I would assume the uttering of the politically incorrect term for whomsoever you happen to be speaking of could put you in violation. In other words saying fag instead of gay or colored instead of black could get you arrested.
Just like all hate crimes, they're trying to legislate thought - differences in words, like you said, and a percepion of "hatred."
What's ironic is that when preached correctly, the Bible creates a LOVE offense, not a HATE offense. So they totally have it backwards. Ain't that the way satan works?... backwards!