What happened
California Governor Gavin Newsom signed SB 813 and AB 1405 into law, creating the first state-level framework for independent AI auditing and a registry for auditors.
On September 9, 2026, California Governor Gavin Newsom signed two bills, SB 813 and AB 1405, into law. According to the Transparency Coalition, these enactments create the nation’s first AI auditing framework. SB 813, authored by Senator Jerry McNerney, establishes a framework for independent verification organizations (IVOs) to assess AI systems and models for compliance with state law. AB 1405, authored by Assemblymember Rebecca Bauer-Kahan, creates a state registry for AI auditors and sets standards for their independence, transparency, and integrity.
The bills are described as establishing a legal compliance standard for AI that functions similarly to auditing systems in the financial sector. The legislation aims to facilitate independent third-party evaluation and audits, laying the foundation for greater transparency and accountability as AI systems become more embedded in critical sectors of the California economy and public life.
Source details: transparencycoalition.ai ↗
Why it matters
This legislation establishes a concrete legal mechanism for third-party verification of AI systems, moving beyond voluntary standards to a structured compliance model similar to financial auditing. It sets a precedent for state-level AI oversight in the absence of comprehensive federal regulation.
The creation of a state-mandated auditing framework represents a significant shift from voluntary industry guidelines to enforceable legal standards. By modeling the AI audit process on financial auditing, the legislation introduces a structured approach to verifying AI safety and compliance, which is currently a major gap in AI governance.
This move by California positions the state as a leader in AI regulation, particularly in the context of limited federal action. The framework provides a clear pathway for third-party organizations to verify AI systems, potentially influencing how other states and the federal government approach AI oversight in the future.
What to watch next
Monitor the implementation timeline for the auditor registry and the specific criteria for Independent Verification Organizations (IVOs) to be certified under the new law.
The next critical step is the operationalization of the state registry for AI auditors. Stakeholders should watch for the specific criteria and processes that will be used to certify Independent Verification Organizations (IVOs) under SB 813.
It is also important to monitor how these state-level requirements interact with existing federal regulations or future federal legislation, as Governor Newsom’s signing statement explicitly called for robust national regulations to match the urgency of the moment.