It's sort of funny how California wrote the legislation, because their laws forbid the NCAA from discriminating against Cali schools because of this law. Yet California laws don't apply anywhere in the other 49 states. Therefore, if the NCAA wanted to play hard ass, they could just omit all California schools from participating in their conferences if they allow athletes to take money. While the NCAA would be turning their backs on a few key events- the Rose Bowl being the biggest, by far- this would hurt California far more than the NCAA.
I'd expect reasonable parties to intercede by offering some sort of hybrid legislation that meets somewhere in the middle. These legislators seem to think the schools are rolling in money because of their athletic programs, when in reality that only is the case for the 20 biggest programs in the country. Most schools, even in the Power 5, are struggling to make ends meet. If you took the foundations away, the charities that raise and hold money for the programs, most schools would be hopelessly in the red.