NCAA GOVERNMENT RELATIONS REPORT

(March 2007)

 

 

1.      Congressional Overview.

 

The first session of the 110th Congress convened on January 4, 2007.  Congress began its work with the Democrats holding a majority in both the US House and the US Senate following the party’s gains during the November midterm elections.  The House began the session with the new majority’s agenda which was to be completed during the first 100 working hours of the new Congress.  This agenda led to the consideration and passage of legislation focused on ethics reform, implementing the recommendations of the 9/11 Commission, increasing the minimum wage, promoting stem cell research, negotiating lower Medicare prescription drug prices, cutting interest rates for student loans and achieving energy independence.   To date, the Senate has also passed similar measures reforming ethics laws and increasing the minimum wage. 

 

On January 23, 2007, President George W. Bush delivered the State of the Union address.  During the address President Bush touched on a variety of subjects including the budget, Social Security, Medicare, Medicaid and the need to reauthorize The No Child Left Behind Act.  President Bush also highlighted America’s dependence on oil and the need to reduce consumption, the continued fight against terrorism, and his idea of a temporary worker program to address the ongoing immigration debate.  In addition, the President discussed his plan to send more than 20,000 additional troops to Iraq.  This plan has subsequently triggered a substantial amount of debate in the House and Senate.  In addition to the passage of a non-binding resolution in the House opposing the troop buildup, a number of other possible alternatives are being considered in Congress to address the ongoing conflict in Iraq.

 

With less than two years remaining in President Bush’s term, the race for the 2008 Presidential election has begun.  To date, nearly twenty Republicans and Democrats have expressed a strong interest in running for President. During the coming months, the Presidential race will continue to garner significant attention in Washington and throughout the nation.

 

During the early stages of the 110th Congress, collegiate sports have been an issue of consideration for some members and their staffs.

 

 

2.      Federal Legislative Issues.

 

a.      Diversity in Leadership Positions in Collegiate Sports.

 

On February 28, 2007, the House Subcommittee on Commerce, Trade and Consumer Protection held a hearing entitled “The Lack of Diversity in Leadership Positions in NCAA Collegiate Sports.”  The hearing, which was requested by Subcommittee Chairman Bobby Rush (D-IL), focused on the low number of minorities in leadership positions within college athletics.  Witnesses participating in the hearing included Dr. Myles Brand, president, National Collegiate Athletic Association; Reverend Jesse Jackson, founder and president, Rainbow/PUSH Coalition; Dr. Fitzgerald Hill, president, Arkansas Baptist College; Dr. Richard Lapchick, chair, DeVos Sports Management Program, and director, Institute for Ethics and Diversity in Sport, University of Central Florida; Floyd Keith, executive director, Black Coaches Association; Nolan Richardson, former head coach, University of Arkansas Men’s Basketball; and Tim Weiser, director, Department of Athletics, Kansas State University.

 

A variety of issues were discussed during the hearing including the need to improve the informal hiring networks to enhance the chances of minority candidates, the significant number of parties involved in the hiring process and the challenges it presents in addressing this issue and the influence of boosters during the hiring process.  Data presented during the hearing highlighted the fact that in a majority of cases minority candidates are receiving interviews for openings, however, these interviews are not resulting in hires.  With this information the witnesses and subcommittee members explored a variety of solutions.  Among those discussed were the implementation of the NFL’s Rooney Rule in collegiate athletics, Title VII lawsuits, financial incentives to encourage NCAA membership to hire minority candidates and continued use of the BCA Report Card and NCAA Coaches Academies and other diversity initiatives.  To date, no relevant legislation has been introduced.

 

b.      Terrorism Risk Insurance Act.

 

The Senate Banking, Housing, and Urban Affairs Committee held a hearing to examine the Terrorism Risk Insurance Program on February 28, 2007.  In 2002, the Terrorism Risk Insurance Act (TRIA) was adopted by Congress in the aftermath of 9/11.  The Act set out to protect the US economy from terrorism threats by establishing a federal backstop against catastrophic losses and offering support to insurance companies in the event of a future terrorist attack.  Under the initial TRIA legislation, the government would pay 90 percent of the catastrophic losses that exceed a specified amount.  As set out in the original act, TRIA expired on December 31, 2005.  In December 2005, a two-year TRIA extension was signed into law and will expire on December 31, 2007.  The hearing was held to seek a more permanent federal solution to the existing terrorism risk insurance program. 

 

The NCAA and several professional sports leagues are currently members of the Coalition to Insure Against Terrorism (CIAT).  CIAT, which is composed of a broad group of commercial insurance consumers, was created to ensure that American businesses could obtain comprehensive and affordable terrorism insurance.  CIAT and its members have continued to work with Congress and the Administration to properly address this issue.

 

c.      Native American Mascot Related Legislation.

 

On March 5, 2007, US Representative Timothy Johnson (R-IL) introduced the Protection of University Governance Act of 2007 (HR 1316).  Under the Act an entity that regulates intercollegiate sports activities would be prohibited from imposing any penalty or sanction, or denying any benefit to an institution of higher education by reason of the team name, symbol, emblem, or mascot.  In addition, H.R. 1316 would provide institutions of higher education with a right of action against entities that improperly regulate intercollegiate athletics.  Currently, the bill has eight cosponsors which include Representative Rodney Alexander (R-LA), Representative Jo Ann Davis (R-VA), Representative Mark Kirk (R-IL), Representative Donald Manzullo (R-IL), Representative Jerry Costello (D-IL), Representative Dennis Hastert (R-IL), Representative Ray LaHood (R-IL) and Representative John Shimkus (R-IL).  H.R. 1316 has been referred to the House Committee on Education and Labor.  To date, there has been no further legislative action.

 

Similar legislation was introduced by Representative Johnson (R-IL) during the 109th Congress.  That bill was considered at a House Education and Workforce field hearing which was held on December 15, 2006, in Champaign, Illinois.

 

 

3.      State Legislative Issues.

 

a.      Illinois State Legislation.

 

On January 31, 2007, Illinois State Representative Chapin Rose (R) introduced state legislation titled the NCAA Receipts Tax Act.  This bill (HB 538) would amend the State Finance Act and impose a 10 percent gross receipts-tax on all money the NCAA makes in Illinois.  Under the Act, the tax proceeds would be distributed into the Collegiate Athletic Revenue Fund, which would subsequently be distributed to each state school.  The legislation has been assigned to the House Revenue Subcommittee on Sales and Other Taxes.  Currently HB 538 has one cosponsor, State Rep. Kurt Granberg (D). 

 

Representative Chapin Rose participated as a witness in the House Education and Workforce Committee hearing entitled “An Examination of the NCAA’s Relationship with Member Institutions” in Champaign, Illinois on December 15, 2006.  The hearing focused on the concept of institutional autonomy and the NCAA’s ability to


adopt association policy such as the Native American Mascot policy.  The testimony of Representative Rose highlighted his opposition to the NCAA’s policy on Native American Mascots.

 

b.      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.  Currently, New Jersey, New Mexico and Hawaii have active UAAA legislation.

 

The NCAA government relations staff has continued to work with the National Conference of Commissioners on Uniform State Laws 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.