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Sen. Moran Statement on Indictment of Former USAG President and CEO Steve Penny
“To all adults or coaches tasked with caring for our young athletes: when a child entrusts you with reports of sexual abuse, you report immediately.”
Oct 18 2018
WASHINGTON – U.S. Senator Jerry Moran (R-Kan.) – chairman of the U.S. Senate Commerce, Science, and Transportation Subcommittee on Consumer Protection, Product Safety, Insurance, and Data Security with jurisdiction over the health and safety of USA Gymnastics, US Olympic and NCAA athletes – today released the following statement regarding the indictment and arrest of former USA Gymnastics President and Chief Executive Officer Steve Penny:
“Steve Penny’s indictment and arrest further illustrate what we already knew to be true — under Penny’s leadership, USA Gymnastics went to great lengths to alleviate its institutional liability in response to sexual misconduct by Larry Nassar, when that effort should have been spent protecting young athletes. This indictment, coupled with Penny’s unwillingness to cooperate in our subcommittee’s investigation, highlights the systemic leadership issues within USAG that survivors have been sharing with us for months. It is imperative USAG secures leadership that first and foremost supports the well-being of its athletes. To all adults or coaches tasked with caring for our young athletes: when a child entrusts you with reports of sexual abuse, you report immediately.”
Background information regarding Sen. Moran’s Subcommittee’s investigation:
- In Sen. Moran’s Commerce Subcommittee hearing on June 5, 2018, former USA Gymnastics President and Chief Executive Officer Steve Penny invoked his Fifth Amendment right not to answer questions from the subcommittee.
- During the June 5 hearing, former USA Gymnastics Women’s Program Director Rhonda Faehn told the subcommittee that Penny had instructed another USA Gymnastics employee to remove gymnasts’ medical records from the Karolyi Ranch – a well-known former USAG training facility in Texas – after learning law enforcement was investigating allegations of sexual assault by former USAG doctor Larry Nassar. Then-USA Gymnastics Chief Executive Officer Kerry Perry confirmed this during a July 24, 2018 subcommittee hearing.
- This revelation ultimately led to former USA Gymnastics President and Chief Executive Officer Steve Penny’s indictment. Penny was arrested last night, Wednesday, October 17, 2018, in Tennessee by U.S. Marshals on a warrant for tampering with evidence related to a Karolyi Ranch investigation.
- In January, Sen. Moran and Sen. Richard Blumenthal (D-Conn.) launched a bipartisan investigation into USAG, the United States Olympic Committee and Michigan State University regarding systemic failures to protect athletes from sexual abuse and the reported filing of a non-disclosure agreement to silence a victim of abuse. Sens. Moran and Blumenthal have held a number of hearings to discuss the role of National Governing Bodies (NGB) in protecting our athletes, steps NGBs must take to prevent abuse in Olympic and amateur athletics, how to empower amateur athletes and to examine abuse prevention efforts across the Olympic movement.
- For more information on Sen. Moran’s ongoing investigation, click here.
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WASHINGTON – U.S. Senator Jerry Moran (R-Kan.) – member of the Senate Banking Committee – led a group of senators in asking U.S. Department of the Treasury Secretary Steven Mnuchin to improve the Treasury’s proposed regulation under Section 199A, particularly as it relates to community banks that have elected Subchapter S.
The letter was also signed by U.S. Senators Jim Inhofe (R-Okla.), John Boozman (R-Ark.), Deb Fischer (R-Neb.), Roy Blunt (R-Mo.), John Kennedy (R-La.), Mike Rounds (R-S.D.), Joni Ernst (R-Iowa), Ron Johnson (R-Wis.), Roger Wicker (R-Miss.), Shelley Moore Capito (R-W.Va.) and Cindy Hyde-Smith (R-Miss.).
“Subchapter S community banks offer a variety of services in their communities to complement their core lending services,” the senators wrote. “These typically include trust and fiduciary services, insurance and securities brokerage, and wealth management. These are all services in demand in their communities and all are aspects of an integrated business model – community banking.”
“The rule under Section 199A should recognize a business model important to so many American communities,” the senators continued. “In particular, we believe that all of the income that community banks earn as federally insured depository institutions should be eligible for the deduction created by Section 199A. Treasury’s proposed rule would unreasonably force Subchapter S banks to choose between providing the full range of banking services needed in their communities and taking full advantage of the 199A deduction. This tax relief is critical to their continued independence.”
