Before the law, I think the state government or local governments could (by passing a law) restrict computing for any reason, even without a government interest. Now, they'd have to repeal this first.

How?

I know the whole 90s meme of 'I am a controlled munition' went around because cryptography was labeled an ordnance subject to export control laws, and therefore code that performed those kind of computations were forbidden to be sold abroad, liable to a felony.

What happens today? Government gets rights to source code, logs, and rubber stamps/rejects your code from executing in the cloud?

Government limits your access to commodity infrastructure?