Loading...
ORD NO 34-2026 CITY OF VAN BUREN,APKANSAS ORDINANCE N -2026 BE IT ENACTED BY THE CITY COUNCIL,FOR THE CITY OF VAN BUREN, ARKANSAS,AN ORDINANCE TO BE ENTITLED: AN ORDINANCE AMENDING THE ZONING CHAPTER OF THE VAN BUREN MUNICIPAL CODE TO INCLUDE A DEFINITION AND CONDITIONS REGARDING DATA CENTERS,AMENDING THE PERMITTED AND CONDITIONAL USE LEGEND, AND REPEALING ALL ORDINANCES IN CONFLICT HEREWITH. WHEREAS, the City of Van Buren has adopted Ordinance 07-1963 relating to the zoning laws of the City of Van Buren, providing definitions, general provisions; provisions governing zoning districts,exceptions and modifications,enforcement,and a Board of Adjustment, as allowed by A.C.A. 14-56-401 et. seq.; and WHEREAS, The Arkansas General Assembly approved Act 851 of 2023 (known as the Arkansas Data Centers Act of 2023); and WHEREAS, it has been determined by the City Council that there is a need to add provisions in the Van Buren Municipal Code to comply with Arkansas Act 851 of 2023 concerning the regulation of Data Centers; and WHEREAS, data centers may provide economic development opportunities, tax revenue, technological investment, and employment benefits to the City and surrounding region; and WHEREAS, the City further recognizes that data centers may impose substantial demands upon municipal and regional electrical grids, water systems, wastewater systems, transportation infrastructure, stormwater management systems, emergency services, and land-use resources; and WHEREAS, the City seeks to ensure that the development and data center facilities occur in a manner consistent with existing zoning regulations, environmental protections, infrastructure capacity planning, noise mitigation standards, and responsible water usage practices; and WHEREAS, the Planning Commission reviewed these amendments at a public hearing that was held on October 6, 2026; and WHEREAS, the proposed changes were recommended by a majority vote of the entire Planning Commission; and WHEREAS, Arkansas Code Annotated § 14-55-207 allows for the adoption of technical codes, such as amendments to the Zoning Ordinance, by reference. NOW,THEREFORE,BE IT ORDAINED AND ENACTED BY THE CITY COUNCIL OF THE CITY OF VAN BUREN,ARKANSAS THAT: SECTION 1: The zoning code amendments for Data Centers as described above are and have been prior to adoption on file in the office of the City Clerk,the availability of such codes, for inspection by the public, has been duly published. SECTION 2: The zoning code amendments as described above,which are attached as attachment "A" are hereby adopted. SECTION 3: The Permitted and Conditional Use Legend, which is codified as Section 14.04, Appendix A of the Van Buren Municipal Code and is attached as Attachment B, is amended for the purpose of adding Data Centers. SECTION 4: The codifier shall codify the adopted amendments in Division 4, General Provisions,new Chapter 14.04.27 of the Van Buren Municipal Code. SECTION 5: The various provisions and parts of this Ordinance are hereby declared to be severable, and, if any section or part of a section, or any provision or part of a provision herein, is declared to be unconstitutional,inappropriate,or invalid by any court of competent jurisdiction, such holding shall not invalidate or affect the remainder of this Ordinance and to that extent the provisions hereto are declared to be severable. SECTION 6: All laws, ordinances, resolutions, or parts of same that are inconsistent with the provisions of this ordinance are hereby repealed to the extent of such inconsistency. IN WITNESS WHEREOF,the,"City of Van Yen, Arkansas, by its City Council, did pass, approve, and adopt, by a vote of 1 for and against,the foregoing Ordinance at its meeting held on the 26th day of October 2026. Hurst Mayor ATTES APPROVED AS TO FORM: S a ey aS%�r Jacob Howell Clerk/Treasur van Buren City Attorney of G�t`I ym ^d P� DATA CENTER ORDINANCE EXHIBIT "A" 14.04.02 Definitions Data center shall mean a building, dedicated space within a building, or group of structures used to house a large group of computer systems and associated components, such as telecommunications and data processing systems to be used for the remote storage, processing, or distribution of large amounts of data. Such data includes but is not limited to computationally intensive applications such as blockchain technology, cryptocurrency mining, weather modeling, and genome sequencing. Facilities may also include air handlers, power generators, water cooling and storage facilities, utility substations, and other associated utility infrastructures to support operations.A data center does not include a dwelling unit used for home digital asset mining as defined by Ark. Code Ann. 14-1-501,et.seq. 14.04.27 Data Centers 1. Purpose and Intent: All data centers constructed within the City of Van Buren shall be designed and built to incorporate sufficient external noise attenuation measures to minimize the impact of noise disturbance on residents.Data Centers shall also be required to provide sufficient evidence that their operation will not negatively impact the customers and users of public utilities within a utility's service area or the users of ground or surface waters. 