Structural separation

(a) Definitions (1) Applicable ai company; applicable ai trade or business The terms applicable AI company and applicable AI trade or business have the meanings given those terms, respectively, in section 5000E of the Internal Revenue Code of 1986 (as added by section 3 of this Act). (2) Structural separation The term structural separation, with respect to an applicable AI company, means adoption of an operating structure under which the applicable AI company— (A) does not conduct any business that is not an applicable AI trade or business; (B) does not hold equity in, provide credit to, or otherwise provide financing to any business other than the applicable AI trade or business; (C) is not held by any entity engaged in any business other than the applicable AI trade or business; (D) does not share any officer or director with any entity that is not an applicable AI company; and (E) does not participate in any joint ventures with an entity that is not an applicable AI company. (b) Structural separation required The Federal Trade Commission shall require that each applicable AI company complete structural separation— (1) with respect to an applicable AI company in existence on the date of enactment of this Act, not later than 90 days after the date of enactment of this Act; and (2) with respect to an applicable AI company established on or after the date of enactment of this Act, not later than 90 days after meeting the definition of an applicable AI company.