NCAA Government Relations Report

NCAA GOVERNMENT RELATIONS REPORT

[Detailed report.]

1. Legislative issues.

a. State and federal athlete agent regulation.

In 2002, our efforts and resources continue to focus on passage of the uniform model law in state legislative chambers. The Uniform Athlete Agent Act (UAAA) provides for uniform registration, certification and background checks of sports agents and provides for the imposition of criminal, civil and/or administrative penalties against unscrupulous agents. To date, the UAAA has passed in sixteen jurisdictions. Washington, Minnesota, Florida and the District of Columbia passed the bill this year. Fourteen additional states introduced the legislation in 2002 and we will continue to aggressively pursue passage of the bill in California this year.

On May 9, 2002, Representative Bart Gordon (D-TN) introduced the Sports Agent Responsibility and Trust Act (SPARTA), with co-sponsorship from Representative Tom Osborne (R-NE). For several weeks prior to introduction, we worked closely with Representative Gordon’s staff to develop language designed to protect student-athletes from unscrupulous agents and facilitate our more comprehensive registration requirements within the state model legislation. In those states where there is no state law currently on record, the federal bill will provide a “federal backstop” with civil penalties until all fifty states can pass the model law. The federal bill includes a “Sense of Congress” section that encourages passage of the UAAA in the states.

On June 5, the NCAA participated in a hearing in the House Subcommittee on Trade, Commerce and Consumer Protection. To date, no members of the subcommittee have opposed the bill and members of both parties have cosponsored it. The bill has not yet been scheduled for a subcommittee vote.

In mid June, we met with staff from the National Conference of Commissioners of Uniform State Laws to discuss our state-by-state strategies for passage of the model law during the remainder of 2002 and 2003. We continue to work closely with them to leverage our resources.

Next steps: While we are supportive of Rep. Gordon’s federal bill, our priority remains passage of the UAAA in the remaining states. We will continue to work with the national associations of state elected officials and seek time on their agendas to discuss the issue. We will also continue to seek ways to improve our website, with updated information and sample letters of support, as we move forward to lobby this effort in the states.

b. Title IX.

Title IX commission.

During a hearing before the Senate Health, Education, Labor and Pensions (HELP) Committee on June 27, Education Secretary Rod Paige announced the formation of a blue ribbon commission to study Title IX. The announcement of the commission occurred in the midst of a pending decision by the U.S. District Court for the District of Columbia on the recent lawsuit filed by the National Wrestling Coaches Association.

The 15-member Commission on Opportunity in Athletics includes: Percy Bates, Director of Programs for Educational Opportunity, University of Michigan and faculty representative to the Big Ten and NCAA; Gene DeFillipo, Director of Athletics, Boston College; Muffet McGraw, Head Coach, Women’s Basketball, University of Notre Dame; and Deborah A. Yow, Director of Athletics, University of Maryland.

Secretary Paige noted, during the hearing, that the commission will gather information on Title IX and provide advice to the Department of Education. The commission, according to its charter, will recommend steps that might be taken to improve the effectiveness of Title IX. The commission will also conduct three town hall meetings in various parts of the country.

The deadline for the commission’s report is set for January 31, 2003 and notable topics to be discussed in the report include: (1) the difference between the number of men’s and women’s “walk-on” athletes and how this differential might reflect overall interest in athletics; (2) how revenue producing sports with large rosters affect Title IX compliance; and (3) consideration of additional support for compliance through public-private partnerships (for example, legislative efforts to fund non-revenue sports).

Next steps: We will monitor the commission’s activity and closely watch for any notices on the town hall meetings.

Title IX lawsuit.

On January 16, the National Wrestling Coaches Association along with the Committee to Save Bucknell Wrestling, the Marquette Wrestling Club, the Yale Wrestling Association and the College Sports Council filed suit in the United States District Court for the District of Columbia against the Department of Education alleging that the Department of Education exceeded its statutory authority in implementing the 1979 Interpretation of Title IX and the 1996 Clarification.

