BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 95
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          Date of Hearing:   January 11, 2010

                       ASSEMBLY COMMITTEE ON HIGHER EDUCATION
                              Anthony Portantino, Chair
                   AB 95 (Torlakson) - As Amended:  August 19, 2009
           
          SUBJECT  :   Student athletes: recruiting: disclosure.

           SUMMARY  :   Requires a collegiate athletic recruiter representing  
          a postsecondary educational institution in California or outside  
          California to provide California student athletes in elementary,  
          junior high, high school, or college 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 in writing  
            to the student athlete all of the following information within  
            one week of any personal contact with a student athlete for  
            purposes of recruiting the student athlete for a collegiate  
            interscholastic athletic program:

             a)   A description of the medical insurance policies that  
               affect student athletes, including, but not limited to,  
               terms of eligibility for medical insurance coverage,  
               covered conditions and events, medical premiums,  
               copayments, deductibles, maximum benefits, and the process  
               for obtaining independent medical opinions.

             b)   The total sum of medical payments, including, but not  
               limited to, deductibles and copayments that the  
               postsecondary educational institution did not pay for  
               sports-related injuries incurred by members of each  
               athletic team in each of the last four years.

             c)   Any scheduling conflict between the mandatory classes in  
               majors offered at the postsecondary educational institution  
               and the schedule of the athletic team for which the student  
               athlete is being recruited, as well as the athletic  
               program's policy for how the conflict is resolved.








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             d)   The number of student athletes in each academic major.

             e)   The number of student athletes who changed majors and  
               the names of the original majors.

             f)   Each athletic team's policy concerning the criteria for  
               the renewal or nonrenewal of an athletic scholarship,  
               including circumstances in which a student athlete 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.

             g)   The average percent of decrease in the dollar amount of  
               a renewed one-year athletic scholarship for a temporarily  
               injured and a permanently injured student athlete on each  
               athletic team for the previous four years.

             h)   The number and percentage of student athletes on each  
               athletic team whose scholarships were not renewed in each  
               of the previous four years.

             i)   The number of and rate at which student athletes with  
               remaining athletic eligibility did not return to each  
               athletic team in the previous four years.

             j)   The number of and rate at which student athletes from  
               any athletic team with remaining athletic eligibility  
               transferred to another school, were denied an  
               intercollegiate transfer request in the previous four  
               years, and the average length of time it took to grant an  
               intercollegiate transfer request for any student athlete  
               from any athletic team in the previous four years.

             aa)  The sum of expenses included in the cost of attending  
               the postsecondary educational institution that are not  
               included in a full grant-in-aid athletic scholarship for  
               the current year and previous three years.

             bb)  A summary of the intercollegiate athletic program's use  
               of funds that may be used toward assisting student athletes  
               with expenses that are not included in a full grant-in-aid  
               scholarship.

             cc)  The average monthly payment received for an on-campus  








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               and off-campus full scholarship student athlete enrolled in  
               classes in each sport during the regular academic and  
               summer sessions in each of the last four years.

             dd)  The number of rescinded written scholarship offers for  
               each athletic team in each of the previous four years.

             ee)  Institutional policies that may restrict the athletic  
               eligibility of a student athlete who wishes to transfer to  
               another postsecondary educational institution.

             ff)  The number of full-scholarship student athletes on each  
               athletic team who enrolled in summer school in each of the  
               previous four years.

          2)Requires postsecondary higher education institutions who  
            recruit student athletes in California to conduct an anonymous  
            annual student athlete survey concerning student athletes'  
            opinions about the safety of their workout environment,  
            academic support, and their coaches and to provide the results  
            of this survey as part of the disclosures described above.

          3)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. The written offer shall include at  
            least all of the following information:

             a)   Any specific academic qualifications that will guarantee  
               the student athlete's enrollment in the postsecondary  
               educational institution.

             b)   A description of the medical insurance policies that  
               will affect the student athlete, including but not limited  
               to, terms of eligibility for medical insurance coverage,  
               covered conditions and events, medical premiums,  
               copayments, deductibles, maximum benefits, and the process  
               for obtaining independent medical opinions.

             c)   Each athletic team's policy and standard practices  
               concerning the criteria for the renewal or nonrenewal of an  
               athletic scholarship, including circumstances in which a  
               student athlete suffers a temporary or permanent  
               sports-related injury, there is a coaching change, or a  
               student athlete's athletic performance is deemed to be  








