tested on a machine with 10.12.4 beta 8 this morning and it works.
If someone already has touchID enabled, it disables but doesn't prevent access to the System Pref. When waking the machine from sleep or screen saver, there is just a note "Your password is required to enable TouchID".
I was able to make that message go away by running sudo bioutil -w -f 0 -s
which will disable the touchID functionality system wide.