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State of Arkansas 1
94th General Assembly 2
Fiscal Session, 2024 SR 16 3
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By: Senator B. King 5
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SENATE RESOLUTION 7
TO AUTHORIZE THE INT RODUCTION OF A NONAPPROPRIATION 8
BILL TO AMEND THE AR KANSAS DATA CENTERS ACT OF 2023, 9
TO AMEND THE REQUIRE MENTS THAT A DIGITAL ASSET MINING 10
BUSINESS OR BUSINESS UTILIZING A BLOCKCHA IN NETWORK 11
MUST COMPLY WITH, TO AMEND THE AUTHORITY OF A LOCAL 12
GOVERNMENT WITH RESP ECT TO A DIGITAL ASSET MINING 13
BUSINESS OR INDIVIDU AL ENGAGING IN HOME DIGITAL ASSET 14
MINING, AND TO PROHI BIT CERTAIN FOREIGN NATIONALS 15
FROM OWNING OR INVES TING IN A DIGITAL AS SET MINING 16
BUSINESS IN ARKANSAS . 17
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Subtitle 20
TO AUTHORIZE THE INTRODUCTION OF A 21
NONAPPROPRIATION BILL TO AMEND THE 22
ARKANSAS DATA CENTERS ACT OF 2023 AND TO 23
AMEND THE REQUIREMENTS FOR A DIGITAL 24
ASSET MINING BUSINESS OR BUSINESS USING A 25
BLOCKCHAIN NETWORK. 26
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BE IT RESOLVED BY THE SENATE OF THE NINETY -FOURTH GENERAL ASSEMBLY OF THE 29
STATE OF ARKANSAS: 30
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THAT Senator King is authorized to introduce a bill which as introduced 32
will read substantially as follows: 33
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"Title 35
AN ACT TO AMEND THE ARKANSAS DATA CENTERS ACT OF 2023; TO AMEND THE 36 SR16
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REQUIREMENTS THAT A DIGITAL ASSET MINING BUSINESS OR BUSINESS UTILIZING A 1
BLOCKCHAIN NETWORK MUST COMPLY WITH; TO AMEND THE AUTHORITY OF A LOCAL 2
GOVERNMENT WITH RESPECT TO A DIGITAL ASSET MINING BUSINESS OR INDIVIDUAL 3
ENGAGING IN HOME DIGITAL ASSET MINING; TO PROHIBIT CERTAIN FOREIGN NATIONALS 4
FROM OWNING OR INVESTING IN A DIGITAL ASSET MINING BUSINESS IN ARKANSAS; AND 5
FOR OTHER PURPOSES. 6
7
Subtitle 8
TO AMEND THE ARKANSAS DATA CENTERS ACT OF 2023; AND TO AMEND THE REQUIREMENTS 9
THAT A DIGITAL ASSET MINING BUSINESS OR BUSINESS UTILIZING A BLOCKCHAIN 10
NETWORK MUST COMPLY WITH. 11
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 13
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SECTION 1. Arkansas Code § 14 -1-601 is amended to read as follows: 15
14-1-601. Title. 16
This subchapter shall be known and may be cited as the “ Arkansas Data 17
Centers Act of 2023 Digital Asset Mining Act ". 18
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SECTION 2. Arkansas Code § 14 -1-602 is repealed. 20
14-1-602. Legislative findings and intent. 21
(a) The General Assembly finds that: 22
(1) The data centers industry began its modern version in the 23
1980s, and the industry ha s seen accelerated growth since 2008; 24
(2) Data centers have seen global growth with the expansion of 25
bandwidth, the need for analytical data research, and digital currency; 26
(3) Data centers, digital currency, and blockchain technology 27
are legal in all fifty (50) states; and 28
(4) Guidance for future industry growth is needed in Arkansas to 29
protect Arkansans from fraudulent business practices. 30
(b) Through the enactment of this subchapter, the General Assembly 31
intends to: 32
(1) Recognize that data c enters create jobs, pay taxes, and 33
provide general economic value to local communities and this state; and 34
(2) Clarify the guidelines needed to protect data asset miners 35
from discriminatory industry -specific regulations and taxes. 36 SR16
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1
SECTION 3. Arkansas Code § 14-1-603(10), concerning the definition of 2
"ordinance" under the Arkansas Data Centers Act of 2023, is repealed. 3
(10) “Ordinance” means an ordinance, resolution, or other appropriate 4
legislative enactment of a legislative body that: 5
(A) Prohibits an individual from operating a business from a 6
residence; or 7
(B) Requires an individual to obtain approval before operating a 8
business from a residence; 9
