NCAA GOVERNMENT RELATIONS REPORT

[Detailed report.]

1. Legislative issues.

a. State and federal regulation of athlete agents.

State efforts: Throughout this year, 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 on sports agents and provides for criminal, civil and/or administrative penalties to be imposed against unscrupulous agents. To date, sixteen jurisdictions have passed the state model law. Most recently, both chambers of the California legislature passed the model law and are awaiting signature by Governor Davis. In 2002, the District of Columbia, Florida, Minnesota and Washington joined the list of other large jurisdictions that passed the bill this year. Several other states have introduced and discussed the legislation and are expected to pass this legislation in 2003.

The NCAA staff is also in the process of updating its lobbying package for state legislators. The staff is developing press releases to be used by sponsoring state legislators, updating letters of support, and additional background materials to support the passage of the model law. In addition, a meeting with the National Conference of Commissioners of Uniform State Laws (NCCUSL) staff was held in Indianapolis to discuss a state-by-state strategy for the 2003 legislative sessions.

Federal efforts: Following a House subcommittee hearing in February, the NCAA government relations’ staff began to work with Representative Bart Gordon’s (D-TN) office on the development of federal legislation. After several weeks of drafting, the Sports Agent Responsibility and Trust Act (SPARTA) was introduced on May 9. This federal bill provides for civil penalties and acts as a “federal backstop” in those states that have not yet passed the model law. The bill does not preempt state law or conflict with our model law; it even includes a “Sense of Congress” section that directly supports passage of the important registration requirements in the UAAA.

To date, the bill has passed out of both the House Subcommittee on Commerce, Trade and Consumer Protection and the House Energy and Commerce Committee with no opposition. Currently, the bill has 116 co-sponsors in the House. The bill is expected to receive a full House vote this session and be introduced in the Senate in early October.

Next Steps: The NCAA will continue to educate state legislators on the need to pass the UAAA. In addition, the Association will work to educate federal legislators on the athlete agent issue.

b. Internet gambling.

During the 2002 legislative session, the NCAA supported two bills that both focused on prohibiting Internet gambling. H.R. 3215, the Combating Illegal Reform and Modernization Act passed out of the House Judiciary committee. H.R. 556, the Unlawful Internet Gambling Funding Prohibition Act passed out of the Financial Services committee. In an attempt to move the legislation to the House floor, the staffs of both committees met and drafted a compromise bill that would combine elements from both bills. The NCAA government relations’ staff have been working closely with the sponsors of the bill to convince the Republican Leadership to schedule a full House vote this session. The NCAA submitted an additional letter of support setting out the need for such legislation. A full House vote has now been scheduled for October 1.

In another development, several financial services companies have announced policies to block all online gambling transactions that use their credit cards. New York Attorney General Spitzer and others have been actively looking into Internet gambling. Also, at a recent House Financial Services committee hearing on terrorist financing, FBI Director Meueller called Internet gambling a “substantial problem” for law enforcement. The breadth of individuals, organizations and corporations calling for an end to Internet gambling is clearly growing.

Next steps: The NCAA staff will continue to work closely with the Congressional staffs and committees to lobby Members to pass legislation prohibiting Internet gambling.

2. Title IX.

a. Secretary Paige’s Commission on Opportunity in Athletics.

To date, the Commission has held town hall meetings in Atlanta and Chicago. In both meetings, the Commission heard from a series of panelists as well as some strong opinions from the general public. Two more meetings are scheduled which will include public comment in October in Colorado Springs and in November in San Diego. The Commission will also meet in December in Philadelphia and in January in Washington DC to discuss the pending report, but will not have public comment sessions. The deadline for the Commission’s report is January 31, 2003.

Some of the questions that the Commission will address include:

(1) Is there adequate Title IX guidance that enables colleges to know what is expected of them and to plan for an athletic program that meets the needs and interests of their students?; and

(2) How do revenue producing and large-roster teams affect the provision of equal athletic opportunities?

b. Title IX lawsuit.

The U.S. District Court judge in the lawsuit brought by the National Wrestling Coaches Association against the Department of Education has scheduled oral argument for October 2 on the Department of Education’s motion to dismiss the lawsuit. The Department of Education is represented by the Department of Justice.

Next steps: To continue to closely monitor the Commission’s activities and make the NCAA staff available as an information resource to the Department of Education staff. The lawsuit’s development will be monitored.

3. Controlled substances issues.

In July, the NCAA sent a letter to Members of Congress supporting the United States Anti-Doping Agency (USADA) efforts to amend the Controlled Substances Act to stop the sale of untested and dangerous steroid equivalents to teenagers, athletes and other American consumers. The current aggressive marketing of steroid equivalents by supplement manufacturers can lure student-athletes to purchase these products that are legally available over the counter. The NCAA will continue to support the proposed amendment to the Controlled Substances Act to regulate those steroid precursors that are transformed in the body into any controlled anabolic steroid listed on Schedule III of the Act. The NCAA will continue to support all efforts that seek to ban doping from sport.

In addition, on October 8, the NCAA will participate in a hearing entitled: “Ephedra: Who is protecting American Consumers?” with a Senate Governmental Affairs subcommittee chaired by Sen. Durbin (D-IL). The hearing will focus on what the U.S. government agencies and private organizations are doing to protect consumers from the harmful effects of ephedra-containing dietary supplements and will contrast the U.S. approach with the approach taken by other countries. Also, the subcommittee is interested in the findings of the NCAA survey on substance use habits of college student-athletes.

Next steps: To continue to work closely with and provide background information to Senator Durbin’s (D-IL) staff and other Congressional Members interested in the issue. Additionally, the NCAA staff will closely monitor any legislation that is introduced in this area.

4. Terrorism insurance legislation.

Since September 11, 2001, several insurers have determined that terrorism is not an insurable risk and are withdrawing from the market. Due to the potential for large losses, many companies have stated that they cannot set an actuarially sound price for such coverage. To date, both the Senate and House have passed legislation that would provide insurance companies with some government funding to help pay claims. The bills have gone to Conference and have not moved for several weeks. Among the points of disagreement are whether to ban punitive damage awards in lawsuits and out-of-court settlements arising from terrorist acts, and whether to require insurance companies that get federal help to repay the government.

The Administration continues to strongly support the need for passage of terrorism insurance legislation.

Next steps: To continue to monitor and report on the developments of the Conference committee. To also continue to participate with the Coalition to Insure Against Terrorism.

5. Stadium flyovers.

Following September 11, 2001, the Federal Aviation Administration temporarily banned flights over stadiums during sporting events. However, for a period of time, the Transportation Security Administration allowed waivers to pilots if they proved that they were U. S. citizens and that their planes were in good condition. Since the Bush Administration raised the color-coded domestic alert to its second highest color-orange- this month, the government has banned aircraft from flying within 3 miles of any major professional or collegiate sporting event. This restriction includes aircrafts such as blimps and banner-towing planes.

Next steps: To continue to monitor and report on the developments of the FAA rule.

6. National Association of State Universities and Land-Grant Colleges (NASULGC).

During August 2002, The NCAA government relation’s staff had the opportunity to present at the Council on Governmental Affairs summer meeting. Approximately 60 universities were represented. The discussion addressed issues of common concern including: athlete agent legislation, Internet gambling, Title IX, terrorism insurance, aircraft security issues, and steroid use.

Next Steps: To work closely with NASULGC and the other higher education associations, including ACE, on issues of common interest to our membership.