My interpretation is yes, it fits. A paddle holster is worn at, and supported by, your belt.
The big debate right now is the fact the state did not define holster, and it did not specifically state a belt or shoulder holster has to be worn in accordance with manufacturers' specifications, e.g. if a holster is marketed and designed as a belt holster it remains a belt holster if carried in your hand.
I personally think the entire argument is garbage.