NCAA GOVERNMENT RELATIONS REPORT

(December 2006)

Congressional Overview

The November 2006 midterm elections garnered significant attention and resulted in a shift of power within the United States Congress. When the 110^th Congress convenes in early January 2007, Democrats for the first time since 1994 will hold a majority in the U.S. House of Representatives and the U.S. Senate. The current tally shows Democrats will hold a 233-202 majority in the House of Representatives and a 51-49 majority in the Senate. In addition to significant gains in Congress, a majority of states will also have Democrat Governors in 2007.

Due to a shift in control in Congress, there will be considerable change to party leadership. Rep. Nancy Pelosi (D-CA) will serve as Speaker of the House, Rep. Steny Hoyer (D-MD) will serve as Majority Leader, Rep. John Boehner (R-OH) will serve as Minority Leader and Rep. Roy Blunt (R-MO) will serve as Minority Whip. Sen. Harry Reid (D-NV) will serve as Majority Leader, Sen. Richard Durbin (D-IL) will serve as Democratic Whip, Sen. Mitch McConnell (R-KY) will serve as Minority Leader and Sen. Trent Lott (R-MS) will serve as Republican Whip in the Senate.

There will also be significant change to the composition of various committees that have addressed issues pertaining to the NCAA. Rep. John Dingell (D-MI) will become chairman of the Committee on Energy and Commerce, Rep. John Conyers (D-MI) will become chairman of the Committee on the Judiciary, Rep. Charles Rangel (D-NY) will become chairman of the Committee on Ways and Means, Rep. George Miller (D-CA) will become chairman of the Committee on Education and the Workforce, and Rep. Henry Waxman (D-CA) will become chairman of the Committee on Government Reform. In the Senate, the Finance Committee will be chaired by Sen. Max Baucus (D-MT), Sen. Edward Kennedy (D-MA) will chair the Health, Education, Labor and Pensions Committee, while Sen. Patrick Leahy (D-VT) will chair the Judiciary Committee and Sen. Daniel Inouye (D-HI) will chair the Commerce, Science and Transportation Committee.

Following the November midterm elections, Congress returned to address essential business. Congress began the lame-duck session with a list of priorities including passage of remaining spending bills, consideration of legislation on the NSA warrantless surveillance program, and Senate confirmation hearings for Robert Gates who was selected by President Bush to replace Donald Rumsfeld as Secretary of Defense. While the Senate confirmed Robert Gates as the new Secretary of Defense, several other legislative goals were not met before the House and Senate adjourned on December 9, 2006. Without passage of the remaining spending bills, Congress approved a continuing resolution prior to adjourning that will keep the government functioning through mid-February 2007.

Tax Exempt Status of Non-Profit Organizations

Throughout the 109^th Congress, the House Committee on Ways and Means performed a broad review of tax exempt organizations by examining the current law, the adequacy of IRS oversight and reporting requirements and considered recommendations for reform. Over the course of this examination, the House Ways and Means Committee focused its efforts and held hearings on tax exempt hospitals and credit unions. In furthering its examination of tax exempt organizations, the House Ways and Means Subcommittee on Oversight extended its review to intercollegiate athletics and higher education.

On October 2, 2006, Rep. William Thomas (R-CA), Chair of the House Ways and Means Committee sent a letter to NCAA President Myles Brand requesting significant information regarding the NCAA?s educational mission and finances. According to the letter this request was an effort to seek ?information on whether major intercollegiate athletics further the tax exempt purpose of the NCAA and, more generally, educational institutions.? On November 13, 2006, the NCAA submitted a thorough response to the Committee, which included an appendix discussing legal precedent in this area and an appendix discussing the NCAA academic reform initiatives. The full text of the response is available on the NCAA website.

The NCAA will continue to educate and be responsive to Members of Congress on this matter and will keep NCAA membership informed of any additional requests for information or interest in this area. The House Ways and Means Committee will have several new Members in the 110^th Congress.

