Arkansas Senate Bill SR5

Arkansas 2024 Regular Session

• Introduced: 4/9/24
• Passed: 4/11/24

Caption

To Authorize The Introduction Of A Nonappropriation Bill To Amend The Arkansas Data Centers Act Of 2023 And To Prohibit Foreign-party-controlled Ownership Of A Digital Asset Mining Business.

Impact

If enacted, SR5 will modify several existing legal frameworks under the Arkansas Data Centers Act. It proposes specific guidelines to limit sound pollution generated by digital asset mining businesses while also granting residents the autonomy to conduct mining activities from their homes without heavy oversight from local governments. Furthermore, the bill underscores the prohibition of foreign ownership or control of these businesses, ensuring that entities deemed foreign parties under international regulations cannot participate in Arkansas's digital asset mining sector. This amendment is intended to foster a more secure and locally controlled economic environment.

Summary

Senate Resolution 5 (SR5) authorizes the introduction of a non-appropriation bill aimed at amending the Arkansas Data Centers Act of 2023. The bill primarily focuses on setting requirements for noise reduction in digital asset mining operations and clarifying Arkansas residents' rights to engage in home-based digital asset mining. A significant objective of the bill is to prohibit ownership of digital asset mining businesses by foreign-controlled entities, reflecting broader concerns regarding national security and economic integrity. The resolution emphasizes that such measures are necessary due to the increasing prevalence of digital asset mining activities within the state.

Contention

Notably, the introduction of SR5 has sparked some contention, particularly regarding local government's authority to regulate digital asset mining businesses. Proponents advocate for the elimination of local ordinances that may unfairly restrict operations, while opponents argue that such regulations are critical to ensuring community welfare and balancing industrial growth with public interests. Furthermore, the bill's stance against foreign ownership is positioned as a proactive move against potential threats, although it may limit investment opportunities and innovation in the sector.