House OKs crypto resolutions
Rules panel passes 8 motions mirroring Senate proposals
Eight resolutions meant to impose greater regulations on crypto mining in Arkansas cleared the House Select Committee on Rules on Tuesday.
Six of those were sponsored by Rep. Josh Miller, R-Heber Springs, but mirror Senate resolutions filed earlier by Sen. Bryan King, R-Green Forrest. The other two were sponsored by Rep. Rick McClure, R-Malvern, and Rep. Jeremiah Moore, R-Clarendon, but are similar to Senate resolutions filed by Sen. Joshua Bryant, R-Rogers, and Sen. Missy Irvin, R-Mountain View, respectively.
A resolution to lay the groundwork for a boost in employee pay also was approved by the committee.
The resolutions targeting crypto mining come after the state Legislature last year overwhelmingly approved the Arkansas Data Centers Act of 2023, or Act 851, which barred local governments from passing noise and zoning ordinances that specifically target crypto mines. Many state lawmakers have since expressed regret about voting for the law.
“I was told last week that if I ran these six resolutions I was going to lose all the political capital I have,” said Miller, speaking near the meeting’s close. “Hell, I’ve never had any, so that didn’t worry me that much.”
He said he hoped for a “fair and lively discussion” on the issue of crypto mining during the fiscal session, and that the state Senate had already opened the door to such conversation.
“House members, do we want to be the ones who don’t allow this to happen? I don’t think so,” he said.
House Resolution 1014 would add an additional section to Arkansas Code Title 14, Chapter 1, Subchapter 6, that prohibits the use of a computer manufactured or assembled by a “covered foreign entity” in crypto mining, and to bar the use of software developed by a covered foreign entity in crypto mining.
Miller’s resolution defines a covered foreign entity as an individual, foreign government or other party on the U.S. Secretary of Commerce’s Consolidated Screening List or Entity List; is domiciled in or is under the influence or control of China or Russia; or is a subsidiary or affiliate of an individual government or party referred to in the areas previously mentioned.
The resolution also prohibits a crypto mining business or crypto miner from using in the course of their work a computer or software manufactured or assembled by a covered foreign entity.
House Resolution 1018 would authorize the introduction of a nonappropriation bill to amend the Arkansas Data Centers Act of 2023, as well as to amend the Uniform Money Services Act.
It would repeal an exemption for a person engaged in home crypto mining or operating a crypto mine under the act. The resolution also would change the definition of “money transmission” under the act to include “engaging in home digital asset mining or operating a digital asset mining business” under the Arkansas Data Centers Act.
House Resolution 1015 amends the requirements under the Arkansas Data Centers Act by which a crypto mining business or blockchain network must comply. It also prohibits ownership in a crypto mining business in Arkansas by certain foreign nationals, which the resolution defines as “a citizen of a prohibited foreign party” who is subject to sections of the International Traffic in Arms Regulations.
House Resolution 1017 would regulate the effect on water usage and the electric grid by blockchain networks and crypto mines.
House Resolution 1016 would require crypto mining businesses to provide notice before buying land or a building, or beginning construction of a crypto mining facility.
House Resolution 1009, sponsored by McClure, also seeks to amend the Arkansas Data Centers Act and prohibit foreign-party controlled ownership of a crypto mining business.
Bryant was the Senate sponsor of the Arkansas Data Centers Act but has since expressed regret over the law.
House Resolution 1020 places a 60-decibels limit on crypto mines, as well as a 40-decibels limit on businesses that use a blockchain network. Moore, the House sponsor for the resolution, said he has spent “no less than 60 hours on the phone” talking with citizens who are concerned about an emerging market that is “not well understood.”
Rep. Jim Wooten-R-Beebe, presented a resolution similar to one by Sen. Breanne Davis, R-Russellville, to authorize the introduction of a nonappropriation bill to change the state’s uniform classification and compensation act. Gov. Sarah Huckabee Sanders has signaled that she hopes to overhaul the state employee pay plan during the 2025 regular session.
A two-thirds vote is required in the House and Senate to allow for the introduction of a nonappropriation bill in a fiscal session.
A pastor living near Russellville and a small business owner in DeWitt also urged lawmakers to tighten restrictions on crypto mining.
Rick Smith, a pastor in Moreland, said he often fields questions from people who don’t understand crypto mining.
“The questions that I confront often are: ‘What are you talking about? What is crypto currency? What is a crypto currency mine? What do they do? Why is this a problem?’” he said.
If residents with questions don’t get credible answers they become susceptible to misinformation, he said.
Smith said that while he believed the decisions around crypto mining were made in haste, lawmakers still had an opportunity to show they are willing to accept responsibility “and start the process again.”
Jackie Johnson, who owns Lauren’s Garden in DeWitt, said she was worried about what the crypto mines’ proximity to communities might do to residents’ health and urged lawmakers to look at Texas, where several crypto mines have been in operation.
“This is going to ruin Arkansas,” she said. “It’s already being done.”
The resolutions will go before the full House of Representatives at 1 p.m. today.