State legislatures file, introduce and pass thousands of bills each year. This year, states introduced over 156,000 bills and passed 32,000 including resolutions. As many of the state legislative sessions have ended around the nation, thus far in 2023, there have been progressive bills introduced and passed in states across the political spectrum in the areas of homeownership and housing, financial security, taxation, jobs and wages as well as consumer protection; combatting the ever-evolving and sometimes challenging policy landscape and providing a hopeful foundation for a fruitful year in 2024.  

Here’s how states fared this legislative session by leading on these five key policy areas:   

Housing 

This year kicked off with a significant emphasis on housing policy. As a response to incessant housing inventory shortage, rising interest rates, and addressing current market conditions, states immediately took action at the onset of the year to reduce property taxes, push for housing vouchers, and present opportunities to move forward in rental assistance in addition to reimagining manufactured homeownership.  

Maryland continues to be a standout state in housing protections with the passage of House Bill 23: Manufactured Housing Modernization Act of 2023, which provides tenants the opportunity to purchase assistance to manufactured housing communities, a pathway to owning their community. With manufactured homes being an often-overlooked aspect of the housing supply and anti-preemption of manufactured housing on the rise following the pandemic of COVID-19, this legislation presents an opportunity to maintain communities of affordable homes through ownership of land without the often disruption of new developers or lack of legal protections due to historical placement on rented land. 

Promising Homeownership and Housing Legislation 

State: California 

Bill: Senate Bill 834 California Family Home Construction and Homeownership Bond Act of 2023 

Summary: Creates a $25M fund for homeowners to receive downpayment assistance and closing costs. 

Status: In Committee Process and likely to continue into the next legislative session  

State: Ohio 

Bill: House Bill 3 Authorize an affordable housing tax credit 

Summary: One page declaration that authorizes the creation of a tax credit which encourages the development of affordable housing. 

Status: Referred to Economic and Workforce Development Committee  

Key Bill Introductions to Watch 

State: Minnesota 

Bill: House Bill 11 State rental assistance program established for low-income, cost-burdened households, and money appropriated. 

Summary: Creates a rental assistance program for households who spend more than 30% of their annual income on rent (cost burdened renters). 

Status: Introduced and referred to Housing Finance and Policy 

State: Washington 

Bill: House Bill 1388 An act relating to protecting tenants by prohibiting predatory residential rent practices and by applying the consumer protection act to the residential landlord-tenant act and the manufactured/mobile home landlord-tenant act. 

Summary: Provides renters with the tools to challenge excessive rent hikes. 

Status: Introduced and referred to Appropriations  

Financial Security 

In response to a growing cost-of-living, states continue to grapple with a need for policies and programs that address the widening gap of systemic inequities and racial barriers to attaining wealth. Some states including Washington and Nevada introduced innovative policies to support future generations of wealth builders like that of Baby Bonds; and New Mexico led in the criminal justice space this session passing House Bill 139, which addresses the harsh impact of court fines and fees by eliminating post adjudication and bench warrant fees, overlapping with consumer protection.  

Promising Financial Security Legislation 

State: California 

Bill: Assembly Bill 274 CalWORKs: CalFresh: eligibility: income exclusions 

Summary: Excludes money towards education from counting as income for determining eligibility to CalWORKS and SNAP 

Status: In Senate Appropriations Committee and likely to continue into the next legislative session 

Key Bill Introductions to Watch 

State: New Mexico 

Bill: Senate Bill 356 Senior SNAP Benefit Cost-of-Living Increases 

Summary: Making an appropriation to the Human Services Department to adjust the average senior supplemental nutrition assistance program benefit to cost-of-living increases. 

Status: Action Postponed Indefinitely; No further movement. 

State: Massachusetts  

Bill: House Bill 1023 An Act to promote economic mobility through matched savings 

Summary: Creates a matched savings program for children to go towards post-secondary education or job training, equipment for obtaining or maintaining employment, purchasing or rental of a primary residence, starting a small business, home repairs, purchase or repairing a vehicle, a retirement fund, credit building activities, or paying debt if the account holder is saving for the above purposes. 

Consumer Protection 

Strong and effective policies are continuously essential for protecting individuals and families from predatory institutions and practices. This has been especially prevalent with working families that have been disproportionately impacted by municipal fines and fees including traffic violations or other forms of court-related costs that low-income communities of color are often least able to afford; leading to a revolving door of consumer debt. States have been increasingly taking action recognizing these harmful practices, with Maryland at the forefront passing House Bill 127, which ends debtor prisons by prohibiting the practice of arresting or incarcerating Marylanders to collect debt for a small claims action in District Court and Senate Bill 106, which exempts up to $500 in a bank account from being seized while collecting a money judgement. Both bills represent a huge win in the consumer protection space and address the intersection of the role that criminal justice plays in maintaining economic security.  

