rule will phase out by December 31, 2027 rail tank cars that are not properly equipped to transport such materials. This provides clarity and certainty to shipping firms planning to phase out older tank cars.

“We thank Sen. Kennedy for his commitment to safety and commend DOT for adopting standards that are supported by extensive research. With clear and uniform federal rules in place, chemical manufacturers can now have greater confidence that the tank cars they purchase or lease have a proven track record and will deliver safety benefits for many years to come,” said Chris Jahn, President and CEO of the American Chemistry Council.

Last year, Kennedy received the inaugural Rail Safety Advocate Award for his commitment to making railways safe and efficient.