Governor vetoes private equity bill that would have affected healthcare transactions

Governor vetoes private equity bill that would have affected healthcare transactions
McKnight's Senior Living; by Kathleen Steele Gaivin; 10/1/24
California Gov. Gavin Newsom (D) on Saturday vetoed a bill that would have required private equity firms and hedge fund organizations in the state to provide advance notice to the state’s attorney general of acquisitions or changes in control. The bill would have given the attorney general authority to grant, deny or impose conditions on a proposed transaction, after determining the likelihood of anticompetitive effects, “including a substantial risk of lessening competition or of tending to create a monopoly, or may create a significant effect on the access or availability of healthcare services to the affected community.” The governor’s veto “was a surprise to many in the healthcare industry,” Arent Fox Schiff attorneys wrote for the National Law Review.