Plain English Breakdown
The official text does not define what specific information must be provided during enrollment, only that it is required.
AB-1405: Rules for Enrolling and Managing AI Auditors
This law requires people who audit artificial intelligence systems to register with the Government Operations Agency, pay a fee set by January 1, 2027, follow rules about conflicts of interest, and allows the public to report their misconduct.
What This Bill Does
- Requires the Government Operations Agency to create an online system for AI auditors to enroll and for people to report auditor misconduct by January 1, 2027.
- Mandates that enrolled AI auditors pay a fee set by the agency and provide specific information before conducting audits starting January 1, 2027.
- Prohibits AI auditors from auditing companies they worked for in the last 12 months or accepting jobs with those companies within 12 months after an audit to prevent conflicts of interest.
- Requires agencies to publish auditor information online and keep specified reports as long as the auditor is enrolled plus 10 years, while sharing misconduct reports with other state agencies if needed for enforcement.
- Creates a new fund in the State Treasury called the AI Auditors' Enrollment Fund to hold money collected from fees.
Who It Names or Affects
- AI auditors who conduct covered audits of automated decision systems.
- The Government Operations Agency, which manages the enrollment and reporting system.
- Companies or entities that are being audited (auditees).
- Members of the public who may report misconduct by enrolled AI auditors.
Terms To Know
- AI auditor
- A person required to enroll with the state agency before conducting a covered audit.
- Automated decision system
- A computer process using AI or data analytics that makes scores, classifications, or recommendations affecting people's lives.
- Covered audit
- An official review of an automated decision system that requires the auditor to be enrolled with the state agency.
Limits and Unknowns
- The specific amount for the enrollment fee has not been set yet and will be decided by January 1, 2027.
- Funds collected in the new account cannot be used until the Legislature approves their spending.