Law expands exceptions to income cap

Summary#

Bill A-11732 would amend New York’s Legislative Law, section 5-b, which limits state legislators’ outside earned income. Its stated goal is to define “extenuating circumstances” that can allow a legislator to earn income above that limit.

  • A legislator could rely on the new exception when an event or condition causes, will cause, or is expected to cause severe financial strain on the legislator or their immediate family.
  • Examples include certain medical, care, funeral, education, court-ordered payment, home-damage, and transportation expenses. The list is not limited to those examples.
  • A legislator relying on the exception must file a statement with the Legislative Ethics Commission, affirmed under penalty of perjury. The Commission must make rules about the statement’s form and timing.
  • A knowing and intentional material misstatement or omission in the statement would count as a knowing and intentional violation of the law.
  • The bill applies to outside earned income earned on or after January 1, 2027. It is introduced and has been referred to a committee; it is not law.

What it means for you#

  • State legislators: The bill would create an exception to the outside-income limit, not remove the limit generally. It does not say the Commission must approve a legislator’s circumstances before the income is earned.
  • Legislative Ethics Commission: The Commission would have to set rules for the required statement’s form and timing.
  • Public: The bill does not directly change residents’ rights, taxes, or services.

Money#

No cost information is in the available material.

  • The Commission must make rules and receive statements, but the bill gives no cost estimate or staffing figure.
  • The bill does not state an appropriation, fee, or fine.

What is unclear#

  • The materials do not include the current version of the parent law, so the income limit’s amount and the full existing rules and exceptions could not be verified.
  • The bill does not define “severe financial strain” or “immediate family.”
  • It does not set evidence requirements or say how the Commission would assess a claim; its rules may address the statement’s form and timing.
  • “As soon as practicable” allows a statement to be filed before or after the legislator earns the income, but the bill does not set a deadline.
  • The bill refers to consequences under another part of the law for a false statement, but that penalty provision is not included in the supplied material.

Case for#

  • The exception could let legislators respond to serious financial pressures without treating the income limit as absolute.
  • The bill names common types of unexpected or significant expenses while allowing for other circumstances.
  • A sworn statement and consequences for intentional material falsehoods provide some accountability.

Case against#

  • “Severe financial strain” is not defined, and the listed circumstances are examples rather than a closed list. That leaves room for differing interpretations.
  • The bill does not require approval before a legislator earns the extra income or specify what evidence must support a statement.
  • Because a statement may be filed after the income is earned, the bill does not ensure the Commission will assess a claim in advance.