Native American Mascot Related Legislation

On May 4, 2006, Rep. Timothy Johnson (R-IL) introduced the Protection of University Governance Act of 2006. H.R. 5289 would prevent an entity that regulates intercollegiate sports activities from imposing any penalty or sanction or denying any benefit to an institution of higher education by reason of a team name, symbol, emblem or mascot. Under the legislation a college or university would have a right of action against any entity that regulates intercollegiate athletics if they are sanctioned for this reason. On September 29, 2006, Rep. Judy Biggert (R-IL) was added to a list of cosponsors which includes Speaker of the House of Representatives Dennis Hastert (R-IL), Rep. Rodney Alexander (R-LA), Rep. Daniel Lipinski (D-IL), Rep. Jerry Costello (D-IL), Rep. Ray LaHood (R-IL), Rep. Mark Kirk (R-IL), Rep. Donald Manzullo (R-IL), Rep. John Shimkus (R-IL), Rep. Henry Hyde (R-IL), Rep. Allen Boyd (D-FL), and Rep. Jo Ann S. Davis (R-VA). H.R. 5289 had been referred to the House Education and the Workforce Subcommittee on 21^st Century Competitiveness.

On December 15, 2006, the House Education and the Workforce Committee held a field hearing in Champaign, IL. The hearing titled ?An Examination of the NCAA?s Relationship with Member Institutions,? focused on H.R. 5289 and the NCAA?s ability to adopt policy such as the Native American Mascot policy, which Cong. Johnson suggests infringes on the autonomy of member institutions. In addition to Rep. Howard McKeon (R-CA), Chairman, Education and the Workforce Committee, Rep. Johnson (R-IL), Rep. Vernon Ehlers (R-MI) and Rep. Danny Davis (D-IL) participated in the hearing. Witnesses included Rep. Chapin Rose, Illinois State Representative; Howard Wakeland, Professor Emeritus, University of Illinois; Dr. Stephen Kaufman, Professor, University of Illinois; Brent Holmes, Attorney, Law Offices of Heller, Holmes, and Associates, P.C.; John Madigan, Internet Strategist and former University of Illinois student; and Bernard Franklin, NCAA Senior Vice-President for Governance, Membership, Education and Research Services,.

Cong. Johnson?s legislation, H.R. 5289 expired at the end of the 109^th Congress and would need to be reintroduced in 2007. We have met with many Members of the Education and the Workforce Committee and will continue to educate them on the NCAA policy. Many Members of the Committee are supportive of the NCAA policy.

Trademark Infringement

The Trademark Dilution Revision Act of 2006 (H.R. 683) was introduced by Rep. Lamar Smith (R-TX) on February 9, 2005. The bill was signed into law by President Bush on October 6, 2006. H.R. 683 will provide protection for America?s famous brands and the consumers who rely on them, from third-party uses that blur the brand?s distinctiveness or tarnish its reputation.  The act will strengthen a trademark owner?s defense against other parties who use similar marks. An owner of a famous trademark will no longer have to prove the heightened standard of ?actual dilution? and will now only need to assert a claim based on likelihood of dilution. The NCAA along with other members of the International Trademark Association were supportive of this bill.

Uniform Athlete Agent Act

The Uniform Athlete Agent Act (UAAA) is a state model act, which establishes uniform athlete agent registration procedures and provides safeguards for student athletes and membership institutions. In addition, the act imposes criminal, civil and/or administrative penalties against unscrupulous agents. To date, the UAAA has been passed in 35 states, the District of Columbia and the U.S. Virgin Islands.

The NCAA government relations staff has continued to work with the National Conference of Commissioners on Uniform State Laws to create a strategic plan for passage of the UAAA in a number of states during the 2007 legislative session.

Higher Education Associations

NCAA government relations staff continues to build strong relationships with various Higher Education Associations. The American Council on Education (ACE), the Association of American Universities (AAU), the National Association of State Universities and Land Grant Colleges (NASULGC), and Hispanic Association of Colleges and Universities (HACU) among others, continue to provide guidance and support on issues of common interest. The NCAA government relations staff looks forward to continuing these mutually beneficial relationships to better formulate and further the NCAA?s legislative goals.