Request By:
Claude Hicks
Executive Director
Purchase Training Center, Inc.
Route 2, Highway 45N
Mayfield, Kentucky 42066
Opinion
Opinion By: Steven L. Beshear, Attorney General; By: Martin Glazer, Assistant Attorney General
You seek an opinion as to whether the Purchase Training Center, Inc., is a political subdivision covered by Section 218 of the Social Security Act and KRS 61.410-.500.
You state that the Purchase Training Center, Inc., is a non-profit school with federal and state identification numbers.
Historically, it appears from the material submitted that the Purchase Training Center was a part of the Jackson Purchase Local Officials Organization. The latter organization membership was composed of the county judge of each of the participating counties and the mayors of the largest incorporated city within each county (voting members). Other mayors of smaller communities were to be non-voting members.
KRS 61.420(5) defines "political subdivision" as follows:
"Political subdivision," in addition to counties, municipal corporations and school districts, includes instrumentalities of the Commonwealth, of one or more of its political subdivisions or of the Commonwealth and one or more of its political subdivisions, and any other governmental unit thereof.
From the composition of the membership of the Jackson Purchase and its purpose, to operate Emergency Medical Service for Eight Purchase Counties and certain other services to "benefit the local units of government" (Art. II, (1) and (2) of the Articles of Incorporation of the Jackson Purchase Local Officials Organization, Inc.), it appears that such unit was and is a governmental subdivision or instrumentality of such a subdivision.
However, from the minutes of March 16, 1982, and May 14, 1982, it appears that it was intended to separate the Purchase Training Center and make it self-supporting and autonomous from the parent organization.
The Purchase Training Center was incorporated November 18, 1981, as a non-profit corporation for charitiable, educational, and scientific purposes.
The Board of Directors (Article VII) is composed of seven persons from elected officials, private industry, labor and management groups, education, and concerned citizens.
By amendment, the Articles provide that in case of dissolution the assets of the corporation are to be distributed to charitable and other similar organizations that would be exempt under Section 501(c)(3), the Internal Revenue Code of 1954.
It appears that the Purchase Training Center has been separated from the Jackson Purchase Local Officials Organization which created it. Its membership is not exclusively composed of governmental officials, the latter being a minority of the Directorship. The entity cannot carry on propaganda, influence legislation, or engage in any political campaign.
Thus, in our view the Purchase Training Center as it has evolved is no longer an instrumentality of a subdivision or other governmental unit, but is an independent, non-profit corporation operated for charitable, educational, and scientific purposes. Thus, it would no longer be subject to the State Office of Social Security.