This is not correct, it’s a common but false misunderstanding. The text of the law does not support this and the ACLU/EFF don’t see it as a likely problem.
People should stop repeating this claim or it will become one of those “folk truths” that eventually becomes accepted and real.
You are correct; I was wrong on this one! I’d read it so many times and far enough back, coupled with DHS’s general attitude of “we’ll do what we want”, that I’d taken it as true. Delighted not to be right here.