TO AUTHORIZE THE INTRODUCTION OF A NONAPPROPRIATION BILL TO AMEND THE REQUIREMENTS FOR A DIGITAL ASSET MINING BUSINESS AND AMEND THE AUTHORITY OF A LOCAL GOVERNMENT WITH RESPECT TO A DIGITAL ASSET MINING BUSINESS.

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State of Arkansas 1
95th General Assembly 2
Fiscal Session, 2026 HR 1013 3
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By: Representative McNair 5
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HOUSE RESOLUTION 8
TO AUTHORIZE THE INTRODUCTION OF A NONAPPROPRIATION 9
BILL TO AMEND THE REQUIREMENTS THAT A DIGITAL ASSET 10
MINING BUSINESS OR BUSINESS UTILIZING A BLOCKCHAIN 11
NETWORK MUST COMPLY WITH; AND TO AMEND THE AUTHORITY 12
OF A LOCAL GOVERNMENT WITH RESPECT TO A DIGITAL ASSET 13
MINING BUSINESS OR INDIVIDUAL ENGAGING IN HOME 14
DIGITAL ASSET MINING. 15
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Subtitle 18
TO AUTHORIZE THE INTRODUCTION OF A 19
NONAPPROPRIATION BILL TO AMEND THE 20
REQUIREMENTS FOR A DIGITAL ASSET MINING 21
BUSINESS AND AMEND THE AUTHORITY OF A 22
LOCAL GOVERNMENT WITH RESPECT TO A 23
DIGITAL ASSET MINING BUSINESS. 24
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BE IT RESOLVED BY THE SENATE OF THE NINETY-FIFTH GENERAL ASSEMBLY OF THE 27
STATE OF ARKANSAS: 28
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THAT Senator King is authorized to introduce a bill which as introduced 30
will read substantially as follows: 31
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"Title 33
AN ACT TO AMEND THE ARKANSAS DATA CENTERS ACT OF 2023; TO AMEND THE 34
REQUIREMENTS THAT A DIGITAL ASSET MINING BUSINESS OR BUSINESS UTILIZING A 35
BLOCKCHAIN NETWORK MUST COMPLY WITH; TO AMEND THE AUTHORITY OF A LOCAL 36
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GOVERNMENT WITH RESPECT TO A DIGITAL ASSET MINING BUSINESS OR INDIVIDUAL 1
ENGAGING IN HOME DIGITAL ASSET MINING; AND FOR OTHER PURPOSES. 2
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Subtitle 4
TO AMEND THE ARKANSAS DATA CENTERS ACT OF 2023; AND TO AMEND THE REQUIREMENTS 5
FOR A DIGITAL ASSET MINING BUSINESS OR BUSINESS USING A BLOCKCHAIN NETWORK. 6
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BE IT RESOLVED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 8
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SECTION 1. Arkansas Code § 14-1-601 is amended to read as follows: 10
14-1-601. Title. 11
This subchapter shall be known and may be cited as the “Arkansas Data 12
Centers Act of 2023 Digital Asset Mining Act". 13
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SECTION 2. Arkansas Code § 14-1-602 is repealed. 15
14-1-602. Legislative findings and intent. 16
(a) The General Assembly finds that: 17
(1) The data centers industry began its modern version in the 18
1980s, and the industry has seen accelerated growth since 2008; 19
(2) Data centers have seen global growth with the expansion of 20
bandwidth, the need for analytical data research, and digital currency; 21
(3) Data centers, digital currency, and blockchain technology 22
are legal in all fifty (50) states; and 23
(4) Guidance for future industry growth is needed in Arkansas to 24
protect Arkansans from fraudulent business practices. 25
(b) Through the enactment of this subchapter, the General Assembly 26
intends to recognize that data centers create jobs, pay taxes, and provide 27
general economic value to local communities and this state. 28
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SECTION 3. Arkansas Code § 14-1-603(10), concerning the definition of 30
"ordinance" under the Arkansas Data Centers Act of 2023, is repealed. 31
(10) “Ordinance” means an ordinance, resolution, or other appropriate 32
legislative enactment of a legislative body; 33
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SECTION 4. Arkansas Code § 14-1-604 is amended to read as follows: 35
14-1-604. Digital asset mining — Operations — Definition. 36
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(a) A digital asset mining business or business utilizing a blockchain 1
network may operate in this state Arkansas if the digital asset mining 2
business or business utilizing a blockchain network complies with: 3
(1) Complies with: 4
(A) Any ordinance; 5
(2)(B) Any rule or rate for utility service provided by or 6
on behalf of a public entity; and 7
(3)(C) State and federal law; and 8
(2) Pays all applicable state, county, city, and government 9
taxes and fees in forms of currency acceptable to those entities. 10
(b) A digital asset miner shall: 11
(1) Pay applicable taxes and government fees in acceptable forms 12
of currency; and 13
(2) Operate in a manner that causes no stress on an electric 14
public utility's or water system's generation capabilities or transmission 15
network; and 16
