§ 5-B — Limit on outside earned income by members

§ 5-b. Limit on outside earned income by members. 1. Effective January\nfirst, two thousand twenty-five a member of the legislature receiving a\nsalary for legislative work from the state of New York shall be\npermitted to earn outside income each year for performing fee for\nservice activities and compensated outside activities approved under the\npermanent joint rules of the Senate and Assembly in an amount totaling\nno greater than the earning limitations for retired persons in positions\nof public service allowed for the same year under subdivision two of\nsection two hundred twelve of the retirement and social security law.\nEffective January first, two thousand twenty-seven, compliance with the\nlimit on outside earned income described in this section shall be a\ncondition precedent to receiving a salary for legislative activities\nfrom the state of New York, and voting as a member of the legislature of\nthe state of New York.\n 2. a. For purposes of this section, the term "outside earned income"\nshall mean wages, salaries, fees and other forms of compensation for\nservices actually rendered.\n b. For the purposes of this section, the term "outside earned income"\nshall not include:\n (1) salary, benefits and allowances paid by the state;\n (2) income and allowances attributable to service in the reserves of\nthe armed forces of the United States, national guard or other active\nmilitary service;\n (3) copyright royalties, fees, and their functional equivalent, from\nthe use of copyrights, patents and similar forms of intellectual\nproperty rights, when received from established users or purchasers of\nsuch rights;\n (4) income from retirement plans of the state of New York or the city\nof New York, private pension plans or deferred compensation plans (e.g.,\n401, 403(b), 457, etc.) established in accordance with the internal\nrevenue code;\n (5) income from investments and capital gains, where the member's\nservices are not a material factor in the production of income;\n (6) income from a trade or business in which a member of their family\nholds a controlling interest, where the member's services are not a\nmaterial factor in the production of income; and\n (7) compensation from services actually rendered prior to January\nfirst, two thousand twenty-five, or prior to being sworn in as a member\nof the legislature.\n 3. Effective January first, two thousand twenty-seven, a member of the\nlegislature who knowingly and intentionally violates the provisions of\nthis section shall be subject to a civil penalty in an amount not to\nexceed forty thousand dollars and the value of any gift, compensation or\nbenefit received in connection with such violation. Assessment of a\ncivil penalty shall be made by the legislative ethics commission,\nprovided however, that no civil penalty shall be assessed pursuant to\nparagraph (a) of subdivision nine of section eighty of this chapter for\nviolations of this section occurring prior to January first, two\nthousand twenty-seven.\n