BILL ANALYSIS                                                                                                                                                                                                    



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          ASSEMBLY THIRD READING
          AB 2079 (Torlakson and Davis)
          As Amended  May 28, 2010
          Majority vote 

           HIGHER EDUCATION    9-0         ARTS., ENTERTAINMENT, SPORTS    
          6-1                             
           
           ----------------------------------------------------------------- 
          |Ayes:|Block, Norby, Adams,      |Ayes:|Davis, Silva,             |
          |     |Chesbro, Fong, Fuller,    |     |Blumenfield,              |
          |     |Galgiani, Portantino,     |     |Charles Calderon, De      |
          |     |Ruskin                    |     |Leon, Monning             |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |Nays:|Audra Strickland          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 

           APPROPRIATIONS      12-5                                        
           
           -------------------------------- 
          |Ayes:|Fuentes, Ammiano,         |
          |     |Bradford,                 |
          |     |Charles Calderon, Coto,   |
          |     |Davis, Monning, Ruskin,   |
          |     |Skinner, Solorio,         |
          |     |Torlakson, Torrico        |
          |     |                          |
          |-----+--------------------------|
          |Nays:|Conway, Harkey, Miller,   |
          |     |Nielsen, Norby            |
          |     |                          |
           -------------------------------- 
           
          SUMMARY  :  Specifies information that must be provided by  
          collegiate athletic recruiters and included in scholarship  
          offers made to California student athletes, beginning July 1,  
          2011.  Specifically,  this bill  :

          1)Requires a recruiter representing any intercollegiate athletic  
            program inside or outside California, within one week of any  
            direct personal contact, as specified, with a California  
            student athlete, to provide in writing a disclosure letter of  
            up to 1,250 words, with specified content regarding:








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             a)   The college's most recent cost of attendance expenses; 

             b)   The portion of these expenses prohibited, per NCAA  
               rules, from inclusion in a full grant-in-aid scholarship; 

             c)   Whether the college provides athletic scholarships for  
               summer school; 

             d)   The average monthly scholarship payment received by  
               students living on- and off-campus; and, 

             e)   Information regarding the college's and NCAA's policies  
               on scholarship renewals, payment of athletically-related  
               medical expenses, and athletic release for student athletes  
               wishing to transfer.

          2)Requires the recruiter, for a student athlete who has not yet  
            entered grade 11, to provide the above information by  
            directing the student to a disclosure letter posted on the  
            institution's Web site.

          3)Requires any scholarship offer made to a student athlete to be  
            made in writing within one week of a verbal offer, and to  
            contain specified information.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, University of California (UC) and California State  
          University (CSU) campuses would incur costs to develop and print  
          the materials to be provided to each recruit including regular  
          updates as information changes, developing a mailing list,  
          record keeping, orienting athletic recruiters to the new  
          procedures, and assuring compliance with the bill's  
          requirements.  Both segments indicate that funding for athletic  
          programs comes from a mix of funds, including the General Fund,  
          and that these programs, like the rest of the universities, have  
          been experiencing cutbacks.

          1)UC costs are estimated at $290,000 ongoing, for a full-time  
            staff person at campuses engaged in national recruiting and a  
            half-time person at other campuses.  Start-up costs would be  
            somewhat higher.

          2)CSU's ongoing costs, assuming a half-time position per campus  








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            for 23 campuses, would be about $575,000, again, with somewhat  
            higher start-up costs.

          3)The above costs do not include potential litigation brought by  
            individuals challenging UC's and CSU's compliance with the  
            above requirements.

           COMMENTS  :  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  
          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.

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

                                                                FN: 0004668