The NCAA News - News and Features

The NCAA News -- June 21, 1999

Governmental affairs report

The following is a report of federal activities from May 1 through June 11 affecting the NCAA membership. This report was prepared by the NCAA federal relations office. Copies of all documents, bills and correspondence in this report are available from the federal relations office, One Dupont Circle, N.W., Suite 310, Washington, D.C. 20036; telephone 202/293-3050.

Gender-equity issues

General Accounting Office (GAO) study on male and female participation in intercollegiate athletics programs.

The GAO anticipates that a report prepared at the request of Speaker of the House Dennis Hastert, R-Illinois, on athletics participation numbers at NCAA, NAIA and NJCAA member institutions will be released in mid-June. The report traces student-athlete participation numbers for the period of 1986 through 1997 and includes a data subset highlighting only those institutions that were NCAA members in 1986 and remained through 1997.

U.S. Department Of Justice continues review of all NCAA public institutions' EADA forms.

During the May 12 NCAA-sponsored workshop on the Equity in Athletics Disclosure Act (EADA), Allen Levy, attorney with the U.S. Department of Justice (DOJ), explained the current status of the DOJ's review of public postsecondary institutions' EADA forms. More than a year ago, DOJ requested a copy of each NCAA Division I, II, and III public institution's EADA form for the purpose of reviewing data to determine if the institutions are in compliance with the Equal Pay Act and Title VII of the Civil Rights Act.

Levy explained that the DOJ has almost completed entering the data supplied by the institutions for academic year 1996-97 into a computer data bank. Next, the DOJ will program the computer to select those institutions with the greatest disparity in the salaries and benefits of their male and female coaches. The DOJ will request more information from those institutions identified to determine if an investigation of discrimination should be initiated. Levy indicated that this area was a priority for the administration and any leads on cases of pay discrimination in collegiate athletics based on gender would be investigated.

Congressional resolution pushed by wrestling organization -- Title IX amendment may be offered to House appropriations bill.

Simply Common Sense, a Minnesota-based wrestling organization, has asked wrestling coaches to write their members of Congress asking for a "yes" or "no" answer to a question posed in an earlier letter from the organization. The organization previously sent numerous letters to Congress seeking each member's position on the question of whether they oppose or support the proportionality prong used in determining Title IX compliance. The letter indicated that May 14 was the deadline for members of Congress to respond. The recent letter sent to athletics administrators remarks that "[i]t is amazing, thus far, how they [members of Congress] continually delay to give us a straight answer [yes or no]."

Rumors continue to circulate regarding a possible amendment to the House appropriations bill related to Title IX. This would not be a surprising development since various Title IX-related amendments have been considered in the House over the past few years. However, there has been no confirmation that such an effort will take place this year. The Labor/HHS/Education funding bill, providing funding for the U.S. Department of Education and most other federal education programs, is expected to be considered later in June.

National Women's Law Center asks for update on NCAA's consideration of an increase of athletics scholarship limits for women's programs at Division I institutions.

Recently, the National Women's Law Center (NWLC) inquired about the status of the NCAA's proposals to increase the number of athletics scholarships offered to women participating in NCAA Division I athletics programs. The Department of Education's OCR and the NWLC have expressed concerns that current NCAA scholarship caps prevent institutions from achieving gender equity if the institution offers the full complement of men's and women's sports, including football.

The NCAA's Division I Management Council considered legislation recommended by the Academics/Eligibility/ Compliance Cabinet last year but failed to adopt the recommended increases. Council members cited cost issues, as well as the lack of necessity for the change as the reasons for not adopting the proposal. The decision and the rationale were shared with the NWLC.

Northern Arizona will drop men's swimming and diving in order to comply with Title IX.

On June 7, Northern Arizona announced it will drop men's swimming and diving in order to comply with Title IX requirements, according to the Washington Post.

Higher education issues

Fair labor standards in the manufacturing of licensed apparel.

On April 22, the NCAA received a letter from 11 members of Congress urging the NCAA to work with student groups to ensure that apparel and other items bearing the logo of the NCAA and its member colleges and universities are not made with child labor or under sweat-shop conditions.

In the letter, the members of Congress applauded those institutions that have taken steps to adopt rigorous codes of conduct for their licensees and encouraged other schools to take similar action. The letter does ask institutions to discriminate between the various types of codes being considered:

"However, we are concerned that some colleges and universities may be persuaded to adopt codes or join associations that may not prevent university-licensed products from being made in sweat shops."

