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CaliforniaSB 3512025-2026 Regular SessionSenateWALLET

Health facilities.

Sponsored By: Christopher Cabaldon (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 3 benefits, 0 costs, 0 mixed.

Defines private equity and hedge funds

The law defines which investors count as a hedge fund or private equity group for these rules. It excludes passive funders, lenders secured only by assets, hospitals and their affiliates, and public agencies. These definitions decide which investors must follow the limits on contracts and clinical control.

Doctors and dentists control care decisions

The law keeps clinical decisions with licensed doctors and dentists. Private equity groups and hedge funds cannot direct tests, referrals, treatment, patient volume, or work hours. They also cannot control records content, hiring for clinical skill, coding and billing, or equipment and supply choices. Any contract that gives them these powers is void. This applies to any practice business form in California. Unlicensed firms may advise, but clinicians must approve decisions. The Attorney General can seek court orders and recover fees.

No noncompetes or gag clauses in private equity deals

Contracts to manage or sell a physician or dental practice to private equity or hedge funds cannot block a provider from competing after leaving. They also cannot ban comments about care quality, use, ethics, or revenue tactics. Any forbidden clause is void and unenforceable. Sale-of-business noncompetes can still be valid, and contracts may protect true trade secrets, without blocking legally required disclosures.

Sponsors & Cosponsors

Sponsor

  • Christopher Cabaldon

    Democratic • Senate

Cosponsors

  • Catherine Blakespear

    Democratic • Senate

  • Darshana R. Patel

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 287 • No: 13

Senate vote • 9/13/2025

Item 123 — Senate SFLOOR

Yes: 32 • No: 3

House vote • 9/12/2025

Item 75 — Assembly AFLOOR

Yes: 80 • No: 0

House vote • 8/29/2025

Item 42 — Assembly AFLOOR

Yes: 72 • No: 0

legislature vote • 7/16/2025

Vote in CX25

Yes: 13 • No: 0

legislature vote • 7/1/2025

Vote in CX13

Yes: 12 • No: 0

legislature vote • 6/24/2025

Vote in CX33

Yes: 16 • No: 0

Senate vote • 5/28/2025

Item 146 — Senate SFLOOR

Yes: 30 • No: 6

legislature vote • 5/23/2025

Vote in CS61

Yes: 5 • No: 1

legislature vote • 5/12/2025

Vote in CS61

Yes: 7 • No: 0

legislature vote • 4/29/2025

Vote in CS53

Yes: 11 • No: 2

legislature vote • 4/21/2025

Vote in CS42

Yes: 9 • No: 1

Actions Timeline

  1. Chaptered by Secretary of State. Chapter 409, Statutes of 2025.

    10/6/2025Senate

  2. Approved by the Governor.

    10/6/2025legislature

  3. Enrolled and presented to the Governor at 2 p.m.

    9/23/2025legislature

  4. Assembly amendments concurred in. (Ayes 32. Noes 3. Page 3023.) Ordered to engrossing and enrolling.

    9/13/2025Senate

  5. In Senate. Concurrence in Assembly amendments pending.

    9/12/2025Senate

  6. Read third time. Passed. (Ayes 80. Noes 0. Page 3407.) Ordered to the Senate.

    9/12/2025House

  7. Ordered to third reading.

    9/8/2025House

  8. Read third time and amended.

    9/8/2025House

  9. Joint Rule 61(a)(13) suspended. (Ayes 58. Noes 20. Page 2974.)

    9/8/2025House

  10. Ordered to third reading.

    9/8/2025House

  11. (Ayes 54. Noes 20. Page 2973.)

    9/8/2025House

  12. Action rescinded whereby bill was read third time, passed, and ordered to the Senate.

    9/8/2025

  13. In Assembly. Held at Desk.

    9/3/2025House

  14. Ordered to the Assembly.

    9/2/2025Senate

  15. In Senate. Concurrence in Assembly amendments pending.

    8/29/2025Senate

  16. Read third time. Passed. (Ayes 72. Noes 0. Page 2792.) Ordered to the Senate.

    8/29/2025House

  17. Read third time and amended.

    8/25/2025House

  18. Ordered to third reading.

    8/25/2025House

  19. Read second time. Ordered to third reading.

    7/17/2025House

  20. From committee: Do pass. (Ayes 13. Noes 0.) (July 16).

    7/16/2025House

  21. From committee: Do pass and re-refer to Com. on APPR. (Ayes 12. Noes 0.) (July 1). Re-referred to Com. on APPR.

    7/2/2025House

  22. From committee: Do pass and re-refer to Com. on JUD. (Ayes 16. Noes 0.) (June 24). Re-referred to Com. on JUD.

    6/24/2025House

  23. From committee with author's amendments. Read second time and amended. Re-referred to Com. on B. & P.

    6/16/2025House

  24. Referred to Coms. on B. & P. and JUD.

    6/5/2025House

  25. In Assembly. Read first time. Held at Desk.

    5/28/2025House

Bill Text

  • Chaptered

    10/6/2025

    HTML

  • Enrolled

    9/18/2025

    HTML

  • Amended Assembly

    9/8/2025

    HTML

  • Amended Assembly

    8/25/2025

    HTML

  • Amended Assembly

    6/16/2025

    HTML

  • Introduced

    2/12/2025

    HTML

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