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HomeMy WebLinkAbout80-016 FraasTO: RE: FACTS: DISCUSSION: STATE ETHICS COMMISSION 308 FINANCE BUILDING HARRISBURG, PENNSYLVANIA 17120 Kerry A. Fraas, Esquire Suite 816 Frick Building Pittsburgh, PA 15219 March 12, 1980 Opinion # 80 -016 Independent Contracting Tax Collection Companies Retained by Municipalities and School Districts for the Collection of Various Taxes On November 30, 1979, Kerry A. Fraas, an attorney representing the Central Tax Bureau of Pennsylvania, Inc., asked for an ad- visory opinion concerning his client. The Central Tax Bureau of Pennsylvania Inc. is an independent contracting tax collection agency which is employed by many school districts and municipalities throughout the Commonwealth for collection of various taxes. Mr. Fraas asked whether the Central Tax Bureau, or its owner, officers, or shareholders must prepare and file a Financial Interest Statement under Act 170. The issue is whether a tax collection company employed by various governmental bodies is considered a public employee or official. The company is not a public official as that term is used in Act 170. Section 2 of the State Ethics Act defines a public employee as an individual responsible for taking or recommending official action of a nonministerial nature . . . ." Although "nonministerial" is undefined, the Act does define "ministerial action" to be "an action that a person performs in a prescribed manner and obedience to the mandated legal authority without regard to, or the exercise of, the person's own judgment as to the desirability of the action being taken." Fraas March 12, 1980 Page 2 PJS /alf -3 Tax collection agencies have no descretionary authority whatsoever. They perform exclusively ministerial actions, and as such, cannot be said to perform nonministerial actions. Therefore, tax collection agencies cannot be considered public employees. While such tax collection companies have no disclosure obli- gations under the State Ethics Act, they are still subject to Section 3(b) of the Act which reads as follows: CONCLUSION: No person shall offer or give to a public official or public employee or candidate for public office or a member of his immediate family or a business with which he is associated, and no public official or public em- ployee or candidate for public office shall solicit or accept, anything of value, including a gift, loan, pol- itical contribution, reward, or promise of future em- ployment based on any understanding that the vote, official action, or judgment of the public official or public employee or candidate for public office would be influenced thereby. Tax collection companies employed by governmental bodies are not public employees, and are not subject to the filing requirements of the State Ethics Act. These companies are, however, still subject to Section 3(b) of the State Ethics Act. Pursuant to Section 7(9) (i), this opinion is a complete defense in any enforcement proceeding initiated by the Commission, and evidence of good faith conduct in any other civil or criminal proceeding, providing the requestor has disclosed truthfully all the material facts and committed the acts complained of in reliance on the advice given. This letter is a public record and will be made available as such. 'Paul '3( Smith Chairman