A bill to establish a 4-year small business health insurance information pilot program.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business Health Education and 
Awareness Act of 2006''.

SEC. 2. PURPOSE.

    The purpose of this Act is 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.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Administration.--The term ``Administration'' means the 
        Small Business Administration.
            (2) Administrator.--The term ``Administrator'' means the 
        Administrator of the Small Business Administration, acting 
        through the Associate Administrator for Small Business 
        Development Centers.
            (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 certified 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 Act.
            (6) Small business concern.--The term ``small business 
        concern'' has the same meaning as in section 3 of the Small 
        Business Act (15 U.S.C. 632).
            (7) State.--The term ``State'' means each of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Virgin Islands, American Samoa, and Guam.

SEC. 4. SMALL BUSINESS HEALTH INSURANCE INFORMATION PILOT PROGRAM.

    (a) Authority.--The Administrator shall establish a pilot program 
to make grants to small business development centers to provide 
information and educational materials regarding health insurance 
options, including coverage options within the small group market, to 
small business concerns.
    (b) 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 such materials developed by 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.
    (c) Selection of Participating SBDCs.--
            (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 (b)(1) is posted on the website of the 
        Administration and the date on which the information described 
        in subsection (b)(1) is published in the Federal Register.
    (d) 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.--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, such as the materials created by the Healthcare 
        Leadership Council.
    (e) 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.
    (f) 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.

SEC. 5. REPORTS.

    Each participating small business development center shall transmit 
to the Administrator and the Chief Counsel for Advocacy of the 
Administration, as the Administrator may direct, 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.

SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated to carry 
out this Act--
            (1) $5,000,000 for the first fiscal year beginning after 
        the date of enactment of this Act; and
            (2) $5,000,000 for each of the 3 fiscal years following the 
        fiscal year described in paragraph (1).
    (b) 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 Act.

Summary: Small Business Health Education and Awareness Act of 2006 - Directs the Administrator of the Small Business Administration (SBA) to establish a four-year pilot program to make grants to small business development centers to provide information and educational materials regarding health insurance options to small businesses. Allows the Administrator to select up to 20 centers to receive such grants. Sets the maximum individual grant limit at $300,000 per fiscal year.