There is so much wrong with this. Where should I begin? How about with "So help me God"? This would require people of faith for whom swearing oaths before god is anathema to either blaspheme or fail to graduate. It would require atheists and Buddhists and Hindus, among others, to either lie or not graduate.
Then there is the part about "I take this obligation freely." Sure. There is no duress at all in being told to speak an oath or be denied access to College or a living wage.
On top of this, since when do American Citizens, or even legal residents have to swear allegiance to the country? Even the Pledge Of Allegiance is optional, by court decree.
The voters who elected these idiots should be ashamed of themselves for putting such ignorant fools in charge of improving our educational system. At best, this bill will die in session, after wasting hours of legislative time and untold amounts of money, or will be vetoed by our occasionally logical Governor. At worst, it will pass, be signed, and cost millions in legal fees before it goes the way of SB1070.