MEMORANDUM

NCAA MEMORANDUM

March 18, 2002

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e. Uniform Athletes Agents Act.

To date, thirteen jurisdictions have passed the model law and in several more states, the bill has cleared a committee or chamber. In several other states, the bill has been introduced and we have a state by state strategy in place to move the bill forward.

f. Congressional and State legislative schedules.

1. Congressional schedule.

The second session of the 107^th Congress reconvened on Wednesday, January 23. The next scheduled break is Spring Recess from March 25 through April 5.

2. State legislative schedules.

Forty-four state legislatures meet in 2002, with thirty-nine states having convened their sessions in January.

2. Legislative Issues.

U. S. House Subcommittee on Commerce, Trade and Consumer Protection

On February 13, the subcommittee held a hearing on “Challenges Facing Amateur Athletics.” Over the course of an almost four hour hearing, nine members of the twenty-nine member subcommittee were present. The two members that stayed for the entire hearing were Chairman Stearns (R-FL) and Ranking Member Towns (D-NY).

The hearing was a very broad look into a variety of issues impacting collegiate athletics. There were two panels. The first panel included Representative Shelley Berkley (D-NV) and Representative Tom Osborne (R-NE). Representative Berkley had several concerns regarding a variety of NCAA policies, including her strong views on gambling and how our efforts to prohibit betting on college sports would negatively impact the people of Nevada. Representative Osborne did a great job of describing the problems that legal wagering in Nevada can cause for student-athletes.

The second panel included: Mr. Bill Saum, NCAA Director of Agent, Gambling and Amateurism Activities and Mr. Frank Fahrenkopf, head of the American Gaming Association on gambling; former Representative Tom McMillan with an overview of the Knight Commission report; and Mr. Ramogi Huma, former UCLA student and leader of the Collegiate Athletes Coalition and Mr. Michael Aguirre, NCAA Division I SAAC

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March 18, 2002

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representative to discuss student-athlete benefits. Mr. Kevin Lennon, NCAA Vice-President for Membership Services joined the panel after the formal statements to assist in responding to questions.

Questions were asked on a variety of subjects, including: gambling related issues; the impact of commercialization on college sports and the influence of money; different student-athlete benefits including insurance coverage, death benefits, employment restrictions, an increase in money to cover the cost of attendance and athlete agent issues. The questions that we prepared were asked by members of the subcommittee. These questions focused on the relationship between the Steelworkers and the Collegiate Athlete Coalition and student-athlete benefits. Our NCAA team was well prepared and did a great job of responding to the wide array of questions.

Next steps:

We will work closely with this subcommittee and individual Members’ offices to strengthen our working relationship, educate them on our issues and be responsive to their questions. We plan to prepare a package of materials to respond to some of the issues raised by Mr. Huma in his testimony as well as materials that will explain the distribution of funds received from the CBS television contract.

Our developing relationship with subcommittee staff should assist us in responding to their requests.

3. Amateur Sports Integrity Act.

Over the course of the last several weeks, we have met with several Senate and House offices to discuss the Amateur Sports Integrity Act. These meetings provided an excellent opportunity to discuss the legislative efforts over the past few years and the issues that must be overcome for passage of this legislation to become a reality.

The issues and challenges that need to be addressed include: development of a coalition of interested parties, the unlimited resources of the American Gaming Association to oppose the legislation, the position of leadership of both parties (Senator Lott – R-MS and Senator Reid – D-NV) against the bill, the political environment with the shift in Senate Leadership to the Democrats, the change in priorities based on September 11 and the expected shorter legislative session based on the election year. All of these challenges make the likelihood of passage more difficult in 2002.

We plan to continue to overtly support the prohibition of legal and illegal gambling on college sports. We will work closely with Congressional offices and continue to educate

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March 18, 2002

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them on our positions. We will continue to educate our membership and the public. We will view passage of the legislation with a slightly longer term objective in mind and focus our efforts on education and building a coalition of support for such legislation.

Next steps:

We will work to find organizations and other interests to aggressively support passage of the legislation. We will also recruit state elected officials to become advocates on the issues with Members of Congress.

4. Internet Gambling.

The NCAA has been involved in supporting legislation to ban Internet gambling for several years. Currently, there are two active bills pending in Congress:

a. H.R. 3215, the Combating Illegal Gambling Reform and Modernization Act, sponsored by Representative Bob Goodlatte (R-VA), would strengthen the current prohibitions against wire interstate gambling and provide enhanced law enforcement tools and penalties.

b. H.R. 556, the Unlawful Internet Gambling Funding Prohibition Act, sponsored by Representative Jim Leach (R-IA), would prohibit Internet gambling businesses from accepting credit card, electronic fund transfers or checks in connection with unlawful Internet gambling.