The letter criticizes the Fair Labor Association (FLA), the code developed by the Apparel Industry Partnership, for not going far enough to ensure that university-licensed products are made under appropriate working conditions. The members of Congress indicate in their April 22 letter that they fear the student groups' efforts will be undermined by the institutions joining the FLA. The letter states this "would be unfortunate, for both schools and workers making university-licensed products, if your well-intentioned efforts served in any way to hide ongoing sweat-shop conditions." The FLA has been endorsed by 60 colleges and universities and is also supported by several collegiate licensing organizations.

On June 1, the NCAA responded to the April 22 letter by assuring the members of Congress that the NCAA would address the issue at the August meetings of the Division I Board of Directors and the Divisions II and III Presidents Councils.

Appropriators move closer to decisions on federal funding for education programs.

In May, the funding ceilings in fiscal year 2000 for each appropriations subcommittee were released by the House and Senate Appropriations Committees. These spending parameters are lower than last year and will make it difficult for appropriators to pay for all the programs under their jurisdiction. The allocation to the Senate Labor/HHS/ Education Subcommittee is $8.4 billion less than fiscal year 1999. The allocation in the House is $10.7 billion below fiscal year 1999. Budget caps were established in 1997 to reduce federal spending and as the ceilings are "ratcheted down," the competition for federal funds is becoming more intense. The House is expected to consider their education funding legislation in June.

Issues related to funding increases for the Pell Grant maximum award and other higher education student-assistance programs are expected to be contentious. The National Youth Sports Program was funded at $15 million in fiscal year 1999. The NCAA is working with the National Youth Sports Fund to help secure the same level of funding for next year.

American Association of Community Colleges (AACC) agrees to appoint informal advisory board to work with NCAA.

In a letter dated May 25, 1999, David Pierce, president of the American Association of Community Colleges, responded to a May 4 letter from NCAA President Cedric W. Dempsey asking for the appointment of representatives of the two-year college community to serve in an advisory capacity to the NCAA. Pierce said in the letter, "On behalf of the community college athletics community, I am pleased to respond most positively to the proposal contained in your letter of May 4. This association, along with the three athletics associations, looks forward to working with you and your staff to accomplish a successful implementation."

In the May 4 letter, the NCAA proposed the formation of an informal advisory committee to serve as a contact for the three divisions as matters of interest to the two-year college community arise. The NCAA suggested that the committee be composed of seven members, with the appointment of a chairman who could speak on behalf of the other members of the committee and act as the primary liaison for the sharing of proposals and other NCAA-related materials of interest.

The details of the advisory committee's duties are still being developed.

Department of Education completes negotiated rulemaking sessions -- draft regulations expected in early July.

On May 6, the NCAA federal relations office attended the Department of Education's negotiated rule-making session to discuss the regulations to accompany the Equity in Athletics Disclosure Act and Student Right-to-Know Act. At the session, changes recommended by the NCAA were discussed and adopted as part of the proposed rules that will be published in July in the Federal Register.

On May 28, the U.S. Department of Education completed its meetings with the higher education community and began finalizing proposed regulations to implement the Higher Education Act Amendments of 1998.

When the Notification of Proposed Rulemaking (NPRM) is published, the NCAA will provide comments at that time as well. Questions that were posed at the NCAA's EADA in a May workshop will be submitted to the department and the answers will appear in the Federal Register when the department discusses the comments received in response to the NPRM.

State legislature considers and rejects bill to allow state to investigate complaints against the NCAA.

On May 5, the Senate Commerce and Consumer Protection Committee of the Louisiana state legislature held a hearing on S. 1071, introduced by James Cain, D-Dry Creek. The bill would allow a new state review panel to levy fines against NCAA representatives, college coaches, or student-athletes when such persons commit an intentional and serious infraction of NCAA rules in Louisiana. The intent of the legislation appears to be aimed at NCAA investigators who Cain believes are using intimidating and aggressive tactics during the course of their investigations. Former LSU basketball coach Dale Brown delivered testimony in support of the bill.

On May 12, the Louisiana state senate's Committee on Commerce and Consumer Protection unanimously rejected S. 1071. The legislation appears to be dead for the remainder of the session; however, Cain indicated that he may attempt to attach similar language in the form of an amendment to an athlete-agent bill currently pending in the Senate.