2. Zoning Districts:- Data Centers are a permitted use in Industrial-2 Zoning Districts. 3. Noise Attenuation for Data Centers: (A) Definitions. For the purpose of this section,the following definitions shall apply unless the context clearly indicates or requires a different meaning: Ambient noise: The all-encompassing noise level associated with a given environment,being a composite of sounds from all sources,excusing the alleged offensive noise,at the locations and approximate time at which comparison with the alleged offensive noise is to be made. Data center shall have the same meaning as set forth in section 14.04.02 of the Municipal Code. Decibel(dB) shall mean a unit for measuring the volume of a sound,equal to twenty(20)times to the base ten(10)of the ratio of the pressure of the sound measured to the referenced pressure,which is twenty(20)micro pascals(twenty(20)micronewtons per square meter). Mechanical equipment: The networked computer systems along with supporting equipment such as batteries,backup generators, and cooling systems housed on the data center's property. Noise attenuation: The reduction of noise levels through the use of sound-absorbing material, architectural design techniques, and/or any other suitable means. Noise disturbance is any sound which: 1. Endangers or injures the safety or health of humans or animals; 2. Annoys or disturbs a reasonable person of normal sensitivities; or 3. Endangers or injures person or real property. Page 2 of 9 Person: An individual,association,partnership, or corporation, including any officer, employee, department, or agency. Sound: An oscillation in pressure,particle displacement,particle velocity,or other physical parameter, in a medium with internal forces that causes compression and rarefaction of that medium. The description of sound may include any characteristic of such sound, including duration,intensity, and frequency. Sound level: shall mean the weighted sound pressure level obtained by the use of a sound level meter and frequency weighting network,such as A,B,or C as specified in American National Standards Institute specifications for sound level meters(ANSI SIA-1971,or the latest approved revision thereof0. If the frequency weighting employed is not indicated,the A-weighting shall apply. Sound level meter: shall mean an instrument which includes a microphone,an amplifier,RMS detector,integrator or time average, output meter,and weighting networks used to measure sound pressure levels. (B)Noise study requirements. The property owner of the lands upon which the data center is to be located shall conduct a sound study performed by a third-party acoustic engineer to document baseline sound levels in the area of the proposed data center,including noise levels measured at the property line in eight(8) locations(north,south, east,west,northeast,northwest,southeast,southwest.)The report of the study must include sound mitigation recommendations based on the results of the sound study. The property owner must provide a copy of the report of the study to the Mayor or his designee and file with the City Clerk within thirty(30)days of completion of the report. (C)Noise Attenuation Requirements. Before a data center has commenced construction or operating within this jurisdiction,the property owner and operator proposing to build a data center shall comply with the following: (1) Notice Requirements. The property owner and operator must notify all residents within a half-mile radius of the parcel,including any affiliated homeowners'association operating within the half-mile radius.that the property owner and operator intends to build and operate a data center on the property.The notice required in this section must be mailed to all property owners,residents, and homeowners'association addresses contained within a half-mile radius extending from the boundary of the site where the proposed data center will be built.Proof of notification shall be filed with the Planning Department within thirty(30)days of providing notice.The property owner and operator must notify the Mayor or his designated representative that the property owner and operator intend to build and operate a data center. The notice must include the location of the proposed data center. This notice must occur at least thirty-30 days prior to any application to the City for the proposed data center. (2) Noise Study Requirements. The property