California Governor Gavin Newsom vetoed AB 3129 on September 28, 2024. AB 3129 would have required private equity groups and hedge funds to notify, and receive the consent of, the California Attorney General for certain investments involving health care facilities, provider groups and providers doing business in California. In vetoing AB 3129, Gov. Newsom noted the Office of Health Care Affordability (OHCA) presently has authority under California law to analyze healthcare transactions that may significantly impact market competition or affordability. Rather than expanding the Attorney General’s authority as AB 3129 proposed, Gov. Newsom stated that it would be more appropriate for the State to rely on OHCA to oversee these transactions. The California legislature could attempt to override Gov. Newsom’s veto, but such a development is unlikely.
Gov. Newsom’s veto statement may be found here.
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