U.S. Department of Education provides waiver to NCAA on Student Right-to-Know Graduation-Rates Report for 1999.

In a letter received by the NCAA on May 18, the U.S. Department of Education granted a waiver request by the NCAA to allow for the provision of graduation-rates data to high schools in order to satisfy a provision of the federal law. The Student Right-to-Know Act requires each college and university that awards athletics aid to provide a prospective student athlete's coach and guidance counselor with a copy of the institution's graduation-rates report. Many years ago, the NCAA membership asked the NCAA to compile each school's report into a single volume and provide the report to each high school on their behalf. This would alleviate the institution's responsibility, under the act, of providing the report to each high school. Each year, the NCAA must ask the department for permission to continue this practice.

In this year's request to the department, the NCAA asked for help in moving to an electronic transfer of the data in the future. The department responded as follows: "Per your request, the department is interested in working with the NCAA to determine how the computer-based transfer of graduation-rate data to secondary schools can be addressed in future distribution waivers, to ensure that all secondary schools receive the data in an easily usable format, and to limit the NCAA's burden."

As a first step, the NCAA will supply the data to high schools next year on computer disk. As part of this year's distribution, a card will be sent with each report asking high schools to notify the NCAA if the disk format is compatible with their computer systems. If it is not compatible, or the high school does not have adequate computer resources, the report will be sent by mail.

Gambling issues

Senate subcommittee adopts Internet gambling legislation -- full Judiciary Committee consideration next step.

On May 12, the Senate Judiciary Subcommittee on Terrorism, Technology and Government Information approved by voice vote S. 692, the Internet Gambling Prohibition Act. The next step will be the full Judiciary Committee markup tentatively scheduled for June 16.

In the interim period, the NCAA and other supporters will be visiting with Senate staff to ensure that the bill will receive strong support at the Judiciary Committee markup. Several members of the House are reportedly working on their own versions of an Internet gambling bill.

National Gambling Impact Study Commission.

On June 2, the NCAA received a draft copy of the National Gambling Impact Study Commission's (NGISC) final report. The draft, which may be revised in the next two weeks, contained several recommendations of great interest to the NCAA.

The current draft contains recommendations to the president, Congress, governors and tribal leaders that includes a ban on all existing legal sports betting on college and amateur sporting events. The commission also made a recommendation calling for the NCAA (and other amateur and youth athletics organizations) to fund educational and prevention programs to raise awareness of the problems associated with sports gambling. This recommendation included a statement urging the NCAA to adopt mandatory codes of conduct regarding sports gambling and prevention.

The commission also recommends a federal prohibition on Internet gambling (an initiative the NCAA has long supported). In addition, the draft report contains recommendations calling for the establishment of a minimum age requirement (21 years) before participating in any gambling activity and urges that students be warned of dangers of gambling, beginning in elementary school and continuing through college.

The NGISC was created by Congress to study the impact of gambling on the nation. The NGISC's final report will be released to the public June 18, 1999.

Michigan Senate adopts legislation to allow betting on college sports.

On May 12, the Senate chamber of the Michigan state legislature passed legislation (S.422) by a vote of 22-14 to permit small-stakes sports wagering games and bracketed playoff betting on such events as the NCAA basketball tournament and the NFL playoffs. The bill, sponsored by Sen. David Jaye, R-12, would allow for wagers of not more than $10 on sporting events with a total payout not exceeding $1,000. The legislation also contains language that prohibits student-athletes and athletics administrators from placing sports wagers on games involving their institution. However, the bill does not prohibit student-athletes and athletics administrators from placing bets on other college and professional contests. The legislation was referred to the House Casino and Oversight Committee in the House.

NCAA meets with U.S. Department of Education to discuss questions on gambling behavior for possible inclusion in national surveys.

On May 5, the NCAA federal relations office met with Pat Forgionne, Commissioner of the National Center for Education Statistics (NCES), and members of his staff to discuss the possibilities of incorporating questions related to youth gambling into existing national educational surveys. Forgionne was receptive to the NCAA presentation. The NCES committed to exploring the addition of gambling-related questions into its next longitudinal study, currently in development. The study will track a national sampling of eighth-grade students for 10 years. Known as the National Educational Longitudinal Study (NELS), the survey will begin surveying a new class of eighth graders in 2002.

In addition, Forgionne suggested other possible surveys that might be appropriate for determining the prevalence of gambling among high-school and college-aged students. The NCAA federal relations office will follow up on the suggestions made at the meeting and will work with several university researchers and the NCAA research staff to develop appropriate questions.

As the NCAA explores ways to help educate college students about problems associated with gambling (particularly sports wagering), it has become apparent that more research data is necessary in order to better substantiate the extent of the problem among high-school and college students. In addition, more research data on student gambling behavior will aid in the development of educational programs.

Copyright and trademark issues

Satellite royalty rate update.

On May 20, the Senate unanimously approved legislation, HR 1554, that includes a provision that reduces the royalty rates paid by satellite carriers for the retransmission of certain network and superstation distant signals. The Senate made several amendments to the legislation, which was earlier adopted by House on April 27. HR 1554 would reduce the 27 cent rate set by an arbitration panel in 1997 to 18.9 cents (a 30 percent reduction) for superstation signals and to 14.85 cents (a 45 percent reduction) for network signals. The NCAA, as a member of the Joint Sports Claimants, receives a portion of the satellite royalty fees paid by satellite carriers for retransmissions of sports programming on superstation and network stations. In addition, HR 1554 extends the effective date of the new rates through 2004 as part of an extension of the satellite compulsory license.

The Senate and House will now convene in conference to resolve differences in their adopted versions of HR 1554. The major provision contained in both Senate- and House- passed versions of HR 1554 would allow for satellite carriers to offer local broadcast signals into local markets. However, there are several related issues that still need to be resolved between the House and Senate. The satellite rate reduction will likely not be altered since both the House and Senate versions contain the same provision.

Trademark dilution legislation approved by House subcommittee.

On May 20, the House Judiciary Courts and Intellectual Property Committee approved HR 1565. The legislation attempts to address the problem of trademark dilution by establishing administrative procedural remedies to combat it. Trademark dilution occurs when the power and identity of a trademark is diluted, or weakened, when it is used to represent separate concepts (for example, a restaurant selling Final Four pancakes could dilute the trademark that represents the NCAA Final Four by confusing consumers and risking overuse of the phrase).

HR 1565 would allow trademark holders to oppose or attempt to cancel any trademarks that they believe are diluting the value of their mark. Instead of trademark dilution cases being pursued in federal court, the bill would allow for an expedited process by permitting the U.S. Patent and Trademark Office to handle these challenges. The measure also would permit private citizens and corporate entities to sue the federal government for trademark dilution.

The House Judiciary Committee has set no date for a markup of HR 1565.

Taxes -- charitable donations and skybox seats

On May 10, legal representatives of the R.L. French Corporation met with the IRS to discuss the treatment of the corporation's contribution to the Iowa State University Foundation to assist in a stadium construction project and its receipt of the right to lease a skybox in the stadium in return for the donation. In 1996, the R.L. French Corporation made a donation to Iowa State in the amount of $200,000 in return for a 10-year lease on a luxury box. Iowa State determined that $20,520 was the value for the rental of the luxury suite, including parking. The corporation took a deduction on the allowable 80 percent of the remaining $179,480 as a charitable deduction (to the athletics department to help finance stadium renovations). The IRS regional office in Dallas disallowed the contribution as a tax deduction.

The corporation's representatives asserted that section 170(1) of the tax code allows donors to claim a charitable contribution tax deduction for 80 percent of a payment they make in return for priority rights to purchase seating in a stadium or arena skybox. The IRS argued that section 170(1) does not apply to the purchase of skybox seating because a separate part of the tax code, section 274(1), denies taxpayers a business-expense deduction when they pay or lease or otherwise purchase skybox seating. The corporation contends that the tax code does not contain language making a connection between section 170(1) and section 274(1) and, therefore, it must have been Congress' intent for section 170(1) to control. R.L. French asserts that the two rules are wholly unrelated.

The IRS has taken the case under advisement and has promised to consider all of the arguments. If the IRS does not reverse the decision, a legislative remedy may be required to ensure that similar gifts are deductible in the future.

Initial-eligibility issues

NCAA federal relations office meets with the office of Sen. Wellstone to discuss concerns about initial-eligibility process.