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SECTION 4. Arkansas Code § 14 -1-604 is amended to read as follows: 11
14-1-604. Digital asset m ining — Operations. 12
(a) A digital asset mining business or business utilizing a blockchain 13
network may operate in this state Arkansas if the digital asset mining 14
business or business utilizing a blockchain network: complies with: 15
(1) State law concerning business guidelines and tax policies; 16
Complies with: 17
(2)(A) Any ordinance concerning operations and safety ; 18
(3)(B) Any rule or rate for utility service provided by or 19
on behalf of a public entity; and 20
(4)(C) State and federal employment laws; and 21
(2) Pays all applicable state, county, city, and government 22
taxes and fees in acceptable forms of currency by those entities . 23
(b) A digital asset miner shall : 24
(1) Pay applicable taxes and government fees in acceptable forms 25
of currency; and 26
(2) Operate operate in a manner that causes no stress on an 27
electric public utility's or water system's generation capabilities or 28
transmission network. 29
(c) An individual may utilize a node in this state for the purpose of 30
operating: 31
(1) Operating home digital asset mining at the individual's 32
residence according to applicable utility rules and rates ; and 33
(2) Permitting requirements set forth by a local government 34
under § 14-1-605. 35
(d) A person may have a digital asset mining business in an area that 36 SR16
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is zoned for industrial use that has not been designated by the local 1
government for other uses. 2
(e) A person that is engaged in home digital asset mining or that has 3
a digital asset mining business shall not be considered a money transmitter 4
under the Uniform Money Services Act, § 23 -55-101 et seq. 5
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SECTION 5. Arkansas Code § 14 -1-605 is amended to read as follows: 7
14-1-605. Discrimination against digital asset mining business 8
prohibited Digital asset mining — Regulation by public entities . 9
(a) Except as provided by subsection (d) of this section, a A local 10
government shall not may: 11
(1) Enact or adopt an ordinance, policy, or action that limits 12
the sound decibels generated from : 13
(A) Digital asset mining; or home 14
(B) Home digital asset mining other than the limits set 15
for sound pollution generally ; 16
(2) Impose a different requirement for a digital asset mining 17
business or business utilizing a blockchain network than is applicable to any 18
requirement for a data center; 19
(3) Rezone an area in which a digital asset mining business is 20
located without complying with applicable state law and local zoning 21
ordinances; or 22
(4) Rezone an area with the intent or effect of discriminating 23
against a digital asset mining business Require an individual to obtain a 24
permit to engage in home digital asset mining . 25
(b) A digital asset mining business may appeal a change in zoning of 26
an area by a local government under any applic able state law or local zoning 27
ordinance. 28
(c) If consistent with applicable state and federal statutes, orders, 29
rules, and regulations, including without limitation §§ 23 -3-114 and 23-4-30
103, the Arkansas Public Service Commission shall not may establish an 31
unreasonably discriminatory a rate for a digital asset mining business 32
customer utilizing a blockchain network . 33
(d) The prohibitions under subsection (a) of this section do not apply 34
to any rule or rate for utility service provided by or on behalf of a public 35
entity The Arkansas Public Service Commission shall promulgate rules to 36 SR16
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implement this section . 1
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SECTION 6. Arkansas Code Title 14, Chapter 1, Subchapter 6, is amended 3
to add an additional section to read as follows: 4
14-1-606. Ownership of or investment in digital asset mining business 5
located in this state by certain foreign nationals prohibited — Definition. 6
