January 2005 NCAA Executive Committee Supplement No. 16

NCAA GOVERNMENT RELATIONS REPORT

(December 2004)

1. 2004 Elections.

In a tightly contested election cycle, Republicans maintained their control of the White House and increased their control in the U.S. Senate and the U.S. House of Representatives. Republicans expanded their slight majority in the U.S. Senate by gaining four seats which creates a 55-44-1 advantage during the 109^th Congress. Republicans also increased their advantage over Democrats in the U.S. House of Representatives to 232-202-1.

Sen. Bill Frist (R-TN) will retain his position as Senate Majority Leader and Sen. Mitch McConnell (R-KY) and Sen. Rick Santorum (R-PA) will return as Majority Whip and Conference Chairman respectively. With Senate Minority Leader Thomas Daschle (D-SD) losing to Republican John Thune (R-SD), there will be a change in the Democratic Senate Leadership during the 109^th Congress. The Democrats have elected Sen. Harry Reid (D-NV) as the Minority Leader, while Sen. Richard Durbin (D-IL) and Sen. Byron Dorgan (D-ND) will serve as Minority Whip and Policy Committee Chairman respectively. The House leadership will remain the same. Rep. J. Dennis Hastert (R-IL) will retain his position as Speaker, while Rep. Tom Delay (R-TX) will remain as Majority Leader and Rep. Roy Blunt (R-MO) as Majority Whip. Rep. Nancy Pelosi (D-CA) will retain her position as Minority Leader while Rep. Steny Hoyer (D-MD) will continue to serve as Minority Whip.

The 109^th Congress will likely signal several significant leadership changes within Senate Committees which historically have had an interest in issues concerning intercollegiate athletics. Sen. Ted Stevens (R- AL) will replace Sen. John McCain (R-AZ) as chair of the Commerce, Science and Transportation Committee; Sen. Michael Enzi (R-WY) will replace Sen. Judd Gregg (R-NH) as chair of the Health, Education, Labor and Pensions Committee and Sen. Arlen Specter (R-PA) will likely replace Sen. Orrin Hatch (R-UT) as chair of the Judiciary Committee. House committee leadership will likely stay intact with Rep. Joe Barton (R-TX) remaining Chairman of the Energy and Commerce Committee; Rep. Michael Oxley (R-OH) remaining Chairman of the Financial Services Committee and Rep. F. James Sensenbrenner continuing as Chairman of the Judiciary Committee.

In the States, there were 11 gubernatorial elections, with seven states electing new governors. The four governors re-elected include; Republicans John Hoeven of North Dakota and Jim Douglas of Vermont, and Democrats Michael Easley of North Carolina and Ruth Ann Minner of Delaware. In 2005 there will be 28 Republican Governors and 21 Democrat Governors with the Washington gubernatorial race yet to be decided.

2. 2004 Highlights.

a. Athlete Agent Regulation.

(1) The Uniform Athlete Agent Act (UAAA).

The UAAA is a state model act which establishes uniform athlete agent registration procedures and imposes criminal, civil and/or administrative penalties against unscrupulous agents. To date, thirty-one states, Washington DC and the U.S. Virgin Islands have passed the UAAA. During the 2004 legislative session the UAAA was passed in South Carolina, Connecticut, Missouri, Louisiana, New York and Wisconsin. Attached is a list of states that have adopted the UAAA.

(2) The Sports Agent Responsibility and Trust Act (SPARTA).

Rep. Bart Gordon (D-TN) introduced SPARTA in another attempt to address concerns with unscrupulous athlete agents and the impact they have on student athletes and college athletics. SPARTA prohibits athlete agents from attempting to lure student-athletes into signing representation contracts by making false promises or misleading statements and from providing anything of value to the athlete. Additionally, it includes a “Sense of Congress” section which supports the passage of the important registration requirements in the UAAA and serves as a federal “backstop” in states that have not yet adopted the UAAA. With broad support from the NCAA for the legislation and the important “Sense of Congress” section, the bill was passed by Congress and signed into law on September 24, 2004.

Congressman Gordon has asked the NCAA to assist in educating its members and state government officials on the importance of enforcing the new law.

b. Controlled Substances.

The NCAA and the Committee on Competitive Safeguards and Medical Aspects of Sports has continued to address concerns with the health and safety of student-athletes by supporting legislative efforts aimed at preventing the sale and consumption of harmful dietary substances. Through these efforts several key policy decisions were made this year.

On April 16, 2004, the U.S. Food and Drug Administration (FDA) published a final rule which declared that dietary supplements containing ephedrine alkaloids present an unreasonable risk of illness or injury and banned the sale of these products. Additionally, on March 11, 2004, the FDA issued a warning to companies that manufacture, market or distribute products containing androstenedione (andro) ordering them to cease the distribution of those products.

On October 22, 2004, President Bush signed the Anabolic Steroid Control Act of 2004 into law. The law updates the list of banned anabolic steroids to include other dangerous substances including tetrahydrogestrinone (THG) and androstenedione. It also directs the U.S. Sentencing Commission to review the federal sentencing guidelines and consider amending those guidelines to provide for increased penalties with respect to offenses involving anabolic steroids and awards grants to educate youth about the dangers of steroids.

c. California Senate Legislation – “The Student Athletes’ Bill of Rights.”