(3)(2) Apply noise-reduction techniques, including without 17
limitation: 18
(A) Using liquid cooling or submerged cooling; 19
(B)(i) Fully enclosing the envelope. 20
(ii)(a) As used in subdivision (b)(3)(B)(i) 21
(b)(2)(B)(i) of this section, “fully enclosing the envelope” means enfolding 22
the envelope where noise from the operation of a digital asset mining 23
business is directly produced around all sides, including above and below the 24
equipment producing the noise, with material that is reasonably calculated by 25
industry standards to reduce noise emissions to a level that is acceptable to 26
a reasonable person under similar circumstances. 27
(b) Except as provided in subdivision 28
(b)(3)(B)(ii)(c) (b)(2)(B)(ii)(c) of this section, “fully enclosing the 29
envelope” does not include utilizing a passively cooled premanufactured 30
container without additionally enclosing the system in a complete envelope. 31
(c) A digital asset mining business may use a 32
passively cooled premanufactured container without additionally enclosing the 33
system in a complete envelope if the digital asset mining business locates or 34
relocates under subdivision (b)(3)(C) (b)(2)(C) of this section; or 35
(C) Upon approval by the local government, locating or 36
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relocating to: 1
(i) A minimum of two thousand feet (2,000′) from the 2
nearest residential or commercial use structure; or 3
(ii) An area zoned for industrial use or an 4
otherwise approved use. 5
(c) An individual may utilize a node in this state for the purpose of 6
operating: 7
(1) Operating home digital asset mining at the individual's 8
residence according to applicable utility rules and rates; and 9
(2) Permitting requirements set forth by a local government 10
under § 14-1-605. 11
(d) A person may have a digital asset mining business in an area that 12
is zoned for industrial use that has not been designated by the local 13
government for other uses. 14
(e) A person that is engaged in home digital asset mining or that has 15
a digital asset mining business shall not be considered a money transmitter 16
under the Uniform Money Services Act, § 23-55-101 et seq. 17
(f)(d) A local government shall not pass an ordinance that: 18
(1) Prohibits an individual from engaging in home digital asset 19
mining; or 20
(2) Requires an individual to obtain approval from a local 21
government before engaging in home digital asset mining. 22
(g)(1)(e)(1) A person who owns land within two thousand feet (2,000′) 23
of the nearest property line of a digital asset mining business may commence 24
an action in a circuit court with proper jurisdiction over the digital asset 25
mining business to enforce the noise reduction techniques required under 26
subdivision (b)(3) (b)(2) of this section. 27
(2) A person who prevails in an action commenced under 28
subdivision (g)(1) (e)(1) of this section may be awarded reasonable 29
attorney's fees and costs. 30
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SECTION 5. Arkansas Code § 14-1-605 is amended to read as follows: 32
14-1-605. Discrimination against digital asset mining business 33
prohibited Digital asset mining — Regulation by local governments and 34
Arkansas Public Service Commission. 35
(a) Except as provided by subsection (d) of this section, a A local 36
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government shall not may: 1
(1) Enact or adopt an ordinance, policy, or action that limits 2
the sound decibels generated from: 3
(A) Digital asset mining; or 4
(B) Home digital asset mining; 5
(2) Impose a different requirement for a digital asset mining 6
business or business utilizing a blockchain network than is applicable to any 7
requirement for a data center; 8
(3) rezone Rezone an area in which a digital asset mining 9
business is located without complying with applicable state law and local 10
zoning ordinances; or 11
(4) Require an individual to obtain a permit to engage in home 12
digital asset mining. 13
(b) A digital asset mining business may appeal a change in zoning of 14
an area by a local government under any applicable state law or local zoning 15
ordinance. 16
(c) If consistent with applicable state and federal statutes, orders, 17
rules, and regulations, including without limitation §§ 23-3-114 and 23-4-18
103, the Arkansas Public Service Commission shall not may establish an 19
unreasonably discriminatory a rate for a digital asset mining business 20
customer utilizing a blockchain network. 21
(d) The prohibitions under subsection (a) of this section do not apply 22
to any rule or rate for utility service provided by or on behalf of a public 23
entity The commission shall promulgate rules to implement this section." 24
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