Transparency and Accountability of Failed Exchanges Act

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                                subparagraph (B), there are rescinded 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.

Summary: 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.