HR1019

This bill introduces a fee structure for digital asset mining businesses operating in Arkansas based on their monthly electrical energy consumption. It requires these businesses to report their energy usage to the Department of Energy and Environment, with fees scaling from $25,000 to $100,000 per megawatt depending on usage levels. New businesses are required to submit good-faith estimates of their power consumption and settle any differences after a year of operation. The legislation also establishes strict oversight procedures, authorizing the Department of Energy and Environment to audit businesses and impose penalties for false reporting. Furthermore, the bill mandates criminal penalties, including Class A misdemeanors and Class D felonies, for knowingly providing false material statements. The collected fees are to be distributed among the State Securities Department, the Office of the Attorney General, and the Department of Energy and Environment to fund oversight, monitoring, and administrative expenses related to these businesses. Finally, it directs the relevant state departments to promulgate rules to implement these new regulations.