Summary: H.R.3046 — 102nd Congress (1991-1992)All Information (Except Text)

There is one summary for H.R.3046. Bill summaries are authored by CRS.

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Introduced in House (07/25/1991)

Collegiate Athletics Reform Act - Title I: Antitrust Exemption - Creates a temporary exemption from the antitrust laws for conduct engaged in during a five-year period, beginning one year after this Act's enactment and subject to specified conditions, by the National Collegiate Athletic Association (NCAA) for the purpose of allowing the NCAA to negotiate and carry out contracts involving the use or sale of the name or logo of a commercial sponsor in association with a post-season amateur athletic event (event) engaged in by a member institution, the sale of the right to telecast an event engaged in by such an institution, or both.

States that the requirements of this title are met if the NCAA: (1) is governed in accordance with this title by a board known as the Board of Presidents; (2) has in effect and carries out a net contract revenue distribution plan that is developed by the Board and certified by the Secretary of Education to require compliance with specified criteria (which encourage each member institution to decrease the number of its revenue-producing sports teams and its facilities used specifically for such teams, to decrease the amount it expends for administration of its athletic department, and to increase the level of academic performance of student athletes who participate on such teams, and which develop a method of allocating net contract revenue to each member institution in direct proportion to the extent of its compliance with provisions of the Education Amendments of 1972); (3) has in effect and enforces rules which provide for due process before the NCAA suspends or reprimands a coach or student athlete, suspends or prohibits a member institution from participating in an event, or suspends the telecommunications privileges of a member institution; and (4) has in effect and enforces a student athlete scholarship plan (which encourages each member institution to allow each individual who receives an athletic scholarship to retain such scholarship if the individual maintains acceptable academic performance, makes a good-faith effort to participate in the athletic program, complies with all regulations and policies of the member institution attended, and is not convicted of a felony or drug- or alcohol-related offense).

Requires: (1) the Secretary of Commerce to submit a report to the Congress on the impact of the net contract revenue distribution plan on the diversity of events on broadcast television (TV) and pay TV services, the financial integrity of institutions of higher education, the TV networks and their affiliates, and the higher education system; (2) the Chairman of the Federal Communications Commission (FCC) to report on the impact on member institutions of NCAA suspensions on the telecommunications privileges of such institutions and the loss of funds to member institutions caused by such suspensions; (3) the FCC to report, specifying the number of NCAA athletic events available on free, broadcast TV, cable TV, and "pay-per-view" (ppv) TV systems, and evaluating the shift in the televising of events from broadcast to cable and ppv TV systems; and (4) the FCC to promulgate regulations within one year which prohibit any TV network or affiliate from broadcasting an event involving a sports team representing a disqualified college at the same time and in the same viewing areas as a broadcast of an event involving a member institution.

Title II: Tax Provisions - Amends the Internal Revenue Code to require that, in determining the unrelated business taxable income of an existing national athletic organization of colleges and universities and each such member institution of such an organization, there shall be: (1) included all gross income accrued after the disqualification date (i.e., the earliest date during the five-year period on which any title I requirements are not met) with respect to specified activities (the sale of tickets for, the use or sale of merchandise related to, and the use or sale of the name or logo of a commercial sponsor in association with, and the sale of the right to telecast, an event); and (2) allowed all deductions directly connected with such income.

Specifies that, in determining the unrelated business taxable income of a disqualified college, there shall be: (1) included all gross income with respect to such activities occurring after the disqualification date; and (2) allowed all deductions directly connected with such income.

Authorizes the Secretary of the Treasury to prescribe such regulations as necessary or appropriate to carry out the purposes of this title.

Specifies that, in the case of a student athlete at a member institution, gross income does not include the amounts received by such individual (whether in kind or as reimbursement for expenses incurred) for room and board, tuition, personal counseling, tutorial services, medical expenses, and specified sums for athletes qualifying on the basis of need under the Higher Education Act of 1965 (HEA).

Title III: Education Program Requirements - Amends the HEA to require the disclosure to students of the total revenues (and expenditures), and revenues (and expenditures) by sport, of (and for) the institution's athletic departments and activities, the total revenues and expenditures of the institution for the same period, and any funds transferred by an institution from its athletic departments to its general fund, or from its general fund to its athletic departments.

Requires the Secretary of Education to collect and compile forms required to be disclosed under such Act, make such forms readily available for public inspection and copying, and publicly announce (annually) the availability of such forms.