This blog post is very relevant to the discussion: https://www.persuasion.community/p/the-multiversity-is-finis...

A quick summary: the modern university is really a "multiversity", combining research, trade school, broad "liberal arts" education, and residential coming-of-age in one organization. The author argues this model is finished, and the pieces should be separated. I don't know if the author is correct, but I think the idea that the university is many things is important to recognize for this discussion (and just about every discussion around universities).

This law, in sense, wants to distinguish the trade school and general education parts of the university (though I suspect it more aimed at owning the libs than anything else).