They'll move from state schools to private schools, because highly respected, well-performing teachers will be looking to work with other highly respected, well-performing teachers and well-regarded schools. This was already the case, but it will just result in further privatization.
In materials, not physics (in my case). Tulane was also privatized in the 1880s and occupies a unique place in the state constitution with many functions as part of its formerly public nature (supervisory functions over state police, legislatively nominated scholarships, etc), but presumably still has enough influence to ensure this bill doesn't apply to it.
Kinda sucks but at least there will be some sort of competence-check. I paid $80000 for 50% of my profs to be overt progressive propagandists and I was too young and impressionable to really figure out what was going on. Credit to the Uni though, there was a physics prof who spent a lecture insisting climate change was not caused by humans whatsoever, so I guess there was a little balance.