BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2079
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          Date of Hearing:   April 6, 2010

                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION
                                 Marty Block, Chair
                  AB 2079 (Torlakson) - As Amended:  March 25, 2010
           
          SUBJECT  :   Student athletes: recruiting.

           SUMMARY  :   Requires a collegiate athletic recruiter representing  
          a postsecondary educational institution in California or outside  
          California to provide California student athletes, as defined,  
          with specified information relating to the college athletic  
          program within one week of initiating personal contact with the  
          student athlete for purposes of athletic recruiting.  Requires  
          any scholarship offer to be made in writing within one week of a  
          verbal offer and prior to a student athlete signing an athletic  
          scholarship agreement with a postsecondary educational  
          institution and to include specified information relating to the  
          institution's athletic program.  Specifically,  this bill  :  

          1)Requires a collegiate athletic recruiter to provide a  
            Disclosure Letter within one week of personal contact with a  
            student athlete for purposes of recruiting the student athlete  
            for a collegiate interscholastic athletic program and requires  
            the Disclosure Letter not to exceed 1,250 words and to include  
            the following information:

             a)   Athletic Scholarship Information (not to exceed 250  
               words), as follows:

               i)     The most recent cost of attendance expenses, as  
                 specified. 

               ii)    The sum of expenses identified in the above  
                 paragraph that are prohibited from inclusion in a full  
                 grant-in-aid athletic scholarship pursuant to the  
                 National Collegiate Athletic Association's (NCAA) rules  
                 and regulations.

               iii)   The policy of the postsecondary educational  
                 institution's athletic program as to whether student  
                 athletes will receive athletic scholarships for summer  
                 school, and, if so, whether these scholarships are  
                 proportional to athletic scholarships received during the  
                 regular academic school year.








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               iv)    The average monthly full grant-in-aid athletic  
                 scholarship payment received by student athletes who live  
                 on-campus and off-campus, respectively, during the  
                 regular academic year and summer school session.

             b)   Athletic Scholarship Renewals (not to exceed 250 words)

               i)     The NCAA's policy on scholarship duration.

               ii)    The policy of the postsecondary educational  
                 institution's athletic program concerning the renewal or  
                 nonrenewal of an athletic scholarship, including  
                 circumstances in which a student athlete in good standing  
                 suffers a temporary or permanent sports-related injury,  
                 there is a coaching change, or a student athlete's  
                 athletic performance is deemed to be below expectations.

             c)   Athletically Related Medical Expenses (not to exceed 500  
               words)

               i)     The NCAA's policy on whether athletic programs are  
                 mandated to pay for athletically related medical  
                 expenses.

               ii)    The policy of the postsecondary educational  
                 institution's athletic program on whether it will pay for  
                 student athletes' athletically related medical expenses,  
                 including deductibles, copays, coinsurance, and whether  
                 the program will pay for athletically related medical  
                 expenses that exceed any maximum insurance coverage  
                 limits.

               iii)   The policy of the institution's athletic program  
                 concerning who is required to pay for any required  
                 athletically related insurance premiums for student  
                 athletes who do not have such insurance.

               iv)    The duration of time the postsecondary educational  
                 institution's athletic program continues to pay for  
                 athletically related medical expenses after a student  
                 athlete's athletic eligibility expires.

               v)     Whether or not an athletic program's medical policy  
                 covers expenses associated with attaining a second  








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                 medical opinion for an athletically related injury from a  
                 medical physician that is not associated with the  
                 athletic program and whether the athletic program  
                 provides coverage for services received by such a  
                 physician.

             d)   Athletic Release (not to exceed 250 words)

               i)     The NCAA's policy on whether an athletic program may  
                 refuse to grant an athletic release to a student athlete  
                 who wishes to transfer to another postsecondary  
                 educational institution.

               ii)    The policy of the postsecondary educational  
                 institution's athletic program concerning whether it may  
                 use any power to refuse to grant an athletic release for  
                 a student athlete who wishes to transfer to another  
                 postsecondary educational institution.

               iii)   Commencing January 1, 2011, each interscholastic  
                 athletic program that recruits any student athlete shall  
                 prominently post the disclosure letter described in  
                 paragraph (1) on its official athletic Internet Web site.

               iv)    Changes to any athletic program policy included in a  
                 Disclosure Letter shall be sent in writing to all student  
                 athletes, as well as any athletes currently enrolled in  
                 the institution who were recruited from the state of  
                 California.

          2)Requires any scholarship offer to be made in writing within  
            one week of a verbal offer and shall include all of the  
            following information. 

             a)   The disclosure letter as defined previously. 

             b)   The expiration date and expiration terms of the athletic  
               scholarship offer.

             c)   Whether or not the athletic program will guarantee that  
               the student athlete's acceptance of the offer prior to any  
               expiration will be honored.

             d)   Whether or not the offer includes an athletic  
               scholarship for summer school.








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             e)   Whether or not the student athlete will be guaranteed  
               admission and full athletic participation at an institution  
               if a specific academic level is achieved during the  
               remainder of the student athlete's high school career and a  
               description of any such academic level.

             f)   The terms and the amount of any death benefit provided  
               by the postsecondary educational institution in case of a  
               sports-related death.

          3)If the written offer is sent more than one year in advance of  
            the earliest date a student athlete is authorized to sign an  
            agreement with an institution's athletic program, pursuant to  
            the rules and regulations of the NCAA, the athletic program  
            shall send a subsequent letter stating whether or not the  
            offer is still valid no later than five months prior to the  
            earliest signing period. 

          4)Defines the following:

             a)   "Student athlete" means an individual who resides in  
               California and who attends an elementary, junior high, high  
               school, or college.

             b)   "Athletic program" means any intercollegiate athletic  
               program from a postsecondary educational institution in or  
               outside of California that solicits student athletes to  
               apply, enroll, or attend the postsecondary educational  
               institution in order to have the student athlete  
               participate in intercollegiate sporting events, contests,  
               exhibitions, or programs at that institution.

             c)   "Personal contact" means any direct, individualized  
               contact made by a collegiate athletic recruiter for  
               purposes of athletic recruiting with a student athlete or  
               his or her family members, including, but not limited to,  
               telephone calls, personalized mail, in-person contact, or  
               e-mail.

          5)Nothing in this section shall be construed to require a  
            postsecondary educational institution to revise athletic  
            scholarship contracts entered into prior to the effective date  
            of this bill.









                                                                  AB 2079
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           EXISTING LAW  :

          1)Defines a student athlete as a student at a public or private  
            institution of postsecondary education who engages in, is  
            eligible to, or may be eligible to engage in, any  
            intercollegiate sporting event, contest, exhibition, or  
            program, or any individual who has applied, is eligible to, or  
            may be eligible to apply in the future to a public or private  
            institution of postsecondary education.

          2)Prohibits any person from offering, promising or attempting to  
            give money or other item of value to induce, encourage or  
            reward a student athlete's application, enrollment or  
            attendance at a public or private institution of higher  
            education to participate in specified intercollegiate  
            activities.  Exceptions to this prohibition:

             a)   Any public or private institution of higher education  
               acting in accordance with a written policy in compliance  
               with NCAA bylaws.

             b)   Any intercollegiate athletic awards approved or  
               administered by the student athlete's institution.

             c)   Any other student of the institution (non-athletes).

             d)   Any of the student athlete's immediate family members.

          3)Prohibits student athletes and members of their immediate  
            family from soliciting money or other item of value as an  
            inducement, encouragement or reward, subject to the same  
            exceptions listed above.

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   Double-referral  :  This bill is double-referred to the  
          Assembly Arts, Entertainment, Sports, Tourism, and Internet  
          Media Committee.

           Background  :  The NCAA is a voluntary association of about 1,200  
          colleges and universities, athletic conferences, and sports  
          organizations that administer intercollegiate athletics.   
          Volunteer representatives from these schools and conferences  
          establish rules that govern the NCAA and programs designed to  
          further its purposes and goals.   Currently, NCAA bylaws impose  








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          a number of restrictions on student athlete financial  
          assistance.   For example, NCAA Division 1 schools:

          1)Cannot guarantee scholarships for more than one academic year.

          2)Cannot finance student health insurance if the insurance is  
            provided or offered to the general student body only on an  
            optional basis.

          3)Cannot award financial aid to a student athlete that exceeds  
            the cost of attendance that normally is incurred by students  
            enrolled in a comparable program at that institution or that  
            exceeds the limitations established by Division I, whichever  
            is less.

          4)Must include earnings from the student athlete's employment  
            during semester or term time to determine whether a full  
            grant-in-aid is reached and can only allow $2,000 in earnings  
            over a full grant-in-aid award, as defined.

           Need for this bill  :  According to the author, current law does  
          little to regulate the relationship between student athletes and  
          colleges and universities-these relationships are governed by  
          the NCAA.  The author contends that recruiters make verbal  
          scholarship offers that do not provide information regarding  
          summer school tuition, academic conflicts with practice  
          schedules, coverage of medical expenses, and the specifics of  
          scholarship offers.    
           
          Differing definitions between this bill and NCAA legislation  :   
          There are a few areas where definitions in this bill are not  
          consistent with NCAA definitions, namely student athlete and  
          personal contact. According to the NCAA, violations may not  
          occur on definition alone, but institutions may face difficulty  
          due to the availability for contact with prospective  
          student-athletes as defined in NCAA legislation. 

          1)Student athlete definition:  This bill defines a student  
            athlete as anyone in grades 1-12 and requires written  
            correspondence following any visit, as defined.  Under NCAA  
            rules, unofficial visits may take place at any time but  
            written correspondence cannot begin until September 1 of a  
            prospective student-athlete's junior year (for sports other  
            than men's basketball and men's ice hockey) and June 15  
            following a prospective student-athlete's sophomore year  








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            (men's basketball and men's ice hockey).  Under NCAA rules, if  
            a prospective student-athlete takes a visit in grade nine, the  
            institution would not be permitted to follow that visit with  
            the disclosure letter, which is contrary to this bill.  

             Staff recommendation  : The Committee may wish to consider  
            requiring recruiters to direct student athletes to the  
            Disclosure Letter on the institution's Internet website,  
            instead of providing the information in writing, if the  
            student athlete is not yet a junior in high school.   

          2)Personal contact definition:  NCAA legislation allows athletic  
            staff members to interact with prospective student-athletes  
            during camps and clinics without considering such interaction  
            a "contact" provided no recruiting occurs.  This is an  
            instance where the definition of personal contact in this bill  
            differs greatly from the definition of contact in NCAA  
            legislation.  In addition, as mentioned previously, if  
            personal contact takes place at a camp or clinic, the  
            prospective student-athlete may not be of the grade level when  
            written correspondence is permitted by the NCAA.

           NCAA written disclosure requirements  :  Currently, the NCAA does  
          not allow financial aid awards to be awarded in excess of one  
          academic year.  This bill stipulates that the written offer  
          include information regarding financial aid for summer school,  
          which is in excess of the academic year.  According to the NCAA,  
          the written offer cannot include an offer of summer financial  
          aid but can describe the institution's policy for awarding  
          summer financial aid.  The Committee may wish to consider  
          amendments to require the institution to describe its policy for  
          warding summer financial aid but not a specific offer.

           Enforcement  :  This bill is silent on how violations will be  
          enforced.  What is the recourse for student athletes if the  
          postsecondary institution does not provide this information,  
          inadvertently omits one of the data items from the Disclosure  
          Letter, or provides incorrect information?  Who enforces these  
          provisions, and how are they enforced with out-of-state  
          institutions?  Does this bill create a private right of action  
          for student athletes and/or their parent or guardian?

           Previous legislation  :  SB 95 (Torlakson) of 2009, which was  
          never heard, would have required athletic recruiters to provide  
          student athletes with specified information relating to the  








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          college athletic program within one week of initiating personal  
          contact with the student athlete for purposes of athletic  
          recruiting.  SB 193 (Murray) of 2003, which was held in the  
          Assembly Higher Education Committee, would have prohibited  
          California institutions of higher education from participating  
          in any organizations that regulates student athlete  
          scholarships, including the NCAA.  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Labor Federation

           Opposition 
           
          None on file.

           
          Analysis Prepared by  :    Sandra Fried / HIGHER ED. / (916)  
          319-3960