From what I can tell they are well on their way to becoming a reality in the broke state of California, insuring that some more of its tax base goes south ... or more likely east.

The main question is what/where will the mostly gonzo companies shoot. Choices:

1) Start using condoms and do away with facials, creampies, swallowing and most other stuff that makes people buy porn. Then compete with the tons of condom free porn coming from Europe containing all the good stuff.

2) "Go underground" whatever that means: presumably shoot without permits in unidentifiable motel rooms, making sure not a single palm tree or California scenery is visible. Of course using the U.S.C. 2257 (which presumably the industry will still be above ground enough to file) CAL-OSHA should easily be able to prove when/where the stuff was shot and bust them.

3) Move elsewhere in the US like Nevada or Florida. Of course those will be full of their own legal problems, including copycat "condom ony" regs, should CAL-OSHA's drive out the industry from Cali.

4) Relocate production to Budapest/Prague elsewhere. Lets see: endless supply of drop dead gorgeous women working for less than their US counterparts and willing to do just about anything. No sex negative government waiting to shut down the business. Some companies, like Evil Angel, Anabolic, etc. shoot there already.

Clearly I think that option 4 is the only plausible one. If American porn chicks want "box covers"/internet notoriety to promote their stripping/escorting business, they will need to take plenty of working vacations to Eastern Europe.