January 2006 NCAA Executive Committee Supplement No. 13

NCAA GOVERNMENT RELATIONS REPORT

(December 2005)

1. Overview.

The United States Congress and the White House were confronted with several major issues during 2005, which made for a very busy year in Washington, D.C. Debate regarding the ongoing war in Iraq continued to fill the halls of Congress during the first session of the 109^th Congress. Congress also addressed the many problems created by the natural catastrophes that affected much of the Gulf Coast region. The departure of two Justices from the Supreme Court brought the consideration and nomination of candidates to fill those vacancies to the forefront of Congress’ agenda. The Senate confirmed Chief Justice John Roberts on September 29, 2005, and confirmation hearings for Judge Samuel Alito are scheduled to begin on January 9, 2006. In addition to addressing these pressing matters, several significant pieces of legislation were passed and signed into law, including: the Bankruptcy Abuse Prevention and Consumer Protection Act, the Central American Free Trade Agreement, and the Energy Policy Act of 2005.

During this session, Congressional committees spent considerable time discussing the problems presented by performance enhancing drug use by professional and amateur athletes. Several hearings were held to probe into this matter, resulting in the introduction of multiple bills that would establish minimum testing requirements and penalties for professional sports leagues.

In the states, Gubernatorial elections were held in Virginia and New Jersey. Democrat Senator Jon Corzine won the New Jersey election while Democrat Lt. Governor Tim Kaine was declared the winner in Virginia. A number of hotly contested Gubernatorial and Congressional elections are expected in 2006.

2. Federal Legislative Activities.

a. Performance Enhancing Substances – Proposed Legislation.

Over the course of the first session of the 109^th Congress, the House Government Reform Committee, House Energy and Commerce Committee, and the Senate Commerce, Science and Transportation Committee each held hearings to discuss the problem of performance enhancing substance use in sports and its impact on the youth in this country. These hearings garnered significant media attention and helped spur the introduction of nine bills that would provide stringent testing policies and procedures for professional sports leagues.

In November 2005, Major League Baseball and its players’ union proposed substantial changes to its drug testing program. Although this agreement has slowed the movement of legislation in Congress, it is unclear whether Congress plans to revisit the steroid issue in light of the drug testing programs of the other professional leagues and amateur programs.

Listed below are brief descriptions of the nine bills introduced this session:

(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 by the House Energy and Commerce subcommittee on Commerce, Trade and Consumer Protection on May 25, 2005.

(2) H.R. 3084, The Drug Free Sports Act (Amended). 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 by the House Energy and Commerce Committee on July 28, 2005.

(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 (ONDCP) 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 by the House Government Reform Committee on May 26, 2005. 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 the Senate Commerce, Science and Transportation committee was held to examine S. 1114, the Clean Sports Act of 2005 and S. 1334, the Professional Sports Integrity and Accountability Act. The Commissioners and heads of their respective Players’ Unions from the NFL, NHL, NBA and MLB participated in the hearing.

(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, NHL, NFL and MLB. 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 proposed a set of minimum requirements for a testing policy that professional sports leagues would be required to adopt and enforce. The bill also contains a Sense of Congress section, which encourages sports leagues to invalidate the individual records of an athlete that were achieved while using performance enhancing drugs. S. 1334 has been referred to the Senate Committee on Commerce, Science and Transportation.

(8) H.R. 3942, The Professional Sports Responsibility Act of 2005. H.R. 3942 was introduced by Representative F. James Sensenbrenner (R-WI) and Representative John Conyers (D-MI) on September 29, 2005. The legislation would establish a Federal Office of Steroids Testing Enforcement and Prevention within the Justice Department. This office would have jurisdiction over steroid testing and the ability to impose penalties upon professional athletes and sports teams in the NBA, NFL, MLB and NHL. The bill also doubles the criminal penalties for steroid offenses near sports facilities and for distributing steroids to athletes. The legislation provides the Attorney General with the authority to extend steroid testing requirements to additional professional sports leagues and NCAA Division I and II sports. H.R. 3942 has been referred to the House Judiciary Committee, the House Energy and Commerce Committee and the House Education and the Workforce Committee.