owner of the lands upon which the data center is to be located shall conduct a sound study performed by a third-party acoustic engineer to document baseline sound levels in the area of the proposed data center, including noise levels measured at the boundary of the site in eight(8)locations(north,south,east,west, northeast,northwest, southeast,southwest.)The report of the study must include sound mitigation recommendations based on the results of the sound study. The property owner Page 3 of 9 must provide a copy of the report of the study to the Planning Department within thirty (30)days of completion of the report. (3) Noise Attenuation Plan Requirements. (a) The property owner must consult with a third-party architectural or design firm to develop a building plan that includes necessary noise attenuation measures to prevent the external sound level emanating from the data center from exceeding the sound level limitations which will be considered a noise disturbance. The building plan is not required to adopt any or all the noise attenuation recommendations so long as the plan includes noise attenuation measures that the city deems adequate to be in compliance with this section.Noise attenuation measures may include but are not limited to: (i) Soundproofing walls,screens,panels,fences,or enclosures. (ii) Buffer yards. (iii) Other noise attenuation measures recommended by the third-party acoustic engineer or the city. (b) Mechanical equipment must be shown on any proposed plan and must be fully screened on all sides.Mechanical equipment not screened by a facade of the building must be screened by a visually solid fence, screen wall or panel,or parapet wall and constructed with a design,materials, details,and treatment compatible with those used on the nearest facade of the building. (c) The property owner must provide a copy of the building plan to the city within thirty(30)days of completion of the plan prior to construction. (d) Any additions, changes,or expansions of the data center must comply with the noise attenuation requirements of this section and must be designed and submitted to the city within thirty(30)days of completion of the report. (4) Post Completion Noise Study Requirements. (a) Upon the data center's completion,the data center operator must conduct a post- construction noise study performed by a third-party acoustic engineer to document noise levels emanating from the data center when mechanical equipment is running at full capacity, including all HVAC units and generators necessary for peak operation.Noise levels are to be measured at the boundary of the site in the original eight(8)locations used during the baseline study. The data center operator must provide a copy of the report to the city within ten(10)days of completion of the study. (b) The data center shall not begin operations until the completion of the post- construction noise study and submission to the city as required above. For the data center to be in compliance,the noise study results must show that its operation is in compliance with this section and will not adversely impact residential neighbors. If the results show that the data center is not in compliance with this section or will adversely impact residential neighbors,the data center will be unable to commence operation until the required noise attenuation measures and noise limitations are met. (c) Furthermore,the data center operator must conduct annual noise studies under the baseline and post-construction studies specifications in accordance with subsections (a)and(b)above. The data center operator must provide the results to the city within ten (10)days after the anniversary date of the first sound study report. Page 4 of 9 (D)Procedure for Measurement All tests shall be conducted according to the following procedures: a. Complaint driven. When the measurement is the result of a complaint,measurements will be taken at the property line of the receiving property. b. Normal monitoring. When the measurement procedure is in the normal course of monitoring sound,the measurements will be taken at the real property line of the source of the sound. C. Outdoor conditions. No outdoor measurements must be taken while winds exceed (including gusts)fifteen(15)miles per hour; under conditions that will allow the sound level meter to become wet; or when the ambient temperature is out of range of tolerance on the sound meter. d. Calibration. The sound level meter must be verified and calibrated according to the manufacturer's specifications immediately prior to taking the measurements. e. Meter placement. The sound level meter must be placed a minimum of four(4)feet above the ground or from any reflective surface. The microphone must be pointed at the sound source. f. Measurements. Measurements must