WASHINGTON – Sens. John Kennedy (R-La.) and Bill Cassidy (R-La.) today introduced a Senate resolution congratulating Scripps National Spelling Bee champion Zaila Avant-garde.

“Becky and I are thrilled to see Zaila Avant-garde become Louisiana’s first champion of the National Spelling Bee. Our entire state is celebrating Zaila’s talent, hard work and win!” said Kennedy.

“Congratulations Zaila Avant-garde, Louisiana’s own–and first–Scripps National Spelling Bee champion. You’ve made our state proud,” said Cassidy.

Text of the full resolution is below:

Congratulating the 2021 Scripps National Spelling Bee champion Zaila Avant-garde.

Whereas Miss Zaila Avant-garde is a 14-year-old from Harvey, Louisiana;

Whereas Miss Zaila is the first winner from the state of Louisiana;

Whereas the Scripps National Spelling Bee is the largest and longest-running educational promotion in the United States and is administered by the E.W. Scripps Company and local sponsors, most of whom publish daily and weekly newspapers;

Whereas the 2021 Scripps National Spelling Bee began with competitors from across the United States, American Samoa, the Bahamas, Canada, Europe, Guam, Jamaica, New Zealand, Puerto Rico, and the Virgin Islands, each of whom had qualified for the contest by winning locally sponsored spelling bees;

Whereas Miss Zaila has become the first African-American to win the Scripps National Spelling Bee;

Whereas Miss Zaila has spent most of her days spelling around 13,000 words per day, yet has still found time to become an accomplished basketball player that holds 3 Guinness book records;

Whereas Miss Zaila survived several rounds of fierce competition this year and won the 2021 Scripps National Spelling Bee by correctly spelling murraya, and

Whereas the achievement of Miss Zaila brings an immense sense of pride to, her hometown of Harvey, and the entire State of Louisiana: Now, therefore, be it

That the Senate—

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congratulates the 2021 Scripps National Spelling Bee champion Zaila Avant-garde.

WASHINGTON – Sens. John Kennedy (R-La.) and Marco Rubio (R-Fla.) today called on Securities and Exchange Commission (SEC) Chairman Gary Gensler to ensure the Public Company Accounting Oversight Board (PCAOB) will continue enforcing the Holding Foreign Companies Accountable Act when companies refuse to open their records to inspection.

“We write to request your assurance that the unprecedented replacement of the members of the Public Company Accounting Oversight Board (PCAOB) by the Commission will not cause a change or delay in policy with respect to the audits of issuers based in foreign countries, including the People’s Republic of China (‘China’),” the senators wrote.

“As you know, the Holding Foreign Companies Accountable Act (P.L. 116-222) was enacted on December 18, 2020. This landmark law will protect the interests of hardworking American investors by ensuring that foreign companies traded in America are subject to the same independent audit requirements that apply to American companies. In particular, this law is critical to safeguarding Americans’ savings from being invested in entities based in China that pose unacceptable risk under U.S. law,” the senators continued. 

“On May 13, 2021, the PCAOB proposed Rule 6100, Board Determinations Under the Holding Foreign Companies Accountable Act. The proposed rule would provide a framework to guide the PCAOB in carrying out the responsibilities under the Act, and was publicly supported by four board members at the time of its proposal. Ultimately, the proposed rule represents the first step toward fairly enforcing U.S. law to protect American investors. However, since the rule was proposed, the Commission announced the removal of the Chairman of the PCAOB and its intent to seek candidates for all five board positions,” the senators continued. 

The senators asked Gensler whether the SEC will appoint new PCAOB board members who will faithfully implement the Holding Foreign Companies Accountable Act and whether the SEC expects any delay in the implementation of the Act as a result of the PCAOB’s change in leadership. The senators also inquired whether the SEC took into account the previous PCAOB leaders’ positions on the Holding Foreign Companies Accountable Act before it removed them from the board.   

“We urge that the Commission and PCAOB continue the critical work of implementing the Holding Foreign Companies Accountable Act without delay,” the senators concluded.

