seaname: Well, I think that is exactly the relevant text.
That section does not (if you read it) introduce any new crimes. I.e. it does not make anything that was previously legal illegal. What it deals with is sentencing.
So if I am raping you, that would normally mean I would go to jail for rape. If it turns out I am raping you because you are disabled (or gay, or Hindu, etc. etc.), then 718.2(a)(i) allows the court to determine that I am performing a hate crime and that could affect the sentencing.
What the change means is that if I am raping you and that I am raping you because you are identifying yourself as a Zir, that rape could now also be considered a hate crime. Of course that would have to be proven and it is not entirely clear to me that pronoun misuse is even included in the text (it might be).
I am not sure I like the concept of hate crimes particular well but that is a separate discussion: I think if there are hate crime laws then it is very reasonable (at least, not dangerous) to extend them to the hypothetical situation where someone is targeting people who call themselves "they".