Congressional Overview

NCAA GOVERNMENT RELATIONS REPORT

(December 2006)

1. Congressional Overview.

The November 2006 midterm elections garnered significant attention and resulted in a shift of power within the United States Congress. When the 110^th Congress convenes in early January 2007, democrats for the first time since 1994 will hold a majority in the U.S. House of Representatives and the U.S. Senate. The current tally shows democrats will hold a 231-202 majority in the House of Representatives with two runoff elections remaining and a 51-49 majority in the Senate. In addition to significant gains in Congress, a majority of states will also have democrat governors in 2007.

Due to a shift in control in Congress, there will be considerable change to party leadership. Representative Nancy Pelosi (D-CA) will serve as Speaker of the House, Representative Steny Hoyer (D-MD) will serve as Majority Leader, Representative John Boehner (R-OH) will serve as Minority Leader and Representative Roy Blunt (R-MO) will serve as Minority Whip. Senator Harry Reid (D-NV) will serve as Majority Leader, Senator Richard Durbin (D-IL) will serve as Democratic Whip, Senator Mitch McConnell (R-KY) will serve as Minority Leader and Senator Trent Lott (R-MS) will serve as Republican Whip in the Senate.

There will also be significant change to the composition of various committees that have addressed issues pertaining to the NCAA. While committee leadership in the House has not been finalized it is expected that Representative John Dingell (D-MI) will become chairman of the Committee on Energy and Commerce, Representative John Conyers (D-MI) will be named chairman of the Committee on the Judiciary, Representative Charles Rangel (D-NY) will be named chairman of the Committee on Ways and Means, Representative George Miller (D-CA) will be named chairman of the Committee on Education and the Workforce, and Representative Henry Waxman (D-CA) will be named chairman of the Committee on Government Reform. In the Senate, the Finance Committee will be chaired by Senator Max Baucus (D-MT), Senator Edward Kennedy (D-MA) will chair the Health, Education, Labor and Pensions Committee, while Senator Patrick Leahy (D-VT) will chair the Judiciary Committee and Senator Daniel Inouye (D-HI) will chair the Commerce, Science and Transportation Committee.

Following the November midterm elections, Congress returned to address essential business. Congress began the lame-duck session with a list of priorities including passage of remaining spending bills, consideration of legislation on the NSA warrantless surveillance program, and Senate confirmation hearings for Robert Gates who was selected by President Bush to replace Donald Rumsfeld as Secretary of Defense. While the Senate confirmed Robert Gates as the new Secretary of Defense, several other legislative goals are not expected to be met and the House and Senate are scheduled to adjourn on December 8, 2006. Without passage of the remaining spending bills, Congress is expected to approve a continuing resolution prior to adjourning that will keep the government functioning through mid-February 2007.

2. Tax Exempt Status of Non-Profit Organizations.

Throughout the 109^th Congress, the House Committee on Ways and Means has performed a broad review of tax exempt organizations by examining the current law, the adequacy of IRS oversight and reporting requirements and considered recommendations for reform. Over the course of this examination, the House Ways and Means Committee has focused its efforts and held hearings on tax exempt hospitals and credit unions. In furthering its examination of tax exempt organizations, the House Ways and Means Subcommittee on Oversight extended its review to intercollegiate athletics and higher education.

On October 2, 2006, Representative William Thomas (R-CA), Chair of the House Ways and Means Committee sent a letter to NCAA President Myles Brand requesting significant information regarding the NCAA’s Educational Mission and Finances. According to the letter this request was an effort to seek “information on whether major intercollegiate athletics further the tax exempt purpose of the NCAA and, more generally, educational institutions.” On November 13, 2006, the NCAA submitted a thorough response to the Committee, which included an appendix discussing legal precedent in this area and an appendix discussing the NCAA academic reform initiatives. The full text of the response is available on the NCAA website. The NCAA will continue to be responsive to Congress on this matter.

3. 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 September 29, 2006, Representative Judy Biggert (R-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 Daniel Lipinski (D-IL), 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.

The House Education and Workforce Committee will hold a field hearing December 15, 2006, in Champaign, Illinois. The hearing titled “An Examination of the NCAA’s Relationship with Member Institutions,” will focus on H.R. 5289 and the NCAA’s ability to adopt policy such as the Native American Mascot policy. Bernard Franklin, NCAA senior vice-president for Governance, Membership, Education and Research Services, will testify on behalf of the NCAA. The other witnesses who will participate in the hearing have yet to be determined.

4. Trademark Infringement.

The Trademark Dilution Revision Act of 2006 (H.R. 683) was introduced by Representative Lamar Smith (R-TX) on February 9, 2005. The bill was signed into law by President Bush on October 6, 2006. H.R. 683 will provide protection for America’s famous brands and the consumers who rely on them, from third-party uses that blur the brand’s distinctiveness or tarnish its reputation. The act will strengthen a trademark owner’s defense against other parties who use similar marks. An owner of a famous trademark will no longer have to prove the heightened standard of “actual dilution” and will now only need to assert a claim based on likelihood of dilution. The NCAA along with other members of the International Trademark Association were supportive of this bill.

5. Uniform Athlete Agent Act.

The Uniform Athlete Agent Act (UAAA) 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 has continued to work with the National Conference of Commissioners on Uniform State Laws to create a strategic plan for passage of the UAAA in a number of states during the 2007 legislative session.