This was signed into law in California by Governor Schwarzenegger on 8/28/06.
Senate Bill 1441
Seminaries and Christian colleges are concerned about this law in that the fact that their students might not be able to receive financial aid anymore. This is because of the institution's stance against allowing those who perceive themselves to be homosexual to be students.
These kinds of situations drive us back to our dependence upon God. We are not dependent on the state. It is sad to see this grace of God through our government begin to be lifted from Christian institutions though.
I would say though that as tax incentives, and other governmental graces that God has given to the church in the USA over time, no longer exist in harmony with Biblical Christianity we will see Christian nominalism dry up...or we will see a further distorted government supported "dead" Christianity.
Pray for the state of the church in the world, but also right here at home.