WHAT DOES IT MEAN FEE BASIS FOR A STATE OR LOCAL GOVERNMENT?

[DawnC0 · Accepted solution]

A fee-based public official is an individual who receives and retains remuneration directly from the public.  An individual who receives payment for services from government funds in the form of a wage or salary is not a fee-based public official, even if the compensation is called a fee.  Most government employees are not considered fee-based.  This is a rare situation.  

Generally, a position compensated by a salary and fees is considered a fee-basis position if the fees are the principal source of compensation unless State law provides that a position for which any salary is paid is not a fee-basis position.  For more details, see https://secure.ssa.gov/poms.nsf/lnx/1960001625.