The seats will not be only for in-state applicants. I remember from the interview that we were told they will be split in the same percentage as the seats currently are, meaning most will go to in state applicants, and some will be for Idaho and out of state applicants.
If you look at a copy of the bill it states that all 40 seats must go to student with "strong Utah ties". I believe it is a requirement of the bill. They may be changing the current seats so that it will equal out the same percentages even with the new 40 seats. I'm not sure though.