H.R. 3215 was reported favorably out of the House Judiciary Subcommittee on Crime on Tuesday, March 12 by voice vote. It is expected to be voted on by the full House Judiciary Committee, once certain issues in the bill are resolved. The legislation clarifies that it is illegal to operate a gambling site across state lines.

H.R. 556 was included in the terrorism legislation passed in November, but was ultimately stripped from the bill. The sponsor of this legislation and the Chairman of the House Financial Services Committee, Representative Michael Oxley (R-OH), have been working to have the bill brought up for a vote in the House.

Currently, there is no Senate companion bill, but in previous Congresses, legislation to ban Internet gambling passed the full Senate. If the House acts on either bill, Senate action will likely follow.

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The NCAA sent a letter of support for Representative Goodlatte’s bill and we are in the process of preparing a letter of support for Representative Leach’s bill. We will continue to work with their staffs to educate members and related associations to move the bill forward.

Next steps:

The NCAA member institutions should become actively involved in contacting Members of Congress in support of both bills. Members of Congress, especially the leadership, must hear from their respective institutions that legislation is needed to clarify the ban on Internet gambling and Internet gambling is a growing problem on college campuses.

5. Title IX

There are a number of activities currently underway in Congress that relate to Title IX:

a. A lawsuit filed by the National Wrestling Coaches Association against the Department of Education is pending by the U.S. District Court in Washington D.C. The plaintiffs have been joined by the College Gymnastics Association and the United States Coaches Association. The suit is based on the interpretation of the 1996 regulations promulgated by the Department of Education.

Several members of Congress are concerned with compliance of Title IX. Led by Representative Patsy Mink (D-HI), more than 60 lawmakers signed a Dear Colleague letter to be sent to Secretary of Education Rod Paige asking for increased compliance by colleges; data collection on high schools; and the availability of Equity in Athletics Disclosure Act data available online.

President Bush nominated Kansas City attorney Gerald Reynolds to be the Assistant Secretary for the Office of Civil Rights (OCR) at the Department of Education. OCR is the office charged with enforcing Title IX. A hearing was held on the Reynolds nomination on Tuesday, February 26 in the Senate Health, Education, Labor and Pensions Committee. The most vocal opponent of the nomination was the Chairman of the committee, Senator Edward M. Kennedy (D-MA). Kennedy questioned Reynolds’ qualifications for the job and his commitment to enforcing civil rights statutes, including Title IX.

A vote in the committee has been tentatively set for late March. It is unclear whether the nomination will be reported favorably out of the committee; there are 10 Democrats and 10 Republicans on the committee – the swing vote may be the Independent party member, Senator James Jeffords (I-VT).

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Next steps:

We will continue monitoring Title IX activities on the Hill and the nomination process for Mr. Gerald Reynolds.

6. Uniform Athlete Agents Act.

In 2001, the first legislative cycle in which the NCAA and National Conference of Commissioners on Uniform State Laws (NCCUSL) sought state introduction and adoption of the Uniform Athletes Agent Act (UAAA), 27 states introduced the UAAA and 12 jurisdictions adopted the uniform act including Alabama, Arizona, Arkansas, Delaware, Idaho, Indiana, Mississippi, Nevada, Tennessee, U.S. Virgin Islands, Utah and West Virginia.

Progress continues to be made on this much needed legislation this year. In 2002, the District of Columbia has already adopted the UAAA. There has also been the introduction in 12 states including California, Florida, Georgia, Hawaii, Illinois, Iowa, Maryland, Michigan, Minnesota, South Carolina, Washington, and Wisconsin, as well as pending introduction in several other states. Several states have passed the UAAA through a legislative committee or chamber.

Next steps:

We will plan to implement our state-by-state strategies for moving the legislation toward passage in the states. We will continue to educate state and federal officials on the need to have a uniform system for regulating athlete agents.

7. Other Activities.

First and Second Round Basketball Tournament.

We were fortunate to host over 20 Members of Congress and Congressional staff at these games held at the MCI Center in Washington D.C. It was an excellent opportunity to get to know some additional individuals who will be helpful to work with on our legislative agenda.

Next steps:

We are planning to host several Members of Congress, senior Congressional staff and State Leaders at the Final Four in Atlanta. We will have an opportunity over the course of the weekend to discuss our priority legislative issues.

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8. First Quarter 2002 Summary.

The first quarter of 2002 was an active legislative time both in the States and Congress. We will work very hard in the second quarter of the year to reach out to state leaders and stress the importance of the athlete agent legislation. We will also work to develop a coalition of support for the Internet gambling bills and closely monitor movement with regard to higher education issues and the appointment of the Assistant Secretary for Civil Rights at the Department of Education. We will continue our outreach efforts to our Congressional committee members, higher education associations and the university lobbyists who work on issues of importance directly for our membership.

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b. Amateur Sports Integrity Act.