Investment Advisers Modernization Act of 2016

Floor Speech

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Mrs. TORRES. Mr. Speaker, I have a motion to recommit at the desk.

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Mrs. TORRES. I am opposed in its current form.

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Mrs. TORRES. Mr. Speaker, this is a final amendment to the bill, which will not kill the bill or send it back to committee. If adopted, the bill will immediately proceed to final passage, as amended.

Mr. Speaker, a June 26 New York Times article revealed some of the troubling consequences of private equity firms taking over local emergency services.

According to the article, since the 2008 financial crisis, private equity firms are investing in growing numbers in emergency services companies, sometimes with disastrous results. The piece found cases where emergency response times were so slow, personnel even had time for a cigarette break before arriving to the scene.

Some emergency services companies also reported mismanagement, specifically, that their parent companies are not able to pay their salaries or restock ambulances with critical medical supplies.

My amendment will make sure that there is accountability and transparency when private equity firms invest in emergency services. My amendment will not prohibit private equity funds from investing in these services or place any restrictions on how they choose to invest, nor will it deny the fact that private equity has and can play an important role in investing in companies in communities across our country. It would simply provide reassurance to our constituents that when they call 911, their lives won't be put at risk because their local fire or ambulance service wants to turn a profit.

This motion to recommit would require private equity firms to report the change in response time of emergency vehicles since the private fund acquired a controlling interest in the emergency services company. Additionally, the report will require data on the percent of emergency response times that violate contracts entered into by local governments and emergency services companies and include an explanation as to why response times did not meet requirements set out in such contracts.

At a time when local jurisdictions are struggling to make ends meet and the demands on emergency services are only growing, there is certainly a role for private equity firms to play in making sure our constituents have the services they need and expect. But if a private equity firm decides to invest in an emergency service company, they also take on the responsibility to provide those services to the best of their capacity.

As a former 911 dispatcher, I know that when it comes to getting emergency personnel to those in need, every second matters. There is no margin of error, and under absolutely no circumstances should profit come before saving lives.

I urge my colleagues to support this motion.

I yield back the balance of my time.

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Mrs. TORRES. Mr. Speaker, on that I demand the yeas and nays.

The yeas and nays were ordered.

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