On June 7, the NCAA's federal relations staff met with the staff of Sen. Paul Wellstone, D-Minnesota, to provide background information on the NCAA's initial-eligibility process. Wellstone's staff had requested background materials to provide the senator with a better understanding of the NCAA's academic review process. The senator's staff indicated that Wellstone had been asked by constituents to provide a federal remedy to the problems Minnesota students were experiencing with the NCAA initial-eligibility process. In the early years of the Clearinghouse, several Minnesota students who were participating in innovative academic programs were initially denied eligibility to compete as freshman in intercollegiate athletics. However, most of these students were eventually granted eligibility through the waiver process. These cases helped shape some of the changes that were subsequently adopted by the NCAA to make the process more responsive to state education reforms and innovative approaches to education.

NCAA works on response to Office for Civil Rights' guidance on the use of standardized tests for determining high-stakes benefits.

On May 14, the NCAA federal relations office met with the U.S. Department of Education's Office for Civil Rights (OCR) to discuss guidelines that will be released later this summer on the use of standardized tests for "high-stakes" educational benefits. The guidance will address issues related to the disparate impact of certain standardized tests on particular ethnic groups. "High-stakes educational benefits" are defined as tests whose results are used to make placement, promotion, graduation or scholarship decisions.

The NCAA currently is working on a response to the proposed developed by the OCR. The OCR says the guide is in response to numerous complaints from parents regarding the use of tests for purposes other than the one for which they were designed. Most of the examples used by the OCR to illustrate discriminatory practices are hypothetical situations in elementary and secondary school settings. Many of these examples focus on the testing of students with limited English proficiency.

However, the guide does address the use of college entrance exams for purposes other than as a component of college admissions consideration. The draft of the guide, as currently written, could impact upon the NCAA's use of the SAT and ACT for initial-eligibility purposes. The Department of Education plans to ask for public comment on the proposed guidance and hopes to release a final report by the end of the year.

Study shows rigors of high-school coursework is the best predictor of college graduation.

A new study released June 1 by the U.S. Department of Education concludes that a student's coursework preparation is the best predictor of whether the student will graduate from college. The study examined student transcripts to determine which was the best predictor of graduation: test scores, class rank (grade-point average) or coursework.

The study found that students who took four years of English, mathematics (beyond Algebra II), two years of laboratory science and of a foreign language, and no remedial classes, were the most likely to graduate. The study revealed that the "academic intensity" of course study was a third more likely than either test scores or class rank to predict whether a student would graduate.

U.S. House of Representatives committee hears from educator critical of NCAA initial-eligibility process.

Joe Nathan, director of the Center for School Change at the University of Minnesota's Humphrey Institute of Public Affairs, testified on May 25 before the House Committee on Education and the Workforce, Subcommittee on Children and Families. Congress is conducting hearings related to the reauthorization of the Elementary and Secondary Education Act (ESEA). Nathan focused his remarks on the NCAA's initial-eligibility process.

The congressional hearing was intended to feature innovative approaches in education, and Nathan's remarks were expected to be about the charter school movement that he is responsible for initiating in Minnesota. Instead, Nathan used the time allotted to request congressional assistance in addressing issues related to the NCAA initial-eligibility process. Nathan and other representatives of Minnesota charter schools have been critical of the impact of NCAA initial-eligibility standards on Minnesota students.

The NCAA was asked by the committee to provide a written statement for the hearing record addressing the issues raised by Nathan.

Miscellaneous

Federal Drug Administration (FDA) examines regulation of dietary supplements, including "ephedrine."

On June 2, the NCAA submitted comments to the Federal Drug Administration in response to a call for public comments on possible regulation of dietary supplements including "ephedrine," a substance banned by the NCAA. The NCAA's statement signed by Frank D. Uryasz, NCAA director of sports sciences, calls on the FDA to regulate the drug. The FDA will conduct a public hearing on the regulation of dietary substances June 8. The NCAA federal relations office will attend the hearing.

Campaign to urge companies and universities that use animals as their mascots to help endangered species.

On June 11, Sen. John H. Chafee, R-Rhode Island, chairman of the Senate Environment and Public Works Committee and Bruce Babbit, Secretary of the Interior, held a news conference to announce a new national campaign to urge companies and universities that use the tiger as a logo, trademark or mascot to return some of the benefits to help endangered species.