“ICBA and the nation’s community bankers thank Sen. Jerry Moran and other lawmakers for calling on the Treasury Department to ensure the new Subchapter S tax deduction is workable for community banks,” ICBA President and CEO Rebeca Romero Rainey said. “Congress intended tax reform to promote growth in local communities across the nation, including those served by roughly 1,900 Subchapter S community banks. Treasury should maximize access to this pro-growth tax deduction as Congress intended.”
Full text of the letter can be found here and below.
The Honorable Steven T. Mnuchin
Secretary
U.S. Department of the Treasury
1500 Pennsylvania Avenue, N.W.
Washington, D.C. 20220
Dear Secretary Mnuchin:
We write to ask you to revisit Treasury’s proposed regulation under Section 199A, particularly as it relates to community banks that have elected Subchapter S. We are hearing from many such banks in our states that the proposed rule does not reflect the intent of Congress to provide them with tax relief in the Tax Cuts and Jobs Act and is working at odds with the positive community bank reforms incorporated in the Economic Growth, Regulatory Relief, and Consumer Protection Act. We strongly believe the final regulation under Section 199A should fulfil the promise of these laws to promote growth and job creation in our communities.
Approximately 1,900 banks nationwide, or a third of all banks, have elected Subchapter S tax status. Over 75% of these Subchapter S community banks have assets under $300 million. They specialize in small business and agricultural lending and disproportionately serve rural markets. Subchapter S community banks offer a variety of services in their communities to complement their core lending services. These typically include trust and fiduciary services, insurance and securities brokerage, and wealth management. These are all services in demand in their communities and all are aspects of an integrated business model – community banking. The rule under Section 199A should recognize a business model important to so many American communities. In particular, we believe that all of the income that community banks earn as federally insured depository institutions should be eligible for the deduction created by Section 199A. Treasury’s proposed rule would unreasonably force Subchapter S banks to choose between providing the full range of banking services needed in their communities and taking full advantage of the 199A deduction. This tax relief is critical to their continued independence.
Community banks across the country have voiced their concerns that the de minimis thresholds of the proposed rule for revenues derived from specified service trades or businesses (SSTBs) are unreasonably low. Further, the definition of SSTBs should be more narrowly drawn and should exclude critical community bank services such as trust or fiduciary services, securities brokerage, and the origination and sale of mortgages and loans guaranteed by the Small Business Administration and U.S. Department of Agriculture. Loan sales allow community banks to increase lending in their communities while preserving their capital. This too is a critical part of the community bank business model. Finally, it is unclear what the consequence is for a Subchapter S bank that exceeds the de minimis thresholds. In our view, community banks should be allowed to segregate income rather than lose the deduction entirely.
Thank you in advance for taking a careful look at the 199A rule to ensure that it serves the purpose of strengthening Subchapter S community banks so that they can remain competitive, independent, and help strengthen American prosperity.
Sincerely,
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WASHINGTON – U.S. Senator Jerry Moran (R-Kan.) – member of the Senate Appropriations Subcommittee on Defense and Subcommittee on Military Construction, Veterans Affairs, and Related Agencies released the following statement after the Secretary of the Army announced the planned deployment of units from three Fort Riley 1st Infantry Division brigades:
“The upcoming deployments of thousands of Big Red One soldiers exemplifies the critical role of the First Infantry Division in the U.S. Army's engagements in Afghanistan and Europe. While news of deployments will always bring about mixed emotions for the soldiers, families and communities involved, the greater Big Red One community can take pride in the First Infantry soldiers who will be carrying out vital missions, and the country stands behind them. Deployments are a time when Kansans can reach out to soldiers and their families to express our gratitude for their sacrifice. The soldiers serving at Fort Riley have trained hard to be manned, equipped and ready to deploy, and I am confident they will serve the Army well around the globe.”
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WASHINGTON – U.S. Senator Jerry Moran (R-Kan.) and Representative Roger Marshall (KS-01) today applauded the decision by the U.S. Army to make Fort Riley the future home of an Explosive Ordinance Detection (EOD) battalion headquarters.
