AB-1405 Artificial intelligence: auditors: registration
Oct 11, 2026 edition · GC-2026-0061 · Published 2026-10-11 · Version 3 · Final
AB 1405 creates a California registration framework for third-party AI auditors, with the registration gate beginning January 1, 2029. Covered audits concern state-law compliance controls. The chaptered law also addresses audit reporting, evidence retention, independence, advertising, and misconduct reporting.
What happened
AB 1405 was chaptered September 9 as Chapter 178 and directs the Government Operations Agency to establish an AI Auditor Registry by January 1, 2029. Beginning that day, a person may not offer, sell, or conduct a covered AI audit without registration. An AI auditor is a person, partnership, or corporation assessing an AI system or model for a third party; a covered audit assesses internal controls, processes, or systems necessary for compliance with state law. The agency must issue registration numbers and publish registry information, with a statement that registration is not a state recommendation or endorsement.
Registered auditors must supply clients with reports addressing scope, results and their basis, relevant deficiencies, audit limitations, and material evidence or access gaps, with a signed and dated compliance statement. Reports and supporting documentation must be retained for at least ten years. The law also addresses conflicts, self-review, employment relationships, staff competence, and employee misconduct disclosures, and requires registration numbers on covered-audit advertising. Qualified public-accountancy professionals can satisfy specified reporting and independence requirements through applicable professional standards when the statutory conditions are met; that treatment does not remove the registration requirement.
Scope and timing
- Authority status
- Final
- Applicability
- Operationally relevant
- Audience
- Health systems, Provider networks, Health-tech
- Jurisdiction
- California
- Recorded date
- 2029-01-01
- Date type
- compliance
Why it matters
Organizations that sell or perform covered AI audits in California need to determine whether the new registry and registration requirement reaches their services before January 1, 2029.
Recommended action
Determine whether the organization offers or conducts a covered AI audit in California. If it does, assign Legal and Compliance to track the Government Operations Agency registry, confirm the final definition and registration process, and prepare for the January 1, 2029 registration requirement.
Sources
- AB-1405 Artificial intelligence: auditors: registration, bill historyOfficial · California Legislature · 2026-09-09 · Source review 2026-09-10
- AB-1405 Artificial intelligence: auditors: registration, current bill text (09/09/26 - Chaptered)Official · California Legislature · 2026-09-09 · Source review 2026-09-10
- AB1405 current official textOfficial · California Legislature · 2026-09-09 · Source review 2026-10-11
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