This means that a baby who survived an abortion can be allowed to die without care, and no investigation could be pursued nor legal penalty applied.
This quote was in the article. I figured this is the real target of the law, but I don't know if that is true. The article says your #2 above applies for the first 28 days after birth.
Preventing even an investigation is an odd thing to do. How does anyone know if what happened complies with the law if no investigation is done.