include"high", "average",and"low"readings. If the sound level meter does not provide these multiple readings, a minimum of three(3)separate measurements must be taken at a single location at varying time intervals. The average sound level reading shall be used to determine whether there has been a violation of this chapter. g. Monitoring report. The report for each measurement session must include: 1. The day,date, and time of the measurements; 2. Date and time of recent calibration; 3. Temperature and wind speed the time of measurement; 4. Identification of the monitoring equipment; 5. Location,land use, and description of the source; 6. Location and land use of the listener; and 7. Sound level measurements. h. Extraneous sounds. If there are extraneous sound sources that are unrelated to the measurements and increase the monitored sound level,the measurement shall be postponed until these noises subside. (E)Noise limitations. It shall be unlawful for any data center to make or continue to cause or permit to be made or continued,noise levels constituting a noise disturbance. For the purposes of this section,the external noise level emanating from data centers shall be deemed disturbing to a person, reasonably calculated to disturb the peace and unreasonably offensive and injurious to the public, or their property,if the sound level is: a. Sixty-five(65)dBa or higher during the hours of 8:00 a.m.to 10:00 p.m. or fifty-five(55) dBa or higher during the hours of 10:00 p.m.to 8:00 a.m. measured at the property line of the receiving property. Page 5 of 9 b. The standard which may be considered in determining whether a violation of this chapter exists includes but is not limited to the following: 1. The level or volume of the noise. 2. The time of day or night the noise occurs. 3. The duration of the noise. 4. Whether the noise is recurrent, intermittent, or constant. 5. Whether proper and reasonable noise attenuation methods were followed and maintained. (F)Violations a. Any or all the following persons may be held responsible for noise violations: 1. The person operating the equipment or creating the noise; 2. The person who employs the person operating the equipment or creating the noise at the time of the violation; 3. The person who owns or rents the property where the violation occurs. b. The following acts, and the causing thereof,are declared to be in violation of this chapter: 1. The sound level emanating from the data center exceeds sixty-five(65)dBa or higher during the hours of 8:00 a.m.to 10:00 p.m. or fifty-five(55)dBa or higher during the hours of 10:00 p.m.to 8:00 a.m.measured at the property line of the receiving property. 2. The noise attenuation measures provided in the design plan to the Mayor or his designee are not incorporated in the construction of the data center. 3. Any of the required sound study results are not filed with the Mayor or his designee and the City Clerk within thirty(30)days of completion of the report. 4. The building plan is not filed with the Mayor or his designee and the City Clerk within thirty(30)days of completion of the plan prior to construction. 5. Failure to act in accordance with any other provision of this chapter. c. All data centers shall be in compliance with the requirements of this chapter before commencing operation; failure to do so will be deemed in violation of this chapter and result in an injunction and/or a stay in commencing operation. 4. Public Utilities: The building permit and development plan review submittal shall include letters from applicable public utilities informing whether there is available capacity,as determined by the applicable utility company,to serve the proposed load and whether any required transmission, generation, or substation upgrades have been identified before the Arkansas Public Service Commission. Page 6 of 9 5. Setbacks: A minimum 1,000-foot buffer shall be maintained between the data center and any zoning district that permits residential uses,whether adjoining the data center or not. In no event shall any data center building be located within 1,000 feet of any zoning district that permits residential uses. 6. Development Plan Review: (a)Purpose and Intent. This regulation is established to set standards used in reviewing and approving development plans for data centers because of the potential harmful effects the use can cause to nearby property and because the requirements needed to eliminate those harmful effects vary from site to site. Thus,the Planning Commission, in considering each development request, will review the overall compatibility of the planned use with surrounding property as well as such specific items as screening,parking,and landscaping to make sure that no harmful effects occur to nearby property. (b)Application Procedure.The application for a data center development plan review shall be made to the Planning Department by the property owner or any agent of the property owner. The fee for processing a development plan application shall be$250.00. (c)Application and Processing Requirements.