NCAA GOVERNMENT RELATIONS REPORT

(October 2005)

1. Sports Legislative Agenda.

The use of performance enhancing substances by professional and amateur athletes dominated the sports pages as well as the agendas of several Congressional committees during the first session of the 109^th Congress. However, with Congress in recess during the month of August, a natural catastrophe along the Gulf Coast, the war in Iraq and Supreme Court nomination hearings, Congress has recently spent considerable time on other domestic issues of importance.

During the last three months, the NCAA government relations staff has received information requests from a number of Congressional offices on a variety of issues, including: our drug testing and education program, NCAA policies on Indian mascots, alcohol advertising and heat-related illnesses among college football players. It is likely that Congress again will focus this fall on existing legislation pertaining to the use of performance enhancing substances by professional and amateur athletes.

2. Federal Issues.

a. Performance Enhancing Substances.

To date, seven bills have been introduced in the House and Senate that provide stringent testing policies and procedures for professional sports leagues. Due to the large number of proposals on this matter, Congressional leadership has urged sponsors of these measures and committees with jurisdiction to work toward creating a single bill. Reports suggest that discussions to reconcile the differences between the bills are currently ongoing. Listed below are the seven bills.

(1) H.R. 1862, the Drug Free Sports Act. H.R. 1862 was introduced by Representative Cliff Stearns (R-FL) on April 26, 2005. This bill directs the secretary of commerce to issue rules requiring professional sports leagues to adopt and enforce uniform performance enhancing drug-testing policies, procedures and penalties. The bill also requires that a study be conducted to examine the need for such policies within amateur athletic organizations. H.R. 1862 was passed May 25 by the House Energy and Commerce Subcommittee on Commerce, Trade and Consumer Protection.

(2) H.R. 3084, the Drug Free Sports Act. H.R. 3084 was introduced by Representative Cliff Stearns (R-FL) on June 28, 2005. This amended version of the Drug Free Sports Act increased the timing and frequency of random testing required under the legislation and altered the penalties section. The bill was introduced after further consultation with the professional leagues and their respective players’ unions. H.R. 3084 was passed July 28 by the House Energy and Commerce Committee.

(3) H.R. 2565, the Clean Sports Act of 2005. H.R. 2565 was introduced by Representative Tom Davis (R-VA) on May 24, 2005. Under the Act, the National Football League (NFL), the National Basketball Association (NBA), Major League Baseball (MLB) and the National Hockey League (NHL) would be required to follow a strict, uniform testing program for prohibited performance-enhancing drugs by following a model similar to that used by the Olympics. The Act would provide the Office of National Drug Control Policy director the authority to extend the requirements set out in the bill to other professional leagues and NCAA Division I and Division II sports. Also, a commission on high school and collegiate athletics would be created to examine steroid use by amateur athletes and recommend measures to reduce its use. H.R. 2565 was approved May 26 by the House Government Reform Committee. This legislation has subsequently been incorporated into H.R. 2829, a broader bill addressing drug control policy.

(4) H.R. 2829, Office of National Drug Control Policy Reauthorization Act of 2005. On June 16, 2005, the Government Reform Committee incorporated H.R. 2565 into H.R. 2829, which would reauthorize the Office of National Drug Control Policy Act. This amended measure was approved by the Government Reform Committee on June 16, 2005.

(5) S. 1114, the Clean Sports Act of 2005. S. 1114 was introduced by Senator John McCain (R-AZ) on May 24, 2005. This companion bill to H.R. 2565 has been referred to the Senate Committee on Commerce, Science and Transportation. On September 28, 2005, a hearing before this committee is scheduled to be held to examine S. 1114, the Clean Sports Act of 2005 and S. 1334, the Professional Sports Integrity and Accountability Act. Invited witnesses include the commissioners and heads of their respective players’ unions from MLB, the NFL, the NBA and the NHL.

(6) H.R. 2516, the Professional Sports Integrity Act. H.R. 2516 was introduced by Representative John Sweeney (R- NY) on May 19, 2005. This legislation would establish minimum testing standards for the NBA, MLB, the NHL and the NFL. The bill provides the Federal Trade Commission with the power to enforce the Act and rulemaking authority to extend these requirements to other professional sports organizations and the NCAA. H.R. 2516 has been referred to the House Energy and Commerce Subcommittee on Commerce, Trade and Consumer Protection.

(7) S. 1334, the Professional Sports Integrity and Accountability Act. S. 1334 was introduced by Senator Jim Bunning (R-KY) on June 29, 2005. This bill would require professional sports leagues to adopt and enforce a testing policy that met the minimum requirements set out in the legislation. The bill also contains a Sense of Congress section which encourages sports leagues to invalidate the individual records of an athlete achieved while using performance enhancing drugs. S. 1334 has been referred to the Senate Committee on Commerce, Science and Transportation.

