Much like the Megan Meier Cyberbullying Prevention Act, Section 13 is clearly well-intentioned. No one likes people who say cruel or hurtful things, whether on the Internet or anywhere else. Neo-Nazis are disgusting, and it pains even me to have to defend their rights. But a free society is different from an unfree one precisely in that free societies allow distressing speech to take place.
The other option, in which the litigious have undue power over all of us, is more distressing still.