Are politicians attempting to destroy tenure?
Proposals to "reform" or end tenure are not new—they have been going around for several decades at least (as I remember such stories when I was an undergraduate in the 1990's).

This is not yet enacted legislation—it is merely a proposal that, as far as I can tell, probably has not even had any hearings yet. As such, I would suspect that such a bill would be shot down in committee, as the proposed methods would probably violate at least some sort of labor laws, as the faculty would in effect be judged by students with whom they have never interacted. Such "popularity contests" would pretty much dry up any opportunities for faculty recruitment. (Who would want to work at such a school?)