[Congressional Record Volume 152, Number 44 (Friday, April 7, 2006)]
[Senate]
[Pages S3383-S3385]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. SNOWE (for herself and Mr. Bennett):
  S. 2607 A bill to establish a 4-year small business health insurance 
information pilot program; to the Committee on Small Business and 
Entrepreneurship.
  Ms. SNOWE. Mr. President, as Chair of the Senate Committee on Small 
Business and Entrepreneurship, I have long believed that it is my 
responsibility and the duty of this chamber to help small businesses, 
as they are the driver of this Nation's economy, responsible for 
generating approximately 75 percent of net new jobs annually.
  Today, I rise with Senator Bennett to introduce legislation that 
would address the crisis that faces small businesses when it comes to 
purchasing quality, affordable health insurance. This is not a new 
crisis. Nearly 46 million Americans are currently uninsured. We've now 
experienced double digit percentage increases in health insurance 
premiums in four of the past five years. Small businesses face 
difficult choices in seeking to provide affordable health insurance to 
their employees. We must act now.

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  Study after study tells us that the smallest businesses are the ones 
least likely to offer insurance and most in need of assistance. 
According to the Employee Benefit Research Institute, of the working 
uninsured, who make up 83 percent of our nation's uninsured population, 
60.6 percent either work for a small business with fewer than 100 
employees or are self-employed.
  Furthermore, many of the small businesses who we meet with tell us 
how they feel like the cost and complexity of the health care system 
has moved health insurance far beyond their reach.
  That is why today we introduce the Small Business Health Education 
and Awareness Act of 2006. This bill establishes a pilot, competitive 
matching-grant program for Small Business Development Centers (SBDCs) 
to provide educational resources and materials to small businesses 
designed to increase awareness regarding health insurance options 
available in their areas. Recent research conducted by the Healthcare 
Leadership Council has found that a short, less than 10 minute 
education session, can increase small business knowledge and interest 
in offering health insurance by about 33 percent.
  For those of you who are not familiar, SBDCs are one of the greatest 
business assistance and entrepreneurial development resources provided 
to small businesses that are seeking to start, grow, and flourish. 
Currently, there are over 1,100 service locations in every state and 
territory delivering management and technical counseling to prospective 
and existing small business owners.
  Our legislation would require the Small Business Administration (SBA) 
to provide up to 20 matching grants to qualified SBDCs across the 
country. No more than two SBDCs, one per State, would be chosen from 
each of the SBA's 10 regions. The grants shall be more than $150,000, 
but less than $300,000 and shall be consistent with the matching 
requirement under current law. In creating the materials for their 
grant programs, participating SBDCs should evaluate and incorporate 
relevant portions existing health insurance options, including 
materials created by the Healthcare Leadership Council.
  In addition, SBDCs participating in the pilot program would be 
required to submit a quarterly report to the SBA.
  Enacting this legislation is an important step in the right direction 
towards assisting small businesses as they work to strengthen 
themselves, remain competitive against larger businesses that are able 
to offer affordable health insurance, and in turn bolster the entire 
economy.
  We encourage our colleagues to join us in supporting this bill, and 
to continue to work to address the issues facing the small business 
community.
  Thank you. I ask unanimous consent that the text of our bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2607

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     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--

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       (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.
                                 ______