What does being sovereign have to do with anything in this case?
They are now exercising that power in the interest of the people (they believe) that grant that power.
2. It is a principled take on that private companies shouldn't be making the decisions what their tools can and can't be used for in such an important sector.
You could even make a Third Amendment case if you stretched the logic far enough. Does "you can't be forced to quarter soldiers" extend to being forced to provide other forms of support?
California literally does this all the time.
Does what? Place companies on a list of businesses that no supplier to the state government of California is allowed to do business with? I'm unfamiliar with such a list but I suppose anything is possible these days.