On Saturday, September 28, California Gov. Gavin Newsom vetoed a controversial bill that would have restricted private equity and hedge fund healthcare transactions in the state. 

AB 3129 would have authorized the California Attorney General to deny or conditionally approve healthcare entity transactions involving private equity and hedge funds that, in the CA AG's view, diminish competition, reduce healthcare access, or harm the public interest. 

Newsom, in vetoing the bill, indicated that the Office of Health Care Affordability (OHCA) already analyzes healthcare transactions for their impacts on competition or affordability.

“While OHCA itself cannot block a proposed transaction, it can coordinate with other state entities, including referring transactions for further review to the AG,” he wrote to lawmakers in a letter explaining his reasoning.