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               below expectations.

             d)   The number and percentage of student athletes on the  
               team whose scholarship was not renewed in each of the  
               previous four years.

             e)   Which expenses, if any, will be paid for by an athletic  
               grant or scholarship, including summer school expenses.

             f)   Expense items included in the cost of attendance that  
               will not be paid for by the postsecondary educational  
               institution, including summer school expenses.

             g)   A summary of the intercollegiate athletic program's use  
               of funds that may be used toward assisting student athletes  
               with expenses that are not included in a full grant-in-aid  
               athletic scholarship.

             h)   Which, if any, meals the intercollegiate athletic  
               program regularly makes available during the regular  
               academic year and during the summer.

             i)   The average monthly deduction, if any, that is deducted  
               from a full-scholarship student athlete's payment to pay  
               for meals that the intercollegiate athletic program  
               regularly makes available during the regular academic year.

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

             aa)  Whether or not an athletic scholarship offer will  
               expire.

          4)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.

           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  








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            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 the bylaws of the National Collegiate Athletic  
               Association (NCAA).

             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  
          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.









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          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.  In particular, the author expresses concern  
          that recruiters lead student athletes to believe that they will  
          receive four-year scholarships, while the NCAA only allows  
          one-year scholarships that may be renewed each year.  

           NCAA written disclosure requirements  :  Currently, the NCAA does  
          not require recruiters to provide written disclosure of NCAA  
          financial aid restrictions or preliminary offers to  
          student-athletes until the signing of the National Letter of  
          Intent (NLI) accompanied by a financial aid agreement.   
          According to the NCAA, this is the only document that is binding  
          on both parties.  

           Administrative burden  :  As outlined previously in the Summary,  
          this bill requires colleges and universities across the country  
          to do the following:

          1)Provide 20 data items in writing to each student athlete with  
            whom a recruiter has had personal contact within one week of  
            that contact (see Bill Summary, item 1, a-p).  

          2)Provide eight data items to student athletes when any  
            scholarship offer is made, within one week of a verbal offer  








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            and prior to signing an agreement (see Bill Summary, item 3,  
            a-k).  

          3)Conduct a survey of student athletes' opinions about the  
            safety of their workout environment, academic support, and  
            their coaches and provide the results to students as part of  
            the initial 20 data items (see Bill Summary, item 2).

          While some of this data may be readily available by the campus,  
          other data will need to be customized for each student.  For  
          example, each institution will have to disclose any scheduling  
          conflict between mandatory classes in majors offered at the  
          postsecondary institution and the schedule of the athletic team  
          for which the student athlete is being recruited.  What if a  
          student is undecided?  What if the student is being recruited  
          for more than one sport?  What if a mandatory class has several  
          sections?  Could these administrative requirements serve as a  
          disincentive for postsecondary institutions to recruit  
          California student-athletes, especially female athletes and  
          athletes in sports other than Division I basketball and  
          football?

           Value to students  :  Student athletes will receive a significant  
          amount of data from each institutions with whom they have  
          contact.  Will this data aid student athletes in their decisions  
          or overwhelm them with information?  Is it helpful for a  
          student-athlete to have this data without context?  Will the  
          data be so voluminous as to discourage the student athlete from  
          reading the information?

           NCAA implications  :  Requiring a "written scholarship offer" is  
          likely a violation of NCAA and NLI regulations.  Since  
          elementary and junior high students are included in this bill,  
          there may be implications regarding NCAA recruiting rules. 

           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, 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?

           Suggested amendments  :  The author notes that student athletes  








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          are not always aware of current NCAA provisions regulating the  
          financial aid a postsecondary institution can provide and could  
          be misled by a recruiter into thinking that a four-year  
          scholarship can be guaranteed.  Since the NCAA does not require  
          this information be provided to student athletes, staff suggests  
          the author amend the bill to remove the current notification  
          provisions included in (b) and (c) and add language to require a  
          collegiate athletic recruiter to provide in writing to the  
          student athlete a copy of the restrictions on student athlete  
          financial assistance as set forth in the National Collegiate  
          Athletic Association bylaws. 

           Previous legislation  :  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 
           
          National College Players Association
          United Steelworkers, District 12

           Opposition 
           
          None on file.

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