(a) In this section, “Fund” means the Digital Connectivity Fund.

(b) There is a Digital Connectivity Fund.

(c) The purpose of the Fund is to assist in the establishment and expansion of affordable broadband communication services in disconnected areas and communities in the State.

(d) (1) The Office shall administer the Fund.

(2) The Office shall adopt application procedures for grants distributed from the Fund.

(3) The Office shall work with other offices within the Department and the Department of Commerce to adopt regulations specifying:

(i) procedures for applying for financial assistance; and

(ii) priorities for allocating, selecting, and distributing financial assistance from the Fund.

(e) (1) The Fund is a continuing, nonlapsing special fund that is not subject to § 7-302 of the State Finance and Procurement Article.

(2) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.

(f) The Fund consists of:

(1) money appropriated by the State to the Fund;

(2) financial assistance provided to the State by the federal government for the Fund;

(3) interest earnings; and

(4) any other money from any other source accepted for the benefit of the Fund.

(g) The Fund may be used only to distribute competitive grants:

(1) for planning, construction, and maintenance of broadband communication services, equipment, and activities; and

(2) to provide financial assistance to local governments to expand high-speed Internet access in disconnected communities in the State.

(h) (1) The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.

(2) Any interest earnings of the Fund shall be credited to the Fund.

(i) Expenditures from the Fund may be made only in accordance with the State budget.