under this title to provide, or finance the provision 
of, health-care-related items and services to indigent 
individuals pursuant to section 2201 or subsections 
(d)(2), (e)(1), or (e)(2) of this section. 
‘‘(4) OPTION
TO
PURCHASE
SEPARATE
COV-
ERAGE OR PLAN.—Nothing in this subsection shall 
be construed as prohibiting a State from purchasing 
separate coverage for abortions for which funding is 
prohibited under this subsection, or a health plan 
that includes such abortions, so long as such cov-
erage or plan is paid for entirely using funds not 
provided by this title. 
‘‘(5) OPTION TO OFFER COVERAGE OR PLAN.— 
Nothing in this subsection shall restrict any health 
insurance issuer from offering separate coverage for 
abortions for which funding is prohibited under this 
subsection, or a health plan that includes such abor-
tions, so long as— 
‘‘(A) premiums for such separate coverage 
or plan are paid entirely with funds not pro-
vided by this title; and 
‘‘(B) administrative costs and all services 
offered through such separate coverage or plan 
are paid for using only premiums collected for 
such coverage or plan. 
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‘‘(6) CONSCIENCE PROTECTIONS.— 
‘‘(A) None of the funds appropriated in 
this Act may be made available to a Federal 
agency or program, or to a State or local gov-
ernment, if such agency, program, or govern-
ment subjects any institutional or individual 
health care entity to discrimination on the basis 
that the health care entity does not provide, pay 
for, provide coverage of, or refer for abortions. 
‘‘(B) In this paragraph, the term ‘health 
care entity’ includes an individual physician, 
pharmacist, or other health care professional, a 
hospital, a provider-sponsored organization, a 
health maintenance organization, a health in-
surance plan, or any other kind of health care 
facility, organization, or plan. 
‘‘(g) NO FUNDING FOR ILLEGAL ALIENS.—Except as 
provided under this section and section 2205, no funds 
appropriated in this title may be used to provide health- 
care-related items and services to an alien who is not law-
fully admitted for permanent residence or otherwise per-
manently residing in the United States under color of law. 
‘‘(h) NONENTITLEMENT.—Nothing in this title shall 
be construed as providing an individual with an entitle-
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ment to health-care-related items and services under this 
title. 
‘‘SEC. 
2203. 
ADMINISTRATIVE 
AND 
FISCAL 
ACCOUNT-
ABILITY. 
‘‘(a) AUDITS.— 
‘‘(1) CONTRACT WITH APPROVED AUDITING EN-
TITY.—Not later than October 1, 2014, and annu-
ally thereafter, a State shall contract with an ap-
proved auditing entity (as defined under paragraph 
(3)(B)) for purposes of conducting an audit under 
paragraph (2) (with respect to the fiscal year ending 
September 30 of such year). 
‘‘(2) AUDIT REQUIREMENT.—Under a contract 
under paragraph (1), an approved auditing entity 
shall conduct an audit of the expenditures or trans-
fers made by a State from amounts received under 
a grant under this title, or from State funds de-
scribed in section 2202(f)(3), with respect to the fis-
cal year which such audit covers, to determine the 
extent to which such expenditures and transfers 
were expended in accordance with this title. 
‘‘(3) ENTITY CONDUCTING AUDIT.— 
‘‘(A) IN
GENERAL.—With respect to a 
State, the audit under paragraph (2) shall be 
conducted by an approved auditing entity in ac-
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cordance with generally accepted auditing prin-
ciples. 
‘‘(B) APPROVED AUDITING ENTITY.—For 
purposes of this section, the term ‘approved au-
diting entity’ means, with respect to a State, an 
entity that is— 
‘‘(i) approved by the Secretary of the 
Treasury; 
‘‘(ii) approved by the chief executive 
officer of the State; and 
‘‘(iii) independent of any Federal, 
State, or local agency. 
‘‘(4) SUBMISSION OF AUDIT.—Not later than 
December 31, 2014, and annually thereafter, a State 
shall submit the results of the audit under para-
graph (2) (with respect to the fiscal year ending on 
September 30 of such year) to the State legislature 
and to the Secretary of the Treasury. 
