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Arkansas House Bill HR1020

Arkansas 2024 Regular Session

Arkansas House Bill HR1020 Compare Versions

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44 State of Arkansas 1
55 94th General Assembly 2
66 Fiscal Session, 2024 HR 1020 3
77 4
88 By: Representative J. Moore 5
99 6
1010 HOUSE RESOLUTION 7
1111 TO AUTHORIZE THE INT RODUCTION OF A NONAPPROPRIATION 8
1212 BILL TO AMEND ARKANS AS LAW CONCERNING DI GITAL ASSET 9
1313 MINING BUSINESSES, T O AMEND THE ARKANSAS DATA CENTERS 10
1414 ACT OF 2023, TO AMEN D ARKANSAS LAW TO PR OVIDE FOR THE 11
1515 LICENSURE, PERMITTIN G, AND REGULATION OF DIGITAL 12
1616 ASSET MINING BUSINES SES AND BUSINESSES UTILIZING A 13
1717 BLOCKCHAIN NETWORK, AND TO DECLARE AN EM ERGENCY. 14
1818 15
1919 16
2020 Subtitle 17
2121 TO AUTHORIZE THE INTRODUCTION OF A 18
2222 NONAPPROPRIATION BILL TO AMEND THE 19
2323 ARKANSAS DATA CENTERS ACTS OF 2023, TO 20
2424 REGULATE DIGITAL ASSET MINING BUSINESSES 21
2525 AND BUSINESSES UTILI ZING A BLOCKCHAIN 22
2626 NETWORK, AND TO DECLARE AN EMERGENCY. 23
2727 24
2828 25
2929 BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE NINETY -FOURTH GENERAL 26
3030 ASSEMBLY OF THE STATE OF ARKANSAS: 27
3131 28
3232 THAT Senator Irvin is authorized to introduce a bill which as 29
3333 introduced will read substantially as follows: 30
3434 31
3535 "Title 32
3636 TO AMEND ARKANSAS LAW CONCERNING DIGITAL ASSET MINING BUSINESSES; TO AMEND 33
3737 THE ARKANSAS DATA CENTERS ACT OF 2023; TO AMEND ARKANSAS LAW TO PROVIDE FOR 34
3838 THE LICENSURE, PERMITTING, AND REGULATION OF DIGITAL ASSET MINING BUSINESSES 35
3939 AND BUSINESSES UTILIZING A BLOCKCHAIN NETWORK; TO DECLARE AN EMERGENCY; AND 36 HR1020
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4343
4444 FOR OTHER PURPOSES. 1
4545 2
4646 Subtitle 3
4747 TO AMEND THE ARKANSAS DATA CENTERS ACTS OF 2023; TO PROVI DE FOR THE 4
4848 REGULATION OF DIGITAL ASSET MINING BUSINESSES AND BUSINESSES UTILIZING A 5
4949 BLOCKCHAIN NETWORK; AND TO DECLARE AN EMERGENCY. 6
5050 7
5151 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 8
5252 9
5353 SECTION 1. Arkansas Code § 14 -1-602(b), concerning le gislative intent 10
5454 and findings for the Arkansas Data Centers Act of 2023, is amended to read as 11
5555 follows: 12
5656 (b) Through the enactment of this subchapter, the General Assembly 13
5757 intends to: 14
5858 (1) Recognize recognize that data centers create jobs, pay taxes, 15
5959 and provide general economic value to local communities and this state ; and 16
6060 (2) Clarify the guidelines needed to protect data asset miners 17
6161 from discriminatory industry -specific regulations and taxes . 18
6262 19
6363 SECTION 2. Arkansas Code § 14 -1-604(a), concerning dig ital asset 20
6464 mining, is amended to read as follows: 21
6565 (a) A digital asset mining business may operate in this state if the 22
6666 digital asset mining business complies with: 23
6767 (1) State law concerning business guidelines and tax policies; 24
6868 (2) Any ordinance c oncerning operations and safety; 25
6969 (3) Any rule or rate for utility service provided by or on 26
7070 behalf of a public entity; and 27
7171 (4) State and federal employment laws, including without 28
7272 limitation employment laws . 29
7373 30
7474 SECTION 3. Arkansas Code § 14 -1-605(a), concerning discrimination 31
7575 against digital asset mining businesses, is amended to read as follows: 32
7676 (a) Except as provided by subsection (d) of this section, a local 33
7777 government shall not: 34
7878 (1) Enact or adopt an ordinance, policy, or action that limits 35
7979 the sound decibels generated from home digital asset mining other than the 36 HR1020
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8484 limits set for sound pollution generally; 1
8585 (2) Impose a different requirement for a digital asset mining 2
8686 business than is applicable to any requirement for a data center; 3
8787 (3)(2) Rezone an area in which a digital asset mining business 4
8888 is located without complying with applicable state law and local zoning 5
8989 ordinances; or 6
9090 (4)(3) Rezone an area with the intent or effect of 7
9191 discriminating against a digital asset mining business. 8
9292 9
9393 SECTION 4. Arkansas Code Title 14, Chapter 1, Subchapter 6, is amended 10
9494 to add additional sections to read as follows: 11