The National Wrestling Coaches Association also contends that the regulations discriminate against male athletes, in particular, the complaint attacks the validity of the three-part test and the proportionality test. The plaintiffs argue that the Title IX law prohibits only intentional discrimination and that, currently, the regulations are applied in a discriminatory manner.

The Department of Justice, representing the Department of Education, filed a motion to dismiss on May 29. The motion stated that the National Wrestling Coaches Association lacked standing, jurisdiction and failed to meet the six-year statute of limitations under the Administrative Procedure Act (APA). Many groups expressed surprise at the motion and dismay that the department failed to address the merits of Title IX.

In response to the motion to dismiss, the National Wrestling Coaches Association filed a cross-motion for summary judgment on June 17. In its motion, the National Wrestling Coaches Association asserts that it is not precluded by the six-year statute of limitations and asks the court to vacate the 1979 three-part test and the 1996 Clarification. A decision has yet to be released.

Next steps: We will continue to monitor the lawsuit.

Title IX report card.

A group entitled the National Coalition for Women and Girls in Education issued a Title IX at 30 Report Card on Gender Equity in areas ranging from access to higher education to technology. Athletics received a grade of a C+.

The coalition recommends that Congress mandate data collection on the participation of high school students in physical education and high school athletics programs; that the Department of Education continue its support of compliance standards currently in existence; and that school athletic administrations use the Equal Employment Opportunity Commission’s guidelines to ensure coaches of male and female sports receive equal treatment.

Next steps: We will monitor any legislative developments that could result from these recommendations. In addition, we will closely watch for other reports on Title IX.

Department of Education.

On May 8, the Department of Education issued a notice of intent to regulate in regard to establishing single-sex classrooms and single-sex schools at the elementary and secondary education levels. Public comments on the proposal were due July 8. The “No Child Left Behind Act of 2001,” which reauthorized the Elementary and Secondary Education Act of 1965, requires the Secretary of Education to issue these guidelines. The Secretary would propose amendments to the regulations implementing Title IX of the Education Amendments of 1972 to provide more flexibility to establish single-sex classes and single-sex schools. Advocates of the proposal believe that the use of single-sex classes and single-sex schools can reflect important and legitimate efforts to improve educational outcomes for students.

Next steps: Public comments were due on July 8. We will continue to follow the rulemaking and any proposed changes to Title IX.

National Women’s Law Center.

The National Women’s Law Center (NWCL) recently wrote to thirty colleges and universities alleging violations of Title IX. The violations, according to the NWCL, stem from the number of athletic scholarships provided to women in proportion to men.

The thirty schools cited for violations are Bucknell University (PA), Central Methodist College (MO), Columbia College (MO), Delaware State University (DE), East Tennessee State University (TN), Green Mountain College (VT), Indiana University-Bloomington (IN), Kansas State University (KS), Lewis-Clark State College (ID), Michigan State University (MI), Northwestern University (IL), Oklahoma State University (OK), Portland State University (OR), Samford University (AL), SUNY at Buffalo (NY), University of Texas at Austin (TX), University of Alaska at Fairbanks (AK), University of California at Berkeley (CA), University of Cincinnati-Main Campus (OH), University of Idaho (ID), University of Miami (FL), University of Minnesota-Twin Cities (MN), University of Nevada, Las Vegas (NV), University of Notre Dame (IN), University of South Florida (FL), University Toledo (OH), University of Wyoming (WY), Weber State University (UT), West Virginia University Institute of Technology (WV) and Western Michigan University (MI).

Next steps: We will monitor any further actions by the NWLC.

Athletic scholarship proposal.

Representative Jim Leach (R-IA) recently introduced legislation to amend the Higher Education Act of 1965 to create a scholarship program named after the Speaker of the House to fund athletic scholarships. The bill would make grants to states to award scholarships to individuals who have demonstrated outstanding academic and athletic achievement. A student can attend any institution of higher education, in order to receive the scholarship. Representative Leach has said publicly that he wants to help provide federal funding for student-athletes to help participants in both women’s and men’s sports. A similar bill, introduced by Senator Paul Wellstone (D-MN), is pending in the Senate.

