I'll allow that legislation is an awfully big hammer to use to solve a problem that is better addressed with...tweezers? The situation on the ground is one or two students in a classroom, maybe only one or two students in the whole school, who are gender-diverse. They need to feel safe in school, and their classmates also need to feel safe in school. A quiet, individualized solution, in which the student uses their preferred name, and perhaps there's a gender-neutral restroom available in the building, might be enough to make everyone feel safe enough to continue with the business of education.
While I'm grateful for the anti-discrimination laws in my own state of New Jersey, I also see that the adults shouting "You have to use their pronouns!" "No, you're forbidden to use their pronouns!" may not be making things better for the gender-diverse kid who's just trying to make it through algebra class.