9595 14-1-606. Operation of digit al asset mining business or business 12
9696 utilizing blockchain network. 13
9797 (a)(1) The sound emitted by a digital asset mining business or a 14
9898 business utilizing a blockchain network shall not exceed sixty (60) decibels. 15
9999 (2) A digital asset mining busine ss or a business utilizing a 16
100100 blockchain network shall utilize a soundproofing enclosure to ensure that the 17
101101 sound emitted by the digital asset mining business or the business utilizing 18
102102 a blockchain network does not exceed forty (40) decibels. 19
103103 (b)(1) A digital asset mining business or a business utilizing a 20
104104 blockchain network beginning operations on and after the effective date of 21
105105 this act shall not utilize water to cool any equipment used as part of the 22
106106 operations of the digital asset mining business or the business utilizing a 23
107107 blockchain network. 24
108108 (2)(A)(i) Subdivision (b)(1) of this section does not prohibit a 25
109109 digital asset mining business or a business utilizing a blockchain network 26
110110 operating before the effective date of this act from utilizing water to cool 27
111111 any equipment used as part of the operations of the digital asset mining 28
112112 business or the business utilizing a blockchain network for no longer than 29
113113 twenty-four (24) months from the effective date of this act. 30
114114 (B) For the purposes of subdivis ion (b)(2)(A) of this 31
115115 section, a digital asset mining business or a business utilizing a blockchain 32
116116 network that is connected to an electrical network and consuming electrical 33
117117 energy no later than thirty (30) days after the effective date of this act 34
118118 shall be considered as operating before the effective date of this act. 35
119119 36 HR1020
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123123
124124 14-1-607. Ownership of or investment in digital asset mining business 1
125125 located in this state by certain foreign nationals prohibited — Definition. 2
126126 (a) It is the intent of the General As sembly that this act shall be 3
127127 used to protect our state's security from foreign individuals or countries 4
128128 that may use large amounts of computing power on Arkansas soil to disrupt and 5
129129 attack Arkansas interests through ransomware, computer hacking, or an att ack 6
130130 on Arkansas's electrical grid. 7
131131 (b)(1) As used in this section, "foreign national" means a citizen of 8
132132 a prohibited foreign party who is subject to § 126.1 of the International 9
133133 Traffic in Arms Regulations, 22 C.F.R. §§ 120.1 — 130.17, as it existed on 10
134134 January 1, 2023. 11
135135 (2) As used in this section, "foreign national" does not include 12
136136 an individual who is a citizen of the United States. 13
137137 (c) Notwithstanding any other law, a foreign national shall not own or 14
138138 operate a digital asset mining business in th is state. 15
139139 (d) An ownership interest in or investment in a digital asset mining 16
140140 business in violation of this section is subject to divestiture as provided 17
141141 in this section. 18
142142 (e) Upon request of a person or upon receipt of information that leads 19
143143 the Attorney General to believe that a violation of this section may exist, 20
144144 the Attorney General may issue subpoenas requiring the: 21
145145 (1) Appearance of witnesses; 22
146146 (2) Production of relevant records; and 23
147147 (3) Giving of relevant testimony. 24
148148 (f)(1) If as a result of the investigation under subsection (e) of 25
149149 this section the Attorney General concludes that a violation of this section 26
150150 has occurred, the Attorney General may order the foreign national to divest 27
151151 himself, herself, or itself of all interest in the digital asset mining 28
152152 business within one hundred twenty (120) days. 29
153153 (2) If the foreign national under subdivision (f)(1) of this 30
154154 section fails to divest himself, herself, or itself of all interest in the 31
155155 digital asset mining business, the Attorney Gener al may commence an action in 32
156156 a circuit court within the jurisdiction of the location of the digital asset 33
157157 mining business. 34
158158 (3)(A) Except in the case of dismissal, the circuit court under 35
