The 163rd New York State Legislature, consisting of the New York State Senate and the New York State Assembly, met from January 8, 1941, to April 24, 1942, during the ninth and tenth years of Herbert H. Lehman's governorship, in Albany.

Under the provisions of the New York Constitution of 1894, re-apportioned in 1917, and amended in 1937, 51 Senators and 150 assemblymen were elected in single-seat districts for two-year terms. The senatorial districts consisted either of one or more entire counties; or a contiguous area within a single county. The counties which were divided into more than one senatorial district were New York (nine districts), Kings (eight), Bronx (three), Erie (three), Monroe (two), Queens (two) and Westchester (two). The Assembly districts were made up of contiguous area, all within the same county.

At this time there were two major political parties: the Democratic Party and the Republican Party. The American Labor Party endorsed the whole Democratic ticket, which included one Republican judge of the Court of Appeals. The Prohibition Party also nominated a ticket.

The New York state election, 1940, was held on November 5. All six statewide elective offices were carried by the nominees on the Democratic-American Labor fusion ticket. The approximate party strength at this election, as gathered from the results, was: Democrats 2,843,000; Republicans 2,837,000; American Labor 365,000; and Prohibition 5,000.

All three women legislators—State Senator Rhoda Fox Graves (Rep.), of Gouverneur; and Assemblywomen Jane H. Todd (Rep.), of Tarrytown, and Edith C. Cheney (Rep.), of Corning—were re-elected.

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