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Arkansas Senate Bill SR16

Arkansas 2024 Regular Session

Arkansas Senate Bill SR16 Compare Versions

Only one version of the bill is available at this time.
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44 State of Arkansas 1
55 94th General Assembly 2
66 Fiscal Session, 2024 SR 16 3
77 4
88 By: Senator B. King 5
99 6
1010 SENATE RESOLUTION 7
1111 TO AUTHORIZE THE INT RODUCTION OF A NONAPPROPRIATION 8
1212 BILL TO AMEND THE AR KANSAS DATA CENTERS ACT OF 2023, 9
1313 TO AMEND THE REQUIRE MENTS THAT A DIGITAL ASSET MINING 10
1414 BUSINESS OR BUSINESS UTILIZING A BLOCKCHA IN NETWORK 11
1515 MUST COMPLY WITH, TO AMEND THE AUTHORITY OF A LOCAL 12
1616 GOVERNMENT WITH RESP ECT TO A DIGITAL ASSET MINING 13
1717 BUSINESS OR INDIVIDU AL ENGAGING IN HOME DIGITAL ASSET 14
1818 MINING, AND TO PROHI BIT CERTAIN FOREIGN NATIONALS 15
1919 FROM OWNING OR INVES TING IN A DIGITAL AS SET MINING 16
2020 BUSINESS IN ARKANSAS . 17
2121 18
2222 19
2323 Subtitle 20
2424 TO AUTHORIZE THE INTRODUCTION OF A 21
2525 NONAPPROPRIATION BILL TO AMEND THE 22
2626 ARKANSAS DATA CENTERS ACT OF 2023 AND TO 23
2727 AMEND THE REQUIREMENTS FOR A DIGITAL 24
2828 ASSET MINING BUSINESS OR BUSINESS USING A 25
2929 BLOCKCHAIN NETWORK. 26
3030 27
3131 28
3232 BE IT RESOLVED BY THE SENATE OF THE NINETY -FOURTH GENERAL ASSEMBLY OF THE 29
3333 STATE OF ARKANSAS: 30
3434 31
3535 THAT Senator King is authorized to introduce a bill which as introduced 32
3636 will read substantially as follows: 33
3737 34
3838 "Title 35
3939 AN ACT TO AMEND THE ARKANSAS DATA CENTERS ACT OF 2023; TO AMEND THE 36 SR16
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4343
4444 REQUIREMENTS THAT A DIGITAL ASSET MINING BUSINESS OR BUSINESS UTILIZING A 1
4545 BLOCKCHAIN NETWORK MUST COMPLY WITH; TO AMEND THE AUTHORITY OF A LOCAL 2
4646 GOVERNMENT WITH RESPECT TO A DIGITAL ASSET MINING BUSINESS OR INDIVIDUAL 3
4747 ENGAGING IN HOME DIGITAL ASSET MINING; TO PROHIBIT CERTAIN FOREIGN NATIONALS 4
4848 FROM OWNING OR INVESTING IN A DIGITAL ASSET MINING BUSINESS IN ARKANSAS; AND 5
4949 FOR OTHER PURPOSES. 6
5050 7
5151 Subtitle 8
5252 TO AMEND THE ARKANSAS DATA CENTERS ACT OF 2023; AND TO AMEND THE REQUIREMENTS 9
5353 THAT A DIGITAL ASSET MINING BUSINESS OR BUSINESS UTILIZING A BLOCKCHAIN 10
5454 NETWORK MUST COMPLY WITH. 11
5555 12
5656 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 13
5757 14
5858 SECTION 1. Arkansas Code § 14 -1-601 is amended to read as follows: 15
5959 14-1-601. Title. 16
6060 This subchapter shall be known and may be cited as the “ Arkansas Data 17
6161 Centers Act of 2023 Digital Asset Mining Act ". 18
6262 19
6363 SECTION 2. Arkansas Code § 14 -1-602 is repealed. 20
6464 14-1-602. Legislative findings and intent. 21
6565 (a) The General Assembly finds that: 22
6666 (1) The data centers industry began its modern version in the 23
6767 1980s, and the industry ha s seen accelerated growth since 2008; 24
6868 (2) Data centers have seen global growth with the expansion of 25
6969 bandwidth, the need for analytical data research, and digital currency; 26
7070 (3) Data centers, digital currency, and blockchain technology 27
7171 are legal in all fifty (50) states; and 28
7272 (4) Guidance for future industry growth is needed in Arkansas to 29
7373 protect Arkansans from fraudulent business practices. 30
7474 (b) Through the enactment of this subchapter, the General Assembly 31
7575 intends to: 32
7676 (1) Recognize that data c enters create jobs, pay taxes, and 33
7777 provide general economic value to local communities and this state; and 34
7878 (2) Clarify the guidelines needed to protect data asset miners 35
7979 from discriminatory industry -specific regulations and taxes. 36 SR16
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8484 1
8585 SECTION 3. Arkansas Code § 14-1-603(10), concerning the definition of 2
8686 "ordinance" under the Arkansas Data Centers Act of 2023, is repealed. 3
8787 (10) “Ordinance” means an ordinance, resolution, or other appropriate 4
8888 legislative enactment of a legislative body that: 5
8989 (A) Prohibits an individual from operating a business from a 6
9090 residence; or 7
9191 (B) Requires an individual to obtain approval before operating a 8
9292 business from a residence; 9
9393 10
9494 SECTION 4. Arkansas Code § 14 -1-604 is amended to read as follows: 11
9595 14-1-604. Digital asset m ining — Operations. 12