159159 subdivision (f)(2) of this section may order that the digital asse t mining 36 HR1020
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164164 business be sold. 1
165165 (B) The Attorney General may pursue other remedies in an 2
166166 action brought under subdivision (f)(2) of this section, including without 3
167167 limitation: 4
168168 (i) A civil penalty not to exceed twenty -five 5
169169 percent (25%) of the fair market value, on the date of the assessment of the 6
170170 penalty, of the foreign national's interest in the digital asset mining 7
171171 business for the failure to divest himself, herself, or itself of all 8
172172 interest in the digital asset mining business within one hundre d twenty (120) 9
173173 days as required under subdivision (f)(1) of this section; 10
174174 (ii) Court costs; and 11
175175 (iii) Reasonable attorney's fees. 12
176176 (C)(i) Proceeds of the sale under subdivision (f)(3)(A) of 13
177177 this section shall first be disbursed to lien holders in the order of 14
178178 priority. 15
179179 (ii) The owners of the digital asset mining business 16
180180 shall receive the remaining proceeds of the sale under subdivision (f)(3)(A) 17
181181 of this section. 18
182182 19
183183 SECTION 5. Arkansas Code, Title 23, is amended to add an additional 20
184184 chapter to read as follows: 21
185185 23-119-101. Legislative intent – Findings - Purpose. 22
186186 (a) This chapter establishes the standards and criteria for the 23
187187 licensure, permitting, and regulation of digital asset mining businesses and 24
188188 businesses utilizing a blockchai n networks. 25
189189 (b) The General Assembly finds: 26
190190 (1) Digital asset mining businesses and blockchain networks 27
191191 represent a new and emerging industry that presents significant challenges 28
192192 for the citizens of Arkansas, including without limitation: 29
193193 (A) Significant noise emissions; 30
194194 (B) Massive consumption of power that places a strain on 31
195195 electrical grids; 32
196196 (C) The usage of vast amounts of water that could 33
197197 potentially threaten resources for citizens and future economic development 34
198198 opportunities; and 35
199199 (D) Potential issues involving cyber -security. 36 HR1020
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203203
204204 (2) While the State of Arkansas welcomes new businesses and 1
205205 economic growth, the General Assembly likewise has a responsibility to ensure 2
206206 that the operations of new industries do not negatively impact the public 3
207207 peace, health, and safety or otherwise damage the well -being of the citizens 4
208208 of the state; 5
209209 (3) When an industry presents harm to the public peace, health 6
210210 and safety, it has been the practice of the General Assembly to provide for 7
211211 regulation of that industry to ensure that the industry operates successfully 8
212212 while not harming the citizens of the state and its natural resources; and 9
213213 (4) Based upon the challenges presented by digital asset mining 10
214214 businesses and blockchain networks that have become evident, it is necessary 11
215215 to regulate digital asset mining businesses and businesses utilizing a 12
216216 blockchain network as provided in this chapter to provide a regulatory 13
217217 framework for the safe operation of this new, emerging industry. 14
218218 (c) The purpose of this chapter is to: 15
219219 (1) Promote, preserve, and protect the public peace, health, and 16
220220 safety through effective licensure, permitting, and regulation of digital 17
221221 asset mining businesses and businesses utilizing a blockchain network; 18
222222 (2) Provide for the powers and duties of the Department of 19
223223 Energy and Environment relating to the licensure, permitting, and regulation 20
224224 of digital asset mining businesses and businesses utilizing a blockchain 21
225225 network; and 22
226226 (3) Prescribe penalties and fines fo r violations of this 23
227227 chapter. 24
228228 25
229229 23-119-102. Definitions. 26
230230 As used in this chapter: 27
231231 (1) “Blockchain network” means a group of computers operating and 28
232232 processing together to execute a consensus mechanism to agree upon and verify 29
233233 data in a digital record; 30
234234 (2) “Digital asset” means cryptocurrency, virtual currency, and 31
235235 natively electronic assets, including without limitation stable coins, 32