Last December, President Trump signed into law Kennedy’s Holding Foreign Companies Accountable Act. The law protects American investors by prohibiting securities of a company from being listed on any of the U.S. securities exchanges if the company has failed to comply with the PCAOB’s audits for three years in a row. It also requires public companies to disclose whether they are owned or controlled by a foreign government, including China’s communist government.

This week, the Senate unanimously passed the Accelerating Holding Foreign Companies Accountable Act. The bill would put additional pressure on China by requiring foreign companies to comply with PCAOB audits within two consecutive years instead of three. The bill would also apply the Holding Foreign Companies Accountable Act to Chinese companies that use audit firms in Taiwan or Singapore and do not comply with PCAOB inspections because of Chinese law.  

The letter is available here.

WASHINGTON – The Senate today passed Sen. John Kennedy’s (R-La.) Accelerating Holding Foreign Companies Accountable Act. The bill would increase accountability for Chinese companies that refuse to submit to U.S. financial oversight and close a loophole that Chinese companies use to avoid such oversight.  

“When foreign companies flout America’s security laws, they put Americans’ retirement plans and savings at risk. China is bent on exploiting American investors, so we need more accountability for foreign companies using American capital, and we need it now. I’m pleased to see the Senate take a huge step today by voting to give the SEC the ability to kick fraudulent Chinese companies off U.S. exchanges more quickly. I hope the House sends this common-sense bill to the president’s desk before foreign companies swindle more workers and families here at home,” said Kennedy. 

Last December, President Trump signed into law Kennedy’s Holding Foreign Companies Accountable Act, which prohibits foreign companies from listing their securities on any of the U.S. 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 law 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. 

The Accelerating Holding Foreign Companies Accountable Act would put additional pressure on China by requiring foreign companies to comply with PCAOB audits within two consecutive years instead of three. This would help remove fraudulent and non-compliant companies from U.S. exchanges more quickly.  

The bill would also apply the Holding Foreign Companies Accountable Act to Chinese companies that use audit firms in Taiwan or Singapore and do not comply with PCAOB inspections because of Chinese law.  

“ASA applauds the Senate for coming together once again and unanimously passing common sense legislation to protect the American people and end Communist China’s exploitation of our capital markets. We thank Senator Kennedy for his leadership in accelerating a timeline which now forces Chinese companies to comply with our audit and regulatory requirements much quicker, and we urge the House to swiftly move this bill to the President’s desk. A bipartisan Washington is finally waking up to the China threat and it’s time for Wall Street to do the same. U.S. exchanges must ensure American investor money is not used to finance Beijing’s egregious human rights abuses and genocide by immediately halting Chinese company IPOs and delisting every Chinese company from their exchange until those companies can prove they are NOT controlled by the CCP,” 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 Securities and Exchange Commission, 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. 

Text of the Accelerating Holding Foreign Companies Accountable Act is available here.

WASHINGTON – Sens. John Kennedy (R-La.) and Bob Menendez (D-N.J.) today introduced the National Flood Insurance Program Consultant Accountability Act of 2021 to protect homeowners from parties found guilty of fraud that involves property damage assessments.  

“Vultures who prey on suffering Louisianians after a natural disaster have no business working with the National Flood Insurance Program or receiving taxpayer money. I’m proud to work with Sen. Menendez to protect Louisiana families from falling victim to fraudsters in the wake of hard-hitting storms,” said Kennedy. 

“It’s absolutely unacceptable that many of the same bad actors who preyed on Sandy survivors after the storm devastated New Jersey continue to work with the National Flood Insurance Program. The current system makes it nearly impossible for the NFIP to fire engineering firms, lawyers, consultants and contractors who mishandle claims and defraud flood victims. I’m happy to work with Sen. Kennedy to right this wrong and increase accountability in the NFIP,” said Menendez.  

The National Flood Insurance Program Consultant Accountability Act of 2021 would allow the Federal Emergency Management Agency (FEMA) to fire consultants, contractors, law firms, engineering firms and other third parties involved in National Flood Insurance Program contracts if those parties deliberately mishandle claims in order to lower insurance reimbursements to homeowners following a disaster. Currently, FEMA can only fire individuals or entities that have a criminal conviction.  

Text of the National Flood Insurance Program Consultant Accountability Act of 2021 is available here.