(a)(1) As used in this section, "foreign national" means a citizen of 7
a prohibited foreign party who is subject to § 126.1 of the International 8
Traffic in Arms Regulations, 22 C.F.R. §§ 120.1 — 130.17, as it existed on 9
January 1, 2023. 10
(2) As used in this section, "foreign national" does not include 11
an individual who is a citizen of the United States. 12
(b) Notwithstanding any oth er law, a foreign national shall not own or 13
operate a digital asset mining business in this state. 14
(c) An ownership interest in or investment in a digital asset mining 15
business in violation of this section is subject to divestiture as provided 16
in this section. 17
(d) Upon request of a person or upon receipt of information that leads 18
the Attorney General to believe that a violation of this section may exist, 19
the Attorney General may issue subpoenas requiring the: 20
(1) Appearance of witnesses; 21
(2) Production of relevant records; and 22
(3) Giving of relevant testimony. 23
(e)(1) If as a result of the investigation under subsection (d) of 24
this section the Attorney General concludes that a violation of this section 25
has occurred, the Attorney General may ord er the foreign national to divest 26
himself, herself, or itself of all interest in the digital asset mining 27
business within thirty (30) days. 28
(2) If the foreign national under subdivision (e)(1) of this 29
section fails to divest himself, herself, or itself of all interest in the 30
digital asset mining business, the Attorney General may commence an action in 31
a circuit court within the jurisdiction of the location of the digital asset 32
mining business. 33
(3)(A) Except in the case of dismissal, the circuit court under 34
subdivision (e)(2) of this section may order that the digital asset mining 35
business be sold. 36 SR16
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(B) Proceeds of the sale under subdivision (e)(3)(A) of 1
this section shall be disbursed to lien holders in the order of priority. 2
(4)(A) A civil penal ty of twenty-five thousand dollars ($25,000) 3
may be assessed against the foreign national under subdivision (e)(1) of this 4
section for the failure to divest himself, herself, or itself of all interest 5
in the digital asset mining business within thirty (30) days as required 6
under subdivision (e)(1) of this section. 7
(B) A civil penalty of fifty thousand dollars ($50,000) 8
may be assessed against the foreign national under subdivision (e)(1) of this 9
section for the failure to divest himself, herself, or its elf of all interest 10
in the digital asset mining business after an additional thirty (30) days 11
beyond the requirement under subdivision (e)(1) of this section. 12
(f) The proceeds from the civil penalty collected under subdivision 13
(e)(4) of this section shal l be disbursed as follows: 14
(1) One-third (1/3) to the State Securities Department, to a 15
cash fund deposited into the State Treasury as determined by the Chief Fiscal 16
Officer of the State, to be used exclusively for: 17
(A) Personal services and operating expenses; and 18
(B) Investigating or auditing, or both, for proof of 19
ownership of the digital asset mining business in accordance with this 20
section; 21
(2) One-third (1/3) to the Office of the Attorney General, to a 22
cash fund deposited into the State Treasury as determined by the Chief Fiscal 23
Officer of the State, to be used exclusively for: 24
(A) Personal services and operating expenses; and 25
(B) Investigating or auditing, or both, for proof of 26
ownership of the digital asset mining busines s in accordance with this 27
section; and 28
(3) One-third (1/3) to the Department of Energy and Environment, 29
to a cash fund deposited into the State Treasury as determined by the Chief 30
Fiscal Officer of the State, to be used exclusively for: 31
(A) Personal services and operating expenses; and 32
(B) Investigating or auditing, or both, for proof of 33
ownership of the digital asset mining business in accordance with this 34
section." 35
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