California Bill Requires AG Approval Without Regard To Geographic Or Constitutional Limits

• Published date: 12 July 2022
• Subject Matter: Corporate/Commercial Law, Government, Public Sector, M&A/Private Equity, Corporate and Company Law, Constitutional & Administrative Law
• Law Firm: Allen Matkins Leck Gamble Mallory & Natsis LLP
• Author: Mr Keith P. Bishop

According to Vergil, Jupiter granted imperium sine fine (rule without limit) to the yet to be birthed City of Rome . Aeneid, Book 1, line 279. As far as I know, no divinity has made a similar bequest upon the State of California. Nonetheless, a bill now pending in the California legislature would seemingly grant such limitless authority to the California Attorney General with respect to health care related merger and acquisition transactions. See California Bill Would Require Prior Attorney General Approval Of These "Material" M&A Agreements.

If enacted, AB 2080 would, among other things, require a medical group, hospital or hospital system, health facility (as specified), health plan, health insurer, or pharmacy benefit manager (except as specified) to provide written notice to, and obtain written consent of, the Attorney General before entering into an agreement or transaction to either (i) sell, transfer, lease, exchange, option, encumber, convey, or otherwise dispose...