Update: Governor Newsom Vetoes California’s AB 3129 Targeting Healthcare Privat Equity Deals
On September 28, 2024, Governor Newsom vetoed Assembly Bill No. Our AB 3129 blog series provides more information on the background, evolution, and projected impact of AB 3129. In his Veto Message Governor Newsom noted the Office of Health Care Affordability’s (OHCA) mission to review mergers and acquisitions involving healthcare entities, as well as analyze health care consolidation. Governor Newsom also mentioned that OHCA already has the authority to refer transactions to the Attorney General for further review, if needed. Governor Newsom also mentioned OHCA is already equipped with the authority to refer transactions to the Attorney General for further review, if needed.[1]
Ultimately, this means that for now, parties to health care transactions in California will not face the regulatory hurdles which would have been implemented by AB 3129, but will still need to assess the applicability of and potentially navigate OHCA’s cost and market impact review regime in consummating such transactions.
We will continue to track the emergence and development of similar bills across the country and post updates on any private-equity-specific requirements.
FOOTNOTES
Blog series:
[1]California’s AB 3129: A New Hurdle for Private Equity Health Care Transactions on the Horizon? | Healthcare Law Blog (sheppardhealthlaw.com), published April 18, 2024.
- Update: California State Assembly Passes AB 3129 Requiring State Approval of Private Equity Healthcare Deals | Healthcare Law Blog (sheppardhealthlaw.com), published May 30, 2024.
- Update: AB 3129 Passes in California Senate and Nears Finish Line | Healthcare Law Blog (sheppardhealthlaw.com), published September 6, 2024.
