Arkansas 2024 Regular Session

Arkansas House Bill HR1020 Latest Draft

Bill / Draft Version Filed 04/10/2024

                              
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State of Arkansas    1 
94th General Assembly       2 
Fiscal Session, 2024  	HR 1020 3 
 4 
By: Representative J. Moore 5 
  6 
HOUSE RESOLUTION 7 
TO AUTHORIZE THE INT RODUCTION OF A NONAPPROPRIATION 8 
BILL TO AMEND ARKANS AS LAW CONCERNING DI GITAL ASSET 9 
MINING BUSINESSES, T O AMEND THE ARKANSAS DATA CENTERS 10 
ACT OF 2023, TO AMEN D ARKANSAS LAW TO PR OVIDE FOR THE 11 
LICENSURE, PERMITTIN G, AND REGULATION OF DIGITAL 12 
ASSET MINING BUSINES SES AND BUSINESSES UTILIZING A 13 
BLOCKCHAIN NETWORK, AND TO DECLARE AN EM ERGENCY. 14 
 15 
 16 
Subtitle 17 
TO AUTHORIZE THE INTRODUCTION OF A 18 
NONAPPROPRIATION BILL TO AMEND THE 19 
ARKANSAS DATA CENTERS ACTS OF 2023, TO 20 
REGULATE DIGITAL ASSET MINING BUSINESSES 21 
AND BUSINESSES UTILI ZING A BLOCKCHAIN 22 
NETWORK, AND TO DECLARE AN EMERGENCY. 23 
 24 
 25 
BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE NINETY -FOURTH GENERAL 26 
ASSEMBLY OF THE STATE OF ARKANSAS: 27 
 28 
 THAT Senator Irvin is authorized to introduce a bill which as 29 
introduced will read substantially as follows:  30 
 31 
"Title  32 
 TO AMEND ARKANSAS LAW CONCERNING DIGITAL ASSET MINING BUSINESSES; TO AMEND 33 
THE ARKANSAS DATA CENTERS ACT OF 2023; TO AMEND ARKANSAS LAW TO PROVIDE FOR 34 
THE LICENSURE, PERMITTING, AND REGULATION OF DIGITAL ASSET MINING BUSINESSES 35 
AND BUSINESSES UTILIZING A BLOCKCHAIN NETWORK; TO DECLARE AN EMERGENCY; AND 36     	HR1020 
 
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FOR OTHER PURPOSES. 1 
 2 
Subtitle 3 
TO AMEND THE ARKANSAS DATA CENTERS ACTS OF 2023; TO PROVI DE FOR THE 4 
REGULATION OF DIGITAL ASSET MINING BUSINESSES AND BUSINESSES UTILIZING A 5 
BLOCKCHAIN NETWORK; AND TO DECLARE AN EMERGENCY. 6 
 7 
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:  8 
 9 
 SECTION 1.  Arkansas Code § 14 -1-602(b), concerning le gislative intent 10 
and findings for the Arkansas Data Centers Act of 2023, is amended to read as 11 
follows:  12 
 (b) Through the enactment of this subchapter, the General Assembly 13 
intends to: 14 
 (1) Recognize recognize that data centers create jobs, pay taxes, 15 
and provide general economic value to local communities and this state ; and 16 
 (2) Clarify the guidelines needed to protect data asset miners 17 
from discriminatory industry -specific regulations and taxes . 18 
 19 
 SECTION 2.  Arkansas Code § 14 -1-604(a), concerning dig ital asset 20 
mining, is amended to read as follows:  21 
 (a)  A digital asset mining business may operate in this state if the 22 
digital asset mining business complies with: 23 
 (1)  State law concerning business guidelines and tax policies; 24 
 (2)  Any ordinance c oncerning operations and safety; 25 
 (3)  Any rule or rate for utility service provided by or on 26 
behalf of a public entity; and 27 
 (4)  State and federal employment laws, including without 28 
limitation employment laws . 29 
 30 
 SECTION 3.  Arkansas Code § 14 -1-605(a), concerning discrimination 31 
against digital asset mining businesses, is amended to read as follows:   32 
 (a)  Except as provided by subsection (d) of this section, a local 33 
government shall not: 34 
 (1)  Enact or adopt an ordinance, policy, or action that limits 35 
the sound decibels generated from home digital asset mining other than the 36    	HR1020 
 