236236 nonfungible tokens, and other digital -only assets, that confer economic, 33
237237 proprietary, or access rights or powers; 34
238238 (3) “Digital asset mining” means the use of electricity to power 35
239239 a computer for the purpose of securing or validating a blockchain network; 36 HR1020
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244244 and 1
245245 (4) “Digital asset mining business” means a group of computers 2
246246 working at a single site that consum es more than one megawatt (1 MW) of 3
247247 electrical energy on an average annual basis for the purpose of generating 4
248248 digital assets by securing a blockchain network. 5
249249 6
250250 23-119-103. License – Application – Fees. 7
251251 (a)(1)(A) An individual or a legal entity sha ll not operate one (1) or 8
252252 more digital asset mining businesses or businesses utilizing a blockchain 9
253253 networks in Arkansas without first obtaining a license from the Department of 10
254254 Energy and Environment under this chapter. 11
255255 (B) The department may delegate its duties under this 12
256256 chapter to a state entity within the department. 13
257257 (2) When considering whether to issue a license under 14
258258 subdivision (a)(1) of this section, the factors evaluated by the department 15
259259 shall include without limitation the: 16
260260 (A) Financial condition and responsibility of the 17
261261 applicant; 18
262262 (B) Financial and business experience of the applicant; 19
263263 and 20
264264 (C) Character and general fitness of the applicant. 21
265265 (b) Each digital asset mining business or business utilizing a 22
266266 blockchain network operated by an individual licensed under subsection (a) of 23
267267 this section shall obtain a permit from the department under this section. 24
268268 (c) The department shall establish the application for a: 25
269269 (1) License to operate one (1) or more digita l asset mining 26
270270 businesses or businesses utilizing a blockchain network in Arkansas; and 27
271271 (2) Permit for a digital asset mining business or business 28
272272 utilizing a blockchain network to be operated by an individual or legal 29
273273 entity licensed under subsection (a) of this section. 30
274274 (d)(1) The department shall charge application fees and renewal fees 31
275275 as established by rule. 32
276276 (2) The application fee for a license to operate one (1) or more 33
277277 digital asset mining businesses or businesses utilizing a blockchain n etwork 34
278278 in Arkansas shall not exceed five thousand dollars ($5,000). 35
279279 (3) The application fee for a permit for a digital asset mining 36 HR1020
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284284 business or business utilizing a blockchain network shall not exceed five 1
285285 thousand dollars ($5,000). 2
286286 3
287287 23-119-104. Rules 4
288288 The Department of Energy and Environment shall promulgate rules to 5
289289 implement this chapter, including without limitation rules establishing 6
290290 requirements for: 7
291291 (1) Licensing; 8
292292 (2) Permitting; 9
293293 (3) Fees; 10
294294 (4) Application for a license; 11
295295 (5) Renewal of a license; 12
296296 (6) The establishment and operation of a digital asset mining 13
297297 business or business utilziing a blockchain network, including without 14
298298 limitation rules pertaining to the location of digital asset mining 15
299299 businesses and businesses utilizing a blockchain network; 16
300300 (7) Compliance with and enforcement of relevant laws and the 17
301301 rules of the department; and 18
302302 (8)(A) Penalties for failure to comply with the requirements and 19
303303 terms of a license or permit, including without limitation: 20
304304 (i) Penalties for the late payment or nonpayment of 21
305305 fees due to the department; and 22
306306 (ii) The suspension or revocation of a license or 23
307307 permit issued under this chapter. 24
308308 (B) Financial penalties for failure to comply with the 25
309309 requirements and terms of a license shall not exceed five thousand dollars 26
310310 ($5,000) per violation. 27
311311 28
312312 SECTION 6. DO NOT CODIFY – TEMPORARY LANGUAGE. ADOPTION OF INITIAL 29
313313 RULES. 30
314314 (a)(1) The provisions of this section regarding the promulgation of 31
