April 2005 Management Council Agenda

REVISED

NCAA GOVERNMENT RELATIONS REPORT

(March 2005)

1. Inside the 109^th Congress.

The start of the 109^th Congress signaled a new legislative session, with a Republican dominated U.S. Senate and U.S. House of Representatives. With the political landscape only being slightly altered by Republican gains during the 2004 election cycle, many of the same concerns which dominated the agenda of the 108^th Congress will likely play a vital role in shaping the agenda of the 109^th Congress. The Iraq war, threats of terrorism and concerns with the nuclear proliferation in Iran and North Korea are expected to dominate the agenda on Capitol Hill. Observers have also predicted a sweeping social agenda that will attempt to update Head Start programs, overhaul welfare, introduce a new energy plan, extend the Terrorism Risk Insurance Act (TRIA), cap medical malpractice awards and privatize a portion of the social security program.

Several significant leadership changes have occurred within U.S. Senate Committees which have historically taken an interest in issues concerning intercollegiate athletics. Senator Ted Stevens (R-AL) replaced Senator John McCain (R-AZ) as chair of the Commerce, Science and Transportation Committee; Senator Michael Enzi (R-WY) replaced Senator Judd Gregg (R-NH) as chair of the Health, Education, Labor and Pensions Committee and Senator Arlen Specter (R-PA) replaced Senator Orrin Hatch (R-UT) as chair of the Judiciary Committee. While Senator McCain (R-AZ) has been replaced as chair, he will chair the full committee when the panel takes up sports issues.

As his second term began, President Bush made several significant personnel changes within his administration. President Bush appointed Alberto Gonzales as Attorney General, Margaret Spellings as Secretary of Education, Condoleezza Rice as Secretary of State, Michael Leavitt as Secretary of Health & Human Services and Michael Chertoff as Secretary of Homeland Security.

2. Federal Issues.

a. Outlook. The first session of a congressional term provides members and committee leadership an opportunity to establish new priorities and goals for the two year cycle. It is a new beginning of sorts, as members are able to focus on new legislative matters or reestablish bills from prior years as priorities. NCAA government relations staff will continue to monitor the introduction of legislation that is of interest to the NCAA, membership and student-athletes during the first and second sessions of the 109^th Congress.

b. Steroid Hearing. A joint subcommittee hearing was held on March 10, 2005, before the House Energy and Commerce Subcommittee on Commerce, Trade and Consumer Protection and subcommittee on Health. The hearing titled “Steroids in Sports: Cheating the System and Gambling Your Health” examined the problem of steroid use in amateur and professional athletics and possible ways to educate youth and the general public about the dangers of using illegal performance enhancing substances.

The Subcommittee on Commerce, Trade, and Consumer Protection is chaired by Rep. Cliff Stearns (R-FL), with Jan Schakowsky (D-IL) serving as Ranking Member. The subcommittee is made up of sixteen Republicans and thirteen Democrats. Since the Subcommittee on Commerce, Trade, and Consumer Protection has jurisdiction over sports-related matters, the NCAA has been called to testify before the subcommittee on a number of occasions. During the 108^th Congress, the NCAA participated in hearings on recruiting practices, academic reform and ephedra. The Subcommittee on Health is chaired by Rep. Nathan Deal (R-GA), with Rep. Sherrod Brown (D-OH) serving as Ranking Member. The Subcommittee on Health is composed of eighteen Republicans and fifteen Democrats.

The joint subcommittee hearing on March 10 was composed of three panels. Rep. Jim Ryun (R-KS), a former world-class athlete, opened the hearing by discussing his concerns with steroids in sports and the negative message it sends to the nation’s youth. The second panel included Don Hooten, President, Taylor Hooten Foundation; Dr. Linn Goldberg, Professor of Medicine, Oregon Health & Science University; Robert Kannaby, Executive Director, National Federation of State High School Associations; Sandra Worth, Head Athletic Trainer, University of Maryland and Dr. Charles Yesalis, Pennsylvania State University. The third panel included Dr. Ralph Hale, Chairman, United States Anti-Doping Agency; Adolpho Birch, Counsel for Labor Relations, National Football League; Frank Coonelly, Senior Vice President, Major League Baseball and Mary Wilfert on behalf of the National Collegiate Athletic Association.

The subcommittees’ members questioned the panelists regarding the drug testing and penalty policies for the major sports organizations. Additionally, possible solutions were examined including uniform drug testing programs, increased education on the dangers of steroids and stronger penalties. Several members of the subcommittees suggested that additional hearings on this issue were likely.