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limits set for sound pollution generally; 1 
 (2) Impose a different requirement for a digital asset mining 2 
business than is applicable to any requirement for a data center; 3 
 (3)(2) Rezone an area in which a digital asset mining business 4 
is located without complying with applicable state law and local zoning 5 
ordinances; or 6 
 (4)(3) Rezone an area with the intent or effect of 7 
discriminating against a digital asset mining business. 8 
 9 
 SECTION 4.  Arkansas Code Title 14, Chapter 1, Subchapter 6, is amended 10 
to add additional sections to read as follows:  11 
 14-1-606.  Operation of digit al asset mining business or business 12 
utilizing blockchain network.    13 
 (a)(1)  The sound emitted by a digital asset mining business or a 14 
business utilizing a blockchain network shall not exceed sixty (60) decibels.     15 
 (2)  A digital asset mining busine ss or a business utilizing a 16 
blockchain network shall utilize a soundproofing enclosure to ensure that the 17 
sound emitted by the digital asset mining business or the business utilizing 18 
a blockchain network does not exceed forty (40) decibels.  19 
 (b)(1)  A digital asset mining business or a business utilizing a 20 
blockchain network beginning operations on and after the effective date of 21 
this act shall not utilize water to cool any equipment used as part of the 22 
operations of the digital asset mining business or the business utilizing a 23 
blockchain network. 24 
 (2)(A)(i)  Subdivision (b)(1) of this section does not prohibit a 25 
digital asset mining business or a business utilizing a blockchain network 26 
operating before the effective date of this act from utilizing water to cool 27 
any equipment used as part of the operations of the digital asset mining 28 
business or the business utilizing a blockchain network for no longer than 29 
twenty-four (24) months from the effective date of this act.  30 
 (B)  For the purposes of subdivis ion (b)(2)(A) of this 31 
section, a digital asset mining business or a business utilizing a blockchain 32 
network that is connected to an electrical network and consuming electrical 33 
energy no later than thirty (30) days after the effective date of this act 34 
shall be considered as operating before the effective date of this act. 35 
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 14-1-607.  Ownership of or investment in digital asset mining business 1 
located in this state by certain foreign nationals prohibited — Definition. 2 
 (a)  It is the intent of the General As sembly that this act shall be 3 
used to protect our state's security from foreign individuals or countries 4 
that may use large amounts of computing power on Arkansas soil to disrupt and 5 
attack Arkansas interests through ransomware, computer hacking, or an att	ack 6 
on Arkansas's electrical grid. 7 
 (b)(1)  As used in this section, "foreign national" means a citizen of 8 
a prohibited foreign party who is subject to § 126.1 of the International 9 
Traffic in Arms Regulations, 22 C.F.R. §§ 120.1 — 130.17, as it existed on 10 
January 1, 2023. 11 
 (2)  As used in this section, "foreign national" does not include 12 
an individual who is a citizen of the United States. 13 
 (c)  Notwithstanding any other law, a foreign national shall not own or 14 
operate a digital asset mining business in th is state. 15 
 (d)  An ownership interest in or investment in a digital asset mining 16 
business in violation of this section is subject to divestiture as provided 17 
in this section. 18 
 (e)  Upon request of a person or upon receipt of information that leads 19 
the Attorney General to believe that a violation of this section may exist, 20 
the Attorney General may issue subpoenas requiring the: 21 
 (1)  Appearance of witnesses; 22 
 (2)  Production of relevant records; and 23 
 (3)  Giving of relevant testimony. 24 
 (f)(1)  If as a result of the investigation under subsection (e) of 25 
this section the Attorney General concludes that a violation of this section 26 
has occurred, the Attorney General may order the foreign national to divest 27 
himself, herself, or itself of all interest in the digital asset mining 28 
business within one hundred twenty (120) days. 29 
 (2)  If the foreign national under subdivision (f)(1) of this 30 
section fails to divest himself, herself, or itself of all interest in the 31 
digital asset mining business, the Attorney Gener al may commence an action in 32 
a circuit court within the jurisdiction of the location of the digital asset 33 
mining business. 34 
 (3)(A)  Except in the case of dismissal, the circuit court under 35 
subdivision (f)(2) of this section may order that the digital asse t mining 36    	HR1020 
 
