California has taken another significant step in regulating artificial intelligence with the signing of Senate Bill 813 (SB 813) and Assembly Bill 1405 (AB 1405) on September 9, 2026. Together, the new laws establish a framework for independent third-party evaluation and auditing of artificial intelligence systems. SB 813 establishes a framework for independent verification organizations, while AB 1405 creates a state registry for AI auditors and establishes standards concerning their independence, transparency, and integrity. The legislation adds another component to California’s developing regulatory framework for artificial intelligence and reflects the state’s increasing focus on independent oversight, transparency, and accountability as AI technology becomes more widely used.
The new laws are particularly relevant to companies involved in developing, evaluating, auditing, or providing services related to artificial intelligence. California’s new framework creates a more formal role for independent organizations and auditors in the evaluation of AI systems. Businesses operating in this area should monitor implementation of the new laws and consider how evolving oversight standards may affect their operations and contractual relationships. Agreements involving AI technology, auditing, verification, or related services may also warrant review as California develops the standards and processes that will govern this new oversight framework.
California has already taken additional action following the enactment of the new laws. On September 18, 2026, Governor Gavin Newsom issued an executive order directing the California Government Operations Agency to accelerate implementation of SB 813 and AB 1405 and to convene experts to recommend potential changes that could further strengthen state law. Among the proposals to be evaluated are additional independent verification requirements and an emergency shutoff mechanism for certain frontier AI models. These proposals are not currently requirements under California law, but they demonstrate that the state’s approach to AI oversight continues to develop rapidly. Businesses involved with artificial intelligence should continue monitoring these developments and evaluate how future requirements may affect their operations, compliance practices, and technology-related agreements. Legal counsel can assist businesses in evaluating applicable requirements and preparing for changes as California’s AI regulatory framework develops.
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