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Turns out the bill had a poison pill in it? It would allow the NCAA to blackball the state and increase compliance and litigation costs for affected organizations, according to the governor.
She's instead trying to get multiple states/orgs (I think?) to strong-arm the NCAA (and similar organizations?) into keeping sex-segregated sports segregated by natal sex instead of each person's claimed gender identity.
I got some new information. Apparently her proposed changes were to basically allow sex-segregated sports to be segregated based on gender identity through the back door.
And take away a natal female's ability to sue over being unfairly denied a place on a girl's/women's sports team in favor of a natal male that was in the orriginal bill.