‘‘(5) 
ADDITIONAL
ACCOUNTING
REQUIRE-
MENTS.—The provisions of chapter 75 of title 31, 
United States Code, shall apply to the audit require-
ments of this section. 
‘‘(b) REIMBURSEMENT AND PENALTY.— 
‘‘(1) IN GENERAL.—If, through an audit con-
ducted under subsection (a), an approved auditing 
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entity finds that any amounts paid to a State under 
a grant under this title were not expended in accord-
ance with this title— 
‘‘(A) the State shall pay to the Treasury of 
the United States any such amount, plus 10 
percent of such amount as a penalty; or 
‘‘(B) the Secretary of the Treasury shall 
offset such amount plus the 10 percent penalty 
against any other amount in any other fiscal 
year that the State may be entitled to receive 
under a grant under this title. 
‘‘(2) MISUSE OF STATE FUNDS.—If, through an 
audit conducted under subsection (a), an approved 
auditing entity finds that a State violated the re-
quirements of section 2202(f)(3), the State shall pay 
to the Treasury of the United States 100 percent of 
the amount of State funds that were used in viola-
tion of section 2202(f)(3) as a penalty. Insofar as a 
State fails to pay any such penalty, the Secretary of 
the Treasury shall offset the amount not so paid 
against the amount of any grant otherwise payable 
to the State under this title. 
‘‘(c) ANNUAL REPORTING REQUIREMENTS.— 
‘‘(1) IN GENERAL.—Not later than January 31, 
2015, and annually thereafter, each State shall sub-
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mit to the Secretary of the Treasury and the State 
legislature a report on the activities carried out by 
the State during the most recently completed fiscal 
year with funds received by the State under a grant 
under this title for such fiscal year. 
‘‘(2) CONTENT.—A report under paragraph (1) 
shall, with respect to a fiscal year— 
‘‘(A) contain the results of the audit con-
ducted by an approved auditing entity for a 
State for such fiscal year, in accordance with 
the requirements of subsection (a) of this sec-
tion; 
‘‘(B) specify the amount of the grant made 
to the State under this title that is used to 
carry out a program under section 2202(e)(3); 
and 
‘‘(C) be in such form and contain such 
other information as the State determines is 
necessary to provide— 
‘‘(i) an accurate description of the ac-
tivities conducted by the State for the pur-
pose described under section 2201 and any 
other use of funds permitted under sub-
sections (d) and (e) of section 2202; and 
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‘‘(ii) a complete record of the pur-
poses for which amounts were expended in 
accordance with this title. 
‘‘(3) CONFORMITY
WITH
ACCOUNTING
PRIN-
CIPALS.—Any financial information in the report 
under paragraph (1) shall be prepared and reported 
in accordance with generally accepted accounting 
principles, including the provisions of chapter 75 of 
title 31, United States Code. 
‘‘(4) PUBLIC
AVAILABILITY.—A State shall 
make copies of the reports required under this sec-
tion available on a public Web site and shall make 
copies available in other formats upon request. 
‘‘(d) FAILURE TO COMPLY WITH REQUIREMENTS.— 
The Secretary of the Treasury shall not make any pay-
ment to a State under a grant authorized by section 
2202(a)— 
‘‘(1) if an audit for a State is not submitted as 
required under subsection (a), during the period be-
tween the date such audit is due and the date on 
which such audit is submitted; 
‘‘(2) if a State fails to submit a report as re-
quired under subsection (c), during the period be-
tween the date such report is due and the date on 
which such report is submitted; or 
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‘‘(3) if a State violates a requirement of section 
2202(f), during the period beginning on the date the 
Secretary becomes aware of such violation and the 
date on which such violation is corrected by the 
State. 