(1)The Planning Commission shall hold a public hearing on all requests after: (1) Publishing a notice in a newspaper of general circulation in the City at least one time fifteen(15)days prior to the public hearing, setting forth the time and place of such hearing. (2) Posting a sign three(3)feet by four(4)feet in size at a conspicuous place on the property, fifteen(15)days the date of the public hearing and on which is set forth the date and place of the hearing. (3) Notifying by first-class mail anyone who owns property within three hundred(300)feet of the property being considered for the data center. Such notification will indicate the date, time, and purpose for the public hearing.The notification must be mailed and dated at least fifteen(15)days prior to the public hearing held by the Planning Commission. The application shall include: (A) A description of the present land use. (B) A description of the proposed uses indicating hours of operation,number of employees, etc. (C) A description of the measures to be taken to insure compatibility of the proposed use with surrounding neighborhood(e.g.,building design,landscaping,fence,and site improvements). (D) A description of the possible adverse impacts such as noise,smoke,fumes,traffic, vibrations or other hazards and a description of how these conditions will be minimized. (E) The Planning Department and Planning Commission reserve the right to require additional information which would enable the Commission to determine the appropriateness of the use for which application has been made. Page 7 of 9 ( )d Planning Commission Action. (1) The Planning Commission shall consider the application at the Commission's regular monthly meeting and hold the required public hearing at that time.After the public hearing,the Commission will take one(1)of the following actions: (A) Approve the application as submitted. (B) Approve the application with modification. (C) Defer the application to a later meeting. (D) Table the application. (E) Deny the application. (2) The Planning Commission may impose conditions and restrictions upon the property under consideration with the intent of minimizing the impact of the data center upon nearby property. (3) The Planning Commission shall not reduce requirements associated with a data center concerning the minimum requirements of this ordinance for the zone in which the use is proposed. (di) Development Standards and Review Guidelines.The following development standards and design specifications shall be the basis for approval of the application: (1) The design, location and operating plans shall be such that the safety of the public is protected. (2) The proposed land use will not adversely affect nearby property. (3) The size and shape of the site and the size,shape and arrangement of structures meet the minimum requirements of this ordinance. (4) The entrances and exits,internal street system,off-street parking, loading facilities, and pedestrian walks are adequate for the purpose proposed. (5) Nearby property shall be protected from excess fumes, lighting,noise,glare, dust,and odor. (6) Necessary landscaping and screening required to meet the intent of this ordinance shall be provided. (7) Open space shall be maintained by the owner. (8) Signage will not be obtrusive or distracting so as to distract from the character of the neighborhood or be a nuisance to those living or working therein. (dii) Minimum Site Plan Information. The required site plan shall be drawn to scale and shall,at a minimum, contain the following information: (1) The land to be included in the proposed use along with a written legal description of the land. (2) The zoning classification of all adjacent land within three hundred(300)feet. (3) The location and dimensions of all public rights-of-way on or abutting the planned area. (4) Existing and proposed finished grades of the site. (5) Existing and proposed vehicular and pedestrian circulation systems,including streets, alleys, walkways, service areas and loading area, location and arrangement of off-street parking areas and all points of vehicular entrance and exit. (6) A description of outdoor surfacing and paving for all parking and loading areas. Page 8 of 9 c . (7) A proposed perimeter treatment of the property,with indication of screening materials to be used, including fences,walls, and plants together with a description of uses, setbacks, and the relationship to surrounding area. (8) A schematic landscape plan showing proposed treatment of the areas designated as either buffers or open space. (9) The location