text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Transparency and Accountability of 
  Failed Exchanges Act''.
  
  SEC. 2. STATES AWARDED EXCHANGE ESTABLISHMENT GRANTS THAT TERMINATE 
                STATE OPERATION OF SUCH AN EXCHANGE REQUIRED TO PROVIDE 
                AUDITS OF THE USE OF GRANT FUNDS AND RETURN FUNDS TO THE 
                FEDERAL GOVERNMENT.
  
      (a) In General.--Section 1311(a) of the Patient Protection and 
  Affordable Care Act (42 U.S.C. 18031(a)) is amended by adding at the 
  end the following new paragraph:
              ``(6) Treatment in case of exchange termination.--
                      ``(A) In general.--In the case of a State that is 
                  awarded a grant under this section to establish an 
                  Exchange and that terminates the operation of such 
                  Exchange or otherwise transfers the operation of such 
                  Exchange to an entity other than such State--
                              ``(i) not later than 30 days after the date 
                          of such termination or transfer (or, in the 
                          case of such a termination or transfer that 
                          occurred before the date of the enactment of 
                          this paragraph, not later than 30 days after 
                          such date of enactment), the State shall submit 
                          to Congress and the Secretary a report 
                          containing the results of an audit of how 
                          amounts awarded to such State pursuant to such 
                          grant were used; and
                              ``(ii) not later than 30 days after the 
                          date of such termination or transfer (or, in 
                          the case of such a termination or transfer that 
                          occurred before the date of the enactment of 
                          this paragraph, not later than 30 days after 
                          such date of enactment)--
                                      ``(I) in accordance with 
                                  subparagraph (B), there are rescinded 
                                  any unobligated amounts awarded to such 
                                  State pursuant to such grant; and
                                      ``(II) in accordance with 
                                  subparagraph (C), the State shall 
                                  provide to the Administrator of General 
                                  Services any property acquired by such 
                                  State with amounts awarded to such 
                                  State pursuant to such grant and shall 
                                  submit to Congress and the Secretary a 
                                  record of the provision of such 
                                  property to the Administrator.
                      ``(B) Retention of funds for deficit reduction.--
                  Funds rescinded under subparagraph (A)(ii)(I) shall be 
                  retained in the general fund of the Treasury for 
                  Federal budget deficit reduction.
                      ``(C) Treatment of property.--The Administrator of 
                  General Services may--
                              ``(i) dispose of any property obtained 
                          pursuant to subparagraph (A)(ii)(II) through a 
                          public auction for cash and for not less than 
                          the fair market value of the property, as 
                          determined by the Administrator;
                              ``(ii) provide to any Federal agency such 
                          property for official use by such agency; or
                              ``(iii) lease or hire such property, and 
                          may insure such property.
                      ``(D) Exemption from certain property disposal 
                  requirements.--Any disposal of property conducted under 
                  subparagraph (C)(i) shall not be subject to--
                              ``(i) subchapter IV of chapter 5 of 
                          subtitle I of title 40, United States Code;
                              ``(ii) sections 550 and 553 of title 40, 
                          United States Code;
                              ``(iii) section 501 of the McKinney-Vento 
                          Homeless Assistance Act (42 U.S.C. 11411);
                              ``(iv) any other provision of law 
                          authorizing the no-cost conveyance of property 
                          owned by the Federal Government; or
                              ``(v) any congressional notification 
                          requirement other than that in section 545 of 
                          title 40, United States Code.
                      ``(E) Income from property.--The Administrator 
                  shall deposit any income from the disposition, lease, 
                  or hire of the property obtained pursuant to 
                  subparagraph (A)(ii)(II) in the general fund of the 
                  Treasury for Federal budget deficit reduction.''.
      (b) Application of the False Claims Act.--Section 1313(a)(6)(A) of 
  the Patient Protection and Affordable Care Act (42 U.S.C. 
  18033(a)(6)(A)) is amended by adding at the end the following: 
  ``Further, except as otherwise provided for expressly under this Act, 
  the False Claims Act preempts any State enforcement action of alleged 
  fraud, waste, and abuse of funds issued pursuant to this Act. States 
  that terminate or transfer their exchange will refer all current and 
  future matters involving fraud, waste, and abuse of funds issued 
  pursuant to this Act to the United States Department of Justice. Any 
  current or future enforcement action shall be removed to or brought in 
  Federal court. All fines, penalties, damages, or awards, monetary or 
  otherwise, arising out of any current or future enforcement action, 
  represent Federal funds that shall be returned to the United States.''.
      (c) Enforcement Action.--The Attorney General may bring an action 
  before the appropriate district court of the United States to enforce 
  section 1311(a)(6) of the Patient Protection and Affordable Care Act 
  (42 U.S.C. 18031(a)(6)).
      (d) Effective Date.--The provisions of this section, including the 
  amendment made by subsection (a), shall apply with respect to grants 
  made before, on, or after the date of the enactment of this Act and to 
  terminations and transfers of Exchanges occurring before, on, or after 
  such date.
target: Transparency and Accountability of Failed Exchanges Act This bill amends the Patient Protection and Affordable Care Act (PPACA) to require the Department of Health and Human Services, for certain states awarded a grant to establish a health insurance exchange, to report on how awarded amounts were used and rescind unobligated amounts. This applies to any state that terminates operation of its exchange or transfers operation to another entity. Such a state must provide to the General Services Administration any property acquired through the grant and refer matters involving fraud, waste, and abuse of funds issued pursuant to PPACA to the Department of Justice. Funds rescinded must be retained for federal budget deficit reduction.
feat_title: Transparency and Accountability of Failed Exchanges Act