“I’m glad to see Fort Riley will be the home of an Explosive Ordnance Detection (EOD) battalion headquarters in the near future,” said Sen. Moran. “The headquarters expands the EOD mission on Fort Riley and highlights the contributions that Big Red One units will make to the future of Army readiness and lethality. This kind of growth of mission enablers reflects the Big Red One’s standing as the longest serving division in the U. S. Army. I am proud of the Army’s confidence and commitment in the Big Red One and will continue to work to make certain our soldiers are fully equipped and ready to face any mission.”
“I look forward to welcoming the EOD battalion headquarters at Fort Riley,” said Rep. Marshall. “Fort Riley continually lives up to its saying of the ‘best place to live, train, deploy from and come home to’ and it’s always good to see that recognized by the Army. Fort Riley’s loss of a Brigade Combat Team in 2012 is still felt, and this addition is a step in the right direction.”
"The Secretary of the Army made the decision to re-station the 79th Explosive Ordinance Disposal Battalion Headquarters to Fort Riley, Kansas,” said General Mark Milley, Chief of Staff of the U.S. Army. “This move will improve the overall EOD readiness of the U.S. Army. We know the Soldiers and Families will be in good hands as they transition to Kansas."
The consolidated EOD headquarters and additional battalion at Fort Riley will bring approximately 54 soldiers to the Greater Flint Hills region. The battalion will provide mission command for three companies that do not currently have a co-located EOD, and the realignment is one of the outcomes of the Total Army Analysis process that is soon to be released.
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WASHINGTON – U.S. Senators Jerry Moran (R-Kan.), Chris Coons (D-Del.), Patrick Leahy (D-Vt.), and John Boozman (R-Ark.) introduced a resolution in the Senate designating today as “World Food Day.”
Global hunger has been on the rise for the last three years, and an estimated 821 million people were undernourished in 2017. Each year, the United States joins 130 other nations and the Food and Agriculture Organization of the United Nations (FAO) in celebrating World Food Day to promote global awareness and action for those who suffer from chronic hunger and for the need to ensure food security and good nutrition for all. World Food Day also commemorates the founding of FAO on October 16, 1945.
The text of the resolution is available here.
“Today, on World Food Day, we must reinvigorate our commitment to ending hunger in the United States and around the globe,” said Senator Moran. “World Food Day is an opportunity to raise awareness and promote action for the one in every nine people who suffer from hunger. Hunger is an issue that transcends politics, and together we must remain committed to finding new and innovative ways to bolster food security and combat hunger. As the co-chair of the Senate Hunger Caucus, I’m proud to carry on Sen. Dole’s legacy and represent the compassionate spirit of Kansans and the farmers who help feed the world.”
“With global hunger on the rise, World Food Day is an important reminder of why the United States needs to sustain its investments in food security both at home and abroad. Congress recently affirmed the United States’ commitment to reducing hunger by reauthorizing the Global Food Security Act, which has led to increased agricultural productivity, efficiencies in our food aid program, and nutrition education,” said Senator Coons, a member of the Senate Foreign Relations Committee. “I am pleased to work with this bipartisan group of colleagues to recognize World Food Day and the work that still needs to be done to ensure that all people have access to quality food.”
“America has the talent, the bounty and the economic vitality to lead in ending hunger and malnutrition here and abroad. It’s woven into our values,” said Senator Leahy, vice chairman of the Appropriations Committee and a leading member of the Agriculture Committee. “I’m proud to celebrate World Food Day by continuing to work for the expansion and improvement of international food aid, nutrition and local food access programs. The McGovern-Dole International Food for Education and Child Nutrition program, Food for Progress, and Farm Bill nutrition and international food aid programs are some of the many ways we should build upon to address hunger and food access as we face protracted humanitarian crises across multiple continents.”
“World Food Day should be seen as a call to action for us all,” said Senator Boozman. “While hunger continues to rise around the globe, it is preventable and we are in a position to help. World Food Day raises awareness about the need to find solutions to the hunger crisis, both on a global scale and in our individual communities. The U.S. has made significant contributions to improve nutrition and agriculture worldwide, and we are committed to building on that progress to end global hunger.”
Vimlendra Sharan, the Director of the FAO Liaison Office in North America, said, “The United States and FAO share a vision for a hunger-free and healthy world that can be achieved together. The United States’ robust partnership with FAO is essential to achieving global hunger targets, alleviating rural poverty, and provides an invaluable return on investment for the U.S. We are grateful to see leaders in Congress continually striving for policies that effectively reduce hunger; and today I am pleased to join these members in highlighting the everyday actions that Americans can take and continue to take in order to eradicate hunger.”
