Several states have either adopted or proposed new private equity laws that could have significant impacts on mergers and acquisitions in the ASC space. A bill currently awaiting final approval by California Governor Gavin Newsom would strengthen the state’s ban on the corporate practice of medicine and address the growing influence of private equity in healthcare. The bill also prohibits sale-leaseback arrangements involving private equity firms and requires healthcare organizations to disclose financial and operational details before finalizing major deals. The legislation was introduced May 13, following Los Angeles-based private equity firm Prospect Medical Holdings’ decision to close Upland, Pa.-based Crozer Health. Tina Kotek signed a bill June 9 that enacts the strictest regulatory framework in the country on private equity and corporate ownership of medical practices.