On September 28, 2024, Governor Newsom vetoed Meeting Invoice No. 3129 (AB 3129), which might have required non-public fairness teams and hedge funds to acquire the Legal professional Normal’s written consent at the least 90 days previous to acquisitions or adjustments of management of sure well being care amenities, supplier teams, and different suppliers. Extra data on the background, evolution, and projected affect of AB 3129 is on the market at our AB 3129 weblog sequence.[1]
In his Veto Message, Governor Newsom famous that the Workplace of Well being Care Affordability (OHCA) was established to evaluation mergers, acquisitions, and company affiliations involving healthcare entities and to research well being care consolidation. In line with Governor Newsom, AB 3129 would improperly relocate sure non-public fairness group or hedge fund transactions from OHCA’s purview to that of the Legal professional Normal, and thereby create inefficiencies. Governor Newsom additionally talked about OHCA is already geared up with the authority to refer transactions to the Legal professional Normal for additional evaluation, if wanted.
Finally, which means that for now, events to well being care transactions in California is not going to face the regulatory hurdles which might have been applied by AB 3129, however will nonetheless have to assess the applicability of and probably navigate OHCA’s value and market affect evaluation regime in consummating such transactions.
We’ll proceed to trace the emergence and growth of comparable payments throughout the nation and publish updates on any private-equity-specific necessities.
FOOTNOTES
[1] Weblog sequence:
