The NCAA News - News and Features

August 3, 1998

Governmental affairs report

Following is a report of federal activities from June 16 to July 15 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 400, Washington, D.C. 20036; telephone 202/293-3050.

Higher Education Act reauthorization

Adopted by U.S. Senate; Wellstone amendment on sports teams withdrawn; four-year advance notification deleted.

On July 9, the Senate adopted the Higher Education Act (HEA) Amendments of 1998 (S. 1882) by a vote of 96-1. An amendment drafted by Sen. Paul Wellstone, D-Minnesota, related to sports-team discontinuation, was withdrawn without explanation. However, it was evident that the amendment would have been defeated had there been a vote of the Senate. The Wellstone amendment would have required colleges and universities to establish an internal appeals process by which student-athletes could challenge a campus decision to discontinue a sports team. Another provision related to collegiate athletics was eliminated from the bill without debate. The provision, included as part of the Labor and Human Resources Committee's markup of the bill, would have required colleges and universities to report annually to the federal government any reductions that are likely to occur to any athletics teams over the ensuing four years and the reasons for such reductions. The NCAA strongly opposed both provisions.

The Senate did, however, adopt language to require the General Accounting Office (GAO) to conduct a study entitled "Study of Opportunities for Participation in Athletics Programs." Sen. Dan Coats, R-Indiana, and Wellstone proposed the study. The NCAA was asked to review the general parameters of the proposed study before its inclusion in the legislation. The NCAA leadership approved a study outline that was submitted to the Senate for consideration. The adopted study guidelines mirror the NCAA recommended language for the study. The study will examine the growth and decline of sports teams as well as participation rates of men and women over the past 20 years at the high-school and collegiate levels. In addition, the study will explore various factors that influence schools to add or drop sports teams and will reveal anecdotal information on accommodations provided to student-athletes when sports teams are discontinued.

Other HEA provisions.

Among the other provisions contained in S. 1882 is a resolution proposed by Sen. Joseph R. Biden Jr., D-Delaware, and Sen. Robert C. Byrd, D-West Virginia. The resolution calls for colleges and universities to take steps to reduce under-aged alcohol consumption as well as binge drinking behavior on college campuses. Among the measures outlined in the resolution is language urging institutions to "adopt a policy of eliminating alcoholic beverage-related sponsorship of on-campus activities." In his remarks on the Senate floor, Byrd referenced comments made by Secretary of Health and Human Services Donna Shalala at the 1998 NCAA Convention. Shalala urged the NCAA to take action to prohibit advertising of alcoholic beverages at collegiate athletics events.

Another provision in S. 1882 increases the Pell Grant maximum award to $5,500 over the next five years, if funds are appropriated. S. 1882 also contains an extensive expansion of campus crime reporting requirements. In addition, NCAA proposed amendments designed to reduce the burden and streamline reporting requirements related to the Student Right-to-Know Act, Equity in Athletics Disclosure Act and Athletics Revenues and Expenses disclosure were adopted.

The U.S. House of Representatives adopted their version of the Higher Education Act Amendments (H.R. 6) on May 6. By the end of July, the House and Senate are expected to begin meeting in conference committee to resolve the differences between the two bills. A final bill is expected to be presented to President Clinton in September.

Amateur Sports Act

Senate committee delays action.

On July 9, the Senate Commerce Committee considered the Amateur Sports Act (S. 2119) but the legislation was subsequently withdrawn when Sen. John F. Kerry, D-Massachusetts, and Sen. Ernest F. Hollings, D-South Carolina, raised objections. The two senators claimed that they had not had sufficient opportunity to review the proposed legislation and revisions proposed by the bill's sponsor, Sen. Ted Stevens, R-Alaska. Stevens was successful in obtaining a commitment that the legislation would be brought back before the Committee before the congressional recess in August.

The federal relations office obtained a copy of Stevens' proposed revisions to the underlying bill. The revisions primarily focused on changes to the underlying public law to bring the Paralympic Games under the U.S. Olympic Committee umbrella. However, the NCAA was concerned over proposed language that would allow an ombudsman to represent student-athletes with Olympic aspirations in disputes over NCAA rules and regulations. The NCAA submitted additional language revising this section of the bill.

Sen. Stevens accepts NCAA revisions to S. 2119.

During the week of July 13, the federal relations office submitted proposed changes to the manager's package of amendments to the Amateur Sports Act (S. 2119). Specifically, the proposed changes related to the new language creating an "ombudsman" to represent Olympic athletes in disputes. The NCAA expressed concerns that the language of the bill appeared to give the "ombudsman" the authority to represent student-athlete Olympians in disputes over NCAA rules and regulations. The proposed changes offered by the NCAA are designed to eliminate any ambiguity related to the ombudsman's role and were approved by Sen. Stevens, the bill's sponsor. Final changes to the bill are expected to be made when the Commerce Committee considers the legislation later this month.

Gender-equity-related issues

State high-school association is sued for alleged Title IX violations.

Parents of female student-athletes in Michigan filed a lawsuit in U.S. District Court seeking equal opportunities in high-school sports programs. The parents assert that the Michigan High School Athletic Association (MHSAA) violates Title IX by sponsoring greater opportunities for males. Specifically, the suit claims that MHSAA has failed to sanction women's ice hockey and water polo as varsity sports. In addition, the suit states that MHSAA does not provide equivalent benefits to its female athletes. The suit alleges that female student-athletes must compete during nontraditional and shortened seasons and play events, including championship games, in inferior facilities.

The National Women's Law Center represents the parents group.

Draft of GAO study on collegiate sports team participation statistics shared with the NCAA.

On June 18, the General Accounting Office shared a draft copy of the study it plans to release on collegiate athletics participation statistics. The study, begun last November at the request of Rep. Dennis Hastert, R-Illinois, chronicles athletics participation over an 11-year period (academic year 1986-1987 through academic year 1996-1997). The report draws from statistics provided by the NCAA, NAIA and NJCAA. It is believed that the report is aimed at revealing the impact of Title IX on institutional decisions to discontinue certain men's non-revenue sports. Specifically, GAO was asked to report on the actions that are taken to limit athletics team participation numbers in given sports. The GAO report reveals that the limitations on participation numbers are imposed by conferences and/or individual institutions. These restrictions were related only to team travel and overall squad size limits. The draft report also includes aggregate participation data on NAIA and NJCAA schools that was previously unknown to the NCAA.

Todd Petr, NCAA director of research, responded to the GAO in a June 30 letter on behalf of the NCAA. The letter highlighted minor inaccuracies in the report.

In a related matter, the Senate has passed a resolution, as part of S. 1882, asking the GAO to conduct another study that would request data designed to focus on the reduction of men's sports opportunities. The NCAA has provided comments on the proposed study outline and may cooperate with GAO in gathering the data.

Brown University receives preliminary approval from U.S. District Court of Title IX agreement with plaintiffs.

On June 23, Brown University received preliminary approval from U.S. District Judge Ernest Torres of a joint agreement that will resolve all remaining legal issues with the plaintiffs in the Title IX case against the school.

Under the terms of the proposed agreement, Brown will ensure that the proportion of women among varsity athletes will vary no more than 3.5 percent from the percentage of women in the undergraduate student body.

In addition, the university agreed to provide three donor-funded women's teams -- fencing, skiing and water polo -- with funding assurances for three years, allowing them time to develop dependable levels of donor support. A fourth team, women's gymnastics, will receive four years of funding support from the university. Brown's decision to cut financial support to the women's gymnastics and volleyball teams led to the filing of the Title IX case in April 1992.

Senior Judge Raymond Pettine rejected the university's original compliance plan in 1997 and, instead, ordered the university to elevate several women's teams to full university-funded status. The First Circuit Court of Appeals subsequently reversed Judge Pettine's order. The new settlement agreement permits the university to implement a compliance plan of its own design. A final hearing on the settlement agreement is scheduled for early October.

Justice department asks 650 colleges and universities to supply coaches salary information.

The NCAA has learned that approximately 650 public colleges and universities (not all of which are NCAA members or have athletics programs) have received letters from the United States Department of Justice requesting a copy of each institution's 1997 Equity in Athletics Disclosure Act report, which was to be completed by October 1 of last year. The letter indicates that the justice department is seeking information regarding men's and women's coaches salaries and hiring practices on campus. The justice department had previously requested that the NCAA supply similar data on its member institutions but the request was denied due to the confidentiality of the data collected by the NCAA through its research efforts.

The justice department has indicated that the purpose of the data collection is to assess the current compliance of colleges and universities with Title VII of the Civil Rights Act of 1964 and various other federal laws including the Equal Pay Act and Title IX, pertaining to coaches salaries and hiring practices.

The justice department has stressed that the request is a preliminary fact gathering exercise and is not part of a formal investigation. After reviewing the data, the justice department will determine if an investigation of any particular institution is warranted. If a formal investigation is deemed appropriate and an institution is found to be in non-compliance with federal anti-discrimination law, the justice department would likely attempt to enter into an agreement with the institution to correct the violation.

In October 1997, the Equal Employment Opportunity Commission (EEOC) issued guidelines on the application of the Equal Pay Act and Title VII in discrimination cases related to the disparity between the salaries paid to men and women college coaches. The guidelines, in part, may be used in future suits brought against campuses that are allegedly in violation of the Title VII anti-discrimination law and the Equal Pay Act.

Former coach awarded $800,000 under Title VII discrimination claim.

A federal judge has ordered City College of New York to pay more than $800,000 to a former women's head basketball coach and sports administrator at Brooklyn College who sued the university alleging sexual discrimination.

Molly Perdue, who worked at the university from 1985-92, claimed that she was paid substantially less than her male counterparts and had been treated unfairly. Last year, a jury decided that the university had "willfully" violated the Equal Pay Act and "intentionally" discriminated against Perdue under Title VII of the Civil Rights Act of 1964, which bars employment discrimination based on race and gender.

The jury, however, rejected Perdue's claims that the university had violated Title IX of the Education Amendments of 1972. In addition, the jury rejected the claim that the school had created a hostile work environment that included sexual harassment. The jury awarded Perdue $85,000 in compensatory damages and left it to U.S. District Court Judge Frederic Block to decide the rest of the award.

Last month, Judge Block rejected CCNY's request to overturn the jury verdict and awarded Perdue $799,566.73 in lawyers' fees, back-pay, and unpaid retirement benefits.

National Youth Sports Program

House committee approves Labor/HHS/Education Appropriations bill; NYSP provided $15 million in fiscal year 1999.

On July 14, the House Appropriations Committee approved the Labor/HHS/ Education Fiscal Year 1999 Appropriations bill. The bill sets the budgets for the Departments of Labor, Health and Human Services, and Education. The legislation provides $15 million in funding to the National Youth Sports Program (NYSP). In FY 1998, the NYSP received $14 million.

However, the measure does contain several controversial provisions opposed by President Clinton. Clinton's budget chief, Jacob Lew, has indicated that the president would veto the bill in its current form if it did not include more money for education and other popular social programs. The full House is expected to vote on the measure by the end of July.

Senate adopts authorization for NYSP; House of Representatives to take similar action on July 29.

On June 24, the Senate Labor and Human Resources Committee adopted S. 2206, legislation to extend the authorization for the National Youth Sports Program (NYSP) for the next five years. Sen. Dan Coats, R-Indiana, chair of the Children and Families Subcommittee with jurisdiction over the NYSP authorization, had proposed to alter the federal program under which the NYSP receives its federal funding. Coats wanted to allow local community based youth services organizations such as the Boys and Girls Clubs or individual postsecondary institutions to apply directly for the funding the funding that is currently awarded to the NYSP. After discussions with the NCAA, Coats agreed not to make any major revisions to current law. However, two new requirements were added. First, local sites will be required to establish community advisory committees. Second, each individual site will be required to develop year round partnerships with community youth services organizations. The NCAA supported the changes.

The legislation was subsequently adopted with the two modifications. Sen. Tom Harkin, D-Iowa, voiced opposition, citing limited competition for the funds. Harkin urged that the program be opened to competitors other than the NCAA in the future. The NYSP currently must compete for the federal grant and has been the recipient of the funding for the past thirty years.

The House Committee on Education and the Workforce considered similar legislation, H.R. 4241, to extend the NYSP on July 29. The House bill included similar changes to the NYSP authorization legislation made by the Senate Labor and Human Resources Committee.

U.S. Department of Agriculture undersecretary visits NYSP site.

On July 15, Shirley Watkins, undersecretary of food, nutrition and consumer services in the U.S. Department of Agriculture (USDA), visited the University of Notre Dame to meet with students participating in the on-campus NYSP. Watkins, the top federal official for food assistance programs, visited the program to promote the USDA's Summer Food Services Program, an important component of the NYSP. Through the USDA program, NYSP participants receive a hot meal each day.

Sports wagering

NCAA cosponsors two-day seminar with FBI on sports wagering in Washington, D.C.

On July 8-9, the NCAA sponsored a seminar with the Federal Bureau of Investigation (FBI). The seminar, organized by the Bill Saum, NCAA gambling and agents representative, and the FBI, brought 60-70 FBI agents from across the nation to discuss issues related to point shaving, illegal sports bookmaking and Internet gambling. The two-day seminar included presentations by FBI agents responsible for investigating the Northwestern University and Arizona State University point-shaving cases.

Indiana attorney general issues official opinion on Internet gambling in response to concerns that Internet gambling is becoming a serious problem on college campuses.

Indiana Attorney General Jeff Modisett, in an official opinion issued to Indiana's Higher Education Commissioner, stated that Indiana residents who gamble over the Internet and gambling sites that accept their bets are in violation of State law.

In a June 17, 1998, letter to Modisett, Indiana State Higher Education Commissioner Stanley Jones noted that gambling and, to "an ever-increasing extent, Internet gambling, are becoming serious problems on college campuses." Jones inquired "[w]hether it was lawful for a person physically located in Indiana to gamble via the Internet and whether it is lawful for a person to provide Internet gambling services to persons in Indiana."

In response to the letter, Modisett stated that "[g]ambling is illegal in Indiana unless it is in a form specifically permitted by law." Modisett added "[t]he fact that sports betting, casino-style games, or games of chance are conducted over the Internet instead of in the back room of a tavern doesn't change the illegality of the conduct."

Modisett cited experts who have acknowledged that Internet gambling poses unique dangers on college campuses. Modisett noted that college students are among the most proficient users of the Internet and that the prevalence of problem gambling among youth and college students is much higher than in the general adult population.

Modisett sent e-mails to nearly 200 Internet gambling sites, demanding they immediately cease promoting or conducting gambling operations with Indiana residents. In addition, Modisett's e-mail asked internet gambling operators to place a conspicuous notice on their site stating that it is illegal for Indiana residents to use their services or otherwise gamble over the Internet.

Cable royalties

1990-92 cable royalty fee decision affirmed by U.S. Court of Appeals.

On June 26, 1998, the U.S. Court of Appeals for the District of Columbia Circuit affirmed the decision of the Librarian of Congress in the Phase I allocation of the 1990-92 cable royalty funds. The appeal was filed by "Program Suppliers," representing the copyright owners of syndicated television series, movies and television specials; the National Association of Broadcasters, representing the copyright owners of programs (e.g., news and local interest material that are produced and broadcast by only a single television station); and Devotional Claimants, representing the copyright owners of syndicated programs of a primarily religious theme. The Joint Sports Claimants, representing copyright owners of sports programming including the NCAA and its member institutions, filed an amicus curiae brief supporting the Librarian's decision and opposing certain arguments advanced by the petitioners (NAB et al.).

The NAB argued that the $500 million pool of royalties -- collected for non-network programming retransmitted to distant markets in calendar years 1990, 1991, and 1992 -- was not accurately apportioned among the eight classes of copyright owners. The petitioners asserted that their shares should have been larger. In its decision, the Circuit Court concluded that given the narrow standard of review applicable to the Librarian's apportionment of cable royalties, the petitioner's claims did not warrant modification or remand of the Librarian Phase I awards.

Subsequent to the court's decision, the Joint Sports Claimants filed a motion requesting the Copyright Office to distribute all of the remaining royalties (approximately $100 million) in the 1990-92 royalty pool.

Senate passes amendment aimed at rolling back new satellite royalty rate.

On July 22, the Senate agreed by a voice vote to an amendment by Sen. John McCain, R-Arizona, that would roll back the royalty rates that satellite carriers pay for certain programming. Last year, the Library of Congress adopted a rate increase to 27 cents for all satellite retransmissions of distant superstation and network signals. The NCAA, as a member of the Joint Sports Claimants, receives a portion of these royalty fees for qualifying sports programming. The funds are distributed to select NCAA conferences and member institutions.

The Senate amendment is similar to a House Commerce Committee-approved bill (H.R. 2921) that rolls back the royalty fees to 17.5 cents for superstations and 6 cents for network distant signals and requires the Federal Communication Commission to study the impact of the increase on satellite competition with the cable industry. H.R. 2921 is currently pending in a House Judiciary Subcommittee which has sequential jurisdiction over the matter.

Miscellaneous

Sen. Wellstone's office seeks meeting with NCAA about initial-eligibility issues.

On July 16, the federal relations office was contacted by the office of Sen. Paul Wellstone, D-Minnesota. Wellstone's staff indicated that the senator continues to hear from constituents regarding concerns over the NCAA's Initial-Eligibility Clearinghouse. The staff person expressed Wellstone's desire to host a meeting in his St. Paul, Minnesota, office with constituents and members of the NCAA staff sometime in September. An outline of the constituent concerns will be provided to the NCAA before the meeting. The issues appear to concentrate on the acceptability of certain courses by the Clearinghouse that are representative of Minnesota's progressive high school curriculum. The purpose of the meeting is for the NCAA to discuss the recent changes to the initial eligibility process and to engage in a dialogue with concerned parents and students.

IRS may require tax-exempt organizations to list their e-mail addresses in order to monitor unrelated business income via the Internet.

According to KPMG Peat Marwick's "Exempt Organizations Update," the IRS is considering a requirement that organizations declaring themselves exempt from paying taxes list their Internet addresses on exemption applications. This information would allow the IRS to monitor Internet Web sites for possible unrelated business income from advertising, business transactions, and the sale of goods and services via the Internet.