Promising Consumer Protection Legislation 

State: Massachusetts  

Bill: House Bill 1107/Senate Bill 629 An Act Relative to Fairness in Debt Collections 

Summary: Helps protect consumers from wage garnishment, quickly accumulating interest and fees and imprisonment due to personal debt 

Status: Slated to move into the next legislative session 

Key Bill Introductions to Watch 

State: New Mexico 

Bill: House Bill 82 Student Loan Bill of Rights Act 

Summary: Protects student loan borrowers from predatory lenders by explicitly listing the due diligence that student loan service providers are required to follow. 

Status: Action Postponed Indefinitely; No further movement. 

Taxation 

This year was a big year for the rollout of notable tax policy changes. From the expansion of earned income and child tax credits to sales tax relief, at least 18 states have had notable tax policy changes go into effect as of July 1 of this year. Currently, 31 states provide a state EITC; and Maryland elevated their state tax credit by passing the Family Prosperity Act of 2023 in response to their earned income tax credit and child tax credit bills that were set to sunset this year. Additional states that passed tax exemption legislation to keep on the radar include Louisiana, who passed Senate Bill 127, which provides an additional property tax exemption of up to $2,500 for first responders including fire fighters, emergency medical service personnel, emergency response dispatchers, peace officers, police officers, and sheriffs and Texas, who passed Senate Bill 1145, which gives local municipalities the power to establish a property tax exemption to  child-care facilities as a percentage of the appraised value but prohibits the percentage specified by the governing body from being less than 50 percent. 

Jobs & Wages 

Following a transitional period of job resignations during the COVID-19 pandemic and the change in workplace culture, there has been an emphasis on the ongoing efforts to expand workers’ rights and workplace financial wellness. There is a strong need for workplace benefits to support lower- and middle-income workers to thrive that ultimately impacts retention and the future of the workforce in states and municipalities. States like Illinois are making this a priority with the passage of their Temp Workers Fairness and Safety Act. House Bill 2237, an amendment to the Day and Temporary Labor Services Act, ensures equal pay for equal work for temporary workers assigned to the same job for more than 90 days as well as enforces safety and training standards for temporary workers. This bill is a stepping stone to emphasize  

State Policy Trends 

Innovative policy solutions are at the core of moving the needle towards more progressive and equitable systemic change. It allows for states to reassess their current approaches and implement policies as the economic cycle and conditions of their state structures evolve. Below is legislation to watch as economic policy trends begin to be amplified across states:  

Universal Basic Income for Transition Age Youth - Maryland House Bill 108 This bill would provide universal basic income of $1,000 to those who age out of the out of home placement program. Although this bill did not move forward on the state level, municipalities are increasingly adopting universal basic income programs including the City of Alexandria, Montgomery County, Maryland, and Prince George’s County Maryland.  

Consumer Data Tax - Nevada Assembly Bill 421 This bill imposes a tax on the collection of consumer data of individual Nevada consumers by commercial data collector. The tax rate would be determined by the amount of Nevada consumers data collectors track in a month. Although this bill did not move forward in the Nevada state legislature, this sales tax trend related to digital advertising taxation has emerged in Maryland, Massachusetts, and New York. Maryland, being the first to pass a tax of this kind, did receive push back from the Maryland Circuit court in 2022; however, the Maryland Supreme Court has deemed the legislation to still be in effect, striking down the Circuit Court’s decision this past May. This policy trend has also begun to make its way to the Southern states, including that of Arkansas and Texas with both states considering a version of the digital advertising tax.  

Environmental Social Governance - North Dakota Senate Bill 2291 In 2021, North Dakota introduced and passed an environmental social and governance (ESG) related bill, making it the first state to swing the pendulum in the direction of state considerations of ESG or anti-ESG laws. ESG considerations are changing how tax impacts the business decision-making process. Given recent legislative changes and proposals, investor and stakeholder pressures, and the ever-evolving political economy, standard business practices are no longer preferred. Instead, through understanding and implementing available tax incentives, companies can take advantage of potential opportunities to create capital and economic growth. States have already witnessed mixed success of ESG legislation, with 165 anti-ESG bills being introduced in 37 states in 2023 thus far and half of them not moving forward in legislatures. As the revolving door of the political landscape widens, more states are likely to introduce ESG related legislation for consideration.