A bill to establish a 4-year pilot program to provide information and educational materials to small business concerns regarding health insurance options, including coverage options within the small group market.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business Health Insurance 
Options Act of 2007''.

SEC. 2. HEALTH INSURANCE OPTIONS INFORMATION FOR SMALL BUSINESS 
              CONCERNS.

    (a) Definitions.--In this section, the following definitions shall 
apply:
            (1) Administration.--The term ``Administration'' means the 
        Small Business Administration.
            (2) Administrator.--The term ``Administrator'' means the 
        Administrator of the Administration.
            (3) Association.--The term ``association'' means an 
        association established under section 21(a)(3)(A) of the Small 
        Business Act (15 U.S.C. 648(a)(3)(A)) representing a majority 
        of small business development centers.
            (4) Participating small business development center.--The 
        term ``participating small business development center'' means 
        a small business development center described in section 21 of 
        the Small Business Act (15 U.S.C. 648) that--
                    (A) is accredited under section 21(k)(2) of the 
                Small Business Act (15 U.S.C. 648(k)(2)); and
                    (B) receives a grant under the pilot program.
            (5) Pilot program.--The term ``pilot program'' means the 
        small business health insurance information pilot program 
        established under this section.
            (6) Small business concern.--The term ``small business 
        concern'' has the meaning given that term in section 3 of the 
        Small Business Act (15 U.S.C. 632).
            (7) State.--The term ``State'' means each of the several 
        States of the United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, the Virgin Islands, American 
        Samoa, and Guam.
    (b) Small Business Health Insurance Information Pilot Program.--The 
Administrator shall establish a pilot program to make grants to small 
business development centers to provide neutral and objective 
information and educational materials regarding health insurance 
options, including coverage options within the small group market, to 
small business concerns.
    (c) Applications.--
            (1) Posting of information.--Not later than 90 days after 
        the date of enactment of this Act, the Administrator shall post 
        on the website of the Administration and publish in the Federal 
        Register a guidance document describing--
                    (A) the requirements of an application for a grant 
                under the pilot program; and
                    (B) the types of informational and educational 
                materials regarding health insurance options to be 
                created under the pilot program, including by 
                referencing materials and resources developed by the 
                National Association of Insurance Commissioners, the 
                Kaiser Family Foundation, and the Healthcare Leadership 
                Council.
            (2) Submission.--A small business development center 
        desiring a grant under the pilot program shall submit an 
        application at such time, in such manner, and accompanied by 
        such information as the Administrator may reasonably require.
    (d) Selection of Participating Small Business Development 
Centers.--
            (1) In general.--The Administrator shall select not more 
        than 20 small business development centers to receive a grant 
        under the pilot program.
            (2) Selection of programs.--In selecting small business 
        development centers under paragraph (1), the Administrator may 
        not select--
                    (A) more than 2 programs from each of the groups of 
                States described in paragraph (3); and
                    (B) more than 1 program in any State.
            (3) Groupings.--The groups of States described in this 
        paragraph are the following:
                    (A) Group 1.--Group 1 shall consist of Maine, 
                Massachusetts, New Hampshire, Connecticut, Vermont, and 
                Rhode Island.
                    (B) Group 2.--Group 2 shall consist of New York, 
                New Jersey, Puerto Rico, and the Virgin Islands.
                    (C) Group 3.--Group 3 shall consist of 
                Pennsylvania, Maryland, West Virginia, Virginia, the 
                District of Columbia, and Delaware.
                    (D) Group 4.--Group 4 shall consist of Georgia, 
                Alabama, North Carolina, South Carolina, Mississippi, 
                Florida, Kentucky, and Tennessee.
                    (E) Group 5.--Group 5 shall consist of Illinois, 
                Ohio, Michigan, Indiana, Wisconsin, and Minnesota.
                    (F) Group 6.--Group 6 shall consist of Texas, New 
                Mexico, Arkansas, Oklahoma, and Louisiana.
                    (G) Group 7.--Group 7 shall consist of Missouri, 
                Iowa, Nebraska, and Kansas.
                    (H) Group 8.--Group 8 shall consist of Colorado, 
                Wyoming, North Dakota, South Dakota, Montana, and Utah.
                    (I) Group 9.--Group 9 shall consist of California, 
                Guam, American Samoa, Hawaii, Nevada, and Arizona.
                    (J) Group 10.--Group 10 shall consist of 
                Washington, Alaska, Idaho, and Oregon.
            (4) Deadline for selection.--The Administrator shall make 
        selections under this subsection not later than 6 months after 
        the later of the date on which the information described in 
        subsection (c)(1) is posted on the website of the 
        Administration and the date on which the information described 
        in subsection (c)(1) is published in the Federal Register.
    (e) Use of Funds.--
            (1) In general.--A participating small business development 
        center shall use funds provided under the pilot program to--
                    (A) create and distribute informational materials; 
                and
                    (B) conduct training and educational activities.
            (2) Content of materials.--
                    (A) In general.--In creating materials under the 
                pilot program, a participating small business 
                development center shall evaluate and incorporate 
                relevant portions of existing informational materials 
                regarding health insurance options, including materials 
                and resources developed by the National Association of 
                Insurance Commissioners, the Kaiser Family Foundation, 
                and the Healthcare Leadership Council.
                    (B) Health insurance options.--In incorporating 
                information regarding health insurance options under 
                subparagraph (A), a participating small business 
                development center shall provide neutral and objective 
                information regarding health insurance options in the 
                geographic area served by the participating small 
                business development center, including traditional 
                employer sponsored health insurance for the group 
                insurance market, such as the health insurance options 
                defined in section 2791 of the Public Health Services 
                Act (42 U.S.C. 300gg-91) or section 125 of the Internal 
                Revenue Code of 1986, and Federal and State health 
                insurance programs.
    (f) Grant Amounts.--Each participating small business development 
center program shall receive a grant in an amount equal to--
            (1) not less than $150,000 per fiscal year; and
            (2) not more than $300,000 per fiscal year.
    (g) Matching Requirement.--Subparagraphs (A) and (B) of section 
21(a)(4) of the Small Business Act (15 U.S.C. 648(a)(4)) shall apply to 
assistance made available under the pilot program.
    (h) Reports.--Each participating small business development center 
shall transmit to the Committee on Small Business and Entrepreneurship 
of the Senate and the Committee on Small Business of the House of 
Representatives, a quarterly report that includes--
            (1) a summary of the information and educational materials 
        regarding health insurance options provided by the 
        participating small business development center under the pilot 
        program; and
            (2) the number of small business concerns assisted under 
        the pilot program.
    (i) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        carry out this section--
                    (A) $5,000,000 for the first fiscal year beginning 
                after the date of enactment of this Act; and
                    (B) $5,000,000 for each of the 3 fiscal years 
                following the fiscal year described in subparagraph 
                (A).
            (2) Limitation on use of other funds.--The Administrator 
        may carry out the pilot program only with amounts appropriated 
        in advance specifically to carry out this section.

Summary: Small Business Health Insurance Options Act of 2007 - Directs the Administrator of the Small Business Administration (SBA) to: (1) establish a four-year pilot program to provide information and educational materials regarding health insurance options, including coverage options within the small group market, to small businesses. And (2) select up to 20 small business development centers (SBDCs) to receive grants under the pilot program. Requires: (1) a specified geographical distribution with respect to grant recipients. And (2) grant funds to be used to create and distribute informational materials and conduct training and educational activities.