California Gov. Gavin Newsom vetoed legislation Saturday that would have required private equity firms and hedge funds to get approval from the state attorney general when acquiring certain health-care facilities.
The legislation (AB 3129) would have significantly expanded state oversight of transactions in a sector that has seen a spate of investment.
Business groups and some health providers argued the measure would make it more difficult to expand health-care services or keep some facilities open. Republican lawmakers also raised concerns about giving the state’s Democratic attorney general the power to attach conditions to such deals.
The veto is ...