The states were established long before the commonwealth. They were established by the English as colonies. Their parliaments were given almost limitless powers by the Crown to legislate, the wording varies slightly between colonies.
Whether that power is limited at all was explored in the case of Kable, the answer is there is almost no limit on state power but executive decisions must be separate to court decisions. States may make laws against a named person, such as Kable, and may take their property without compensation.
