This means that the NCAA could disallow USC, Stanford, etc. from participating in NCAA championships. It could even look to rule them ineligible to participate in the NCAA at all. 

So, it either forces the NCAA to change....OR, forces the CA schools to look elsewhere for their athletics associations. The thing is, there are other states now considering similar laws in New York, Florida, Colorado, Washington, and South Carolina. Likely others to follow. So, it won't just be USC, UCLA, Stanford, and Cal (and most of the Big West and significant parts of the MWC and Big Sky). We could be looking at most of the PAC 12 and influential schools in the SEC and ACC (Clemson, Florida, South Carolina, Florida State, Miami, Syracuse) that are pushing for NCAA change or a new association. A lot of schools would follow and potentially create a crisis in the NCAA, if power schools in Texas and the Big Ten push back.

I still think this is a great pretext for the power schools to separate, either by replacing the NCAA or creating a new separate upper-tier division within the NCAA.