Other than having to put a silly sign on the door I don’t see anything wrong with this. Who wouldn’t rather have a single-user bathroom with privacy and a door that locks? Communal bathrooms contain a vast amount of wasted space and offer no advantage that I can see, we just are used to them. Maintaining a common bathroom either means they close it or you have to work around wet floors, etc. Single bathrooms can be cleaned without affecting the others.
All in all this seems like the perfect solution. Good for everyone and shuts the queers up.
What is wrong with it is having government decide what we can do or not do when it is not within the role of government. Another expansion of power for people unfit to govern.
And the laws sounds like it says that businesses with community occupancy restrooms aren’t affected in the least (at least not by state law.)