Requires the authority to develop an on-line health assessment tool that is available to state employees. The health assessment tool must: (1) Be voluntary;

(2) Be confidential;

(3) Enable participants to compare their personal health information with local and national data; and

(4) Generate recommendations about programs and actions most likely to improve individual health.

Requires the authority to make the on-line health assessment tool available to private sector employers. The administrator may charge private sector employers an annual enrollment fee sufficient to offset the cost of administering the health assessment tool for private sector employers.

Requires that, to the extent funds are appropriated specifically for this purpose, the department shall develop a healthy worksite grant program designed to assist employers seeking to implement strategies to improve the health of their employees. The department shall adopt rules to implement the healthy worksite grant program that include: (1) Eligibility criteria for employers to apply for grants that include limiting the program to employers with less than two hundred employees; and

(2) Criteria for evaluating grant applications that include an assessment of whether the proposed project incorporates worksite strategies known to be effective in increasing physical activity, improving diets, and reducing obesity among employees and the degree to which applicants commit to providing internal resources to implement a proposed strategy.

Requires the department to report to the appropriate policy and fiscal committees of the legislature by December 1, 2008, evaluating the grant program.