NCAA GOVERNMENT RELATIONS REPORT

(March 2006)

1. Congressional Overview.

In January, the U.S. Senate and the U.S. House of Representatives convened for the second session of the 109^th Congress. The U.S. Senate began its session by confirming Supreme Court Judicial nominee Samuel Alito Jr., who was sworn in as the 110^th U.S. Supreme Court Justice on January 31, 2006. The U.S. Senate also confirmed Federal Reserve Chairman nominee Ben Bernanke who replaced retiring Chairman Alan Greenspan. The U.S. House of Representatives began its session with a change in leadership. Representative John Boehner (R-OH) was elected as the new House Majority Leader following the resignation of Representative Tom Delay (R-TX) from that post.

On January 31, 2006, President George W. Bush delivered the State of the Union address as he began the second year of his second term. During his speech, President Bush discussed a variety of issues including affordable health care, energy independence and immigration. Additionally, President Bush highlighted the ongoing work in Iraq as well as the war against terrorism at home and abroad.

The threat of terrorism continues to be a major concern for the U.S. Congress and the White House. It is likely that a significant amount of time will be spent on related issues. Lobbying reform efforts will also receive considerable attention this year. With 2006 being a mid-term election year, it is expected that a significant amount of time will be designated toward campaign efforts. All 435 seats of the House of Representatives are up for election while 33 seats in the Senate will be contested this election year.

Even though the Congressional agenda is very full this year, it is hoped that some of the NCAA related issues discussed below will receive attention.

2. Federal Legislative Activity.

a. Internet Gambling

Representative Jim Leach (R-IA) introduced the Unlawful Internet Gambling Enforcement Act of 2005 on November 18, 2005. H.R. 4411 would prohibit any person engaged in the business of betting or wagering from knowingly accepting certain financial instruments for unlawful Internet gambling. The legislation provides law enforcement with the necessary tools to help prevent illegal Internet gambling transactions. These tools include new financial institution regulations that will identify and block unlawful gambling transactions over the Internet, enhanced criminal liability for individuals engaged in unlawful gambling businesses and the option of seeking injunctive relief against illegal gambling enablers (i.e. Internet service provider). H.R. 4411 has been referred to the House Financial Services subcommittee on Financial Institutions and Consumer Credit.

On February 16, 2006, Representative Bob Goodlatte (R-VA) introduced a complimentary bill titled the Internet Gambling Prohibition Act (H.R. 4777). The Internet Gambling Prohibition Act would update the Wire Act to include all forms of interstate gambling and cover new technologies including the Internet. The legislation also mirrors H.R. 4411 by prohibiting a gambling business from accepting certain forms of payment in illegal gambling transactions. This proposal has been referred to the House Judiciary Committee.

Each of these proposals would assist in preventing online wagering on sporting events. The NCAA will continue to be supportive of the strongest legislation against sports wagering and unlawful Internet gambling.

b. Title IX.

The Senate Commerce, Science and Transportation Committee held a hearing on February 1, 2006, titled “Promotion and Advancement of Women in Sports.” The hearing focused on the significant strides that have been made during the last 30 years and the current obstacles that women face within the realm of athletics. Witnesses included Dominique Dawes, U.S. Olympian and president, Women’s Sports Foundation; Donna DeVarona, U.S. Olympian and sports commentator; Tara Erickson, head women’s soccer coach, University of Oregon; Jennie Finch, U.S. Olympian; Christine H.B. Grant, associate professor, University of Iowa Department of Health and Sports Studies; Lynette Mund, girl’s varsity basketball coach, West Fargo High School; Catherine Reddick, U.S. Olympian; Dorothy Richardson, U.S. Olympian and vice chair, President’s Council on Physical Fitness and Sports; and Judith Sweet, senior vice president for Championships and Education Services, National Collegiate Athletic Association.

Throughout the hearing, witnesses highlighted the important role of Title IX in the advancement of women in sports. Furthermore, they stressed the importance of guarding against any attempts to weaken this important law. Senator Ted Stevens (R-AK), Chairman of the Senate Commerce, Science and Transportation Committee and committee member Senator Olympia Snowe (R-ME) echoed those sentiments by expressing great concern about the future of Title IX. Senator Stevens noted that he intends to follow-up with the Department of Education this session to examine the current enforcement of Title IX.

On May 17, 2006, the Department of Education is scheduled to submit a report to the Senate Appropriations Committee on the year-old Title IX clarification that allows schools to rely solely on interest surveys in showing compliance with the law. The NCAA Executive Committee and various women’s groups have been very critical of the Office of Civil Rights clarification letter regarding the use of interest surveys.

c. Cable Regulation - a la carte Programming.

On February 9, 2006, the Federal Communications Commission (FCC) released a new report suggesting that cable and satellite television bills may decline by as much as 13 percent if consumers could choose their own channels under an a la carte programming scheme. These findings contradict information provided in a 2004 FCC study.

While no legislation has been introduced addressing this matter, discussions regarding the ramifications of mandated a la carte programming have continued. A coalition comprised of civil rights groups, religious groups, programmers and sports organizations have launched initial efforts to highlight unintended consequences of implementing a la carte programming. It is likely that legislation concerning a la carte pricing will be introduced this legislative session.

d. Tort Reform for Athletic Organizations.

Representative Mark Souder (R-IN) introduced H.R. 1176, the Nonprofit Athletic Organization Protection Act of 2005 on March 8, 2005. H.R. 1176 would exempt a nonprofit athletic organization from liability suits arising from claims of ordinary negligence based on the rules they enact for athletic competitions and practice. The legislation was passed by the House Judiciary Committee on March 2, 2006. Similar legislation (S. 567) was introduced in the Senate by Senator Richard Lugar (R-IN) on March 8, 2005. S. 567 has been referred to the Senate Committee on the Judiciary. The National Federation of High Schools is an active proponent for passage of this legislation.

3. State Legislative Activity.

a. Sports Wagering.

On January 10, 2006, a bill was introduced in the New Jersey Assembly that would legalize wagering on professional sports at state casinos with the approval of New Jersey voters. The legislation specifically notes that gambling on collegiate and

amateur athletics would be prohibited. Despite the federal Professional and Amateur Sports Protection Act (PASPA), that limits sports betting to Delaware, Montana, Nevada and Oregon, A 1046 was passed by the New Jersey Assembly Tourism and Gaming Committee on February 23, 2006. It has had no additional action since that time and to date a companion bill has not been introduced by the New Jersey Senate.

b. 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, civil and/or administrative penalties against unscrupulous agents. The act provides several important safeguards for student-athletes and institutions.

To date, the UAAA has been passed by 34 states, Washington, D.C. and the U.S. Virgin Islands. In addition, four states have active UAAA legislation in their legislative chambers. These include Colorado, Hawaii, New Hampshire and New Mexico. In South Dakota the UAAA was signed into law by Governor Mike Rounds on March 2, 2006. The NCAA government relations staff and the National Conference of Commissioners on Uniform State Laws continue to seek passage of the UAAA in remaining states.

4. 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.