Re: I don't see how this would be a problem for Apple
Apple would not be "refusing" to comply, they would be unable to comply. It would be no different than the FBI trying to get Apple to break into a phone that had been damaged by fire, and Apple telling them "it has been destroyed too badly".
The law says the covered entity 'shall' provide certain things, but does not specify that they must design their products to be capable of providing those things. That's a whole different law, and Apple will already be at that point before this law can ever pass - congress would never pass something so controversial during an election year, and by the time there is a lame duck session in November Apple will have already changed iOS 10 so they cannot comply.