§ 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.