‘‘(e) ADMINISTRATIVE
SUPERVISION
AND
OVER-
SIGHT.— 
‘‘(1) LIMITED ROLE FOR SECRETARY OF TREAS-
URY AND THE ATTORNEY GENERAL.— 
‘‘(A) TREASURY.—The authority of the 
Secretary of the Treasury under this title is 
limited to— 
‘‘(i) promulgating regulations, issuing 
rules, or publishing guidance documents to 
the extent necessary for purposes of imple-
menting subsection (a)(3)(B), subsection 
(b), and subsection (d); 
‘‘(ii) making quarterly payments to 
the States under grants under this title in 
accordance with section 2202(a); 
‘‘(iii) approving entities under sub-
section (a)(3)(B) for purposes of the audits 
required under subsection (a); 
‘‘(iv) withholding payment to a State 
of a grant under subsection (d) or offset-
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ting a payment of such a grant to a State 
under subsection (b); and 
‘‘(v) exercising the authority relating 
to nondiscrimination that is specified in 
section 2204(b). 
‘‘(B) ATTORNEY GENERAL.—The authority 
of the Attorney General to supervise the 
amounts received by a State under this title is 
limited to the authority under section 2204(c). 
‘‘(2) FEDERAL SUPERVISION.— 
‘‘(A) IN
GENERAL.—Except as provided 
under paragraph (1), an administrative officer, 
employee, department, or agency of the United 
States (including the Secretary of Health and 
Human Services) may not— 
‘‘(i) supervise— 
‘‘(I) the amounts received by the 
States under this title; or 
‘‘(II) the use of such amounts by 
the States; or 
‘‘(ii) promulgate regulations or issue 
rules in accordance with this title. 
‘‘(B) LIMITATION
ON
SECRETARY
OF 
HEALTH
AND
HUMAN
SERVICES.—The Sec-
retary of Health and Human Services shall 
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have no authority over any provision of this 
title. 
‘‘(f) RESERVATION OF STATE POWERS.—Nothing in 
this section shall be construed to limit the power of a 
State, including the power of a State to pursue civil and 
criminal penalties under State law against any individual 
or entity that misuses, or engages in fraud or abuse re-
lated to, the funds provided to a State under this title. 
‘‘SEC. 2204. NONDISCRIMINATION PROVISIONS. 
‘‘(a) NO DISCRIMINATION AGAINST INDIVIDUALS.— 
No individual shall be excluded from participation in, de-
nied the benefits of, or subjected to discrimination under, 
any program or activity funded in whole or in part with 
amounts paid to a State under this title on the basis of 
such individual’s— 
‘‘(1) disability under section 504 of the Reha-
bilitation Act of 1973 (29 U.S.C. 794); 
‘‘(2) sex under title IX of the Education 
Amendments of 1972 (20 U.S.C. 1681 et seq.); or 
‘‘(3) race, color, or national origin under title 
VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d 
et seq.). 
‘‘(b) COMPLIANCE.— 
‘‘(1) If the Secretary of the Treasury deter-
mines that a State or an entity that has received 
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funds from amounts paid to a State under a grant 
under this title has failed to comply with a provision 
of law referred to in subsection (a), the Secretary of 
the Treasury shall notify the chief executive officer 
of the State of such failure to comply and shall re-
quest that such chief executive officer secure such 
compliance. 
‘‘(2) If, not later than 60 days after receiving 
notification under paragraph (1), the chief executive 
officer of a State fails or refuses to secure compli-
ance with the provision of law referred to in such 
notification, the Secretary of the Treasury may— 
‘‘(A) refer the matter to the Attorney Gen-
eral with a recommendation that an appropriate 
civil action be instituted; or 
‘‘(B) exercise the powers and functions 
provided under section 505 of the Rehabilita-
tion Act of 1973 (29 U.S.C. 794a), title IX of 
the Education Amendments of 1972 (20 U.S.C. 
1681 et seq.), or title VI of the Civil Rights Act 
of 1964 (42 U.S.C. 2000d et seq.) (as applica-
ble). 
‘‘(c) CIVIL ACTIONS.—If a matter is referred to the 
Attorney General under subsection (b)(2)(A), or the At-
torney General has reason to believe that a State or entity 
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