AB 3129 Passes California Legislature, Targeting Private Equity Health Care Transactions and Granting AG Consent Right

Lexology September 7, 2024
Proskauer Rose LLP

On August 31, 2024, the California State Assembly and State Senate passed Assembly Bill 3129 (“AB 3129”). If signed by Governor Newsom, AB 3129 would establish a comprehensive transaction review law that (i) targets private equity firms and hedge funds, and (ii) grants the Attorney General explicit consent rights over covered transactions.

This bill marks a significant shift in the regulation of private equity and hedge fund investments in health care entities within the State, only months after the California Office of Health Care Affordability (“OHCA”) review process became effective. Unlike the OHCA review process which does not grant the State government affirmative rights to approve a transaction, AB 3129 grants the Attorney General such rights over a covered transaction,...

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