This is a joke, right?
No. Our Marxist California government is indeed "studying" the oh-so-critical issue of whether or not porn actors should be required to wear condoms. I live in this nutty state, so I can confirm it is not a joke.
I found this in a quick search:
http://blogs.abcnews.com/nightlinedailyline/2010/03/step-closer-to-required-condoms-in-porn.html
so apparently Steyn was making several jokes commenting on the news, but not making up a joke news story.