(1) The federal broadband account is created in the state treasury. All receipts from funds received from legislative appropriation or transfer, federal funding, and moneys directed to the account from any other lawful source, must be deposited in the account. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used only for broadband activities authorized under federal law and for nonfederal match requirements.
(2) Federal funding received by the department from the broadband equity, access, and deployment state grants program in section 60102 of P.L. 117-58 (the infrastructure investment and jobs act) or a substantially similar successor federal program, must be deposited into the account for broadband activities and must be used in accordance with any federal requirements and, subject to those requirements, may be distributed by the department on a competitive basis to other entities in the state.