What's happening
This bill repeals limits on outside earned income for New York State legislators.
Why it matters
Impacts all New York State legislators by removing the current cap on outside earned income. , potentially allowing them to earn unlimited income from jobs, businesses, or consulting outside their government role—a significant shift from recent ethics reforms.
Could affect public perception of legislative ethics and conflicts of interest. , as the repeal eliminates a rule designed to limit lawmakers’ financial ties to outside entities, raising concerns about influence and prioritization of public over private interests.
Applies statewide and takes effect retroactively to January 1, 2025. , meaning legislators from every district—urban, suburban, and rural—could immediately benefit from the change, with oversight agencies losing a key tool for investigating and penalizing outside income violations.
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Who cares
State Legislators
Lawmakers whose outside earned income would be affected by the repeal of Section 5-b and related changes, as these provisions set or remove limits on their ability to earn money outside their legislative duties.
Government Ethics and Oversight Bodies
Entities such as the Legislative Ethics Commission and the Commission on Ethics and Lobbying in Government, which are responsible for interpreting, enforcing, and advising on conflicts of interest and outside income rules for public officers.
- Likely concerns
Good Government and Transparency Advocates
Organizations and citizens concerned about ethical standards, conflict of interest, and transparency in the legislature, who monitor changes to rules on outside income.
Legal and Compliance Professionals
Attorneys and advisors who assist legislators or public officials in understanding and complying with ethics laws, and who rely on clarity in statutes for guidance and defense.
Headline styles
Limit Lawmaker Outside Income
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to governmental operations
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
11733
IN ASSEMBLY
September 16, 2026
Introduced by COMMITTEE ON RULES -- (at request of M. of A. Vanel) -read once and referred to the Committee on Governmental Operations
AN ACT to amend the legislative law and the executive law, in relation to limits on outside earned income by members; and to repeal certain provisions of the legislative law relating thereto
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 5-b of the legislative law is REPEALED.
§ 2. Paragraph i of subdivision 7 of section 80 of the legislative law, as amended by chapter 841 of the laws of 2022, is amended to read as follows:
i. Upon written request from any person who is subject to the jurisdiction of the commission and the requirements of sections seventythree, seventy-three-a and seventy-four of the public officers law, [and section five-b of this chapter] render formal advisory opinions on the requirements of said provisions. A formal written opinion rendered by the commission, until and unless amended or revoked, shall be binding on the legislative ethics commission in any subsequent proceeding concerning the person who requested the opinion and who acted in good faith, unless material facts were omitted or misstated by the person in the request for an opinion. Such opinion may also be relied upon by such person, and may be introduced and shall be a defense in any criminal or civil action. The commission on ethics and lobbying in government shall not investigate an individual for potential violations of law based upon conduct approved and covered in its entirety by such an opinion, except that such opinion shall not prevent or preclude an investigation of and report to the legislative ethics commission concerning the conduct of the person who obtained it by the commission on ethics and lobbying in government for violations of section seventy-three, seventy-three-a or seventy-four of the public officers law [and section 5-b of this chapter] to determine whether the person accurately and fully represented to the legislative ethics commission the facts relevant to the formal advisory opinion and whether the person's conduct conformed to those factual representations. The commission on ethics and lobbying in government
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16362-01-6
shall be authorized and shall have jurisdiction to investigate potential violations of the law arising from conduct outside of the scope of the terms of the advisory opinion; and
§ 3. Paragraph (a) of subdivision 9 of section 80 of the legislative law, as amended by chapter 841 of the laws of 2022, is amended to read as follows:
(a) An individual subject to the jurisdiction of the commission with respect to the imposition of penalties who knowingly and intentionally violates the provisions of subdivisions two through five-a, seven, eight, twelve, fourteen or fifteen of section seventy-three of the public officers law [or section five-b of this chapter] or a reporting individual who knowingly and wilfully fails to file an annual statement of financial disclosure or who knowingly and wilfully with intent to deceive makes a false statement or gives information which such individual knows to be false on such statement of financial disclosure filed pursuant to section seventy-three-a of the public officers law 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 as a result of such violation. Any such individual who knowingly and intentionally violates the provisions of paragraph a, b, c, d, e, g, or i of subdivision three of section seventy-four of the public officers law shall be subject to a civil penalty in an amount not to exceed ten thousand dollars and the value of any gift, compensation or benefit received as a result of such violation. Assessment of a civil penalty hereunder shall be made by the commission with respect to persons subject to its jurisdiction. In assessing the amount of the civil penalties to be imposed, the commission shall consider the seriousness of the violation, the amount of gain to the individual and whether the individual previously had any civil or criminal penalties imposed pursuant to this section, and any other factors the commission deems appropriate. For a violation of this section, other than for conduct which constitutes a violation of subdivision twelve, fourteen or fifteen of section seventy-three or section seventy-four of the public officers law, the legislative ethics commission may, in lieu of or in addition to a civil penalty, refer a violation to the appropriate prosecutor and upon such conviction, but only after such referral, such violation shall be punishable as a class A misdemeanor. Where the commission finds sufficient cause, it shall refer such matter to the appropriate prosecutor. A civil penalty for false filing may not be imposed hereunder in the event a category of "value" or "amount" reported hereunder is incorrect unless such reported information is falsely understated. Notwithstanding any other provision of law to the contrary, no other penalty, civil or criminal may be imposed for a failure to file, or for a false filing, of such statement, or a violation of subdivision six of section seventythree of the public officers law, except that the appointing authority may impose disciplinary action as otherwise provided by law. The legislative ethics commission shall be deemed to be an agency within the meaning of article three of the state administrative procedure act and shall adopt rules governing the conduct of adjudicatory proceedings and appeals taken pursuant to a proceeding commenced under article seventyeight of the civil practice law and rules relating to the assessment of the civil penalties herein authorized. Such rules, which shall not be subject to the promulgation and hearing requirements of the state administrative procedure act, shall provide for due process procedural mechanisms substantially similar to those set forth in such article three but such mechanisms need not be identical in terms or scope. Assessment of a civil penalty shall be final unless modified, suspended or vacated within thirty days of imposition, with respect to the assessment of such penalty, or unless such denial of request is reversed within such time period, and upon becoming final shall be subject to review at the instance of the affected reporting individuals in a proceeding commenced against the legislative ethics commission, pursuant to article seventyeight of the civil practice law and rules.
§ 4. Paragraph (a) of subdivision 10 of section 94 of the executive law, as amended by chapter 841 of the laws of 2022, is amended to read as follows:
(a) The commission shall receive complaints and referrals alleging violations of section seventy-three, seventy-three-a or seventy-four of the public officers law, article one-A [and section five-b] of the legislative law, or section one hundred seven of the civil service law.
§ 5. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after January 1, 2025.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
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