STATE OF NEW YORK
________________________________________________________________________
11732
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, 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:
1 Section 1. Subparagraphs 6 and 7 of paragraph b of subdivision 2 of
2 section 5-b of the legislative law, as amended by section 1 of part PP
3 of chapter 55 of the laws of 2025, are amended and a new subparagraph 8
4 is added to read as follows:
5 (6) income from a trade or business in which a member of their family
6 holds a controlling interest, where the member's services are not a
7 material factor in the production of income; [and]
8 (7) compensation from services actually rendered prior to January
9 first, two thousand twenty-five, or prior to being sworn in as a member
10 of the legislature[.]; and
11 (8) any income derived from work that is earned while the member is
12 experiencing an extenuating circumstance for which additional income is
13 necessary, as defined in paragraph c of this subdivision, provided that
14 the member has complied with such paragraph.
15 § 2. Subdivision 2 of section 5-b of the legislative law is amended by
16 adding a new paragraph c to read as follows:
17 c. (1) For purposes of this section, "extenuating circumstances" means
18 an event, condition, or other occurrence that has caused, will cause, or
19 is expected to cause severe financial strain on a member of the legisla-
20 ture or the member's immediate family, including, but not limited to,
21 any of the following: (i) unreimbursed expenses for the medical care or
22 long-term care of the member or of the member's spouse, domestic part-
23 ner, child, parent or dependent; (ii) expenses for the care of the
24 member's child or dependent; (iii) funeral and burial expenses of the
25 member's spouse, domestic partner, child, parent or dependent; (iv)
26 uninsured loss of or damage to the member's primary residence caused by
27 fire, flood or other casualty; (v) distributive award that the member is
28 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
1 tent jurisdiction; (vi) education, vocational school training, or other
2 education related expenses; or (vii) loss of or damage to the member's
3 primary method of transportation.
4 (2) A member who intends to earn outside earned income in excess of
5 the limit set forth in subdivision one of this section in reliance on
6 subparagraph eight of paragraph b of this subdivision shall, as soon as
7 practicable before or after doing so, file with the legislative ethics
8 commission a statement, affirmed under penalty of perjury. The commis-
9 sion shall promulgate rules and regulations pertaining to the form and
10 timing of such submission. A member who knowingly and intentionally
11 makes a material misstatement in, or omits a material fact from, a
12 filing made pursuant to this paragraph shall be deemed to have knowingly
13 and intentionally violated this section for purposes of subdivision
14 three of this section.
15 § 3. This act shall take effect immediately and shall apply to outside
16 earned income, as defined by subdivision 2 of section 5-b of the legis-
17 lative law, earned on and after January 1, 2027.