Next steps: We will continue to monitor any movement of the legislation.

c. Internet gambling.

On Tuesday, June 18, the House Judiciary Committee favorably reported out H.R. 3215, the Combating Illegal Gambling Reform and Modernization Act, introduced by Representative Bob Goodlatte (R-VA). The bill has changed substantially since its initial introduction in November 2001. During the committee’s mark up, an amendment introduced by Representative Chris Cannon (R-UT) to eliminate the so-called carve-outs and exemptions in the bill for certain industries was passed by the committee. There are concerns that the horse racing industry, among others, may now oppose the bill should it reach a vote in the full House.

H.R. 556, the Unlawful Internet Gambling Funding Prohibition Act, introduced by Representative Jim Leach (R-IA), was passed out of the House Financial Services Committee. The bill is pending in the House. This legislation provides an enforcement mechanism for prohibiting online gambling transactions. The Senate has not yet introduced legislation, although in previous Congresses, the Senate did pass Internet gambling legislation.

The NCAA has been active in supporting both bills to clarify the ban on illegal Internet gambling. Many colleges and universities have written in support of H.R. 556 and H.R. 3215. This effort has yielded positive results and generated additional support for the bills.

In another development, the company, Citibank, announced a policy to block all online gambling transactions that use its credit cards. In an agreement with the New York Attorney General’s office, Citibank will block transactions that are identified by casinos and web sites as online gambling. In a statement released by the Attorney General’s office, the action by Citibank is expected to significantly reduce illegal Internet gambling.

Federal regulators have also begun to take notice of illegal Internet gambling. On June 26, the Federal Trade Commission (FTC) released a report concerning the dangers posed by Internet gambling targeted at minors. The FTC focused on the lack of adequate warnings and safeguards to prevent minors from wagering online. The FTC visited over 200 online gambling websites and found that minors can easily access the web sites and wager online.

The FTC concluded that most sites have inadequate warnings against underage wagering. Twenty percent of the websites had no warnings prohibiting underage wagering at all. The FTC found that most websites had no means to block minors from engaging in illegal wagering. Minors often have access to credit cards, giving them the means to wager online. Many online wagering sites also carried a disproportionately high number of ads targeting teens, a figure suggesting that the sites’ administrators are well aware underage use.

The FTC emphasized several problems associated with underage Internet gambling citing monetary loss, ruining good credit, gambling’s addictive nature and its illegality as some prospective harms. However, the Administration has yet to come out with a position on the pending Internet gambling legislation.

Next steps: We will continue to work with staffs of Representatives Goodlatte and Leach. The actions of Citibank will no doubt help to curb the growing problem of Internet gambling; however, federal legislation is still needed.

d. Terrorism insurance legislation.

Since September 11, 2001, several insurers and reinsurers have determined that terrorism is not an insurable risk and are withdrawing themselves from the market. Insurers point out that their experience with major terrorist events has been so limited, and the potential for losses so large, that setting an actuarially sound price for such coverage is virtually impossible.

On June 18, the Senate approved legislation that would provide insurance companies with government funding to help pay claims from future terrorist strikes. The measure passed 84 – 14. The House passed its measure in December 2001 and the bills will now go to conference for future consideration. We will continue to monitor the movement of this legislation. The White House has spoken in favor of such legislation to ensure that affordable and comprehensive terrorism insurance is available to business.

Next steps: We will continue to monitor and report developments on this issue. We will also participate within various coalition efforts to move the legislation forward.

e. Other activities.

Higher Education Associations – In August, we will have an opportunity to present our priority issues to the National Association of State University and Land Grant Colleges’ Government Affairs Council. In addition, we continue to share information with the American Council on Education and will work to enhance that relationship.