Source: Quasa.io

California Governor Gavin Newsom signed SB 813 and AB 1405 on September 9, 2026, establishing two separate legal tracks for independent assessment of AI: SB 813 creates a state-designated independent verification organization (IVO) status, while AB 1405 establishes a public registry and operating rules for auditors who perform a defined category of California “covered audits.” The statutes do not immediately compel every AI developer or vendor to obtain an audit; the law requires the Government Operations Agency to build the designation and registration systems first. The agency must publish IVO application requirements, qualification criteria, and procedures for suspension or termination by January 1, 2028, and must create the public registry, fee structure, and misconduct-reporting mechanism no later than January 1, 2029.

SB 813 directs the agency to assess factors such as technical expertise, conflict management, and operational independence when designating IVOs, and specifies that compensation may not depend on the assessment outcome. The agency must convene working groups including engineers from competing AI firms and AI-safety experts, and designated IVOs will have ongoing reporting duties about standards, methodologies, governance and funding. AB 1405 defines a “covered audit” narrowly as an audit of controls, processes or systems necessary for compliance with California law, requires registered auditors to provide defined report contents and to use recognized standards where available, and embeds baseline independence duties in statute (e.g., no self-review, no accepting engagements with impairing financial relationships, and no employment pursuits during an engagement). The Government Operations Agency will administer both systems, and the California Board of Accountancy has a complaint-investigation role when a qualifying accountant or accounting firm is involved.