The department evolved from two separate organizations created in 1935: the Division of State Planning, in the Executive Department, and the Bureau of State Publicity, in the Conservation Department. The Division of State Planning (Laws of 1935, Chapter 304) was established to coordinate plans for State economic development. It was headed by the State Planning Council, which consisted of five members appointed by the governor. The Conservation Department's Bureau of Publicity was established to undertake advertising and promotion of tourism (Laws of 1935, Chapter 808).
Following a recommendation of the Joint Legislative Commission on Labor and Industrial Relations, these two organizations were combined into a Division of Commerce in the Executive Department (Laws of 1941, Chapter 216). In 1943 the Division of Commerce was made into a department, charged with promoting the economic development of the State. In 1987, the Department of Commerce was renamed the Department of Economic Development under the terms of the Omnibus Economic Development Act. This act reorganized the economic development activities of the State under a director of economic development, who oversaw the activities of twenty-two State agencies and departments. In 1995, in an effort to reduce the size of government and improve efficiency, the operational efforts of the Department of Economic Development and the Urban Development Corporation (created by Laws of 1968, Chapter 174) were consolidated and began doing business as the Empire State Development Corporation.
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The Department of Economic Development is responsible for promoting business development in order to create private-sector jobs and generate additional tax revenues. It works with public and private development agencies and local governments to encourage the expansion of existing businesses, to attract new industries, and to increase foreign investment and trade. The department also assists minority businesses; advises the governor on major economic development issues; and actively promotes tourism.