A significant number of legislative and oversight hearings have been held to discuss this issue of performance enhancing drugs. Mary Wilfert, NCAA assistant director of education research, testified on behalf of the NCAA before the House Energy and Commerce Subcommittee on Commerce, Trade and Consumer Protection during a March 10 hearing.

To further complement efforts addressing the use of performance enhancing substances by professional and amateur athletes, the Government Reform Committee created an advisory committee referred to as “Zero Tolerance.” Zero Tolerance has been charged with gathering information, fostering discussion and providing recommendations to Congress on how to effectively address concerns with steroid abuse by amateur and professional athletes. The committee is comprised of professional athletes, government representatives, medical experts, anti-drug advocacy organizations and youth-civic leaders. The committee held its first in-person meeting on July 7, 2005. Wilfert and Abe Frank, NCAA director of government relations, attended the meeting. A second meeting has not yet been scheduled.

b. Internet Gambling.

Sports wagering and its proliferation through online gambling websites remains a serious threat to the integrity of athletic events. In an attempt to curb this illegal activity, the NCAA continues to support efforts that address the increasing problem of internet gambling on amateur athletics.

Senator Jon Kyl (R-AZ) has been a sponsor of legislation during previous legislative sessions that would require designated payment systems to establish policies and procedures to identify internet gambling transactions and prevent the acceptance of credit cards or other bank instruments by the online gambling entity. Despite support from various professional and amateur sports organizations and passage of similar legislation in the House and Senate, a final bill has yet to be passed by Congress.

On September 15, 2005, Kyl attempted to amend the Science, Justice, and Commerce Appropriations Bill by attaching language that would restrict online gambling. However, in a procedural move, a fellow lawmaker objected to the inclusion of this language because it was believed that it was not appropriate for this appropriations bill and should follow the usual legislative process through committees. Kyl has vowed to continue seeking passage of legislation on this matter.

c. Terrorism Risk Insurance Act.

Following the events of September 11, 2001, the Terrorism Risk Insurance Act (TRIA) was enacted to offer support to insurance companies in the event of a future terrorist attack. Under TRIA, the government will pay 90 percent of the catastrophic losses that exceed a specified amount. As set out in the original act, TRIA is set to expire December 31, 2005.

On February 18, 2005, Senator Robert Bennett (R-UT) and Senator Christopher Dodd (D-CT) introduced S. 467, the Terrorism Risk Insurance Extension Act of 2005, which would extend TRIA for two additional years. Representative Michael Capuano (D-MA) introduced similar legislation on April 7, 2005. H.R. 1153, the Terrorism Insurance Backstop Extension Act of 2005 would also extend the terrorism risk insurance program through 2007.

During the August Congressional recess, House Financial Services Committee staff spent considerable time exploring two alternative options that would extend the terrorism risk insurance program. One approach would slightly alter the existing program and extend it for a limited number of years. The other alternative would extend the federal backstop initially, but slowly phase it out as multiple private reinsurance pools are developed to provide insurers with protection.

With Congress focusing on the impact that Hurricane Katrina has had on various sectors of our society, it remains unclear how catastrophic losses from natural disasters will effect this discussion. However, it has been suggested that TRIA will likely be a priority for the Senate Banking Committee during the remainder of this session.

3. State Issues.

a. Uniform Athlete Agent Act.

Passage of the Uniform Athlete Agent Act (UAAA) remains a priority for the NCAA Office of Government Relations. To date, the UAAA has been passed in 33 states, Washington D.C., and the U.S Virgin Islands. With a significant number of state legislatures adjourning for the year, the NCAA government relations staff will join with the National Conference of Commissioners on Uniform State Laws to reevaluate current strategies as we work collectively toward passage of the UAAA in all remaining states.

b. Sports Wagering.

On August 29, 2005, Oregon Governor Ted Kulongoski (D-OR) signed a bill into law that repeals authority to establish a lottery based on the outcome of a sporting event. The bill will go into effect July 1, 2007. Passage of this legislation eliminates Sports Action, an NFL parlay game which was created by the Oregon Legislature in 1989 to help fund the state’s university athletic departments. Oregon is one of four states that were allowed to continue conducting sports wagering activities under the Professional and Amateur Sports Act.

4. Higher Education Associations.

The NCAA government relations staff will continue to work closely with the American Council on Education, the National Association of State Universities and Land Grant Colleges, the Association of American Universities and other organizations representing the interests of higher education. The NCAA staff will continue to share information and support on issues of common interest. Various higher education associations continue to be helpful in supporting the NCAA’s legislative agenda.