California has baned the production and sale of foie gras. Law doesn't kick in until 2012. Sonoma Foie Gras (located in CA) is one of two producers in the US, the other is Hudson Valley Foie Gras in NY.
Sure to be all over the food blog world today. I can't find any news articles on the web that aren't "yay yay" over the bill. Ah ha! Here's one!
Derrick is sure to comment on the subject. He knows far more about the details of it than myself.