and dimensions of all existing and proposed easements and public improvements within the site. (10) The location of all structures and structural dimensions,dimension distances between buildings, and distances from structures to property lines. (11) The location and description of all signs, including those flat on building facades. (12) The indication of proposed use of all structures along with height,floor areas, entrances, and loading areas. (13) The proposed location and description of facilities for garbage and waste disposal and pick-up. (g) Conditions. (1) All conditions required for the approval must be met before any part of the use can be utilized. If any condition is not met,the approval may be revoked by the City. (2) All conditions required must begin to be met within one(1)year of the authorization unless a special time limit has been imposed by the Planning Commission.An extension of time beyond one(1)year or that imposed by the Commission may be granted by the Planning Department one(1)time for up to ninety(90)days. (3) No building permit shall be issued for a data center unless the provisions of this ordinance have been met. (h) Termination of Permit. (1) In the event a condition imposed by the Planning Commission or building inspector for the development plan of a property or structure is suspended,abandoned or changed after the initial approval,the approval or permit shall be considered void and the use of the property or structure shall be immediately suspended until such time as the required condition is again restored and the owner or operator of the property or structure is once again in compliance with the permit. (2) In the event the use of a property or structure subject to the Planning Commission approval is changed to a use not permitted by the certificate,then the approval shall be considered void and the new use of the property or structure shall be immediately suspended until such time as a new Planning Commission approval is authorized. (j) Appeal. The final decision of the Planning Commission may be appealed to the Van Buren City Council. Page 9 of 9 DATA CENTER ORDINANCE EXHIBIT "B ' Van Buren Permitted and Conditional Use Legend t X=Permitted Use 'i `' M `r 4? N io ra fo ry � ra ro '� a� C = Conditional Use (must be approved by Q) v a) � c planning commission) a a M E E 3 •o c W U U 2 O Detached one family dwelling X X X X X Manufactured Homes(See Section 3-B) X Single Family(See H-1 Zoning Chapter) X Two family dwellings X X X C Multi-family dwellings X X C Accessory Dwelling Units(See Section 14.04.22) X X X X X Accessory(Limited)Residential Business(see Section 14.04.23) X X X X X X Home Occupations(see Section 14.04.23) C C C C C C Churches C C C C X C C C C Schools offering a general education course X X X X C C C C C Library X X X C C C C C General purpose farm,garden,or nursery X X X C C C C C C X Private club not conducted for profit X X X C C C C C C Municipal recreation or water supply use X X X C C C C C C C Accessory structures and uses pertinent to the principal structure X X X X X and use Parks,playgrounds,etc. C X X C X C C C C C X Kindergartens(public or private),day care C C C C C C C C C C C Childcare Family Homes X X X X X X Hospitals,nursing homes,doctor,and dental clinics,etc. C C C C X X X X X Mobile home parks X Mobile home park accessory and service buildings X Retail establishments providing goods and services such as grocery, X X C C X drug,hardware,variety stores and similar uses,and hotels,motor hotels,restaurants Office and bank buildings and uses X X C C X Processing and manufacturing that by reason of operation are not X X X X X a nuisance in respect to noise,odor,dust,vibration,etc. Wholesaling and warehousing X X X X X Bulk storage and non-combustible materials X X X X X Automotive service,repair,and storage,provided that wrecked or X X X X X salvaged vehicles are stored inside a building or are enclosed by a solid fence and not visible to the public from the street or sidewalk The manufacturing,compounding,processing,packaging or C X X C assembling of those products that will require the smaller sized, cleaner and more quiet industries and will involve a minimum of noise,dust,odor,or vibrations The storage of bulk materials that will not endanger the health, C C X X C safety and general welfare of the people Retail uses that are accessory to the operation and other C C X X C essentially similar uses such as animal hospitals,repair shops, transportation terminals,wholesale outlets,farm machinery sales, lumber yards,restaurants,and service stations Single mobile homes on a lot where it may be advantageous to the X X industrial development of the area provided said lot is at least 40 feet by 90 feet X=Permitted UseLn ei N M d' U 1 _ _ 1 ei N + C = Conditional Use must be approved �' +' c