BILL NUMBER: S5459

SPONSOR: PARKER
 
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-es-
              

tablish 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 coop-
eration 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 consulta-
tion 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 Depart-
ment 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 busi-
nesses and industry, educational and cultural institutions, and private
citizens. Volunteer committees actively pursue contacts with their coun-
terparts 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 Mary-
land County, Liberia. According to the International Trade Adminis-
tration, foreign investment in Maryland in 2008 was responsible for 5.1
percent of the state's total private-industry employment in 2008, total-
ing 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 govern-
ments 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-coun-
ties".

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 partner-
ships 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. Account-
ing for all foreign-controlled companies in New York, 388,000 New York-
ers are employed as a direct result of FDI.  Obviously, in these chal-
lenging 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 signif-
icant 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 crit-
ical 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:

2019-20: s.4995 - Referred to Finance
2017-18: S.3425 - Referred to Finance
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.