House Bill No. 346, introduced by Representative Deshotel, establishes the Local Infrastructure Fund as a special fund within the state treasury. The bill mandates that the state treasurer deposit any funds transferred or appropriated by the legislature, as well as any grants, donations, or other revenues into this fund. The funds will be invested similarly to the state general fund, with interest earned credited back to the fund. Unexpended and unencumbered funds at the end of the fiscal year will remain in the fund.

The bill specifies that the Local Infrastructure Fund will be used to reimburse qualifying expenses incurred by political subdivisions related to the repair or mitigation of damages caused by the expansion of broadband services. Additionally, the division of administration, office of community development, is tasked with developing guidelines for the fund's administration, which must be approved by the Water Sector Commission. The office is also required to submit quarterly reports on the expenditures from the fund. The bill will take effect upon the governor's signature or after the lapse of time for gubernatorial action.