Assembly Bill A11732

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   11732
 
                           I N  A S S E M B L Y
 
                            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, in relation to defining extenuating
   circumstances for limits on outside earned income by members
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Subparagraphs  6 and 7 of paragraph b of subdivision 2 of
 section 5-b of the legislative law, as amended by section 1 of  part  PP
 of  chapter 55 of the laws of 2025, are amended and a new subparagraph 8
 is added to read as follows:
   (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[.]; AND
   (8) ANY INCOME DERIVED FROM WORK THAT IS EARNED WHILE  THE  MEMBER  IS
 EXPERIENCING  AN EXTENUATING CIRCUMSTANCE FOR WHICH ADDITIONAL INCOME IS
 NECESSARY, AS DEFINED IN PARAGRAPH C OF THIS SUBDIVISION, PROVIDED  THAT
 THE MEMBER HAS COMPLIED WITH SUCH PARAGRAPH.
   § 2. Subdivision 2 of section 5-b of the legislative law is amended by
 adding a new paragraph c to read as follows:
   C. (1) FOR PURPOSES OF THIS SECTION, "EXTENUATING CIRCUMSTANCES" MEANS
 AN EVENT, CONDITION, OR OTHER OCCURRENCE THAT HAS CAUSED, WILL CAUSE, OR
 IS EXPECTED TO CAUSE SEVERE FINANCIAL STRAIN ON A MEMBER OF THE LEGISLA-
 TURE  OR  THE  MEMBER'S IMMEDIATE FAMILY, INCLUDING, BUT NOT LIMITED TO,
 ANY OF THE FOLLOWING: (I) UNREIMBURSED EXPENSES FOR THE MEDICAL CARE  OR
 LONG-TERM  CARE  OF THE MEMBER OR OF THE MEMBER'S SPOUSE, DOMESTIC PART-
 NER, CHILD, PARENT OR DEPENDENT; (II)  EXPENSES  FOR  THE  CARE  OF  THE
 MEMBER'S  CHILD  OR  DEPENDENT; (III) FUNERAL AND BURIAL EXPENSES OF THE
 MEMBER'S SPOUSE, DOMESTIC PARTNER,  CHILD,  PARENT  OR  DEPENDENT;  (IV)
 UNINSURED  LOSS OF OR DAMAGE TO THE MEMBER'S PRIMARY RESIDENCE CAUSED BY
 FIRE, FLOOD OR OTHER CASUALTY; (V) DISTRIBUTIVE AWARD THAT THE MEMBER IS
 OBLIGATED TO PAY PURSUANT TO AN ORDER OR JUDGMENT OF A COURT  OF  COMPE-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD16363-01-6
 A. 11732                            2
 
 TENT  JURISDICTION; (VI) EDUCATION, VOCATIONAL SCHOOL TRAINING, OR OTHER
 EDUCATION RELATED EXPENSES; OR (VII) LOSS OF OR DAMAGE TO  THE  MEMBER'S
 PRIMARY METHOD OF TRANSPORTATION.
   (2)  A  MEMBER  WHO INTENDS TO EARN OUTSIDE EARNED INCOME IN EXCESS OF
 THE LIMIT SET FORTH IN SUBDIVISION ONE OF THIS SECTION  IN  RELIANCE  ON
 SUBPARAGRAPH  EIGHT OF PARAGRAPH B OF THIS SUBDIVISION SHALL, AS SOON AS
 PRACTICABLE BEFORE OR AFTER DOING SO, FILE WITH THE  LEGISLATIVE  ETHICS
 COMMISSION  A  STATEMENT, AFFIRMED UNDER PENALTY OF PERJURY. THE COMMIS-
 SION SHALL PROMULGATE RULES AND REGULATIONS PERTAINING TO THE  FORM  AND
 TIMING  OF  SUCH  SUBMISSION.  A  MEMBER WHO KNOWINGLY AND INTENTIONALLY
 MAKES A MATERIAL MISSTATEMENT IN, OR  OMITS  A  MATERIAL  FACT  FROM,  A
 FILING MADE PURSUANT TO THIS PARAGRAPH SHALL BE DEEMED TO HAVE KNOWINGLY
 AND  INTENTIONALLY  VIOLATED  THIS  SECTION  FOR PURPOSES OF SUBDIVISION
 THREE OF THIS SECTION.
   § 3. This act shall take effect immediately and shall apply to outside
 earned income, as defined by subdivision 2 of section 5-b of the  legis-
 lative law, earned on and after January 1, 2027.