PA/KOZ Legislative Issue:
Initiative Successful!

Over the past several months, GUARD has been at the forefront of efforts to revise legislation in Pennsylvania to broaden the impact of the Keystone Opportunity Zone (KOZ) benefits. Briefly, the KOZ Act of 1998 accorded certain benefits to Pennsylvania businesses in return for substantive investments - jobs and property improvements - in certain areas around the state targeted as zones in which such community revitalization was sought. However, insurance and banking were among several industries omitted from eligibility for participation in the full benefits of the KOZ program, regardless of any investments they may have made toward community improvements and employment. That changed on November 21st; in the final hours of PA's legislative session, House Bill 2498 was passed unanimously in the Senate and with only one dissenting vote in the House. On December 20th, Governor Ridge signed the bill into law as ACT 119 of 2000.

Beginning with testimony before the House Urban Affairs Committee in the Spring, followed by participation throughout the Summer in an ad hoc legislative Working Group charged with considering the impact of such legislation, and culminating with an effective "grassroots" initiative, GUARD played a key role in crafting the portion of this new legislation that permits insurance and banking operations to be fully eligible for this program.

As part of the process of encouraging legislators to vote "yes" for this measure, a "grassroots" initiative was mounted by GUARD and involved recruiting the assistance of Pennsylvania producers and others to help educate legislators on the importance of this issue. The input of constituents from legislators' home districts is input that is heard and, therefore, is a powerful message. The response from GUARD producers to our call to action was immensely gratifying. In fact, GUARD has received several unsolicited, favorable comments about our grassroots efforts from a number of legislators and their staff. One of these - from Jeri Stumpf, Executive Director of the House Committee responsible for HB 2498 - was in writing. Several excerpts are cited below:

"... I feel it is commendable that the employees of GUARD, including its agents throughout the Commonwealth, took the time to express their views on House Bill 2498, the KOZ legislation, to their state representatives, including their views on amendments to same to make banks and insurance companies eligible for tax credits under the Act. The fact that GUARD and its employees and agents were dedicated enough to do this on such short notice, and also had the superior computer technology and programs in place to do so, is also impressive, and another indication of the type of employees and agents associated with GUARD. It also demonstrates their understanding of the importance of participating in the legislative process and expressing their views in order to preserve our representative form of government.

"The fact that members of the Urban Affairs Committee acknowledged receipt of the communiqués sent by GUARD employees and agents, is indicative of how important it is for individuals and businesses in the Commonwealth to communicate with their legislators in Harrisburg...."

-- Jeri Stumpf, Executive Director of the House Urban Affairs Committee