The Overview

If you work as an AI auditor in California, you will need to register with the state starting January 1, 2029, or you won't be allowed to conduct covered AI audits. California's Artificial Intelligence: Auditors: Registration bill, AB 1405 became law when Gov. Gavin Newsom (D) signed it Sept. 9. The California State Senate, District 5, described AB 1405 as creating a state registry for AI auditors. ​

What the Law Does

The Government Operations Agency must build and maintain an AI Auditor Registry on its website, issue each registrant a unique registration number, set annual fees, and publish registrant information publicly; that number must appear on all advertising for covered AI audit services.

Registered auditors must meet standards of independence and objectivity: they cannot seek or accept employment with a company they are auditing, and they cannot conduct an audit if a financial or business relationship could compromise their judgment. After completing an audit, they must give the audited company a report with a signed, dated statement confirming the audit followed the law's requirements.

The agency can investigate alleged violations; a violation is grounds for removal from the registry and referral to the Attorney General. Certified public accountants and accounting firms already licensed by the California Board of Accountancy are exempt from some reporting and independence requirements if they meet certain conditions.

Legislative Status

Asm. Rebecca Bauer-Kahan (D-CA-16) sponsored the law, with cosponsors Sen. Jerry McNerney (D-CA-5), Sen. Scott Wiener (D-CA-11), and Rubio.

The full Assembly passed it 62-4 on June 2, 2025. The Senate Appropriations Committee then held it for nearly a year, from Aug. 29, 2025, until Aug. 13, 2026. The Senate passed the amended bill 29-10 on Aug. 30, 2026, and the Assembly concurred 60-6 the same day.

Gov. Newsom said the law "establishes a mechanism for credible third-party auditing" and that "the auditors will be able to identify risks, verify claims, and hold developers to meaningful standards." The Business Software Alliance said it supported the goal of AI accountability but opposed the law, citing concerns about the audit regime.

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