N.Y. Legislative Law § 5-b: Limit on outside earned income by members

§ 5-b. Limit on outside earned income by members. 1. Effective January

first, two thousand twenty-five a member of the legislature receiving a

salary for legislative work from the state of New York shall be

permitted to earn outside income each year for performing fee for

service activities and compensated outside activities approved under the

permanent joint rules of the Senate and Assembly in an amount totaling

no greater than the earning limitations for retired persons in positions

of public service allowed for the same year under subdivision two of

section two hundred twelve of the retirement and social security law.

Effective January first, two thousand twenty-seven, compliance with the

limit on outside earned income described in this section shall be a

condition precedent to receiving a salary for legislative activities

from the state of New York, and voting as a member of the legislature of

the state of New York.

2. a. For purposes of this section, the term "outside earned income"

shall mean wages, salaries, fees and other forms of compensation for

services actually rendered.

b. For the purposes of this section, the term "outside earned income"

shall not include:

(1) salary, benefits and allowances paid by the state;

(2) income and allowances attributable to service in the reserves of

the armed forces of the United States, national guard or other active

military service;

(3) copyright royalties, fees, and their functional equivalent, from

the use of copyrights, patents and similar forms of intellectual

property rights, when received from established users or purchasers of

such rights;

(4) income from retirement plans of the state of New York or the city

of New York, private pension plans or deferred compensation plans (e.g.,

401, 403(b), 457, etc.) established in accordance with the internal

revenue code;

(5) income from investments and capital gains, where the member's

services are not a material factor in the production of income;

(6) income from a trade or business in which a member of their family

holds a controlling interest, where the member's services are not a

material factor in the production of income; and

(7) compensation from services actually rendered prior to January

first, two thousand twenty-five, or prior to being sworn in as a member

of the legislature.

3. Effective January first, two thousand twenty-seven, a member of the

legislature who knowingly and intentionally violates the provisions of

this section shall be subject to a civil penalty in an amount not to

exceed forty thousand dollars and the value of any gift, compensation or

benefit received in connection with such violation. Assessment of a

civil penalty shall be made by the legislative ethics commission,

provided however, that no civil penalty shall be assessed pursuant to

paragraph (a) of subdivision nine of section eighty of this chapter for

violations of this section occurring prior to January first, two

thousand twenty-seven.