c U L �o o CJ W pp _ c CuW L I by planning commission) a v E E 4' *H' o In W) E E 3 GJ W 47 y cc OC U U = 2 O The manufacture of heavy,raw products and those operations that are generally objectionable to C X residential business uses;including animal and poultry slaughter,foundries,sawmills and junk yards Public facilities and utilities X On-site real estate sales office C C C C Indoor Firing Range C C C Recreational Vehicle(RV)Parks C C C Retail Pharmacy X X X X X Homeless Shelter/Transitional dwelling C C C Mini-Storage Facilities C X X Commercial Communication Towers C C C C C C X X X Hogs,Goats,Sheep,Cattle and Horses C C C C C C C C C Recycling center C C C Salvage business C C C Dog Kennel C X X X C Auto&Vehicle Impoundment or Holding Yard C X X (no salvage) Bus,Truck and Tractor Sales and Service C X X Commercial,Industrial machinery,and equipment C X X (sales,service,rental,and leasing(salvage yard not permitted) Home Improvement Center X X X Lumber Yard and building materials C X X Manufactured Home and mobile home sales and C X X service(salvage yard not permitted) Motor freight terminals C X X Oil and gas field equipment,sales,and rental yard C X X (salvage yard not permitted) Tire sales X X X Travel trailers and recreation vehicle sales and service C X X (salvage yard not permitted) Mobile Food Truck X X X X C Mobile Food Truck Court C C C C C Special Temporary Use Permit(Vendors) X X X )( Data Centers(see section 14.04.27) X City of Van Buren, Arsas MunicipalComplex 1003 Broadway • Van Buren, Arkansas 72956 VAN BUREN CITY COUNCIL MEMORANDUM TO: MAYOR JOE HURST AND CITY COUNCIL FROM: WALLY BAILEY, PLANNING DIRECTOR SUBJECT: PROPOSED AMENDMENTS TO THE ZONING ORDINANCE DATA CENTERS DATE: OCTOBER 18, 2026 Data Centers can have a significant impact on a community and its infrastructure. The current Van Buren zoning regulations do not recognize this land use, nor do we have any regulations related to the use. Many cities in Arkansas have been adopting ordinances related to the development of Data Centers. To prepare a draft for Van Buren I contacted the Arkansas Municipal League and reviewed ordinances from Fort Smith,North Little Rock, Fayetteville, Conway, and Little Rock. The proposed ordinance has six sections that I find addressed in other ordinances. Those sections are purpose, zoning district, noise attenuation,utility impacts, setbacks, and development plan reviews. The Planning Commission held a public hearing on these proposed amendments at their meeting on October 6, 2026,meeting. The Planning Commission recommended the amendments be adopted by the City Council. I have attached a draft of proposed amendments and a copy of the "Arkansas Data Centers Act of 2023" for your review. Please let me know if you require any additional information before the Council meeting. Stricken language would be deleted from and underlined language would be added to present law. Act 851 of the Regular Session i 1 State of Arkansas As Engrossed: S416123 2 94th General Assembly A Bill 3 Regular Session,2023 HOUSE BILL 1799 4 5 By:Representative McClure 6 By: Senator J.Bryant 7 8 For An Act To Be Entitled 9 AN ACT TO CREATE THE ARKANSAS DATA CENTERS ACT OF 10 2023; TO CLARIFY THE REGULATION OF THE DIGITAL ASSET 11 MINING BUSINESS; AND FOR OTHER PURPOSES. 12 13 14 Subtitle 15 TO CREATE THE ARKANSAS DATA CENTERS ACT 16 OF 2023; AND TO CLARIFY THE REGULATION OF 17 THE DIGITAL ASSET MINING BUSINESS. 18 19 20 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 21 22 SECTION 1. Arkansas Code Title 14, Chapter 1, is amended to add an 23 additional subchapter to read as follows: 24 25 Subchapter 5 — Arkansas Data Centers Act of 2023 26 27 14-1-501. Title. 28 This subchapter shall be known and may be cited as the "Arkansas Data 29 Centers Act of 2023". 30 31 14-1-502. Legislative findings and intent. 32 (a) The General Assembly finds that: 33 (1) The data centers industry began its modern version in the 34 1980s. and the industry has seen accelerated growth since 2008; 35 (2) Data centers have seen global growth with the expansion of 36 bandwidth, the need for analytical data research, and digital currency; IIIIiII �IIII�IIIIIIIIIIII 04-06-2023 17:41:50 ANS305 As Engrossed: S4/6/23 HB1799 1 (3) Data centers, digital currency, and blockchain technology 2 are legal in all fifty (50) states; and 3 (4) Guidance for future industry growth is needed in Arkansas to 4 protect Arkansans from fraudulent business practices. 5 (b) Through the enactment of this subchapter, the General Assembly 6 intends to: 7 (1) Recognize that data centers create lobs, pay taxes, and 8 provide general economic value to local communities and this state; and 9 (2) Clarify the guidelines needed to protect data asset miners 10 from discriminatory industry specific regulations and taxes. 