Create International Sister State Office

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 destina- tion 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 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

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.