California Gov. Newsom signs two bills to create nation’s first AI auditing framework
California Gov. Gavin Newsom, seen here at a ceremony earlier this month, has signed legislation to create the nation’s first AI auditing framework. It’s a key component of AI safety and transparency.
Sept. 9, 2026 — Earlier today California Gov. Gavin Newsom signed two bills that will create the nation’s first AI auditing framework.
The enactment of SB 813 and AB 1405 represents a big step forward in the establishment of a legal compliance standard for AI that would act similar to the auditing systems that operate in the financial world.
Gov. Newsom signed SB 813, authored by Sen. Jerry McNerney (D-Pleasanton), which establishes a first-in-the-nation framework for independent verification organizations (IVOs) that can assess AI systems and models for compliance with state law.
Newsom also also signed AB 1405, authored by Assm. Rebecca Bauer-Kahan (D-Orinda), creating a state registry for AI auditors and establishing standards for their independence, transparency, and integrity.
Together, the bills establish a framework for independent third-party evaluation and audits, laying the foundation for greater transparency and accountability as AI becomes increasingly embedded in critical sectors of California’s economy and public life.
A big win for accountability and transparency
“California has taken nation-leading action to advance AI safety, transparency, accountability, and responsible innovation,” said Gov. Newsom in a signing statement, “but the scale and potential consequences of this technology demand sustained action from every level of government.”
He added: “The federal government must step forward with robust, national regulations that match the urgency of this moment.”
Sen. McNerney pointed to the urgent need for AI safety and accountability. “Just this week we learned that the most powerful AI systems teamed with AI agents pose real threats to humanity,” he said. “Gov. Newsom’s signing of SB 813 sends a clear message that California is taking the lead on assessing AI’s safety risks, since Washington, D.C., is unable or unwilling to do so.”
‘Essential to ensuring ai is safe for our communities’
Assemblymember Rebecca Bauer-Kahan, seen here at an event earlier this summer, has been working on AB 1405 since early 2025.
Asm. Bauer-Kahan added:
“We cannot expect industry to simply grade its own homework; third-party auditors are essential to ensuring AI is safe for our communities and critical infrastructure.”
“The auditors will be able to identify risks, verify claims, and hold developers to meaningful standards. AB 1405 is groundbreaking legislation that for the first time establishes a mechanism for credible third-party auditing, laying the groundwork for meaningful oversight of the AI technologies that touch our lives every day.”
Working with nonprofits to move the bills
Sen. McNerney and Asm. Bauer-Kahan have been working for the past two years to craft the right IVO mechanism and pass the two measures.
A number of nonprofit AI policy groups worked with the legislators and their colleagues, including Fathom, the California Initiative for Technology and Democracy, Encode, the Transparency Coalition, Omidyar Network, and TechEquity Action.
Sen. McNerney also noted that the establishment of independent, third-party evaluations of AI was one of the primary recommendations of Gov. Newsom’s blue-ribbon panel on AI. That panel’s report was issued in June 2025 and can be found here.
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