315315 the initial rules required under § 23 -119-104 are supplemental to the 32
316316 Arkansas Administrative Procedure Act, § 25 -15-201 et seq. 33
317317 (2) If the Department of Energy and Environment delegates its 34
318318 duties to a state entity within the department that is not subject to the 35
319319 Arkansas Administrative Procedure Act, § 25 -15-201 et seq., the state entity 36 HR1020
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324324 shall comply with the Ark ansas Administrative Procedure Act, § 25 -15-201 et 1
325325 seq. and the supplemental provisions of this section when promulgating the 2
326326 initial rules in lieu of following the administrative procedures provided for 3
327327 that state entity. 4
328328 (b)(1) Before promulgating the initial rules required under § 23 -119-5
329329 104, the department shall: 6
330330 (A)(i) Study the methods and means used to regulate 7
331331 digital asset mining businesses and businesses utilizing a blockchain network 8
332332 in other states, including without limitation the appl ication processes, 9
333333 application fees, and penalties utilized by other states and restrictions on 10
334334 operations utilized by other states to preserve the public peace, health, and 11
335335 safety. 12
336336 (ii) The department may consult with other state 13
337337 agencies whose input would be relevant to the study; and 14
338338 (B) Submit a report to the following committees of the 15
339339 General Assembly summarizing the methods and means used to regulate digital 16
340340 asset mining businesses and businesses utilizing a blockchain network in 17
341341 other states and identifying the department’s recommendations on the best 18
342342 manner to regulate digital asset mining businesses and businesses utilizing a 19
343343 blockchain network in Arkansas: 20
344344 (i) The House Committee on City, County, and Local 21
345345 Affairs; 22
346346 (ii) The Senate Committee on City, County, and Local 23
347347 Affairs; 24
348348 (iii) The House Committee on Public Health, Welfare, 25
349349 and Labor; 26
350350 (iv) The Senate Committee on Public Health, Welfare, 27
351351 and Labor; and 28
352352 (v) The Joint Committee on Advanced Communications 29
353353 and Information Technology. 30
354354 (2) The committees under subdivision (b)(1)(B)(i) -(v) of this 31
355355 section shall meet jointly to review the report submitted by the department 32
356356 under subdivision (b)(1)(B) of this section. 33
357357 (3) The department shall not promulgat e the initial rules 34
358358 required under § 23-119-104 until the committees have met jointly under 35
359359 subdivision (b)(2) of this section and reviewed the report. 36 HR1020
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364364 (c)(1) After the committees under subdivision (b)(1)(B)(i) -(v) of this 1
365365 section have met jointly to r eview the report submitted by the department 2
366366 under subdivision (b)(1)(B) of this section, the department shall promulgate 3
367367 the initial rules required under § 23 -119-104 under the Arkansas 4
368368 Administrative Procedure Act, § 25 -15-201 et seq. 5
369369 (2)(A) The department shall: 6
370370 (i) Give at least one hundred twenty (120) days 7
371371 notice of its intended action; and 8
372372 (ii) Accept both oral and written public comments 9
373373 during the one hundred twenty -day period. 10
374374 (B) The one hundred twenty -day period shall begin on the 11
375375 first day of the publication of the notice under § 25 -15-204 et seq. 12
376376 (C) In addition to the publication of the notice required 13
377377 under § 25-15-204, the department shall file the notice with the quorum court 14
378378 of each county. 15
379379 (D) During the one hundred twenty-day period, the 16
380380 department shall hold at least three (3) in -person public hearings to afford 17
381381 interested persons a reasonable opportunity to submit data, views, or 18
382382 arguments. 19
383383 (E) If an in-person public hearing is requested in a 20
384384 county by at least one hundred (100) persons residing within the county or by 21
385385 the quorum court of the county, the department shall hold an in -person public 22
386386 hearing within the county regarding the proposed rule during the one hundred 23
387387 twenty-day period. 24
388388 (d)(1) At the conclusion of the one hundred twenty -day period, the 25
