I have read that a few weeks ago too. IMHO, totally misleading. We all know that Cali produces mass quantities of herb, as we always have for decades.
The difference is now you have to be a LICENSED producer to supply a licensed dispensary.
The bulk of what is being produced is being done by unlicensed producers. This product will never be able to reach the licensed market.
From the regulations that I see forming at the local level, there will more then likely be a shortage of legally produced herb for the legal dispensing market. Kinda what happened in Nevada last July.
Localities are more inclined to allow dispensaries then Cultivation sites. Locals have accepted dispensaries, as they have been in their face for years now, while Grows still carry that negative connotation. So, a lot of places are allowing dispensaries, while still restricting cultivation.
I think it will be another year before cultivation is widely accepted at the local level.
I have been working on a license to cultivate for almost 18 months and still haven't got the OK yet. I have received my Conditional Use Permit, but not an Operator permit, still in process. I applied 8 months ago. I am confident that it will happen, but it ain't easy, Or cheap.