Spurred by the Trump administration’s deregulatory actions, states appear poised to promulgate bills aimed at regulating healthcare investments, with some states—such as California—explicitly targeting private equity (“PE”). On February 12, 2025, California Senator Christopher Cabaldon introduced Senate Bill 351 (“SB 351” or the “proposed bill”), which aims to broaden the state’s existing corporate practice of medicine (“CPOM”) restrictions, placing limitations on PE’s role in practice management. Stakeholders will find the text of the proposed bill familiar: SB 351 revives a portion of last year’s controversial Assembly Bill 3129 (“AB 3129”) which, despite undergoing extensive revisions, was ultimately vetoed last September by Governor Gavin Newsom.
Authors: Andrew L. Bab, Partner; Jennifer L. Chu, Partner; Kevin Rinker, Partner; Kim T. Le, Counsel; Hannah R. Levine, Associate; and Mackenzie Mendolla, Associate
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Last updated: February 28, 2025