HB1799

The Arkansas Data Centers Act of 2023 establishes a regulatory framework for digital asset mining businesses and home miners within the state. The bill defines digital asset mining as the use of electricity to validate blockchain networks and sets standards for these operations to follow existing state business, tax, and employment laws. It grants digital asset mining businesses the right to operate in industrial zones and explicitly states that these entities shall not be classified as money transmitters under the Uniform Money Services Act. A key component of the act is the prohibition of discriminatory regulations against these businesses by local governments, specifically regarding zoning, sound level restrictions, and utility rate-setting. The act mandates that mining operations must not negatively impact the stability of electric public utility generation or transmission networks. By creating this framework, the legislature aims to foster industry growth while protecting participants from fraudulent practices and ensuring that local governments do not impose unique, industry-specific burdens.