That LibreOffice can create/edit Word documents means that particular requirement would be fine under the proposed bill. Installing proprietary software obviously wouldn't though.
It would still require that the documents open correctly in LibreOffice, no? Which might be difficult enough to ensure in practice for .docx that it would be easier for the state to mandate using ODF.
What I meant is that if there's a law that says that interop with F/OSS must be possible, it'd probably make more sense for government agencies to internally mandate the use of ODF for all outputs, than for them to test and fix every .docx that they produce for compatibility with LibreOffice. ODF might not be free from interop issues, but I'd expect the baseline to be much better.