NCAA GOVERNMENT RELATIONS REPORT

(September 2006)

1. Congressional Overview.

Members of Congress returned to Washington during the first week of September 2006 following their month long August recess. They are expected to recess again by October 6 to allow them to return to their districts to prepare for the November midterm elections. According to recent reports, it is likely that members will return for a lame-duck session in November.

The upcoming midterm elections have garnered a significant amount of attention in Washington. As with any election year, the balance of power in the House and Senate is at stake. Republicans will maintain control of Congress unless the Democratic Party has a net gain of fifteen seats in the House or a net gain of six seats in the Senate.

During the remainder of the 109^th Congress, a significant amount of time will be spent on various measures regarding national security. Priorities include Defense and Homeland Security fiscal 2007 spending bills and bioterrorism and port security measures. Despite Congress’ full agenda and focus on the upcoming elections, it has continued to address several matters relevant to the NCAA and intercollegiate athletics. NCAA government relations staff continues to be responsive to Congressional committee staff inquiries.

2. Internet Gambling.

On November 18, 2005, Representative Jim Leach (R-IA) introduced the Unlawful Internet Gambling Enforcement Act of 2005. H.R. 4411 aims to cut the flow of money from gamblers to internet gambling sites by prohibiting 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. In addition, this bill would enhance current criminal liability for those individuals engaged in unlawful internet gambling and require payment systems to implement procedures for blocking such transactions. H.R. 4411 was passed by the House Judiciary Committee on May 25, 2006.

On February 16, 2006, Representative Bob Goodlatte (R-VA) introduced the Internet Gambling Prohibition Act. H.R. 4777 would update the Wire Act to include all forms of interstate gambling and cover new technologies including the internet. In addition, H.R. 4777 contains provisions similar to H.R. 4411 that would prohibit a gambling business from accepting certain financial instruments, credit cards and fund transfers in illegal gambling transactions.

In early July 2006, Representative Goodlatte (R-VA) and Representative Leach (R-IA) announced a merger of H.R. 4411 and H.R. 4777. The merger of these two complementary approaches resulted in, H.R. 4411, the Internet Gambling Prohibition and Enforcement Act. Under this revamped measure, the Wire Act would be updated to cover new technologies and criminal penalties would be enhanced for gambling businesses knowingly accepting payment in the form of certain financial instruments, credit cards and fund transfers. H.R. 4411 was passed by a vote of 317-93 in the House of Representatives on July 11, 2006. The bill has been sent to the Senate for consideration.

On August 31, 2006, Representative Leach (R-IA) held a field hearing in Iowa on the Internet Gambling Prohibition and Enforcement Act. Among those attending the hearing were Senate Majority Leader Bill Frist (R-TN) and former University of Iowa and NFL football player Merton Hanks. Those in attendance urged Senator Frist to move forward on the bill. Representative Jon Porter (R-NV) submitted a letter of opposition suggesting that a ban on internet gambling would not be beneficial and calling on a bipartisan committee to study the issue before Congress acts.

Next Steps: NCAA government relations staff will continue to work with a coalition of interested parties to seek passage of the strongest bill prohibiting internet gambling on college athletics.

3. Performance Enhancing Substances.

On August 30, 2006, House Government Reform Committee Chairman Tom Davis (R-VA) convened the final Zero Tolerance Roundtable meeting in Washington, DC. Representatives from the NFL, NBA, MLB, NHL and the National Federation of High Schools were in attendance. Mary Wilfert, NCAA director of Education Outreach and Abe Frank, NCAA director of Government Relations attended the meeting on behalf of the NCAA.

The Zero Tolerance Roundtable was created in response to Congressional hearings held during the first session of the 109^th Congress on steroid abuse by professional and amateur athletes. It brought together representatives from the four major U.S. sports leagues, the medical community, and youth sports to gather information, foster discussion, and provide recommendations on how to address the growing problem of steroid abuse by youth. Since its first meeting on May 23, 2005, the Zero Tolerance Roundtable has met formally and informally on several occasions.

The final meeting culminated in the release of recommendations to address this societal problem. The final recommendations included, urging the Department of Education to work with the Department of Health and Human Services to educate children at the grade school level about the dangers of steroids; encouraging the professional sports leagues to increase revenues for steroid education efforts; encouraging the President’s Council on Physical Fitness to look at steroid use among teens and increase its education efforts; and urging the Centers for Disease Control to collaborate with other steroid education campaigns to heighten awareness of the dangers of steroids.

Next Steps: NCAA staff will continue to monitor any Congressional action on this issue and respond to any inquiries regarding current NCAA drug testing and education programs.

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. Native American Mascot Related Legislation.

On May 4, 2006, Representative Timothy Johnson (R-IL) introduced the Protection of University Governance Act of 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. Under the legislation a college or university would have a right of action against any entity that regulates intercollegiate athletics if they are sanctioned for this reason. On July 28, 2006, Representative Daniel Lipinski (D-IL) was added to a list of cosponsors, which includes Speaker of the House of Representatives Dennis Hastert (R-IL), Representative Rodney Alexander (R-LA), 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 Henry Hyde (R-IL), Representative Allen Boyd (D-FL), and Representative Jo Ann S. Davis (R-VA). 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.

Next Steps: NCAA government relations staff will continue to educate policymakers and their staffs on the existing NCAA policy regarding Native American Mascots. In addition, NCAA government relations staff will continue to monitor H.R. 5289 for any additional movement.

6. Uniform Athlete Agent Act.

The Uniform Athlete Agent Act is a state model act, which establishes uniform athlete agent registration procedures and provides safeguards for student athletes and membership institutions. In addition, the act imposes criminal, civil and/or administrative penalties against unscrupulous agents. To date, the UAAA has been passed in 35 states, the District of Columbia and the U.S. Virgin Islands.

The NCAA government relations staff along with the NCAA agent, gambling and amateurism staff created, submitted and received results from informational surveys on the UAAA. Two separate surveys were presented to membership institutions and state government agencies responsible for implementing and regulating the UAAA. Responses from the state agencies and membership institutions highlighted the need for additional education on this useful act to ensure that it is properly being utilized by student-athletes and membership institutions. To meet the need for additional education, NCAA government relations staff and NCAA agent, gambling and amateurism staff will be working to implement a variety of measures to increase awareness of the UAAA.

Next Steps: NCAA government relations staff will continue to work with the National Conference of Commissioners on Uniform State Laws to create a strategic plan for passage of the UAAA in remaining states during the 2007 legislative sessions.

7. 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), and Hispanic Association of Colleges and Universities (HACU) among others, continue to provide guidance and support on issues of common interest. The NCAA government relations staff looks forward to continuing these mutually beneficial relationships to better formulate and further the NCAA’s legislative goals.