389389 department shall fully consider all written and oral submissions concerning 26
390390 the proposed rule before finalizing the language of the proposed rule. 27
391391 (2) After finalizing the language of the proposed rule but 28
392392 before the proposed rule is considered for approval by the Legislative 29
393393 Council or the Joint Budget Committee under § 10 -3-309, the following 30
394394 committees shall meet jointly to review the rule: 31
395395 (A) The House Committee on City, County, and Local 32
396396 Affairs; 33
397397 (B) The Senate Committee on City, County, and Local 34
398398 Affairs; 35
399399 (C) The House Committee on Public Health, Welfare, and 36 HR1020
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404404 Labor; 1
405405 (D) The Senate Committee on Public Health, Welfare, and 2
406406 Labor; and 3
407407 (E) The Joint Committee on Advanced Communications and 4
408408 Information Technology. 5
409409 (3) The committees meeting jointly under subdivision (d)(2)(A) -6
410410 (E) of this section shall submit a report to the Legislative Council, the 7
411411 Joint Budget Committe e, or a subcommittee of those committees concerning the 8
412412 committees' review of the proposed rule that includes without limitation the 9
413413 opinion of the committees on whether the Legislative Council or Joint Budget 10
414414 Committee should approve the proposed rule. 11
415415 (4) The Legislative Council, the Joint Budget Committee, or a 12
416416 subcommittee of those committees shall not consider the proposed rule for 13
417417 approval before receiving the report of the committees under subdivision 14
418418 (d)(3) of this section. 15
419419 (e) The department shall not promulgate an emergency rule under § 25 -16
420420 15-204 to adopt the initial rules required under § 23 -119-104. 17
421421 (f) A person may not petition the department under § 25 -15-204(d) for 18
422422 the issuance of the initial rules required under § 23 -1119-104 19
423423 20
424424 SECTION 7. DO NOT CODIFY – TEMPORARY LANGUAGE. ISSUANCE OF INITIAL 21
425425 LICENSES AND PERMITS. 22
426426 (a) On and after the effective date of this section, an individual or 23
427427 legal entity shall not establish or operate a new digital asset mining 24
428428 business or business utilizing a blockchain network in Arkansas unless: 25
429429 (1) The operator of the digital asset mining business or 26
430430 business utilizing a blockchain network has been issued a license under § 23 -27
431431 19-103; and 28
432432 (2) The digital asset mining business or business ut ilizing a 29
433433 blockchain network has been issued a permit under § 25 -19-103. 30
434434 (b)(1)(A) Subsection (a) of this section does not prohibit a digital 31
435435 asset mining business or business utilizing a blockchain network operating 32
436436 before the effective date of this s ection from continued operation. 33
437437 (B) For purposes of subdivision (b)(1)(A) of this section, 34
438438 a digital asset mining business or business utilizing a blockchain network 35
439439 that is connected to an electrical network and consuming electrical energy no 36 HR1020
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444444 later than thirty (30) days after the effective date of this section shall be 1
445445 considered as operating before the effective date of this section. 2
446446 (2) Within ninety (90) days of the effective date of the initial 3
447447 rules promulgated under § 23 -19-104, an individual or legal entity operating 4
448448 one (1) or more digital mining asset businesses or businesses utilizing a 5
449449 blockchain network in Arkansas shall apply for a: 6
450450 (A) License to operate one (1) or more digital asset 7
451451 mining businesses or businesses utilizing a blockchain network under § 23 -8
452452 119-103; and 9
453453 (B) Permit for each digital asset mining business and 10
454454 business utilizing a blockchain network operated by the individual or legal 11
455455 entity under § 23-119-103. 12
456456 13
457457 SECTION 8. DO NOT CODIFY. TEMPORARY LANGUAGE. IMPLEMENTATION OF ACT. 14
458458 (a)(1)(A) If a digital asset mining business or a business utilizing a 15
459459 blockchain network is operating before the effective date of this act, the 16
460460 digital asset mining business or bu siness utilizing a blockchain network 17
461461 shall utilize a soundproofing enclosure to ensure that the sound emitted by 18
