Personally I'm a bit against people continuing to make new states which in practice are really just like UBSR regions with nothing but a state tag around it. (Like Union of Yqt Provinces, to some extent Socialist State of Spheron).
That was not the point of states... The point was for states to show that certain regions are tied together economically, politically etc. in the game.
I guess you can have it and we can add that state to the list in the UBSR economic laws but... It just seems pointless to have the state imo. They are really just UBSR regions in practice. It is misleading.