California Gov. Gavin Newsom signed two bills Wednesday creating a legal framework for independent third-party audits of artificial intelligence systems. The legislation arrives as state agencies expand their own use of AI tools for resident services, while vendors face tighter scrutiny for bias and civil rights risks.
SB 813 establishes a framework for independent verification organizations that can assess AI systems and models for compliance with state law. AB 1405 creates a state registry for AI auditors and sets standards for their independence, transparency, and integrity, according to Newsom's office.
"The concerns raised in recent incidents reinforce what California has long recognized: artificial intelligence holds extraordinary promise, but it must be developed and deployed with meaningful safeguards to protect the public," Newsom said in a statement.
California's expanding regulatory stack
The audit framework adds to California's existing AI rules, which include requirements for frontier AI developers to disclose safety practices and report certain incidents. The state also regulates AI-generated content and automated decision-making systems.
For government professionals tracking state-level AI policy, this continues a pattern that includes Illinois' Artificial Intelligence Safety Measures Act, signed by Gov. JB Pritzker in July. That law mandates annual independent third-party audits for major frontier AI developers. Pritzker said states "have a responsibility to protect our people from the dangers of AI while still harnessing the unique potential of the technology" given federal inaction.
The AI for Government regulatory picture now varies significantly by state, with California and Illinois setting the most prescriptive audit requirements to date.
State agencies are also AI users
California's audit requirements come as the state expands its own AI deployments. The state recently launched AskCA, an AI-powered assistant designed to help residents navigate government services. Agencies have gained access to Anthropic's Claude tools, and state employees have been testing the internally developed Poppy assistant.
The state has also moved to strengthen oversight of AI vendors seeking contracts, requiring them to address risks including bias, civil rights violations, and harmful content. The new auditor registry creates a parallel accountability mechanism for the systems those vendors deploy.
Newsom called on the federal government to pass nationwide regulations. "California has taken nation-leading action to advance AI safety, transparency, accountability, and responsible innovation, but the scale and potential consequences of this technology demand sustained action from every level of government," he said.
Why this matters for government professionals
If you manage AI systems, procure them, or oversee vendor contracts in a state agency, third-party audits are no longer a hypothetical. California's registry will set qualification standards for auditors, and vendors doing business with the state should expect compliance reviews as part of procurement. For policy staff, the AI Learning Path for Policy Makers provides grounding in the technical concepts behind these regulatory frameworks. Agencies in other states should watch how California's auditor registry operates in practice - it may become the template for similar laws elsewhere.
Your membership also unlocks:
