The NCAA News - News and Features

The NCAA News -- July 19, 1999

Governmental affairs report

The following is a report of federal activities from June 12 through July 9 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 releases study on male and female student-athlete participation rates and sports sponsorship at select NCAA institutions.

On June 23, the General Accounting Office (GAO) released a report on student-athlete participation rates and sports-sponsorship data at select NCAA member institutions. The GAO did the study at the request of Speaker of the U.S. House of Representatives Dennis Hastert, R-Illinois. The study examines athletics participation rates and sports sponsorship at 725 colleges and universities that were NCAA members in 1985-86 through 1996-97. By tracking only those institutions that were members in 1985, the report chronicles the selected institution's participation rates without including the variances that occur in the NCAA's yearly participation totals as a result of new institutions that join the NCAA each year. The report shows the following:

Division I -- 278 member institutions -- 1985-86 compared with 1996-97.

Men -- (a) an average drop of 9.49 percent in average squad sizes; (b) an average drop of 10.51 percent in numbers of sports teams; and (c) a drop in total participation numbers of 10.62 percent.

Women -- (a) an average increase of 1.75 percent in average squad sizes; (b) an average increase of 31.56 percent in number of sports teams; and (c) an increase in total participation numbers of 29.75 percent.

Division II -- 153 member institutions -- 1985-86 compared with 1996-97.

Men -- (a) an average drop of 14.77 percent in average squad sizes; (b) an average drop of 13.10 percent in numbers of sports teams; (c) a drop in total participation numbers of 16.71 percent.

Women -- (a) an average drop of 11.01 percent in average squad sizes; (b) an average increase of 21.30 percent in number of sports teams; (c) a drop in total participation numbers of 1.72 percent.

Division III -- 294 member institutions -- 1985-86 compared with 1996-97.

Men -- (a) an average drop of 14.73 percent in average squad sizes; (b) an average increase 2.29 percent in numbers of sports teams; and (c) a drop in total participation numbers of 11.85 percent.

Women -- (a) an average drop of 1.75 percent in average squad sizes; (b) an average increase of 37.84 percent in number of sports teams; and (c) an increase in total participation numbers 12.12 percent.

All divisions:

Men -- (a) actual decrease of 3.57 percent in numbers of sports teams; and (b) actual decrease of 12.06 percent in total participation numbers.

Women -- (a) actual increase of 17.40 percent in number of sports teams; and (b) actual increase of 16.93 percent in total participation numbers.

There has been an overall decrease in numbers of men participating in athletics programs at these institutions. There also has been a drop in average squad size for both men and women. The GAO does not draw a conclusion on the factors that can be attributed to the decline. Squad sizes for both men and women have declined over the period; and while overall men's opportunities have declined, the numbers of football teams have increased. In addition, while there has been a 27 percent increase in the numbers of women participants, women still lag behind men at these institutions in participation numbers. In 1996-97, men made up 61 percent of the participants while women represented 39 percent.

The most recent NCAA participation data of all current NCAA member institutions indicate that participation for both men and women is slightly higher in school year 1997-98 than in the previous year.

House subcommittee critical of OCR's enforcement of Title IX.

On June 22, the House Oversight and Investigations Subcommittee of the Education and the Workforce Committee held an oversight hearing on the operations of the Department of Education's Office for Civil Rights (OCR). One of the matters discussed at the hearing was OCR's enforcement of Title IX.

Rep. Peter Hoekstra, R-Michigan, subcommittee chair, focused his questions on the discontinuation of men's sports opportunities at NCAA colleges and universities and the effect the proportionality prong of the Title IX regulations has had on men's sports opportunities.

Several subcommittee members asked OCR Assistant Secretary Norma Cantu about the recent policy guidance from OCR that requires that the scholarship dollars awarded to the underrepresented gender be within 1 percent or one scholarship of the overall percentage of the underrepresented gender of student-athletes. Although there was no talk of changing OCR policy, subcommittee members said OCR policy interpretation may be encouraging schools to reduce the number of scholarships for men. Cantu said OCR has always been "fair and flexible" by offering equitable athletics opportunities for men and women players. Further, she defended OCR by saying the office encourages institutions not to drop men's sports but instead to increase opportunities for women. Cantu also responded to the concerns raised by legislators by saying some institutions blame OCR's enforcement of Title IX as an excuse for dropping men's sports teams.

Higher education issues

Fair labor standards in the manufacturing of licensed apparel.

On July 8, United Students Against Sweatshops (USAS) held a press conference in Washington, D.C., and a rally on the steps of the U.S. Department of Labor on July 9. The USAS is a campus-based organization that has supported sit-ins at several college and university campuses aimed at encouraging institutions to take a position against the use of unfair labor conditions in the manufacture of apparel and equipment bearing the school's insignia. The press conference preceded a meeting of campus student representatives focusing on challenging the Fair Labor Association (FLA) standards adopted by several apparel manufacturers, the U.S. Department of Labor, and more than 100 colleges and universities. The student-led group opposes the FLA because of concerns over the establishment of a fair wage standard for workers, factory disclosure issues, and because there is no independent monitoring for compliance. At the press conference, a report was released detailing alleged ongoing use of sweatshops by Liz Claiborne, one of the leading supporters of the FLA.

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 Appropriations Subcommittee is expected to consider its education-funding legislation on July 15, with full committee consideration on July 28. The Senate has slated July 15 as the date for both subcommittee and full committee consideration.

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 Programs 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.

Family Educational Rights and Privacy Act proposed regulations published in Federal Register -- NCAA to comment.

The U.S. Department of Education published a notice of proposed rule-making in the June 1, 1999, Federal Register, which amends the regulation implementing the Family Educational Rights and Privacy Act (FERPA). The notice invites individuals to submit comments and recommendations on the proposed rules before August 2.

The proposed changes will provide some additional flexibility in student privacy laws, which generally prohibit the release of a student's education records, to allow institutions to reveal the results of disciplinary proceedings against students accused of violent crimes, and to notify parents if a student violated a drug or alcohol law.

In addition, the rules will permit institutions to release a student's education record to a court without consent if the student or student's parent sues the institution. The NCAA will provide comments on the proposed rules to ensure that third-party recipients of records are afforded the same flexibility.

Gambling issues

National Gambling Impact Study Commission issues final report.

On June 18, the National Gambling Impact Study Commission (NGISC) issued its final report after a two-year study on the impact of gambling on the nation. The report, issued to the President, Congress, governors and tribal leaders, includes a recommendation urging a ban of all currently legal sports betting on college and amateur sporting events. The Commission also called on 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.

Other recommendations of interest to the NCAA included a federal prohibition on Internet gambling (an initiative the NCAA has long supported), the establishment of minimum age requirement (21 years) before participating in any gambling activity, and the implementation of a gambling education program beginning in elementary school and continuing through college.

On June 18, the NCAA held a press conference expressing its support for the recommendation regarding college sports gambling, Internet gambling and youth education.

Senate Judiciary Committee adopts legislation to establish a federal prohibition against betting over the Internet.

On June 17, the Senate Judiciary Committee voted, 16-1, to adopt S. 692, the Internet Gambling Prohibition Act of 1999. Sen. Jon L. Kyl, R-Arizona, sponsor of the legislation, introduced a substitute bill that included several technical changes in response to suggestions made by the Justice Department. Overall, the bill remained largely unchanged.

The bill was supported by all members of the committee except for Sen. Russ Feingold, D-Wisconsin, who voted "no," and Sen. Joseph Biden, D-Delaware, who abstained. Kyl will now try to bring S. 692 to the Senate floor for consideration before Congress' August recess beginning August 9.

The NCAA strongly supported S. 692 and will continue to work to ensure passage by the full Senate. On June 16, the NCAA federal relations office sent to each member of the Judiciary Committee a second copy of a letter sent earlier to the full Senate. The letter, dated May 4, endorsed S. 692 and was signed by the NCAA and all professional sports leagues.

Reps. Goodlatte and McCollum expected to introduce Internet gambling prohibition legislation in the House.

Rep. Bob Goodlatte, R-Virginia, is reportedly working with Rep. Bill McCollum, R-Florida, on drafting a House version of the Internet gambling prohibition legislation. Early reports are that both Goodlatte and McCollum are pleased with the changes contained in Kyl's new version of the Internet gambling legislation, S. 692. It is hoped that the Goodlatte-McCollum bill will be substantially similar to S. 692. This will ensure a much smoother passage.

The NCAA federal relations office hopes to work closely with both Goodlatte's and McCollum's offices in developing the House version of the Internet gambling prohibition legislation.

NCAA participates at the National Council of Legislators from Gaming States Conference.

NCAA staff participated on a panel to discuss issues related to teenage gambling before the National Council of Legislators from Gaming States (NCULGS). The NCAA's presentation included a discussion about federal and state legislative initiatives of interest to the Association.

The conference brings together state legislators from gaming states across the country. NCULGS is a relatively young organization and is still trying to attract additional legislators from gaming states not currently represented. The NCAA hopes that it will be able to develop a continuing dialogue with NCULGS on state and national gambling issues.

Sen. Specter conducts hearing on National Gambling Impact Study Commission recommendations -- asks for NCAA testimony for hearing record.

On June 30, the Senate Labor/HHS/Education Appropriations Subcommittee, chaired by Sen. Arlen Specter, R-Pennsylvania, held a hearing focusing on the research recommendations contained in the National Gambling Impact Study Commission (NGISC) report released June 18. Among the recommendations offered in the report is a suggestion that federal agencies conduct more research on gambling behavior and disorders. The Labor/HHS/Education Appropriations Subcommittee has the responsibility of allocating federal dollars to the U.S. Departments of Labor, Health and Human Services, and Education, each of which could conduct research on various gambling related issues. The hearing focused primarily on the research efforts of the National Institutes of Health and the National Institutes of Mental Health (under the U.S. Department of Health and Human Services).

Witnesses testifying before the Subcommittee included Rep. Frank Wolf, R-Virginia, sponsor of the federal legislation creating the NGISC, Leo McCarthy, a member of the NGISC, Timothy Kelley, acting executive director of the NGISC, and a former owner of the Philadelphia Eagles who was forced to sell the team after accruing $50 million in gambling debt. Cedric W. Dempsey, president of the NCAA, was asked to testify but could not because of a previous commitment. Instead, the NCAA will submit a statement for the hearing record, making several recommendations on federal research initiatives that could assist in the expansion of data available related to gambling behavior among college students and youth.

At the conclusion of the hearing, Specter committed to allocate substantial funds toward research efforts on gambling behavior.

Copyright and trademark issues

Satellite royalty rate update.

On May 20, the Senate unanimously approved legislation, HR 1554, that includes a provision to reduce the royalty rates paid by satellite carriers for the retransmission of certain network and superstation distant signals. However, the Senate also made several amendments to the House-adopted (April 27) version of the legislation, which were not accepted by House leaders. HR 1554 does contain a provision to 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, on behalf of its membership, is a member of the Joint Sports Claimants and receives a portion of the satellite royalty fees paid by satellite carriers for retransmissions of sports programming on superstation and network stations. The funds the NCAA receives are reallocated to those institutions with a claim to the royalties. 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 have appointed members of their respective Commerce and Judiciary Committees to participate in a conference to resolve differences between the House and Senate 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 remain 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 legislation.

On May 26, the House Judiciary Committee approved HR 1565 by a voice vote. 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.

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 next step is for HR 1565 to be considered on the House floor.

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. The IRS took the case under advisement and promised to consider all of the arguments. In a meeting on June 4, University of Arkansas, Fayetteville, athletics director Frank Broyles met with IRS officials to further discuss the matter. During the course of that meeting, IRS officials indicated that the IRS would reverse an earlier opinion issued by its Dallas regional office.

The case stems from a donation made by the R.L. French Corporation to the Iowa State University Foundation in the amount of $200,000 in return for a 10-year lease on a luxury skybox that was being constructed as part of campus renovations to the football stadium. Iowa State determined that $20,520 was the value for the rental of the luxury suite, including parking. The corporation took a tax deduction on 80 percent of the remaining $179,480 as a charitable deduction. This amount was believed to be permissible under the "80/20 rule" established by the U.S. Congress that allows a deduction for contributions to institutions when the donor receives the right to "purchase tickets" in return. The IRS disallowed the contribution as a tax deduction based on another section of the tax code that specifically applies to luxury suites or skyboxes as "entertainment facilities."

As a follow-up to the June 4 meeting, a letter was sent on June 14 to the IRS by the Division I-A Athletic Directors Association, National Association of Collegiate Directors of Athletics, NCAA and American Council on Education asking for the IRS to confirm the June 4 interpretation in writing. A response is expected from the IRS within 30 days. The NCAA has worked closely with the associations mentioned above to support the R.L. French Corporation's attempts to favorably resolve this situation.

On June 15, the NCAA sent a letter to Grant Teaff, executive director of the American Football Coaches Association to update their membership of the apparent reversal by the IRS during the June 4 meeting. If the original decision had not been reversed, the interpretation would have had a profound negative impact on future construction of collegiate sports facilities. The NCAA Division I Board of Directors and conference commissioners were copied on the June 15 letter.

Initial-eligibility issues

NCAA responds to Office for Civil Rights on proposed 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 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.

Prior to the public comment period, the NCAA was offered the opportunity, along with several other higher education organizations, to comment on the current draft of the proposed guide. On July 7, the NCAA's response to the proposed guide on the use of standardized tests was transmitted to the Department of Education. The NCAA's comments address only those areas of the proposed guide that pertain to the NCAA's specific use of the ACT and SAT tests. Additional comments to be submitted to OCR by ACE focus on admissions uses; the College Board and ACT mention many of the same concerns raised by the NCAA.

OCR plans to recirculate a new draft incorporating those recommendations that are accepted. The NCAA will have an opportunity to comment again. The draft will then be submitted to the National Academy of Sciences Board on Testing and Assessment for a final review. Later this summer, that document will be published in the Federal Register for review.

House subcommittee conducts OCR oversight hearing -- Cantu promises revisions to proposed OCR guidance.

On June 22, the House Oversight and Investigations Subcommittee held a hearing to review the work of the Office for Civil Rights. The hearing focused on three issue areas under the purview of OCR: (1) the proposed guide on discriminatory factors of "high-stakes" testing, (2) bilingual education and (3) Title IX.

At the hearing, Norma Cantu, the Education Department's assistant secretary for civil rights, defended OCR's proposed guide on the use of standardized tests entitled, "Nondiscrimination in High-Stakes Testing: A Resource Guide." Cantu said, "We will make the language clear to conform to existing law." In addition, Cantu confirmed that the guide's "language will change." The draft guide was shared with the NCAA and a few other higher education associations but was not publicly released to the public. However, one of the parties with whom OCR shared the document leaked it to the press. Cantu expressed regret that the document was released publicly. She indicated that the draft was for discussion purposes only. Members of the subcommittee found fault with the proposed guide but Cantu assured them that the process for review would be fair and open. Cantu promised to share the next draft of the guide with members of the Subcommittee.

NCAA submits statement to House Subcommittee on Initial Eligibility Requirements.

On June 15, the NCAA submitted a letter to Chairman Michael Castle, R-Delaware, and Ranking Member Dale Kildee, D-Michigan, of the House Education and Workforce Subcommittee on Early Childhood, Youth and Families regarding a discussion of the NCAA's initial-eligibility standards at a hearing May 25, 1999.

The letter provided a summary of the NCAA's academic requirements for graduating high-school students who wish to participate in intercollegiate athletics programs. Specifically, the letter addressed: