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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
cell
phone carrier; spam calls
(NOW: blockchain technology; regulation; computational power)
Purpose
Prohibits a city, town or county from regulating the act of lawfully assessing or using computational power in a residence.
Background
Current statute precludes a city, town or county from prohibiting or otherwise restricting an individual from running a node on blockchain technology in a residence and states that regulating the act of running a node on blockchain technology in a residence is of statewide concern and not subject to further regulation from a city, town or county.
Statute defines running a node on blockchain technology as providing computing power to validate or encrypt transactions in blockchain technology. Blockchain technology is distributed ledger technology that uses a distributed, decentralized, shared and replicated ledger, which may be public or private, permissioned or permissionless, or driven by tokenized crypto economics or tokenless. The data on the ledger is protected with cryptography, is immutable and auditable and provides an uncensored truth (A.R.S. §§ 9-500.42 ; 11-269.22; and 44-7061).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Precludes a city, town or county from prohibiting or otherwise restricting an individual from lawfully accessing or using computational power in a residence.
2. States that regulating the act of lawfully accessing or using computational power in a residence is of statewide concern and is not subject to further regulation from a city, town or county.
3. Defines computational power as the use of computer hardware and software to process data, run algorithms or perform tasks requiring significant computing resources, including artificial intelligence, blockchain, scientific research and cloud computing.
4. Makes conforming changes.
5. Becomes effective on the general effective date.
House Action
COM 2/18/25 DPA/SE 5-4-0-1
3rd Read 3/3/25 39-19-2
Prepared by Senate Research
March 14, 2025
JT/JRM/ci