9696 (a) A digital asset mining business or business utilizing a blockchain 13
9797 network may operate in this state Arkansas if the digital asset mining 14
9898 business or business utilizing a blockchain network: complies with: 15
9999 (1) State law concerning business guidelines and tax policies; 16
100100 Complies with: 17
101101 (2)(A) Any ordinance concerning operations and safety ; 18
102102 (3)(B) Any rule or rate for utility service provided by or 19
103103 on behalf of a public entity; and 20
104104 (4)(C) State and federal employment laws; and 21
105105 (2) Pays all applicable state, county, city, and government 22
106106 taxes and fees in acceptable forms of currency by those entities . 23
107107 (b) A digital asset miner shall : 24
108108 (1) Pay applicable taxes and government fees in acceptable forms 25
109109 of currency; and 26
110110 (2) Operate operate in a manner that causes no stress on an 27
111111 electric public utility's or water system's generation capabilities or 28
112112 transmission network. 29
113113 (c) An individual may utilize a node in this state for the purpose of 30
114114 operating: 31
115115 (1) Operating home digital asset mining at the individual's 32
116116 residence according to applicable utility rules and rates ; and 33
117117 (2) Permitting requirements set forth by a local government 34
118118 under § 14-1-605. 35
119119 (d) A person may have a digital asset mining business in an area that 36 SR16
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123123
124124 is zoned for industrial use that has not been designated by the local 1
125125 government for other uses. 2
126126 (e) A person that is engaged in home digital asset mining or that has 3
127127 a digital asset mining business shall not be considered a money transmitter 4
128128 under the Uniform Money Services Act, § 23 -55-101 et seq. 5
129129 6
130130 SECTION 5. Arkansas Code § 14 -1-605 is amended to read as follows: 7
131131 14-1-605. Discrimination against digital asset mining business 8
132132 prohibited Digital asset mining — Regulation by public entities . 9
133133 (a) Except as provided by subsection (d) of this section, a A local 10
134134 government shall not may: 11
135135 (1) Enact or adopt an ordinance, policy, or action that limits 12
136136 the sound decibels generated from : 13
137137 (A) Digital asset mining; or home 14
138138 (B) Home digital asset mining other than the limits set 15
139139 for sound pollution generally ; 16
140140 (2) Impose a different requirement for a digital asset mining 17
141141 business or business utilizing a blockchain network than is applicable to any 18
142142 requirement for a data center; 19
143143 (3) Rezone an area in which a digital asset mining business is 20
144144 located without complying with applicable state law and local zoning 21
145145 ordinances; or 22
146146 (4) Rezone an area with the intent or effect of discriminating 23
147147 against a digital asset mining business Require an individual to obtain a 24
148148 permit to engage in home digital asset mining . 25
149149 (b) A digital asset mining business may appeal a change in zoning of 26
150150 an area by a local government under any applic able state law or local zoning 27
151151 ordinance. 28
152152 (c) If consistent with applicable state and federal statutes, orders, 29
153153 rules, and regulations, including without limitation §§ 23 -3-114 and 23-4-30
154154 103, the Arkansas Public Service Commission shall not may establish an 31
155155 unreasonably discriminatory a rate for a digital asset mining business 32
156156 customer utilizing a blockchain network . 33
157157 (d) The prohibitions under subsection (a) of this section do not apply 34
158158 to any rule or rate for utility service provided by or on behalf of a public 35
159159 entity The Arkansas Public Service Commission shall promulgate rules to 36 SR16
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163163
164164 implement this section . 1
165165 2
166166 SECTION 6. Arkansas Code Title 14, Chapter 1, Subchapter 6, is amended 3
167167 to add an additional section to read as follows: 4
168168 14-1-606. Ownership of or investment in digital asset mining business 5
169169 located in this state by certain foreign nationals prohibited — Definition. 6
170170 (a)(1) As used in this section, "foreign national" means a citizen of 7
171171 a prohibited foreign party who is subject to § 126.1 of the International 8