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business be sold. 1 
 (B)  The Attorney General may pursue other remedies in an 2 
action brought under subdivision (f)(2) of this section, including without 3 
limitation: 4 
 (i)  A civil penalty not to exceed twenty -five 5 
percent (25%) of the fair market value, on the date of the assessment of the 6 
penalty, of the foreign national's interest in the digital asset mining 7 
business for the failure to divest himself, herself, or itself of all 8 
interest in the digital asset mining business within one hundre d twenty (120) 9 
days as required under subdivision (f)(1) of this section; 10 
 (ii)  Court costs; and 11 
 (iii)  Reasonable attorney's fees. 12 
 (C)(i)  Proceeds of the sale under subdivision (f)(3)(A) of 13 
this section shall first be disbursed to lien holders in the order of 14 
priority. 15 
 (ii)  The owners of the digital asset mining business 16 
shall receive the remaining proceeds of the sale under subdivision (f)(3)(A) 17 
of this section. 18 
 19 
 SECTION 5.  Arkansas Code, Title 23, is amended to add an additional 20 
chapter to read as follows:   21 
 23-119-101.  Legislative intent – Findings - Purpose.  22 
 (a)  This chapter establishes the standards and criteria for the 23 
licensure, permitting, and regulation of digital asset mining businesses and 24 
businesses utilizing a blockchai n networks.   25 
 (b)  The General Assembly finds:  26 
 (1)  Digital asset mining businesses and blockchain networks 27 
represent a new and emerging industry that presents significant challenges 28 
for the citizens of Arkansas, including without limitation:  29 
 (A) Significant noise emissions; 30 
 (B)  Massive consumption of power that places a strain on 31 
electrical grids;  32 
 (C)  The usage of vast amounts of water that could 33 
potentially threaten resources for citizens and future economic development 34 
opportunities; and  35 
 (D)  Potential issues involving cyber -security.   36    	HR1020 
 
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 (2)  While the State of Arkansas welcomes new businesses and 1 
economic growth, the General Assembly likewise has a responsibility to ensure 2 
that the operations of new industries do not negatively impact the public 3 
peace, health, and safety or otherwise damage the well -being of the citizens 4 
of the state;  5 
 (3)  When an industry presents harm to the public peace, health 6 
and safety, it has been the practice of the General Assembly to provide for 7 
regulation of that industry to ensure that the industry operates successfully 8 
while not harming the citizens of the state and its natural resources; and 9 
 (4)  Based upon the challenges presented by digital asset mining 10 
businesses and blockchain networks that have become evident, it is necessary 11 
to regulate digital asset mining businesses and businesses utilizing a 12 
blockchain network as provided in this chapter to provide a regulatory 13 
framework for the safe operation of this new, emerging industry.  14 
 (c)  The purpose of this chapter is to:  15 
 (1)  Promote, preserve, and protect the public peace, health, and 16 
safety through effective licensure, permitting, and regulation of digital 17 
asset mining businesses and businesses utilizing a blockchain network;  18 
 (2)  Provide for the powers and duties of the Department of 19 
Energy and Environment relating to the licensure, permitting, and regulation 20 
of digital asset mining businesses and businesses utilizing a blockchain 21 
network; and  22 
 (3)  Prescribe penalties and fines fo r violations of this 23 
chapter.   24 
 25 
 23-119-102.  Definitions.  26 
 As used in this chapter:  27 
 (1) “Blockchain network” means a group of computers operating and 28 
processing together to execute a consensus mechanism to agree upon and verify 29 
data in a digital record; 30 
 (2) “Digital asset” means cryptocurrency, virtual currency, and 31 
natively electronic assets, including without limitation stable coins, 32 
nonfungible tokens, and other digital -only assets, that confer economic, 33 
proprietary, or access rights or powers; 34 
 (3) “Digital asset mining” means the use of electricity to power 35 
a computer for the purpose of securing or validating a blockchain network; 36    	HR1020 
 
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and  1 
 (4) “Digital asset mining business” means a group of computers 2 
working at a single site that consum es more than one megawatt (1 MW) of 3 
electrical energy on an average annual basis for the purpose of generating 4 
digital assets by securing a blockchain network.  5 
 6 
 23-119-103.  License – Application – Fees.   7 
 (a)(1)(A)  An individual or a legal entity sha ll not operate one (1) or 8 
more digital asset mining businesses or businesses utilizing a blockchain 9 
networks in Arkansas without first obtaining a license from the Department of 10 
Energy and Environment under this chapter. 11 
 (B)  The department may delegate its duties under this 12 
chapter to a state entity within the department.  13 
 (2)  When considering whether to issue a license under 14 
subdivision (a)(1) of this section, the factors evaluated by the department 15 
shall include without limitation the:  16 
 (A)  Financial condition and responsibility of the 17 
applicant;  18 
 (B)  Financial and business experience of the applicant; 19 
and  20 
 (C)  Character and general fitness of the applicant.   21 
 (b)  Each digital asset mining business or business utilizing a 22 
blockchain network operated by an individual licensed under subsection (a) of 23 
this section shall obtain a permit from the department under this section.   24 
 (c)  The department shall establish the application for a:  25 
 (1)  License to operate one (1) or more digita l asset mining 26 
businesses or businesses utilizing a blockchain network in Arkansas; and  27 
 (2)  Permit for a digital asset mining business or business 28 
utilizing a blockchain network to be operated by an individual or legal 29 
entity licensed under subsection (a) of this section. 30 
 (d)(1)  The department shall charge application fees and renewal fees 31 
as established by rule.  32 
 (2)  The application fee for a license to operate one (1) or more 33 
digital asset mining businesses or businesses utilizing a blockchain n	etwork 34 
in Arkansas shall not exceed five thousand dollars ($5,000).  35 
 (3)  The application fee for a permit for a digital asset mining 36    	HR1020 
 