U.S. Representatives Chellie Pingree (D-Maine), Lynn Jenkins (R-Kan.), Jim McGovern (D-Mass.), and David Young (R-Iowa) introduced a similar resolution in the U.S. House of Representatives.
To find out more ways you can take action to achieve a hunger-free world and celebrate World Food Day on October 16 and all year long, please visit http://www.fao.org/world-food-day.
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Kansas Delegation Calls on FCC to Restore USF High Cost Program’s Budget
“The insufficient and uncertain USF budget continues to hamper rural providers’ efforts to strategically invest in rural broadband”
Oct 15 2018
WASHINGTON – The Kansas congressional delegation today called on Federal Communications Commission (FCC) Chairman Ajit Pai to restore sufficiency and predictability to the Universal Service Fund (USF) High Cost program’s budget. The letter was signed by every member of the delegation, including U.S. Senators Jerry Moran (R-Kan.) and Pat Roberts (R-Kan.) and U.S. Representatives Roger Marshall (KS-01), Lynn Jenkins (KS-02), Kevin Yoder (KS-03) and Ron Estes (KS-04).
“Full funding of the program, as designed, helps ensure that rural Kansans have access to high-quality, affordable broadband and voice services comparable to those available in urban areas as mandated by the Telecommunications Act of 1996,” the members wrote. “These services are necessary if rural communities are to compete in a global economy. The insufficient and uncertain USF budget continues to hamper rural providers’ efforts to strategically invest in rural broadband at a time when the federal government has made rural broadband a national priority.”
“In Kansas, the budget control mechanism resulting from insufficient funding is estimated to eliminate support that carriers would otherwise have received for deployment of broadband by nearly $13,000,000 over the 2018-2019 twelve-month period,” the members continued. “As a result, providers need to postpone or even cancel broadband investments, which reduce the availability of rural broadband and increase consumer broadband rates in rural areas. These reductions also put at risk the ability of providers to pay back loans for investments already made. Nearly 50 percent of Kansas land mass is served by rural carriers, and their services remain invaluable to the rural communities they serve.”
Full text of the letter can be found here and below.
The Honorable Ajit Pai
Chairman
Federal Communications Commission
445 12th Street, S.W.
Washington, D.C. 20554
Dear Chairman Pai:
We write to urge immediate action by the Federal Communications Commission (FCC) to restore sufficiency and predictability to the Universal Service Fund (USF) High Cost program’s budget. Full funding of the program, as designed, helps ensure that rural Kansans have access to high-quality, affordable broadband and voice services comparable to those available in urban areas as mandated by the Telecommunications Act of 1996. These services are necessary if rural communities are to compete in a global economy.
The insufficient and uncertain USF budget continues to hamper rural providers’ efforts to strategically invest in rural broadband at a time when the federal government has made rural broadband a national priority. Therefore, we appreciated your commitment at the FCC oversight hearing held by the Senate Commerce, Science, and Transportation Committee on August 16, 2018, to take action by the end of the year.
As you are aware, the USF High Cost program remains a critical tool for millions of rural Americans along with the economic competitiveness of rural businesses that the program aims to serve. Additionally, all four of the universal service initiatives rely on the health of this program’s budget. However, the High Cost program’s budget has remained at stagnant levels since 2011. It remains critical that all components of the USF evolve with innovations in technology while also accounting for inflationary adjustments in future budgets. Accordingly, the FCC’s recent USF High Cost order and responses to its Further Notice of Proposed Rulemaking reinforce the need for sufficient and predictable support for the long-term health of the program.
In Kansas, the budget control mechanism resulting from insufficient funding is estimated to eliminate support that carriers would otherwise have received for deployment of broadband by nearly $13,000,000 over the 2018-2019 twelve-month period. As a result, providers need to postpone or even cancel broadband investments, which reduce the availability of rural broadband and increase consumer broadband rates in rural areas. These reductions also put at risk the ability of providers to pay back loans for investments already made. Nearly 50 percent of Kansas land mass is served by rural carriers, and their services remain invaluable to the rural communities they serve.
