California Enacts AB 1405, Requiring AI Auditors to Register With the State From January 1, 2029

Assembly Bill 1405 (Bauer-Kahan) was approved by the Governor and filed with the Secretary of State on September 9, 2026 as Chapter 178, Statutes of 2026, adding Chapter 5.9.5 (commencing with Section 11549.80) to Part 1 of Division 3 of Title 2 of the Government Code. The chapter requires the Government Operations Agency to establish an AI Auditor Registry no later than January 1, 2029 and, commencing that date, prohibits an unregistered person from offering, selling, or conducting a covered AI audit. Registered auditors must display a unique registration number on advertising materials that offer or solicit covered AI audit services, adhere to standards of independence, objectivity, and integrity, and give each auditee a report carrying a signed and dated statement that the audit followed the chapter. The agency may investigate alleged violations, remove an auditor from the registry, and refer the matter to the Attorney General. Accountants and firms holding a permit from the California Board of Accountancy are conditionally exempted from parts of the reporting and independence provisions.

Related: Transparency in Frontier Artificial Intelligence Act (TFAIA)

Source: leginfo.legislature.ca.gov