SR8
To Authorize The Introduction Of A Nonappropriation Bill To Require A Digital Asset Mining Business To Pay A Fee For Extraordinary Electrical Energy Usage And To Implement Oversight Procedures.
Last Action (April 6, 2026): Read the first time, rules suspended, read the second time and placed on the calendar.
Sponsors
AI-Generated Summary
This bill proposes an amendment to the Arkansas Data Centers Act of 2023 to impose an annual fee on digital asset mining businesses based on their electrical energy consumption. Mining operations will be required to pay tiered fees ranging from $25,000 to $100,000 per month depending on their megawatt usage. New businesses must submit estimated energy usage and applicable fees to the Department of Energy and Environment prior to operation, with provisions for reconciliation and refunds based on actual usage. The bill mandates the implementation of oversight and monitoring procedures to prevent fraud and address security and energy concerns. Penalties for knowingly making false material statements regarding energy usage include monetary fines and potential criminal charges, ranging from a Class A misdemeanor to a Class D felony for repeat offenses. Proceeds from the fees are allocated to the State Securities Department, the Office of the Attorney General, and the Department of Energy and Environment to fund monitoring and regulatory activities.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries include state regulatory and law enforcement entities, specifically the State Securities Department, the Office of the Attorney General, and the Department of Energy and Environment. These agencies receive funding from the new fee structure to support their operations, oversight, and monitoring efforts regarding digital asset mining. Additionally, the state government benefits from increased revenue generation and enhanced regulatory authority over the digital asset mining sector.
Who Might Suffer?
The primary entities negatively impacted are digital asset mining businesses and blockchain companies operating in Arkansas. These firms face a new, significant financial burden through the mandatory energy usage fees, which may impact their operational costs and profitability. Furthermore, these businesses will face increased administrative costs and potential legal jeopardy—including the threat of criminal prosecution—related to the new reporting, monitoring, and oversight requirements imposed by the state.
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