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HB 1239

Practice of pharmacy; certain drugs as over-the-counter; prescription; penalties; effective date.

2025 Regular Session Introduced by David Bullard and 1 co-sponsor

ND bill shields blockchain activity: limits local mining zoning, exempts miners/nodes/developers from money transmitter licenses, and bans CBDC participation.

Referred to Public Health
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Bill Summary · HB 1239

HB 1239 — Summary (North Dakota draft)

Note: Multiple unrelated bills nationwide share the HB 1239 number. This summary covers the North Dakota draft entitled “relating to blockchain technology, protection for digital asset mining, and an exemption from a money transmitter license,” as prepared by Legislative Council staff (Introduced Feb 6, 2025).

Purpose

To (1) protect and authorize certain blockchain activities (mining, running nodes, staking, development), (2) limit local governments’ ability to regulate digital asset mining beyond ordinary noise/zoning rules, (3) create state-level definitions related to blockchain and digital assets, (4) prohibit state/local participation in central bank digital currency (CBDC) tests or acceptance, and (5) exempt certain blockchain actors from state money‑transmitter licensing.

Key provisions

  • Zoning and noise protections for digital asset mining:

    • Individuals may not be prohibited from mining in residentially zoned areas if they comply with applicable county/city/township noise ordinances.
    • In commercially zoned areas, counties/cities/townships may not:
    • Impose decibel limits on mining businesses more restrictive than those generally applied in the area;
    • Impose restrictions that do not apply to other businesses in the area;
    • Change the zoning of an existing mining business without notice and opportunity for comment.
    • Mining businesses may appeal zoning changes to district court.
    • “Digital asset mining business” is defined as an operation that cumulatively draws more than one megawatt (1 MW) of power in the state.

  • Exemption from money transmitter licensing (chapter 13‑09.1):

    • Individuals or businesses are exempt from a money transmitter license if they:
    • Operate one or more nodes on a blockchain protocol;
    • Engage in digital asset mining; or
    • Develop software on a blockchain protocol (including software that effects exchange of one digital asset for another).
    • A business or decentralized protocol that exchanges one digital asset for another but does not exchange those assets for legal tender or bank deposits is also exempt.

  • New definitions and state restrictions (new chapter to Title 51):

    • Definitions: “blockchain protocol,” “digital asset” (including crypto, stablecoins, NFTs), “node,” “hardware wallet,” “self‑hosted wallet,” “staking,” and “central bank digital currency” (CBDC).
    • Prohibitions on CBDC: state or political subdivisions may not accept CBDC payments nor participate in federal CBDC testing.
    • Permitted activities: individuals may operate nodes, develop blockchain software, and participate in staking; governing authorities may not prohibit accepting digital assets as payment for lawful goods/services.

Who is affected

  • Digital asset miners (individuals and businesses), especially facilities >1 MW.
  • Blockchain node operators and software developers.
  • Local governments (counties, cities, townships) — their zoning and noise regulation authority is constrained relative to mining activities.
  • State financial regulators and licensing authorities (due to money transmitter exemptions).
  • Businesses and consumers using digital assets for payments.

Procedural status and timeline

  • Introduced in the North Dakota House (early 2025); multiple drafts/engrossments circulated.
  • Referred to Judiciary & Civil Jurisprudence and other committees; appeared on calendars.
  • Legislative actions in the provided record indicate the measure did not advance to final enactment and ultimately died (died in committee / failed at sine die). (See: committee referrals, “died in House committee at sine die adjournment,” and reading/committee history in the file.)

Fiscal and regulatory notes

  • The draft does not include explicit fiscal appropriations.
  • The money transmitter exemption could reduce licensing burdens for node operators/miners/developers but may raise supervisory and AML/CFT oversight questions handled by federal/state regulators.
  • Restrictions on local zoning/noise rules may shift dispute resolution to courts (appeals to district court), with potential litigation costs for counties/cities.

Practical implications

  • If enacted as drafted, the law would create strong state protections for residential and commercial mining activity (subject to ordinary noise rules), expand legal clarity for node operators and developers, and carve out specific exemptions from state money‑transmitter rules — while banning government acceptance/participation with a CBDC.

Compiled from official sources — confirm details with the bill’s official record.

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