BILL NUMBER:  S3425

 TITLE OF BILL :  An act to amend the executive law, the education law
and the economic development law, in relation to establishing an
international division within the department of state

 PURPOSE :

To establish an International Division of the Department of State to
establish and maintain International Sister-State relationships

 SUMMARY OF PROVISIONS :

Section 1 of the bill amends Section 92 of the Executive Law to add a
Director of the International Division as an appointee of the
secretary of State.

Additionally, a new section 110 is added to the Executive Law to
re-establish the International Division of the Department of State.
It defines the role of the division to be soliciting, establishing and
maintaining sister state relation between New York and states in other
countries. This will be done through a partnership with the department
of economic development by establishing a network of information
resources. The focus will be on international exchange of commerce,
education, and culture.

              

Section 2 of the bill amends Section 355 of the Education Law to
require the Trustees of the State University of New York (SUNY) to
work in cooperation with the international division to establish,
facilitate and maintain the exchange of. students and faculty with any
sister states created by the International Division.

Section 3 of the bill adds Section 226 to the Economic Development Law
to provide that the provisions of Article 10 (International Trade)
shall be implemented by the Commissioner of Economic Development in
consultation with the International Division.

Section 4 of the bill is the enacting clause, and provides that the
act shall take effect immediately.

 JUSTIFICATION :

A sister-state program was begun in Maryland in 1986 under the
Department of Economic and Employment Development. In 1995, it
reorganized as the Sister States Group under the Office of
International Trade within the Department of Business and Economic
Development. On October 1, 2004, the Program transferred to the Office
of the Secretary of State (Chapter 39, Acts of 2004; Code State
Government Article.  sec. 7-109).

Maryland's program works to establish and foster relationships between
Maryland and states in other countries. The purpose of the
sister-state relationship is to promote cooperation and exchange
programs for businesses and industry, educational and cultural
institutions, and private citizens. Volunteer committees actively
pursue contacts with their counterparts in each sister state, forming
a network of resources to share in education, business, culture,
medicine, law, transportation, sports, professional development, and
women's issues.

Maryland has ten sister-state partnerships with: Anhui Province,
China; State of Jalisco, Mexico; Kanagawa Prefecture, Japan;
Gyeongsangnam Province, South Korea; City of St. Petersburg and
Leningrad Oblast, Russia; Lodz Region, Poland; State of Rio de
Janeiro, Brazil; Walloon Region, Belgium; Nord-Pas de Calais, France;
and Bong County and Maryland County, Liberia. According to the
International Trade Administration, foreign investment in Maryland in
2008 was responsible for 5.1 percent of the state's total
private-industry employment in 2008, totaling approximately 108,600
jobs.

Other states with sister-state programs include Michigan (with Shiga
Prefecture of Japan), Washington State (more than fifty sister-city
relationships) and Hawaii. Hawaii's Office of International Affairs
(OIA)* has established close working relationships with foreign
governments and non-governmental organizations, federal agencies and
national organizations. These relationships served to raise Hawaii's
profile internationally, attract dynamic cooperative programs and
stimulate Hawaii's economy. Many of these projects fall under OIA's
Sister-State programs. Hawaii's has sister-state agreements with
fifteen states in ten countries at this point, and a far larger number
of "sister-counties".

New York State had previous experience with a similar program under
Governor Mario Cuomo. The program was called the "International
Partner Program" and it was administered by the New York State
Department of Economic Development. The program had a great success
and built partnerships with states from China, Israel, Italy, and
Poland. However, the program stopped after Governor Mario Cuomo left
office in 1994.

Given the economic potentials of the State of New York, the Sister
State Program would be invaluable in promoting trade and economic
development with foreign states. Building on the existing robust
foreign investment arena, New York can increase its share of foreign
investment-related employment by attracting business from foreign
states with a high economic potential. The international division will
coordinate this exchange by reaching out to states that have the
potential to invest in New York. Further, the same division will serve
as the mediator between the different state and local commissions,
agencies, and authorities and the foreign investors to facilitate the
administrative procedures.

In 2006, Foreign Direct Investment (FDI) accounted for about ten
percent of the total economic output of New York City alone, according
to the Partnership for New York City. This amounted to 58 billion
dollars of economic activity in 2006, and has increased over time.
According to FDI Markets, New York State accounts for 8t of FDI
projects in the United States with a total of 150 projects based in
New York. This is despite the fact that New York State is only the
second highest destination state for FDI projects in the United
States, behind California. Accounting for all foreign-controlled
companies in New York, 388,000 New Yorkers are employed as a direct
result of FDI.  Obviously, in these challenging economic times, where
New York suffers from chronic high unemployment rates, increasing FDI
and growing the jobs arising from such investment is highly
appropriate.

Exports are another source of income for New York State and a
significant source of employment for the state. Approximately 41,000
companies exported their products from New York in 2011, sustaining
thousands of jobs in New York. The Department of Commerce stated New
York's export shipments amounted to a little over $81.3 billion
dollars in 2012.

The Sister States Program can also build on the cosmopolitan nature of
New York State to establish a bridge between the US and the rest of
the world. The cultural exchange that this division will undertake is
critical to building mutual understanding. New York State has always
been a place where different cultures and faiths coexisted. This
division shall spread this spirit of tolerance to other parts of the
world and build stronger cultural' ties with foreign states.
New York State and New York City are also a key part of America's
cultural exports to the world. Considering that the music and
publishing industries are located in New York, as well as a
significant film and television industry presence, cultural exports
are essential to New York's economic growth and growing employment.

The division will also serve as an international education pioneer for
New York State. Through a partnership with the State University of New
York International Program Office, the division will break new ground
to attract students from local universities of partnering states to
boost an already outstanding international program that currently
attracts 16,000 international students. Further, the division will
work with existing programs at SUNY to attract scholars and professors
from foreign universities to enrich the educational system of SUNY and
promote its scientific research programs.

 LEGISLATIVE HISTORY :

2015-16: S.1885/A.6042 - Referred to Finance
2013-14: S.5850 - Referred to Finance
2011-12: S.4565 - Referred to Finance

 FISCAL IMPLICATIONS :

To be determined.

 EFFECTIVE DATE :
Immediately.