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business or business utilizing a blockchain network shall not exceed five 1 
thousand dollars ($5,000).  2 
 3 
 23-119-104.  Rules  4 
 The Department of Energy and Environment shall promulgate rules to 5 
implement this chapter, including without limitation rules establishing 6 
requirements for:  7 
 (1)  Licensing;  8 
 (2)  Permitting;  9 
 (3)  Fees;  10 
 (4)  Application for a license; 11 
 (5)  Renewal of a license; 12 
 (6)  The establishment and operation of a digital asset mining 13 
business or business utilziing a blockchain network, including without 14 
limitation rules pertaining to the location of digital asset mining 15 
businesses and businesses utilizing a blockchain network;    16 
 (7)  Compliance with and enforcement of relevant laws and the 17 
rules of the department; and 18 
 (8)(A)  Penalties for failure to comply with the requirements and 19 
terms of a license or permit, including without limitation: 20 
 (i)  Penalties for the late payment or nonpayment of 21 
fees due to the department; and 22 
 (ii)  The suspension or revocation of a license or 23 
permit issued under this chapter.  24 
 (B)  Financial penalties for failure to comply with the 25 
requirements and terms of a license shall not exceed five thousand dollars 26 
($5,000) per violation.     27 
 28 
 SECTION 6.  DO NOT CODIFY – TEMPORARY LANGUAGE.  ADOPTION OF INITIAL 29 
RULES.  30 
 (a)(1)  The provisions of this section regarding the promulgation of 31 
the initial rules required under § 23 -119-104 are supplemental to the 32 
Arkansas Administrative Procedure Act, § 25 -15-201 et seq. 33 
 (2)  If the Department of Energy and Environment delegates its 34 
duties to a state entity within the department that is not subject to the 35 
Arkansas Administrative Procedure Act, § 25 -15-201 et seq., the state entity 36    	HR1020 
 
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shall comply with the Ark ansas Administrative Procedure Act, § 25 -15-201 et 1 
seq. and the supplemental provisions of this section when promulgating the 2 
initial rules in lieu of following the administrative procedures provided for 3 
that state entity. 4 
 (b)(1)  Before promulgating the initial rules required under § 23 -119-5 
104, the department shall:  6 
 (A)(i)  Study the methods and means used to regulate 7 
digital asset mining businesses and businesses utilizing a blockchain network 8 
in other states, including without limitation the appl ication processes, 9 
application fees, and penalties utilized by other states and restrictions on 10 
operations utilized by other states to preserve the public peace, health, and 11 
safety. 12 
 (ii)  The department may consult with other state 13 
agencies whose input would be relevant to the study; and 14 
 (B)  Submit a report to the following committees of the 15 
General Assembly summarizing the methods and means used to regulate digital 16 
asset mining businesses and businesses utilizing a blockchain network in 17 
other states and identifying the department’s recommendations on the best 18 
manner to regulate digital asset mining businesses and businesses utilizing a 19 
blockchain network in Arkansas:  20 
 (i)  The House Committee on City, County, and Local 21 
Affairs;  22 
 (ii)  The Senate Committee on City, County, and Local 23 
Affairs;  24 
 (iii)  The House Committee on Public Health, Welfare, 25 
and Labor;  26 
 (iv)  The Senate Committee on Public Health, Welfare, 27 
and Labor; and  28 
 (v)  The Joint Committee on Advanced Communications 29 
and Information Technology. 30 
 (2)  The committees under subdivision (b)(1)(B)(i) -(v) of this 31 
section shall meet jointly to review the report submitted by the department 32 
under subdivision (b)(1)(B) of this section.  33 
 (3)  The department shall not promulgat e the initial rules 34 
required under § 23-119-104 until the committees have met jointly under 35 
subdivision (b)(2) of this section and reviewed the report.  36    	HR1020 
 
