On August 30, 2026, the California Senate passed AB 1405 by 29 to 10 and the Assembly concurred in the Senate amendments by 60 to 6, sending the bill to engrossing and enrolling and on to Governor Newsom. Authored by Assemblymember Bauer-Kahan and titled “Artificial intelligence: auditors: registration,” the bill adds Chapter 5.9.5 to Part 1 of Division 3 of Title 2 of the Government Code.
The bill directs the Government Operations Agency to establish an AI Auditor Registry no later than January 1, 2029. Auditors that register must supply specified business and certification information, conduct audits in line with industry standards and widely recognised protocols, give the audited party a report setting out scope, results, and a signed compliance statement, maintain independence and avoid conflicts of interest, retain audit documentation for at least ten years, and display their registration number on advertising. The agency issues unique registration numbers, publishes auditor information, charges an annual fee capped at reasonable administrative cost, runs a misconduct reporting channel, and investigates alleged violations. Violations can lead to removal from the registry and referral to the Attorney General; for certified public accountants and accounting firms, the California Board of Accountancy handles investigations.
The significance is structural rather than substantive. A growing stack of AI laws in California, Colorado, Illinois, and the EU now depends on independent audits and third-party assessments, but until now nobody defined who is qualified to perform one. AB 1405 is the first US attempt to build that professional layer, and the long runway to 2029 is a tell about how immature the assurance market still is. For enterprises planning to satisfy audit obligations under other statutes, this is the beginning of a supply of accountable assessors, and eventually of a public record of who signed off on what.