Informed policy through collaboration.
As technology continues to rapidly change how we live, do business, and socially engage with others, state policymakers have the responsibility to ensure state governments are ready to meet these challenges, maintain economic well-being, and promote the public good of their state residents.
The Institute for State Policy Leaders was created to assist state policymakers in making informed policy decisions by conducting nonpartisan educational programming. Programming is geared toward state elected leaders and focuses on complex emerging and current issues that are national in scope, but that impact states or are subject to state legislative, executive, and regulatory action — especially in light of federal stagnation. Click here to learn more.
Upcoming Meeting: Tax Academy Policy Seminar
June 22-23, 2023 | Arlington, VA
The Tax Academy Policy Seminar is part of the Institute’s 2023 Initiative to educate legislators about the intricacies of state tax. This seminar will enable legislators to equip themselves with the tools to tackle important developing tax policy issues, enable legislators to share best practices, and enhance access to these services for their constituents. The balanced program covers a broad range of issues and features some of the most important voices in the state tax policy arena. The Tax Academy Policy Seminar is open to members of the Institute's State Tax Advisory Council (STAC) and invited state legislators. For more information, please email Max Behlke (mbehlke@statepolicyleaders.org).
Issue Areas
Autonomous Vehicles
Fleets of autonomous vehicles are already shuttling residents of select cities around with over half the states allowing the testing or deployment of AVs on their public roads. As the technology improves and the number of AVs expand, state lawmakers must tackle numerous policy questions and develop a robust regulatory regime around the safety of such a new technology not just in their own state but across state lines.
Blockchain and Web3
Blockchain and web3 uses and applications continue to grow in popularity, creating widespread prominence for decentralized finance and other networks. Most states have now enacted or considered bills impacting blockchain or virtual currency (such as cryptocurrency), and as expansion continues into smart contracts, consensus mechanisms, and other areas, states will look to reap economic benefits from this emerging industry.
Cannabis
Support for marijuana legalization has risen and garners bipartisan support in many states. As favorability continues to rise in the general populace, so too have legalization efforts throughout the country. Since the federal government has made no indication that it will legalize marijuana or codify banking rules, states will continue to face challenges legalizing responsibly and creating workable marketplaces for recreational and medical use.
Clean Energy
As states and businesses pursue clean energy goals, navigating the policies and economic development potential can be challenging for state legislators. Whether states are in highly or loosely regulated markets, the demand for more options in energy generation and distribution is driving policy change across the country. As federal dollars continue to make their way to the state level, there is opportunity to expand and secure our nation’s energy grid.
Cybersecurity
State legislators continue to work to shore up their cybersecurity rules and regulations as the threat of ransomware attacks on public sector infrastructure and private business continue to spread. Twenty one states considered bills dealing with cybersecurity in 2021. Partnerships across state lines and with the federal government are key to countering this emerging criminal threat to ensure continuity between states.
Data Privacy
Most websites and apps collect data on users, including selling or sharing that data to advertisers. Advocates have proposed giving consumers more control over what happens to their personal information, including the ability to opt-out and delete information. With several bills stalled in Congress with little hope of moving in the current state of gridlock, states are taking the lead in shaping public policy in consumer privacy.
Digital Taxation
As states look to revise their tax systems to better align with the modern economy, many are experimenting with the taxation of digital goods and services. There are serious policy challenges with the taxation of digital goods and services — defining which are subject to tax, determining origin, and understanding who will be responsible for collection and remittance. Poor understanding and study may subject states to extensive litigation.
Electric Vehicles
Global sales of battery powered and plug-in hybrid electric vehicles have steadily increased over the past decade, and major automotive manufacturers have made long-term commitments to transition to all-electric fleets. As federal infrastructure funds are allocated to states, more states will expand electric vehicle infrastructure and simultaneously must address how the extra energy load will impact commercial and low-income ratepayers.
EPR for Packaging
The management of recycling programs for consumer products packaging has fallen squarely on state and local governments’ shoulders, and over time costs have become untenable. State legislative efforts have been piecemeal, resulting in a multiplicity of systems that do not integrate across state lines and are inefficient and cost prohibitive. Ideally, states will work together to develop a common framework for EPR Packaging programs. Click here to learn more.
Remote Worker Taxation
The increasing prevalence of remote work has led to challenges for states, employees, and employers in the tax space. States will continue to explore how to structure income taxes for those that live in one state but work in another, as well as how businesses should be taxed in the “remote” state. Many states have already clarified their rules in the absence of federal action, and others have implemented temporary pandemic fixes.
Worker Classification
The number of workers participating in the gig economy continues to grow, igniting debate over whether these workers are employees or independent contractors; current employment tests are workable; or if a third classification is necessary to meet workers’ demands for flexible schedules while receiving stable benefits. States have the opportunity to update labor laws to meet the realities of the modern economy.