(9) S. 1960, The Integrity in Professional Sports Act. S. 1960 was introduced by Senator Jim Bunning (R-KY) and Senator John McCain (R-AZ) on November 3, 2005. This legislation would require professional sports leagues to test its players a minimum of five times each calendar year, with three of those tests occurring during the season and two during the off-season. The bill would also create a three-strikes-and-out penalty scheme. Players would be suspended for a half-season for a first offense, a full season for a second offense and a lifetime ban for a third offense. Additionally, the bill contains a Sense of Congress section which encourages sports leagues to invalidate individual records of an athlete achieved while using performance enhancing drugs.

b. Zero Tolerance Advisory Committee.

To further complement efforts addressing the use of performance enhancing substances by professional and amateur athletes, the House 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 about 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. Abe Frank, NCAA Director of Government Relations and Mary Wilfert, NCAA Associate Director of Education Outreach, participate in this effort on behalf of the NCAA.

Through its involvement in the Zero Tolerance Advisory Committee and in other capacities, the NCAA government relations staff continues to educate members of Congress and their staffs on NCAA drug education and testing programs.

c. Terrorism Risk Insurance Act.

The Terrorism Risk Insurance Act (TRIA) was enacted in 2002, to offer support to insurance companies in the event of a future terrorist attack. Under the initial TRIA legislation, 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 on December 31, 2005.

On February 18, 2005, the Terrorism Risk Insurance Extension Act of 2005 (S.467) was introduced by Senator Robert Bennett (R-UT) and Senator Christopher Dodd (D-CT) to continue the Terrorism Risk Insurance program. In the House similar legislation was introduced by Representative Richard Baker (R-LA) in the form of H.R. 4314, the Terrorism Risk Insurance Revision Act of 2005. With strong support from the insurance and real estate industries, S. 467 was passed in the Senate on November 18, 2005. It is expected that the House will consider H.R. 4314 when it returns from its Thanksgiving recess in early December.

d. Congressional Caucus on Youth Sports.

On November 9, 2005, the Citizenship Through Sports Alliance (CTSA) coalition, joined by Representative Mike McIntyre (D-NC) and CBS basketball commentator, Clark Kellogg, released the results of the first-ever National Youth Sports Report Card. In response to alarming results that highlighted a need to focus less on winning games and more on the child’s experience, Representative McIntyre announced the creation of a Congressional Caucus on Youth Sports. In conjunction with CTSA and other interested parties, this caucus will be charged with educating the media, the public and other members of Congress about the need to refocus the current approach to youth sports, to ensure that this nation’s youth attain the many positive benefits that come from participating in sports.

e. Internet Gambling.

On November 18, 2005, Representative Jim Leach (R-IA) introduced H.R. 4411, the Unlawful Internet Gambling Enforcement Act of 2005. This Act would prohibit any person engaged in the business of betting or wagering from knowingly accepting certain financial instruments for unlawful Internet gambling. This prohibition would include online gambling on sporting events. H.R. 4411 has been referred to the House Committee on Financial Services. Several other lawmakers have expressed an interest in introducing legislation during the 109^th Congress that would seek to curb illegal Internet gambling.

f. Bowl Championship Series.

On December 7, 2005, the House Energy and Commerce Subcommittee on Commerce, Trade and Consumer Protection held a hearing to examine college football’s Bowl Championship Series (BCS) system. The hearing was titled “Determining a Champion on the Field: A Comprehensive Review of the BCS and Postseason College Football.” Witnesses included, Kevin Weiberg, commissioner, Big XII Conference; James Delaney, commissioner, Big Ten Conference; Robert Khayat, chancellor, The University of Mississippi; John Junker, president and chief executive officer, Fiesta Bowl; William Johnstone, chairman, Rose Bowl Management Committee; and Derrick Fox, chairman, Football Bowl Association and president and chief executive officer, Alamo Bowl.