House Bill No. 346 establishes the Local Infrastructure Fund as a special fund within the state treasury, aimed at supporting the expansion of broadband services. The bill mandates that the state treasurer deposit any appropriated or transferred funds, as well as grants and donations, into this fund. It also stipulates that the fund's assets will be invested similarly to the state general fund, with any interest earned credited back to the fund. Unused funds at the end of the fiscal year will remain available for future use.

The bill specifies that the funds will be appropriated to the division of administration, office of community development, for reimbursing qualifying expenses incurred by political subdivisions related to broadband service expansion. Additionally, the office of community development is tasked with developing guidelines for fund administration, which must be approved by the Water Sector Commission. A quarterly report on expenditures from the fund will also be submitted to the Commission. The bill is set to take effect upon the governor's signature or after the designated period for gubernatorial action.