On March 17, 2005, the House Committee on Government Reform held an oversight hearing focused solely on Major League Baseball and its steroid policy. Several current and former major league players, Bud Selig, Commissioner of Major League Baseball and Don Fehr, Executive Director and General Counsel, Major League Baseball Players Association, were among the many witnesses who participated in this hearing.

c. Title IX. The Department of Education released a clarification letter on Title IX compliance on March 17, 2004. The letter provided an outline on how schools can meet prong three of the Title IX three part test, which assesses whether schools are effectively accommodating the interests and abilities of male and female student athletes.

NCAA government relations staff will continue to monitor any future developments on this issue.

d. Sports Wagering. On March 17, 2005, Rep. Tom Osborne introduced legislation that would ban betting on college games. Similar legislation has previously been considered by Congress. NCAA government relations staff will monitor future legislative activity on this measure.

e. Terrorism Insurance. On February 18, 2005, Senator Robert Bennett (R-UT) and Senator Christopher Dodd (D-CT) introduced legislation that would extend the Terrorism Risk Insurance Act (TRIA) for two-years beyond December 31, 2005, when it is set to expire. Additionally, the Terrorism Risk Insurance Act of 2005 (S. 467) would establish a commission to examine and recommend a long term solution to the terrorism insurance problem. During the 108^th Congress, similar legislation was introduced and passed by the US House of Representatives Committee on Financial Services but failed to be considered by the Senate.

TRIA was enacted in 2002 to offer support to insurance companies in the event of a terrorist attack. The current law requires insurers to offer coverage against terrorism but ensures that the federal government will pay 90 percent of the catastrophic losses that exceed specified amounts. Presently, a study is being conducted by the Treasury Department to further examine the effectiveness of TRIA.

3. State Issues.

a. Uniform Athlete Agent Act. The Uniform Athlete Agent Act (UAAA) is a state model act which establishes uniform athlete agent registration procedures and imposes criminal and/or administrative penalties against unscrupulous agents. The UAAA provides several important safeguards for student-athletes and institutions. Athlete agents are required to disclose professional and criminal information which enables student-athletes, their families and university personnel to effectively evaluate a prospective agent. Additionally, the UAAA contains a provision requiring that written notice be given to an institution when a student-athlete enters into an agency agreement before his/her eligibility has expired.

To date, the UAAA has been passed in 32 states, Washington, D.C. and the U.S. Virgin Islands. In 2004 the UAAA was adopted in South Carolina, Connecticut, Missouri, Louisiana, New York and Wisconsin. During the 2005 legislative session, the model act has been adopted in Wyoming and introduced in Hawaii, New Hampshire, New Jersey and South Dakota.

b. Sports Wagering. Over the last several years a small number of states have examined the feasibility of allowing sports betting in their respective states, in an attempt to meet budget challenges. To date, legislation has been introduced in New Jersey and Minnesota that would allow betting on professional sports events.

These controversial measures face public, political and legal obstacles. The stiffest challenge for proponents of the bills, likely will be the Professional and Amateur Sports Protection Act (PASPA) which prohibits any government entity from promoting, operating or sponsoring wagering schemes on amateur or professional athletic events. This federal law presents legal challenges for all states that had not legalized sports wagering prior to the enactment of PASPA in 1992. While these bills are focused on wagers placed on professional sports contests, NCAA government relations staff will continue to monitor these measures.

4. Other Issues.

On February 16, 2005, the Sober Truth on Preventing Underage Drinking Act (S. 408) was introduced by Senator Mike DeWine (R-OH). A companion bill (H.R. 864) has been introduced by Rep. Lucille Roybal-Allard (D-CA) in the House. These measures have bipartisan support in the House and in the Senate. The legislation aims to combat problems associated with underage drinking by establishing an Interagency Coordinating Committee to coordinate all federal agency prevention efforts and authorizing funding for prevention programs, research and a national media campaign. The legislation contains a Sense of Congress section which encourages the NCAA and its membership to adopt a policy to end all alcohol advertising during radio and television broadcasts of collegiate sporting events.

On March 9, 2005, Rep. Tom Osborne (R-NE) introduced a resolution urging the NCAA and its member institutions to affirm a commitment to a policy of discouraging alcohol use among underage students by ending all alcohol advertising during radio and television broadcasts of collegiate sporting events. The resolution has been referred to the House Committee on Education and the Workforce. A similar resolution was introduced last year in the 108^th Congress.