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 (c)(1)  After the committees under subdivision (b)(1)(B)(i) -(v) of this 1 
section have met jointly to r eview the report submitted by the department 2 
under subdivision (b)(1)(B) of this section, the department shall promulgate 3 
the initial rules required under § 23 -119-104 under the Arkansas 4 
Administrative Procedure Act, § 25 -15-201 et seq. 5 
 (2)(A)  The department shall: 6 
 (i)  Give at least one hundred twenty (120) days 7 
notice of its intended action; and 8 
 (ii)  Accept both oral and written public comments 9 
during the one hundred twenty -day period. 10 
 (B)  The one hundred twenty -day period shall begin on the 11 
first day of the publication of the notice under § 25 -15-204 et seq. 12 
 (C)  In addition to the publication of the notice required 13 
under § 25-15-204, the department shall file the notice with the quorum court 14 
of each county.     15 
 (D)  During the one hundred twenty-day period, the 16 
department shall hold at least three (3) in -person public hearings to afford 17 
interested persons a reasonable opportunity to submit data, views, or 18 
arguments.   19 
 (E)  If an in-person public hearing is requested in a 20 
county by at least one hundred (100) persons residing within the county or by 21 
the quorum court of the county, the department shall hold an in -person public 22 
hearing within the county regarding the proposed rule during the one hundred 23 
twenty-day period. 24 
 (d)(1)  At the conclusion of the one hundred twenty -day period, the 25 
department shall fully consider all written and oral submissions concerning 26 
the proposed rule before finalizing the language of the proposed rule.   27 
 (2)  After finalizing the language of the proposed rule but 28 
before the proposed rule is considered for approval by the Legislative 29 
Council or the Joint Budget Committee under § 10 -3-309, the following 30 
committees shall meet jointly to review the rule:  31 
 (A)  The House Committee on City, County, and Local 32 
Affairs;  33 
 (B)  The Senate Committee on City, County, and Local 34 
Affairs;  35 
 (C)  The House Committee on Public Health, Welfare, and 36    	HR1020 
 
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Labor;  1 
 (D)  The Senate Committee on Public Health, Welfare, and 2 
Labor; and  3 
 (E)  The Joint Committee on Advanced Communications and 4 
Information Technology. 5 
 (3)  The committees meeting jointly under subdivision (d)(2)(A) -6 
(E) of this section shall submit a report to the Legislative Council, the 7 
Joint Budget Committe e, or a subcommittee of those committees concerning the 8 
committees' review of the proposed rule that includes without limitation the 9 
opinion of the committees on whether the Legislative Council or Joint Budget 10 
Committee should approve the proposed rule.  11 
 (4)  The Legislative Council, the Joint Budget Committee, or a 12 
subcommittee of those committees shall not consider the proposed rule for 13 
approval before receiving the report of the committees under subdivision 14 
(d)(3) of this section.  15 
 (e)  The department shall not promulgate an emergency rule under § 25 -16 
15-204 to adopt the initial rules required under § 23 -119-104.   17 
 (f)  A person may not petition the department under § 25 -15-204(d) for 18 
the issuance of the initial rules required under § 23 -1119-104 19 
 20 
 SECTION 7.  DO NOT CODIFY – TEMPORARY LANGUAGE.  ISSUANCE OF INITIAL 21 
LICENSES AND PERMITS.  22 
 (a)  On and after the effective date of this section, an individual or 23 
legal entity shall not establish or operate a new digital asset mining 24 
business or business utilizing a blockchain network in Arkansas unless: 25 
 (1)  The operator of the digital asset mining business or 26 
business utilizing a blockchain network has been issued a license under § 23	-27 
19-103; and  28 
 (2)  The digital asset mining business or business ut ilizing a  29 
blockchain network has been issued a permit under § 25 -19-103.  30 
 (b)(1)(A)  Subsection (a) of this section does not prohibit a digital 31 
asset mining business or business utilizing a blockchain network operating 32 
before the effective date of this s ection from continued operation.  33 
 (B)  For purposes of subdivision (b)(1)(A) of this section, 34 
a digital asset mining business or business utilizing a blockchain network 35 
that is connected to an electrical network and consuming electrical energy no 36    	HR1020 
 
