we do not need regulation limiting distribution of volunteer work.
and the vague language for the delineation line is what's problematic with this proposal.
volunteers have no resources (time, money) to defend themselves or their products against false accusations of lack of compliance. likewise companies that happen to provide foss components might be approached about compliance even for their github content.
Getting the spirit of the law into writing is tricky, and it will most likely improve over time. Closing loopholes and making exceptions when merited.
so if you do pay for software you know which cybersecurity scrutiny is in place --- while no cost software comes at no warranties whatsoever.