462462 the digital asset mining business or the business utilizing a blockchain 19
463463 network does not exceed forty (40) decibels under § 14 -1-606(a)(2) within 20
464464 twenty-four (24) months of the effective date of this act. 21
465465 (B) For the purposes of subdivision (a)(1)(A) of this 22
466466 section, a digital asset mining business or a business utilizing a blockchain 23
467467 network that is connected to an electrical network and consuming electrical 24
468468 energy no later than thirty (30) days after the effective date of this act 25
469469 shall be considered as operating before the effective date of this act. 26
470470 (2) A digital asset mining business or a business utilizing a 27
471471 blockchain network be ginning operations on or after the effective date of 28
472472 this act shall not commence operations without utilizing a soundproofing 29
473473 enclosure under § 14 -1-606(a)(2). 30
474474 (b) A digital asset mining business or a business utilizing a 31
475475 blockchain network operating before the effective date of this act shall 32
476476 utilize its best efforts to ensure that the sound emitted by the digital 33
477477 asset mining business or the business utilizing a blockchain network does not 34
478478 exceed forty (40) decibels before utilizing a soundproofing e nclosure under 35
479479 subdivision (a)(1)(A) of this section. 36 HR1020
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484484 1
485485 SECTION 9. DO NOT CODIFY. TEMPORARY LANGUAGE. EFFECT OF ACT ON 2
486486 ORDINANCES. This act shall not be interpreted as superseding any ordinances 3
487487 adopted by a local government regulating digital as set mining businesses or 4
488488 businesses utilizing a blockchain network before the initial rules under § 5
489489 23-119-104 are effective. 6
490490 7
491491 SECTION 10. EMERGENCY CLAUSE. It is found and determined by the 8
492492 General Assembly of the State of Arkansas that digital asset mining 9
493493 businesses and businesses utilizing blockchain networks present significant 10
494494 threats to the public peace, health, and safety, including without limitation 11
495495 significant noise emissions, massive power consumption that imposes a strain 12
496496 on resources, the use of vast amounts of water that threatens water 13
497497 resources, and potential issues with cybersecurity; that the continuous noise 14
498498 emitted by digital asset mining businesses and businesses utilizing a 15
499499 blockchain network threaten the public peace, health, and safety as they risk 16
500500 potential damage to the hearing and quality of life of the citizens of this 17
501501 state; the large volumes of water used by digi tal asset mining businesses and 18
502502 businesses utilizing a blockchain network threaten the public peace, health, 19
503503 and safety as the large volumes of water used diminish the water supply and 20
504504 potentially lessen the amount of water available to the agriculture ind ustry 21
505505 in this state, which is critical to the state's economic well -being; that in 22
506506 light of these threats it is imperative that the General Assembly regulate 23
507507 digital asset mining businesses and businesses utilizing blockchain networks 24
508508 to protect the public peace, health, and safety; and that this act should 25
509509 become effective at the earliest opportunity to begin the regulatory process 26
510510 and protect the citizens of the state from any harmful actions related to 27
511511 digital asset mining businesses and businesses utili zing blockchain networks. 28
512512 Therefore, an emergency is declared to exist, and this act being immediately 29
513513 necessary for the preservation of the public peace, health, and safety shall 30
514514 become effective on: 31
515515 (1) The date of its approval by the Governor; 32
516516 (2) If the bill is neither approved nor vetoed by the Governor, 33
517517 the expiration of the period of time during which the Governor may veto the 34
518518 bill; or 35
519519 (3) If the bill is vetoed by the Governor and the veto is 36 HR1020
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521521 14 04/10/2024 1:45:00 PM JLL425
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524524 overridden, the date the last house overrides the veto." 1
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