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The problem is that these animals are not the pruducts of hobby breeders. Most of the animals at shelters are street-bred animals, not pedigreed pets.

That's what 'hobby' breeders always say.

Got an unbiased, objective source for this assertion? Links?

Most breeders I know are very careful who gets their animals and are not into it for the money. Breeders like this are very lucky if they can break even.

Of course not. It's never you, or me. It's always the breeder hiding over there, behind that tree.

If there is only an estimated 20% compliance with county dog licensing, then how is this law going to stop the production of unwanted pets?

Because this law isn't aimed at the consumer. It's aimed at the producers themselves. If the laws says you will pay a license fee, that your facility will be inspected, and you will be fined if found to not be in compliance with the law, then that's the price you pay for doing business as a breeder.

If you don't like it, there's always the hobby of stamp-collecting.