11 12 14-1-503. Definitions. 13 As used in this subchapter: 14 (1) "Blockchain network" means a group of computers operating 15 and processing together to execute a consensus mechanism to agree upon and 16 verify data in a digital record; 17 (2) "Digital asset" means cryptocurrency, virtual currency, and 18 natively electronic assets, including without limitation stable coins, 19 nonfungible tokens, and other digital-only assets, that confer economic, 20 proprietary, or access rights or powers; 21 (3) "Digital asset miner" is an individual who mines for digital 22 assets; 23 (4) "Digital asset mining" means use of electricity to power a 24 computer for the purpose of securing or validating a blockchain network; 25 (5) "Digital asset mining business" means a group of computers 26 working at a single site that consumes more than one megawatt (1 MW) on an 27 average annual basis for the purpose of generating digital assets by securing 28 a blockchain network; 29 (6) "Home digital asset mining" means mining digital assets in 30 areas zoned for residential use; 31 (7) "Legislative body" means the quorum court of a county or the 32 city council, board of directors, board of commissioners, or similar elected 33 governing body of local government; 34 (8) "Local government" means a county, a city of the first 35 class, a city of the second class, or an incorporated town; 36 (9)(A) "Node" means a computational device that contains a copy 2 04-06-2023 17:41:50 ANS305 ,l.)A As Engrossed: S4/6/23 HB1799 1 of blockchain-distributed ledger technology. 2 (B) "Node" includes a series; 3 (10) "Ordinance" means an ordinance, resolution, or other 4 appropriate legislative enactment of a legislative body that: 5 (A) Prohibits an individual from operating a business from 6 a residence; or 7 (B) Requires an individual to obtain approval before 8 operating a business from a residence; 9 (11) "Person" means an individual or legal entity; and 10 (12) "Residence" means a permanent dwelling place, unit, or 11 accessory structure. 12 13 14-1-504. Digital asset mining, 14 (a) A digital asset mining business may operate in this state if the 15 digital asset mining business complies with: 16 (1) State law concerning business guidelines and tax policies; 17 (2) Any ordinance concerning operations and safety; 18 (3) Any rule or rate for utility service provided by or on 19 behalf of a public entity; and 20 (4) State and federal employment laws. 21 (b) A digital asset miner shall: 22 (1) Pay applicable taxes and government fees in acceptable forms 23 of currency; and 24 (2) Operate in a manner that causes no stress on an electric 25 public utility's generation capabilities or transmission network. 26 (c) An individual may utilize a node in this state for the purpose of 27 operating home digital asset mining at the individual's residence according 28 to applicable utility rules and rates. 29 (d) A person may have a digital asset mining business in an area that 30 is zoned for industrial use that has not been designated by the local 31 government for other uses. 32 (e) A person that is engaged in home digital asset mining or that has 33 a digital asset mining business shall not be considered a money transmitter 34 under the Uniform Money Services Act, Q 23-55-101 et seq. 35 36 14-1-505. Discrimination against digital asset mining business 3 04-06-2023 17:41:50 ANS305 As Engrossed: S4/6/23 HB1799 1 prohibited. 2 (a) Except as provided by subsection (d) of this section, a local 3 government shall not: 4 (1) Enact or adopt an ordinance, policy, or action that limits 5 the sound decibels generated from home digital asset mining other than the 6 limits set for sound pollution generally; 7 (2) Impose a different requirement for a digital asset mining 8 business than is applicable to any requirement for a data center; 9 (3) Rezone an area in which a digital asset mining business is 10 located without complying with applicable state law and local zoning 11 ordinances; or 12 (4) Rezone an area with the intent or effect of discriminating 13 against a digital asset mining business. 14 (b) A digital asset mining business may appeal a change in zoning of 15 an area by a local government under any applicable state law or local zoning 16 ordinance. I - 17 (c) If consistent with applicable state and federal statutes, orders, ! 18 rules, and regulations, including without limitation § 23-3-114 and § 23-4- 19 103, the Arkansas Public Service Commission shall not establish an 20 unreasonably discriminatory rate for a digital asset mining business 21 customer. 22 (d) The prohibitions under subsection (a) of this section do not apply 23 to any rule or rate for utility service provided by or on behalf of a public 24 entity. 25 26 Is/McClure 27 28 29 APPROVED: 4/13/23 30 31 32 33 34 35 36 4 04-06-2023 17:41:50 ANS305