In February 2003, State Senator Kevin Murray (D-Los Angeles) introduced the Student-Athletes’ Bill of Rights, which would bar in-state colleges and universities from abiding by the NCAA’s rules on scholarships, health insurance coverage and agent relations and would effectively remove California member institutions from the NCAA. In a collective effort, NCAA staff, California member institutions, conferences containing California schools and associated organizations opposed the legislation by effectively educating California legislators on the NCAA rulemaking process and potential consequences from passage of the bill. Additionally, several issues raised in the bill were addressed through the adoption of NCAA legislation.

Following passage in the California Senate, the Student-Athletes’ Bill of Rights was held in the Assembly Higher Education Committee during 2004. By failing to meet the deadline for reporting bills to the California Assembly before the end of the 2004 legislative session, the Student-Athletes’ Bill of Rights died in the committee.

d. Congressional Hearings.

The NCAA participated in several congressional hearings during the second session of the 108^th Congress. On March 11, 2004, the House Subcommittee on Commerce, Trade and Consumer Protection held a hearing on collegiate athletic recruiting following allegations of improper practices. David Berst, Vice President for Division I and Chair of the NCAA Task Force on Recruiting represented the NCAA on the panel. The subcommittee held a follow-up hearing on May 18, 2004, to discuss the NCAA’s progress in establishing new recruitment guidelines and the newly enacted NCAA academic reform legislation. Wally Renfro, NCAA Senior Advisor to the President, represented the NCAA on the panel. NCAA government relations staff were encouraged by the committee members’ support for the academic reform package and initial action taken to remedy apparent problems in the recruitment of student athletes.

Following a request from Representative Spencer Bachus (R-AL), the House Judiciary Committee held an oversight hearing titled ‘Due Process and the NCAA” on September 14, 2004. Josephine (Jo) Potuto, vice chair of the NCAA Committee on Infractions, testified on behalf of the NCAA and the Committee on Infractions. Judiciary Committee members probed into the structure of the investigatory and hearing processes and challenged the NCAA’s failure to adopt the Lee Commission Report recommendations (which analyzed the NCAA’s enforcement procedures) in its entirety. The fairness of the NCAA processes was strongly defended during the hearing.

3. 2005 Outlook.

a. 109th Congressional Outlook.

With increased control in the U.S. House of Representatives and the U.S. Senate, it is believed by Washington analysts that a more conservative agenda will be pushed by Republicans. Policy issues likely to be addressed by the 109^th Congress include: an overhaul of the Social Security Program to add private savings accounts, a simplification of the tax code to make President Bush’s tax cuts permanent, tort reform and a revised energy plan. The appointment of judges on all judicial levels will also be a key issue during the 109^th Congress.

b. NCAA Interests.

NCAA government relations staff will continue to monitor several key areas during the next year. The Unlawful Internet Gambling Funding Prohibition Act was never voted on by the Senate prior to adjournment. NCAA staff will continue to push for the most effective legislation combating online wagering on college athletic competition.

NCAA staff will also monitor several state legislatures that have shown an interest in studying the feasibility of sports wagering. In 2004, Delaware and New Jersey, both examined the issue amidst public, political and legal obstacles, in an attempt to meet budget challenges. In November 2004, a bill was introduced in the New Jersey legislature that will allow licensed casinos to conduct in-person wagering on professional sports events. This bill explicitly states that enactment of this bill would not include wagering on amateur or collegiate contests. NCAA government relations staff will continue to monitor this bill.

The NCAA and the National Conference of Commissioners on Uniform State Laws (NCCUSL) will continue to seek passage of the Uniform Athlete Agent Act in remaining states. NCCUSL has reported that 8-10 states have expressed an interest in introducing the model act next year.

The NCAA will also continue to monitor efforts to extend the Terrorism Risk Insurance Act (TRIA) beyond December 31, 2005, when it is set to expire. TRIA was enacted in 2002 to provide support for insurance companies in the event of a terrorist attack. The law requires insurers to offer coverage against terrorism but ensures that the federal government will pay 90 percent of the catastrophic losses that exceed specified amounts. While a House of Representatives Committee passed legislation extending the Act during the 108^th Congress, the Senate failed to act on similar legislation. A study is being conducted by the Treasury Department to further examine the effectiveness of TRIA.

NCAA government relations staff will continue to monitor congressional interest in efforts to increase the number of minorities hired as coaches, athletic directors and conference commissioners. Several members of the Congressional Black Caucus have submitted information requests and held forums to discuss this issue.

NCAA government relations staff will be prepared to properly address inquiries regarding other issues which garner the attention of state and federal officials due to high media exposure or regional impact.

4. Higher Education Associations.

NCAA government relations staff will continue to forge strong working relationships with Higher Education Associations. The American Council on Education (ACE), the Association of American Universities (AAU) and the National Association of State Universities and Land Grant Colleges (NASULGC) and other similar organizations have provided great guidance and support on issues of common interest. Both ACE and NASULGC continue to be helpful in supporting the NCAA’s legislative agenda.

States Adopting the Uniform Athlete Agent Act

· Alabama

· Arizona

· Arkansas

· Connecticut

· Delaware

· District of Columbia

· Florida

· Georgia

· Idaho

· Indiana

· Kansas