SB79

Senate Bill 79 amends the Arkansas Data Centers Act of 2023 to establish a comprehensive regulatory and permitting framework for digital asset mining businesses operating within the state. The bill prohibits local governments from enacting discriminatory zoning or noise ordinances against these businesses. A key component of the legislation is a ban on digital asset mining businesses being owned or controlled by 'prohibited foreign parties,' defined by their ties to nations subject to specific international trade restrictions or designations by the U.S. State Department. The bill empowers the Arkansas Oil and Gas Commission to act as the primary regulatory authority, requiring all such businesses to obtain a state permit to operate. The Attorney General is granted authority to investigate compliance, enforce divestment of foreign-owned interests, and levy significant civil penalties or pursue judicial foreclosure for non-compliance. The legislation also acknowledges that while data centers provide economic value, they pose specific challenges regarding noise, power consumption, water usage, and cybersecurity that necessitate state-level oversight.