172172 Traffic in Arms Regulations, 22 C.F.R. §§ 120.1 — 130.17, as it existed on 9
173173 January 1, 2023. 10
174174 (2) As used in this section, "foreign national" does not include 11
175175 an individual who is a citizen of the United States. 12
176176 (b) Notwithstanding any oth er law, a foreign national shall not own or 13
177177 operate a digital asset mining business in this state. 14
178178 (c) An ownership interest in or investment in a digital asset mining 15
179179 business in violation of this section is subject to divestiture as provided 16
180180 in this section. 17
181181 (d) Upon request of a person or upon receipt of information that leads 18
182182 the Attorney General to believe that a violation of this section may exist, 19
183183 the Attorney General may issue subpoenas requiring the: 20
184184 (1) Appearance of witnesses; 21
185185 (2) Production of relevant records; and 22
186186 (3) Giving of relevant testimony. 23
187187 (e)(1) If as a result of the investigation under subsection (d) of 24
188188 this section the Attorney General concludes that a violation of this section 25
189189 has occurred, the Attorney General may ord er the foreign national to divest 26
190190 himself, herself, or itself of all interest in the digital asset mining 27
191191 business within thirty (30) days. 28
192192 (2) If the foreign national under subdivision (e)(1) of this 29
193193 section fails to divest himself, herself, or itself of all interest in the 30
194194 digital asset mining business, the Attorney General may commence an action in 31
195195 a circuit court within the jurisdiction of the location of the digital asset 32
196196 mining business. 33
197197 (3)(A) Except in the case of dismissal, the circuit court under 34
198198 subdivision (e)(2) of this section may order that the digital asset mining 35
199199 business be sold. 36 SR16
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203203
204204 (B) Proceeds of the sale under subdivision (e)(3)(A) of 1
205205 this section shall be disbursed to lien holders in the order of priority. 2
206206 (4)(A) A civil penal ty of twenty-five thousand dollars ($25,000) 3
207207 may be assessed against the foreign national under subdivision (e)(1) of this 4
208208 section for the failure to divest himself, herself, or itself of all interest 5
209209 in the digital asset mining business within thirty (30) days as required 6
210210 under subdivision (e)(1) of this section. 7
211211 (B) A civil penalty of fifty thousand dollars ($50,000) 8
212212 may be assessed against the foreign national under subdivision (e)(1) of this 9
213213 section for the failure to divest himself, herself, or its elf of all interest 10
214214 in the digital asset mining business after an additional thirty (30) days 11
215215 beyond the requirement under subdivision (e)(1) of this section. 12
216216 (f) The proceeds from the civil penalty collected under subdivision 13
217217 (e)(4) of this section shal l be disbursed as follows: 14
218218 (1) One-third (1/3) to the State Securities Department, to a 15
219219 cash fund deposited into the State Treasury as determined by the Chief Fiscal 16
220220 Officer of the State, to be used exclusively for: 17
221221 (A) Personal services and operating expenses; and 18
222222 (B) Investigating or auditing, or both, for proof of 19
223223 ownership of the digital asset mining business in accordance with this 20
224224 section; 21
225225 (2) One-third (1/3) to the Office of the Attorney General, to a 22
226226 cash fund deposited into the State Treasury as determined by the Chief Fiscal 23
227227 Officer of the State, to be used exclusively for: 24
228228 (A) Personal services and operating expenses; and 25
229229 (B) Investigating or auditing, or both, for proof of 26
230230 ownership of the digital asset mining busines s in accordance with this 27
231231 section; and 28
232232 (3) One-third (1/3) to the Department of Energy and Environment, 29
233233 to a cash fund deposited into the State Treasury as determined by the Chief 30
234234 Fiscal Officer of the State, to be used exclusively for: 31
235235 (A) Personal services and operating expenses; and 32
236236 (B) Investigating or auditing, or both, for proof of 33
237237 ownership of the digital asset mining business in accordance with this 34
238238 section." 35
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