The part that irks me is that broad, loosely defined fine they have. If you see someone walking down the street and say "Hey, there's a man in a dress!" or anything to that effect, you get fined $250,000 and sentenced to a year in prison. Here they're really broadening the definition of a hate crime.
Personally, I wouldn't want men - even a man who thinks he's a woman - in a woman's restroom. It's just.. awkward. Although, what direction will the bathrooms and locker rooms go in the movement for sexual equality? I don't really like the idea of unisex, so how about separate restrooms for men, women, gays, lesbians, men who want to be/think they are/sex changed to women, and women who want to be/think they are/sex changed to men. I think that covers all of them...