N.Y. Legislative Law Section 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 Retirement & Social Security Law § 212 (Employment of retired persons)section two hundred twelve of the retirement and social security law. 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.

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.

Source: Section 5-B — Limit on outside earned income by members, https://www.­nysenate.­gov/legislation/laws/LEG/5-B (updated Jan. 6, 2023; accessed Dec. 21, 2024).

2
Exemption of members and officers from arrest
3
Expulsion of members
4
Contempts of either house
5
Compensation of members
5‑A
Allowances for member serving as an officer of either house of the legislature or in a special capacity therein
5‑B
Limit on outside earned income by members
6
Officers and employees of the senate
7
Officers and employees of the assembly
7‑A
Legislative library, librarian and assistants
7‑B
Legislative emergency health station
7‑C
Member of assembly defined
7‑D
Employees of the legislature
7‑E
Assistive listening system for the deaf and hard of hearing
7‑F
Assembly historian
7‑G
Senate historian
8
Appointments to be filed with the comptroller
9
Additional employees
10
Compensation of officers and employees
11
Designation of payrolls as annual, session or temporary
12
Authorization of expenditures
15
Duties of secretary and clerk
16
Supplies furnished by secretary and clerk
17
Accountability of secretary and clerk to comptroller
18
Duties of postmasters and assistants
19
Duties of official stenographers
20
Detail of officers and employees for special duties
21
Limitation of legislative expenses
22
Custody of legislative papers and documents
22‑A
Reproduction and destruction of certain records, books and papers of the senate
22‑B
Destruction and reproductions of assembly books and records
23
Appropriation bills, how referred
24
Legislative bill drafting commission
25
Duties of the commission
27
Appointment of secretaries of finance and ways and means committees
28
Compensation, expenses, employees
29
Sub-committees of finance and ways and means committees
30
Duties of finance and ways and means committees and secretaries
31
Appearances and inquiries in respect to the budget
32
Representation of certain legislative committees during revision of the budget
32‑A
Budget
33
Exercise of certain statutory powers during a vacancy in office of the temporary president of the senate and speaker of the assembly

Accessed:
Dec. 21, 2024

Last modified:
Jan. 6, 2023

§ 5-B’s source at nysenate​.gov

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