SB78

Senate Bill 78 amends the Arkansas Data Centers Act of 2023 to impose new operational and ownership regulations on digital asset mining businesses. The bill mandates that these businesses implement specific noise-reduction techniques, such as full enclosure or liquid cooling, and establishes minimum setback distances from residential and commercial structures. Property owners within 2,000 feet of a mining facility are granted the right to file legal actions to enforce these noise requirements. Additionally, the legislation prohibits foreign-party-controlled businesses—specifically those linked to countries subject to certain international arms regulations—from owning or operating digital asset mining operations in the state. Existing businesses in this category are required to divest their interests within 365 days or face civil penalties and potential judicial foreclosure. The bill also prevents local governments from prohibiting or over-regulating home-based digital asset mining. An emergency clause is included to enact these changes immediately upon passage.