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  2. Legislative Law Section 5-b - Limit on Outside Earned Income by Members

Legislative Law Section 5-b - Limit on Outside Earned Income by Members

ยง 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. 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

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NYS Legislative Ethics Commission

NYS Legislative Ethics Commission

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Albany, New York
(518) 432-7837

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