That new law it is referring to applies to non-citizens wishing to naturalize as a Hungarian citizen. In 2011 they liberalized it to allow anyone who descends from pre-1920 areas that used to be in Hungary (i.e. “ethinic Hungarians”) even if they do not live in the modern borders of Hungary to apply for citizenship.
Nevertheless, my previous comment on those who descend from someone who was a Hungarian citizen any time from 1920 on (when its modern day borders came into existence after the first world war) are citizens automatically (and therefore need not naturalize) still stands.
Many other countries (especially in Europe) have similar “jus sanguinis” citizenship laws.