EveryAILaw.comDoes EO 14365 — Ensuring a National Policy Framework for Artificial Intelligence require Transparency & Disclosure?
United States • enforcing
Yes — 1 provision
Requirements at a glance
This regulation imposes 5 specific requirements for Transparency & Disclosure across 1 provision:
- State law evaluation — Commerce must publish an evaluation of existing state AI laws within 90 days identifying "onerous laws that conflict" with the § 2 policy and laws to refer to the § 3 Task Force; at minimum it must identify laws requiring AI models to alter truthful outputs or compelling disclosure in a manner violating the First Amendment (§ 4)
- BEAD funding restriction — Commerce, through NTIA, must issue within 90 days a BEAD Policy Notice providing that states with onerous AI laws identified under § 4 are ineligible for **non-deployment** funds, to the maximum extent allowed by federal law (§ 5(a))
- Discretionary grant conditioning — Agencies must assess whether their discretionary grant programs may be conditioned on states not enacting conflicting AI laws, or on a binding non-enforcement agreement for states that already have them (§ 5(b))
- FCC proceeding — FCC Chairman must initiate a proceeding, within 90 days of the § 4 evaluation, on whether to adopt a federal AI reporting and disclosure standard preempting conflicting state laws (§ 6)
- FTC preemption statement — FTC Chairman must issue a policy statement within 90 days on when state laws requiring alterations to truthful AI outputs are preempted by the FTC Act's prohibition on deceptive acts or practices, 15 U.S.C. 45 (§ 7)
Commerce Evaluation of State AI Laws #
Directs the Secretary of Commerce to evaluate existing state AI laws within 90 days and identify those that conflict with federal objectives. A companion BEAD Policy Notice (§ 5(a)) makes states with those laws ineligible for BEAD non-deployment funds — not BEAD funding as a whole — and § 5(b) extends the same leverage to agency discretionary grants. Section 7 directs the FTC to issue a policy statement on how the FTC Act preempts state laws mandating alterations to truthful AI outputs, and § 6 directs the FCC to open a proceeding on a preemptive federal reporting and disclosure standard. No direct obligations for AI developers — but the evaluation results will shape which state laws survive federal challenge.
Requirements
| Requirement | Details |
|---|---|
| State law evaluation | Commerce must publish an evaluation of existing state AI laws within 90 days identifying "onerous laws that conflict" with the § 2 policy and laws to refer to the § 3 Task Force; at minimum it must identify laws requiring AI models to alter truthful outputs or compelling disclosure in a manner violating the First Amendment (§ 4) |
| BEAD funding restriction | Commerce, through NTIA, must issue within 90 days a BEAD Policy Notice providing that states with onerous AI laws identified under § 4 are ineligible for **non-deployment** funds, to the maximum extent allowed by federal law (§ 5(a)) |
| Discretionary grant conditioning | Agencies must assess whether their discretionary grant programs may be conditioned on states not enacting conflicting AI laws, or on a binding non-enforcement agreement for states that already have them (§ 5(b)) |
| FCC proceeding | FCC Chairman must initiate a proceeding, within 90 days of the § 4 evaluation, on whether to adopt a federal AI reporting and disclosure standard preempting conflicting state laws (§ 6) |
| FTC preemption statement | FTC Chairman must issue a policy statement within 90 days on when state laws requiring alterations to truthful AI outputs are preempted by the FTC Act's prohibition on deceptive acts or practices, 15 U.S.C. 45 (§ 7) |
Penalties
| Violation | Fine |
|---|---|
| N/A | No penalties on AI companies. States identified under § 4 lose eligibility for BEAD non-deployment funds and may face conditions on agency discretionary grants. |