HR 1020 Summary

• Authorizes Senator Irvin to introduce legislation amending Arkansas law to regulate digital asset mining businesses and blockchain network operations through licensure, permitting, and operational standards.

• Establishes sound emission limits of 60 decibels maximum and requires soundproofing enclosures to reduce sound to 40 decibels; prohibits water cooling for new operations and gives existing operations 24 months to transition away from water cooling.

• Prohibits foreign nationals (as defined by International Traffic in Arms Regulations) from owning or operating digital asset mining businesses; grants Attorney General authority to investigate violations and order divestiture within 120 days, with penalties up to 25% of fair market value.

• Creates licensing and permitting system administered by Department of Energy and Environment with application fees not exceeding $5,000 and financial penalties for violations not exceeding $5,000 per violation.

• Declares an emergency clause citing threats to public peace, health, and safety from noise emissions, power consumption strain on electrical grids, water resource depletion, and cybersecurity concerns.