News Summary
New York State has introduced AB 9042, a bill aimed at regulating transactions in veterinary clinics. This legislation mandates that veterinary clinics notify the Attorney General’s office before significant financial activities. The bill allows the Attorney General to block transactions deemed contrary to the public interest, reflecting a proactive approach to protect the public in the veterinary sector.
New York State has taken a significant step towards regulating transactions in veterinary clinics with the introduction of a new bill aimed at protecting the public interest. The bill, entitled Disclosure of Material Changes to Veterinary Clinics (AB 9042), was proposed by the New York State Assembly and seeks to enhance oversight of veterinary transactions across the state.
AB 9042 mandates that veterinary clinics notify the state Attorney General’s office and submit key documentation prior to certain financial transactions. The legislation empowers the Attorney General to prohibit acquisitions of veterinary clinics that are determined to be contrary to the public interest. This move mirrors New York’s existing Healthcare Material Transaction Law, which will come into effect on August 1, 2023.
This new bill proposes the establishment of a new Article 26-D within the Agriculture and Markets Law, focusing specifically on the scrutiny of transactions in the veterinary sector. Under the new regulations, acquiring entities of veterinary clinics must provide written notice and detailed documentation regarding any “material change” to the Department of Agriculture and Markets. This notice is required no later than 14 days after an agreement is made and must be submitted before the closing of the transaction.
The definition of a “material change” in the context of this bill covers several significant financial activities. These include the sale, transfer, lease, or encumbrance of clinic assets valued at $200,000 or more; mergers, acquisitions, or contractual affiliations with other veterinary organizations; and any significant capital distribution that could affect equity capital.
One of the notable aspects of the bill is that all documentation submitted to the Attorney General’s office will be exempt from the state’s Freedom of Information Law. This exemption ensures that sensitive information about business transactions and financial health is protected. Required documentation may include governance documents, transaction papers, financial statements, asset valuations, organizational charts, lists of litigation, and records of prior investments in healthcare entities.
Unlike the existing PHL Article 45-A, AB 9042 enhances the authority of the Attorney General by allowing the office to block transactions that are deemed harmful to public interest. The Attorney General must reach a determination on whether a transaction violates public interest within 90 days of receiving the necessary documentation. If the conclusion indicates potential harm, the parties involved will be informed, potentially leading them to withdraw voluntarily from the transaction.
If no action is taken by the Attorney General within the 90-day review period, the transaction may proceed as planned. The bill highlights that the review process will be more thorough, taking into account the lower dollar threshold compared to current regulations and evaluating factors that affect public interest.
For potential acquirers of veterinary clinics, this means that they will need to prepare comprehensive diligence files and include the 90-day review process by the Attorney General in their transaction timelines. As this bill progresses through the legislative process, significant changes may be on the horizon for how transactions in the veterinary field are conducted in New York State.
The introduction of AB 9042 reflects a proactive stance by state officials to ensure that the interests of the public are prioritized in the veterinary sector, potentially transforming the landscape of veterinary clinic ownership and operations across the state.
Deeper Dive: News & Info About This Topic
- Veterinary Practice News
- CBS News
- The New York Times
- CNBC
- Today’s Veterinary Business
- Wikipedia: Veterinary Medical Association
- Google Search: Veterinary Telemedicine
- Google Scholar: Veterinary Regulations
- Encyclopedia Britannica: Veterinary Medicine
- Google News: Veterinary Clinic Regulations
Author: STAFF HERE NEW YORK WRITER
NEW YORK STAFF WRITER The NEW YORK STAFF WRITER represents the experienced team at HERENewYork.com, your go-to source for actionable local news and information in New York, the five boroughs, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as New York Fashion Week, Macy's Thanksgiving Day Parade, and Tribeca Film Festival. Our coverage extends to key organizations like the Greater New York Chamber of Commerce and United Way of New York, plus leading businesses in finance and media that power the local economy such as JPMorgan Chase, Goldman Sachs, and Bloomberg. As part of the broader HERE network, including HEREBuffalo.com, we provide comprehensive, credible insights into New York's dynamic landscape.
