NCAA GOVERNMENT RELATIONS REPORT

(June 2006)

1. Congressional Overview.

During the second session of the 109^th Congress, members of Congress have examined rising fuel prices, immigration, the ongoing war in Iraq and several matters concerning congressional ethics. In addition to these and other important policy issues, members of Congress are preparing for the November mid-term elections. All 435 seats of the House of Representatives are up for election while 33 seats in the Senate will be contested this year.

The remainder of the 2006 congressional calendar is somewhat limited. Congress is scheduled to take a week-long break July 3-7 and a month-long break in August. According to the most recent congressional calendar, the 109^th Congress is scheduled to adjourn on October 6, 2006.

Despite Congress’ full agenda, it has spent considerable time on a number of issues relevant to the NCAA and intercollegiate athletics.

2. Federal Legislative Activity.

a. Internet Gambling.

On November 18, 2005, Representative Jim Leach (R-IA) introduced the Unlawful Internet Gambling Enforcement Act of 2005. H.R. 4411 would prohibit any person engaged in the business of betting or wagering from knowingly accepting certain financial instruments, credit cards and fund transfers for unlawful Internet gambling. This proposal aims to stop the flow of money to Internet gaming sites through the regulation of payment systems. H.R. 4411 would also provide enhanced criminal liability for individuals engaged in unlawful gambling businesses and the option of seeking injunctive relief against illegal gambling enablers. Despite calls by advocates for the creation of a one-year Congressional study commission to evaluate the impact of Internet gaming in the United States, H.R. 4411 was passed by the House Judiciary Committee on May 25, 2006. The legislation will next be considered by the full House.

Representative Bob Goodlatte (R-VA) introduced the Internet Gambling Prohibition Act (H.R. 4777) on February 16, 2006. This bill, which is complimentary to H.R. 4411, would update the Wire Act to include all forms of interstate gambling and cover new technologies including the Internet. H.R. 4777 is similar to H.R. 4411 by containing provisions that prohibit a gambling business from accepting certain forms of payment in illegal gambling transactions. On May 25, 2006, the House Judiciary Committee approved the measure. The legislation will next be sent to the House floor for consideration.

The NCAA continues to work with a broad coalition of groups, including professional sports leagues for the strongest bill possible against sports wagering and Internet gambling.

b. Native American Mascots Related Legislation.

Representative Timothy Johnson (R-IL) introduced the Protection of University Governance Act of 2006 on May 4, 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. The legislation would also create a right of action against an entity that regulates intercollegiate athletics for any college or university that is sanctioned for these reasons. Under the proposal, a college or university would be allowed to seek damages (including reasonable attorneys’ fees) for the revenue lost from being unable to host an athletic championship. Cosponsors of the legislation include the Speaker of the House of Representatives Dennis Hastert (R-IL), Representative Allen Boyd (D-FL), Representative Jerry Costello (D-IL), Representative Ray LaHood (R-IL), Representative Mark Kirk (R-IL), Representative Donald Manzullo (R-IL), Representative John Shimkus (R-IL), Representative Jo Ann S. Davis (R-VA) and Representative Rodney Alexander (R-LA). H.R. 5289 has been referred to the House Education and the Workforce Subcommittee on 21^st Century Competitiveness. To date, there has been no further legislative action.

NCAA government relations staff will continue to educate policymakers about the NCAA policy on Native American Mascots and provide background information on how the policy was created. The NCAA government relations staff will continue to closely monitor any movement on H.R. 5289.

c. Cable a la Carte.

On June 7, 2006, Senator John McCain introduced the Consumers Having Options in Cable Entertainment (CHOICE) Act of 2006. The bill provides incentives for broadcasters and cable companies that own cable channels to sell their channels individually to subscribers. In addition, the proposal encourages cable channel distribution over the Internet. S. 3457 has been assigned to the Senate Committee on Commerce, Science and Transportation.

A coalition comprised of civil rights groups, religious groups, programmers and sports organizations continue to highlight unintended consequences of implementing a la carte programming.

3. State Legislative Activity.

· Uniform Athlete Agent Act.

The Uniform Athlete Agent Act (UAAA) is a state model act, which regulates athlete agent activity and establishes uniform athlete agent registration procedures. The act provides several important safeguards for student-athletes and membership institutions and imposes criminal, civil and/or administrative penalties against unscrupulous agents.

To date, the UAAA has been passed by 35 states, Washington D.C. and the U.S. Virgin Islands. In June 2006 the UAAA was signed into law by Governor John Lynch of New Hampshire. The UAAA was also passed by the Colorado legislature in 2006, however, Governor Bill Owens vetoed the legislation because the legislation failed to go through the regular sunrise review process. The sunrise review process is used under Colorado law to determine the need for new regulation of occupations or professions. Currently New Jersey is the only state with active UAAA legislation in its legislative chamber. The NCAA and the National Conference of Commissioners on Uniform State Laws continue to seek passage of the UAAA in remaining states.

In May 2006, NCAA government relations staff and the Agent, Gambling, Amateurism staff created a UAAA survey for membership institutions. The overall purpose of the survey is to gather information to enable the NCAA to understand how to better educate student athletes and membership institutions about the UAAA and how to ensure that the UAAA is being properly utilized. Your institution can respond to the survey at http://web1.ncaa.org/surveys/uaaa_membership_survey.html.

4. Tax Exempt Status of Non-Profit Organizations.

In late April 2006, the NCAA was contacted by staff of the House Ways and Means Subcommittee on Oversight and was informed that they were performing a broad review of tax exempt organizations by examining the current law, the adequacy of IRS oversight and reporting requirements and considering recommendations for reform. To date, the Ways and Means Committee had focused its review of non-profit organizations and held hearings examining hospitals and credit unions. In continuing with their examination of non-

profits, the Subcommittee is undertaking a review of higher education and intercollegiate athletics.

NCAA government relations staff remains in contact with the subcommittee staff and will continue to provide information in response to their information requests. The subcommittee staff has not determined whether they plan to hold a hearing. No legislation has been introduced.

5. 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), Hispanic Association of College and Universities (HACU) and other similar organizations continue to provide guidance and support on issues of common interest. The NCAA government relations staff looks forward to continuing to work with these groups to further the NCAA’s legislative goals.