As mentioned in prior letters and in-person discussions emphasizing the importance of the USF High Cost program’s budget, we urge the FCC to establish a sufficient and predictable budget that will eliminate the digital divide of broadband availability and affordability while recognizing the long-term benefits that these assets provide. We appreciate the Commission’s thoughtful actions and acknowledgement of this vital program that assures affordable broadband for rural American consumers and businesses.
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WASHINGTON – U.S. Senator Jerry Moran (R-Kan.) – chairman of the Senate Commerce Subcommittee on Consumer Protection, Product Safety, Insurance, and Data Security – and U.S. Senators John Thune (R-S.D.), chairman of the Senate Committee on Commerce, Science, and Transportation, and Roger Wicker (R-Miss.), chairman of the Senate Commerce Subcommittee on Communications, Technology, Innovation, and the Internet, sent a letter today to Google CEO Sundar Pichai requesting a copy of an internal memo and answers about a security vulnerability placing private user information at risk. The memo, according to press reports, advocated against public disclosure of the vulnerability on grounds that it would attract the potential attention of regulators and Congress.
“As the Senate Commerce Committee works toward legislation that establishes a nationwide privacy framework to protect consumer data, improving transparency will be an essential pillar of the effort to restore Americans’ faith in the services they use,” the senators wrote. “It is for this reason that the reported contents of Google’s internal memo are so troubling.”
The letter requests the following information from Google:
- Please describe in detail when and how Google became aware of this vulnerability and what actions Google took to remedy it.
- An October 8, 2018, Google blog post stated that the company found no evidence of misuse of profile data as a result of this Google+ vulnerability. If Google discovers any such evidence in the future, will you commit to promptly informing this Committee, required law enforcement and regulatory agencies, and affected users?
- Why did Google choose not to disclose the vulnerability, including to the Committee or to the public, until many months after it was discovered?
- Did Google disclose the vulnerability to any federal agencies, including the Federal Trade Commission (FTC), prior to public disclosure?
- Did Google disclose the vulnerability to its Independent Assessor tasked with examining Google’s Privacy Program as part of the Agreement Containing Consent Order File No. 1023136 between Google and the FTC? If not, why not?
- Are there similar incidents which have not been publicly disclosed?
- Do you believe all users of free Google services who provide data to the company should be afforded the same level of notification and mitigation efforts as paid G Suite subscribers in the event of an incident involving their data?
- Please provide a copy of Google’s internal memo cited in the Wall Street Journal article.
The lawmakers’ letter requests that Google provide the requested information by October 30.
Click here for a copy of the letter.
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WASHINGTON – U.S. Senator Jerry Moran (R-Kan.) – member of the Senate Committee on Environment and Public Works – today applauded the passage of the bipartisan America’s Water Infrastructure Act of 2018, S.3021, by a 99-1 vote in the Senate. This legislation was passed unanimously last month by the U.S. House of Representatives.
“From flood protection to modernizing our drinking water systems, this legislation will address critical components of Kansas’ infrastructure that are far too often taken for granted,” said Sen. Moran. “Our farmers, ranchers and manufacturers rely on our ports and waterways for access to markets around the world. With more than 60 percent of our grain exports moving through America’s inland waterways, along with a multitude of other commodities and products, this legislation will benefit Kansas agriculture and stakeholders across a number of industries. In addition, by increasing local involvement and providing more feasible cost-sharing arrangements with Kansans, this legislation delivers much needed progress for more efficient and innovative solutions to address our infrastructure needs.”
The America’s Water Infrastructure Act supports the viability of water resources important to Kansas by increasing local stakeholder input in federal projects, providing protection from dangerous floodwaters, improving maintenance of federally-owned reservoirs and maintaining the navigability of inland waterways across the country. This legislation reauthorizes major water infrastructure financing programs, promotes the use of hydropower and assists local communities with updating their drinking water systems.
Highlights of the America’s Water Infrastructure Act for Kansans:
- Provides financial relief to Kansans for federally-owned and operated water resource projects, including Kansas farmers and local sponsors along the Missouri River.
- Expands local stakeholders’ roles in Army Corps projects by allowing local project sponsors to perform and be reimbursed for project activities that can be completed more efficiently and at a lower cost than the Federal government, while also increasing partnership opportunities with institutions of higher education for project delivery.
- Increases funding for certain Continuing Authorities Programs (CAP) that help Kansas communities initiate projects.
- Provides for an expedited feasibility study and future access to federal funding for an ecosystem restoration project on the Kansas River near Topeka.
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