SR7
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.
Last Action (April 3, 2026): Read the first time, rules suspended, read the second time and placed on the calendar.
Sponsors
AI-Generated Summary
This bill, the 'Digital Asset Mining Act,' amends the Arkansas Data Centers Act of 2023 to refine regulations governing digital asset mining businesses and blockchain networks in the state. It modifies operational requirements, including noise-reduction techniques such as liquid cooling or specific enclosure standards, and clarifies distance requirements for sites near residential or commercial structures. The legislation preserves the rights of individuals to engage in home digital asset mining without local government permitting, while prohibiting local ordinances from discriminatorily targeting mining businesses. It also establishes a legal pathway for property owners within 2,000 feet of a mining facility to sue for the enforcement of noise-reduction standards, with the potential to recover attorney's fees. Additionally, the bill outlines the authority of the Arkansas Public Service Commission regarding utility rates and directs the commission to promulgate implementation rules. The bill effectively seeks to balance the growth of the digital asset industry with nuisance protections for nearby residents and local zoning authority.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries include digital asset mining companies and operators of blockchain networks, who gain clearer, state-level guidelines for operations and protections against discriminatory local zoning or utility rate ordinances. Home digital asset miners also benefit from explicit statutory protection against local government interference or permitting requirements. Additionally, property owners living near mining operations benefit from clarified legal mechanisms to enforce noise-reduction standards and the ability to recover legal costs if they succeed in court.
Who Might Suffer?
Local governments may be negatively impacted as the bill curtails their ability to pass independent ordinances or zoning restrictions specifically tailored to manage the sound or operational impacts of digital asset mining facilities within their jurisdictions. Furthermore, the bill creates a potential regulatory burden for mining businesses that must comply with new noise-reduction engineering and construction standards, which may increase overhead costs for those entities.
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