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-25.0518.01000
-Sixty-ninth
+25.0518.01001
+Title.02000
+Prepared by the Legislative Council
+staff for Representative Toman
+Sixty-ninth
+February 6, 2025
 Legislative Assembly
 of North Dakota
 Introduced by
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 Senators Barta, Cory, Paulson
 A BILL for an Act to create and enact a new section to chapter 11-33, a new section to chapter
 13-09.1, a new section to chapter 40-47, a new chapter to title 51, and a new section to chapter
-58-03 of the North Dakota Century Code, relating to blockchain technology, protection for digital
-asset mining, and an exemption from a money transmitter license.
+58-03 of the North Dakota Century Code, relating to blockchain technology, and protection for
+digital asset mining, and an exemption from a money transmitter license.
 BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
 SECTION 1. A new section to chapter 11-33 of the North Dakota Century Code is created
 and enacted as follows:
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 c. Change the zoning of a digital asset mining business without providing notice and
 an opportunity for comment.
 3. A digital asset mining business may appeal a change in zoning to the district court.
+Page No. 1 25.0518.01001
+ HOUSE BILL NO. 1239
+PROPOSED AMENDMENTS TO
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 4. For purposes of this section:
 a. "Digital asset mining" means using computer hardware and software specifically
 designed or used for the purpose of validating data and securing a blockchain
 network.
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- HOUSE BILL NO. 1239
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 b. "Digital asset mining business" means an individual or company operating a
 digital asset mining facility that cumulatively draws more than one megawatt of
 power in the state.
-SECTION 2. A new section to chapter 13-09.1 of the North Dakota Century Code is created
+      SECTION 2. A new section to chapter 13-09.1 of the North Dakota Century Code is created
 and enacted as follows:
-Exemption from money transmitter license.
-1. An individual or business is exempt from a money transmitter license under this
+      Exemption from money transmitter license.
+      1.    An individual or business is exempt from a money transmitter license under this
 chapter if the individual or business:
-a. Operates a node or a series of nodes on a blockchain protocol.
-b. Engages in digital asset mining.
-c. Develops software on a blockchain protocol, including if the software effectuates
+              a.    Operates a node or a series of nodes on a blockchain protocol.
+              b.    Engages in digital asset mining.
+              c.    Develops software on a blockchain protocol, including if the software effectuates
 the exchange of one digital asset for another digital asset.
-2. A business or decentralized protocol that effectuates the exchange of one digital asset
+      2.    A business or decentralized protocol that effectuates the exchange of one digital asset
 for another digital asset and does not exchange those digital assets for legal tender or
 bank deposits is exempt from a money transmitter license under this chapter.
-3. For purposes of this section:
-a. "Blockchain protocol" means any executable software deployed to a blockchain,
+      3.    For purposes of this section:
+              a.    "Blockchain protocol" means any executable software deployed to a blockchain,
 including an additional standardized set of rules that use a previously existing
 blockchain as a base and which facilitate the transfer of data and electronic
 records and allow that data to be broadcast to nodes.
-b. "Decentralized protocol" means a blockchain protocol software system governed
+              b.    "Decentralized protocol" means a blockchain protocol software system governed
 by a set of predefined rules that execute autonomously without human
 intervention and which can be altered by some predetermined mechanism.
-c. "Digital asset" means virtual currency, cryptocurrencies, natively electronic
+              c.    "Digital asset" means virtual currency, cryptocurrencies, natively electronic
 assets, including stablecoins and nonfungible tokens, and other digital-only
 assets that confer economic, proprietary, or access rights or powers.
-d. "Digital asset mining" means using computer hardware and software specifically
-designed or used for the purpose of validating data and securing a blockchain
-network.
-e. (1) "Node" means a computational device that:
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-(a) Communicates with other devices or participants on a blockchain to
+              d.    "Digital asset mining" means using computer hardware and software specifically
+designed or used for the purpose of validating data and securing a blockchain
+network.
+              e.    (1)    "Node" means a computational device that:
+                              (a)    Communicates with other devices or participants on a blockchain to
 maintain consensus and integrity of that blockchain;
-(b) Creates and validates transaction blocks; or
-(c) Contains and updates a copy of a blockchain.