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later than thirty (30) days after the effective date of this section shall be 1 
considered as operating before the effective date of this section.   2 
 (2)  Within ninety (90) days of the effective date of the initial 3 
rules promulgated under § 23 -19-104, an individual or legal entity operating 4 
one (1) or more digital mining asset businesses or businesses utilizing a 5 
blockchain network in Arkansas shall apply for a: 6 
 (A)  License to operate one (1) or more digital asset 7 
mining businesses or businesses utilizing a blockchain network under § 23 -8 
119-103; and 9 
 (B)  Permit for each digital asset mining business and 10 
business utilizing a blockchain network operated by the individual or legal 11 
entity under § 23-119-103. 12 
 13 
 SECTION 8.  DO NOT CODIFY.  TEMPORARY LANGUAGE.  IMPLEMENTATION OF ACT.  14 
 (a)(1)(A)  If a digital asset mining business or a business utilizing a 15 
blockchain network is operating before the effective date of this act, the 16 
digital asset mining business or bu siness utilizing a blockchain network 17 
shall utilize a soundproofing enclosure to ensure that the sound emitted by 18 
the digital asset mining business or the business utilizing a blockchain 19 
network does not exceed forty (40) decibels under § 14 -1-606(a)(2) within 20 
twenty-four (24) months of the effective date of this act. 21 
 (B)  For the purposes of subdivision (a)(1)(A) of this 22 
section, a digital asset mining business or a business utilizing a blockchain 23 
network that is connected to an electrical network and consuming electrical 24 
energy no later than thirty (30) days after the effective date of this act 25 
shall be considered as operating before the effective date of this act.   26 
 (2)  A digital asset mining business or a business utilizing a 27 
blockchain network be ginning operations on or after the effective date of 28 
this act shall not commence operations without utilizing a soundproofing 29 
enclosure under § 14 -1-606(a)(2).    30 
 (b)  A digital asset mining business or a business utilizing a 31 
blockchain network operating before the effective date of this act shall 32 
utilize its best efforts to ensure that the sound emitted by the digital 33 
asset mining business or the business utilizing a blockchain network does not 34 
exceed forty (40) decibels before utilizing a soundproofing e nclosure under 35 
subdivision (a)(1)(A) of this section.  36    	HR1020 
 
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 1 
 SECTION 9.  DO NOT CODIFY.  TEMPORARY LANGUAGE.  EFFECT OF ACT ON 2 
ORDINANCES.  This act shall not be interpreted as superseding any ordinances 3 
adopted by a local government regulating digital as set mining businesses or 4 
businesses utilizing a blockchain network before the initial rules under § 5 
23-119-104 are effective.  6 
 7 
 SECTION 10.  EMERGENCY CLAUSE.  It is found and determined by the 8 
General Assembly of the State of Arkansas that digital asset mining 9 
businesses and businesses utilizing blockchain networks present significant 10 
threats to the public peace, health, and safety, including without limitation 11 
significant noise emissions, massive power consumption that imposes a strain 12 
on resources, the use of vast amounts of water that threatens water 13 
resources, and potential issues with cybersecurity; that the continuous noise 14 
emitted by digital asset mining businesses and businesses utilizing a 15 
blockchain network threaten the public peace, health, and safety as they risk 16 
potential damage to the hearing and quality of life of the citizens of this 17 
state; the large volumes of water used by digi tal asset mining businesses and 18 
businesses utilizing a blockchain network threaten the public peace, health, 19 
and safety as the large volumes of water used diminish the water supply and 20 
potentially lessen the amount of water available to the agriculture ind	ustry 21 
in this state, which is critical to the state's economic well -being; that in 22 
light of these threats it is imperative that the General Assembly regulate 23 
digital asset mining businesses and businesses utilizing blockchain networks 24 
to protect the public peace, health, and safety; and that this act should 25 
become effective at the earliest opportunity to begin the regulatory process 26 
and protect the citizens of the state from any harmful actions related to 27 
digital asset mining businesses and businesses utili zing blockchain networks.  28 
Therefore, an emergency is declared to exist, and this act being immediately 29 
necessary for the preservation of the public peace, health, and safety shall 30 
become effective on: 31 
 (1)  The date of its approval by the Governor; 32 
 (2)  If the bill is neither approved nor vetoed by the Governor, 33 
the expiration of the period of time during which the Governor may veto the 34 
bill; or 35 
 (3)  If the bill is vetoed by the Governor and the veto is 36    	HR1020 
 
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overridden, the date the last house overrides the veto." 1 
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