Arkansas House Bill HR1020

Arkansas 2024 Regular Session

• Introduced: 4/10/24
• Report Pass: 4/16/24
• Refer: 4/10/24
• Passed: 4/17/24

Caption

To Authorize The Introduction Of A Nonappropriation Bill To Amend The Arkansas Data Centers Acts Of 2023, To Regulate Digital Asset Mining Businesses And Businesses Utilizing A Blockchain Network, And To Declare An Emergency.

Impact

With the introduction of HR1020, there will be a focused attempt to address the growing challenges presented by digital asset mining. The bill outlines the responsibilities of the Arkansas Department of Energy and Environment in establishing regulatory standards, and it emphasizes the necessity for digital asset miners to operate in compliance with both state laws and local ordinances. Notably, the bill acknowledges that digital asset mining operations could strain local resources, such as water and electricity, and it emphasizes the importance of maintaining public health and safety.

Summary

House Resolution 1020, introduced by Representative J. Moore, seeks to amend Arkansas law concerning digital asset mining businesses and the regulations surrounding them. The bill aims to provide a clear framework for the licensure, permitting, and regulation of digital asset mining operations and businesses utilizing blockchain networks. As digital asset mining evolves into a significant economic activity, the resolution seeks to ensure that the industry operates within bounded guidelines to protect local communities and the environment from potential adverse effects.

Contention

Opposition to HR1020 may arise from entities concerned about the implications of such regulations on innovation and business growth within the digital asset industry. Some stakeholders may argue that stringent licensing and operational requirements could hinder emerging businesses from entering the market. Furthermore, the bill includes measures to prohibit foreign national ownership of digital asset mining businesses in Arkansas, which could spur debates regarding economic inclusion and the potential impacts on investment in the state. Conversations surrounding potential environmental impacts—such as noise pollution and resource consumption—also play a significant role in the discussions around this legislation.