Summary of HR 1013 (Arkansas, 2026 Fiscal Session)
Purpose
- Introduces a nonappropriation bill to modify Arkansas’ Digital Asset Mining framework, as codified in the Arkansas Data Centers Act of 2023.
- Also rewrites and clarifies the authority of local governments regarding digital asset mining activities and home digital asset mining.
Key Provisions
1) Title and scope
- Recasts the subchapter as the “Arkansas Data Centers Act of 2023 Digital Asset Mining Act.”
- Amends requirements for digital asset mining businesses (DAMBs) and for businesses using blockchain networks.
- Addresses the regulatory role of local governments in relation to DAMBs and home mining.
2) Legislative findings and intent (repealed section restructured)
- Repeals the existing § 14-1-602 (Legislative findings and intent) and replaces with updated findings emphasizing:
- Growth of data centers and related industries (since the 1980s, accelerated since 2008).
- Legal status of data centers, digital currency, and blockchain nationwide.
- The need to guide Arkansas’ industry growth and protect residents from fraudulent practices.
- Recognizes that data centers create jobs, generate tax revenue, and support local economies.
3) Definitions and regulatory framework
- Replaces the prior “Ordinance” definition (14-1-603(10)) with updated terminology consistent with the revised act.
- Sets out operating requirements for DAMBs including compliance with ordinances, utility rules/rates, and state/federal law; and payment of all applicable taxes and fees.
4) Digital asset mining operations (Section 14-1-604)
- DAMBs may operate in Arkansas if they:
- Comply with ordinances, utility rules/rates, and state/federal law.
- Pay taxes and fees in currency accepted by authorities.
- DAMBs must:
- Pay applicable taxes/fees in allowed currency.
- Avoid stressing electric utilities or water systems.
- Implement noise-reduction techniques, including:
- Liquid or submerged cooling.
- Fully enclosing the noise-generating envelope around equipment, with clear standards for what constitutes “fully enclosing the envelope.”
- May use passively cooled premanufactured containers without a full envelope if:
- Located/relocated under approved criteria, such as proximity rules or industrial zoning, or a local government approval.
- Home digital asset mining (nodes) permitted under state rules:
- Individuals may operate nodes at their residence following utility and permitting requirements.
- Home DAMBs allowed in zones zoned for industrial use or other approved uses.
5) Noise and local government oversight
- Local governments cannot prohibit home mining or require home miners to obtain approval to mine at home, with certain exceptions described in the bill.
- Establishes dispute and enforcement provisions:
- Neighboring landowners within 2,000 feet may sue to enforce noise reduction obligations.
- Prevailing parties may recover attorney’s fees and costs.
6) Regulations on local government discrimination and utility rates (Section 14-1-605)
- Local governments generally cannot:
- Enact rules that limit the noise decibels from DAMBs or home DAMBs.
- Impose harsher requirements on DAMBs than those for data centers.
- Rezone areas hosting a DAMB without following proper state/local procedures.
- Require a permit specifically for home DAMBs.
- Arkansas Public Service Commission (APSC) guidance:
- The APSC may not unreasonably discriminate in rates for DAMB customers using blockchain networks, subject to existing statutes and regulatory rules.
- The Act allows the APSC to promulgate rules consistent with the stated protections.
Procedural and Timeline Aspects
- Status: Filed 2026-04-08; referred to the House Rules Committee; died in House Committee at Sine Die adjournment (2026-04-29). No enacted provisions become law for the session due to adjournment.
- Effective date: Not specified in the bill text; as a nonappropriation act, its implementation would depend on passage and any subsequent rulemaking.
Impact Overview
- For DAMBs: Adds explicit noise-reduction requirements, cooling standards, and envelope-closure standards; emphasizes tax compliance and utility impact considerations.
- For local governments: Narrows their authority to restrict or require approvals for home mining; limits zoning changes and permit requirements related to home DAMBs.
- For residents: Provides avenues to challenge noise through civil action and potential attorney’s fees if nearby DAMB operations fail to meet noise standards.
- For industry: Attempts to provide a clear, statewide regulatory framework balancing growth of data centers and digital asset mining with neighbor and utility considerations.
Sponsor
- Primary sponsor: Representative McNair; Co-sponsor: Senator King (as introduced text envisions a Senate author).
Note
- The measure did not advance to enactment in the 2026 session, based on the sine die status.