-(2) A node does not exercise discretion over transactions initiated by the end
+                              (b)    Creates and validates transaction blocks; or
+                              (c)    Contains and updates a copy of a blockchain.
+                     (2)    A node does not exercise discretion over transactions initiated by the end
 user of the blockchain protocol.
-SECTION 3. A new section to chapter 40-47 of the North Dakota Century Code is created
+SECTION 2. A new section to chapter 40-47 of the North Dakota Century Code is created
 and enacted as follows:
 Protection for digital asset mining.
 1. An individual may not be prohibited, restricted, or otherwise prevented from
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 a. "Digital asset mining" means using computer hardware and software specifically
 designed or used for the purpose of validating data and securing a blockchain
 network.
-b. "Digital asset mining business" means an individual or company operating a
-digital asset mining facility that cumulatively draws more than one megawatt of
-power in the state.
-SECTION 4. A new chapter to title 51 of the North Dakota Century Code is created and
-enacted as follows:
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+b. "Digital asset mining business" means an individual or company operating a
+digital asset mining facility that cumulatively draws more than one megawatt of
+power in the state.
+SECTION 3. A new chapter to title 51 of the North Dakota Century Code is created and
+enacted as follows:
 Definitions.
 In this chapter, unless the context of use clearly requires otherwise:
 1. "Blockchain protocol" means any executable software deployed to a blockchain,
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 maintain consensus and integrity of that blockchain;
 (2) Creates and validates transaction blocks; or
 (3) Contains and updates a copy of a blockchain.
-b. A node does not exercise discretion over transactions initiated by the end user of
-the blockchain protocol.
-7. "Self-hosted wallet" means a digital interface used to:
-a. Secure and transfer digital assets; and
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+b. A node does not exercise discretion over transactions initiated by the end user of
+the blockchain protocol.
+7. "Self-hosted wallet" means a digital interface used to:
+a. Secure and transfer digital assets; and
 b. Retain independent control over the secured digital assets by the owner of the
 digital asset.
 8. "Staking" means committing digital assets to a blockchain network to participate in the
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 federal government.
 Permitted uses of digital assets.
 A governing authority may not prohibit, restrict, or otherwise impair the ability of an
-individual or business to:
-1. Accept digital assets as a method of payment for legal goods and services.
-2. Take custody of digital assets using a self-hosted wallet or hardware wallet.
+individual or business to  :
+      1.    Accept accept digital assets as a method of payment for legal goods and services.
+      2.    Take custody of digital assets using a self-hosted wallet or hardware wallet.
 Access to blockchain protocols and transfer of digital assets.
 A person may:
 1. Operate a node for the purpose of connecting to a blockchain protocol and
 participating in the blockchain protocol's operations.
 2. Develop software on a blockchain protocol.
 3. Transfer digital assets to another person using a blockchain protocol.
-4. Participate in staking on a blockchain protocol.
-SECTION 5. A new section to chapter 58-03 of the North Dakota Century Code is created
+      4.    Participate in staking on a blockchain protocol.
+SECTION 4. A new section to chapter 58-03 of the North Dakota Century Code is created
 and enacted as follows:
-Protection for digital asset mining.
-1. An individual may not be prohibited, restricted, or otherwise prevented from
-participating in digital asset mining in an area zoned for residential use if the individual
-engaging in digital asset mining complies with all township noise ordinances.
-2. In an area zoned for commercial use, a township may not:
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+Protection for digital asset mining.
+1. An individual may not be prohibited, restricted, or otherwise prevented from
+participating in digital asset mining in an area zoned for residential use if the individual
+engaging in digital asset mining complies with all township noise ordinances.
+2. In an area zoned for commercial use, a township may not:
 a. Place a limit on sound decibels generated from a digital asset mining business
 which is more restrictive than limits imposed for sound pollution in that area
 generally.
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 b. "Digital asset mining business" means an individual or company operating a
 digital asset mining facility that cumulatively draws more than one megawatt of
 power in the state.
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