What I heard was that the bill gavce states the right to do that, but didn't mandate them to do so. In other words, it removes the excuse of "they're illegal" from all state educational institutions, for imposing out-of-state tuition.
Probably a court case (state by state) would find that residency is enough to justify in-state tuition. Keep in mind, the plan is to relabel all these aliens "legal," so there will be no such thing as an illegal alien, save for the outright criminal/terrorist class.
Yes...your predetermined outcome theory at work.