(1) Beginning in Fiscal Year 2001, the funds which shall be appropriated and deposited in the Fund shall be allocated and used as provided in subsection (b) of this section.
(2) Within 15 business days of the sale of the District’s right in and to the Master Settlement Agreement to the District of Columbia Tobacco Financing Settlement Corporation under § 7-1831.02 , the Chief Financial Officer shall certify, for each year, the debt service savings that the District will achieve as a result of the sale.
(3) Beginning in Fiscal Year 2002, the Chief Financial Officer shall certify to the Council that the Mayor has included in the budget and financial plan the transfer to the Fund in the amount of the savings for that year.
(4) The amount of the savings which are appropriated for deposit into the Fund shall be deposited into the Fund in equal quarterly installments which shall be paid at the end of each quarter of the fiscal year.
(b) The funds of the Fund shall be used as follows:
(1) Fifty percent of the sum of the residual interest plus the annual savings from debt defeasance or prepayment shall be spent for purposes specified in local law;
(2) Fifty percent of the sum of the residual interest plus the annual savings from debt defeasance or prepayment shall be invested by the Board in accordance with the standards of § 7-1811.02(h)(1) ;
(3) All of the investment earnings of the Fund shall be reinvested by the Board in accordance with the standards of § 7-1811.02(h)(1) ;
(4) Any funds not spent in accordance with paragraph (1) of this subsection shall be invested in accordance with paragraph (2) of this subsection;
(A) All residual funds accumulated from fiscal years 2001 and 2002 shall be allocated to the General Fund during Fiscal Year 2003. Beginning October 1, 2002 through September 30, 2004, 100% of the residual shall be spent for purposes specified in local law. For Fiscal Year 2003, 100% of the residual shall be transferred to the General Fund, and 100% of the annual savings from debt defeasance and prepayment, after being reduced by $1 million to be allocated to the General Fund, shall be allocated to the Medicaid and Special Education Reform Fund (“Reform Fund”) established by § 4-204.53 . For Fiscal Year 2004, 100% of the residual shall be transferred to the General Fund, and 100% of the annual savings from debt defeasance and prepayment shall be allocated to the Reform Fund. Funds deposited in the Reform Fund shall be disbursed to the Department of Human Services, the Child and Family Services Agency, the Department of Mental Health, the Department of Health, and the District of Columbia Public Schools only for spending pressures associated with the Medicaid, Medicare, Foster Care and Adoption Assistance, and Special Education programs and in accordance with § 4-204.55 . For fiscal year 2005, 100% of the residual and 100% of the annual savings from debt defeasance and prepayment shall be transferred to the General Fund. Commencing in fiscal year 2006, 100% of the residual (unless the Residual Bond has been sold) and 100% of the annual savings from debt defeasance and prepayment shall be transferred to the General Fund. Unless the Residual Bond has been sold by the Fund, the Council may direct all or a portion of the residual to be transferred to the Fund.
(B) For the purposes of this paragraph, the term:
(i) “Foster Care and Adoption Assistance” means the programs authorized by Part E of Title IV of the Social Security Act, approved June 17, 1980 (94 Stat. 501; 42 U.S.C. § 670 et seq.).
(ii) “Medicaid” means the medical assistance programs authorized by Title XIX of the Social Security Act, approved July 30, 1965 (79 Stat. 343; 42 U.S.C. § 1396 et seq.), or by § 1-307.02 , and administered by the Department of Health.
(iii) “Medicare” means the health insurance programs authorized by Title XVIII of the Social Security Act, approved July 30, 1965 (79 Stat. 290; 42 U.S.C. § 1395 et seq.).
(iv) “Special Education” means services provided under § 38-2501 [repealed] to students who are classified as having a disability, as defined in section 101(a)(1) of the Individuals with Disabilities Education Act, approved April 13, 1970 (84 Stat. 175; 20 U.S.C. § 1401(a)(1)), or in section 7(8) of the Rehabilitation Act of 1973, approved September 26, 1973 (87 Stat. 359; 29 U.S.C. § 706(8)).
(6) Beginning October 1, 2002, $16,627,000 of programming funds shall be reinvested by the Board.
(7) If the Residual Bond has been sold by the Fund, 100% of the residual shall be payable to the Corporation for so long as the Bonds issued to purchase the Residual Bond are Outstanding.
(c) The R13BA fund, including all accrued interest, shall be used as follows:
(1) To fund infrastructure improvements related to a proposed development within the R13BA;
(2) To provide health care to the uninsured residents of the District; and
(3) For administrative support in the provision of health care to the uninsured.
(d) For the purpose of financing the costs of the National Capital Medical Center, healthcare related issues, or other capital projects, and repayment of outstanding indebtedness issued for certain capital projects and other undertakings of the District, the Fund may sell to the Corporation all of the Fund’s right, title, and interest in and to the Residual Bond, including all the moneys, and any interest thereon, payable to or received by the Fund, in exchange for:
(1) A cash payment in the amount of the net sales proceeds of the Bonds (other than the Residual Bond); and
(2) The Remainder Certificate, if any.
(e) Subject to the authorization and restrictions of this subchapter, the terms and conditions of the Residual Bond Purchase Agreement shall be determined by the Mayor, which determination shall be conclusively evidenced by his execution of the Residual Bond Purchase Agreement. The Mayor may execute and deliver any administrative or other documents or agreements that are necessary or desirable relating to the sale of the Fund’s right, title, and interest in and to the Residual Bond or in connection with the issuance of the Bonds. Proceeds from the sale of the Bonds and other moneys received by the Corporation pursuant to the Residual Bond Purchase Agreement shall be used to repay certain outstanding indebtedness of the District, to finance or refinance the National Capital Medical Center, healthcare related issues, or other capital projects or undertakings of the District, to pay costs of issuance of the Bonds, to establish and fund reserve funds, and to pay other expenses and fees related to the issuance of the Bonds.