Sorry, this makes no sense at all. There is no way to "restrict"
certain types of domain name that has any meaningful effect, given the
absence of international jurisdiction, and IP addresses
relate to network topology not to content, so they can't be used
in this way, whatever misapprehensions some of the commission members may
be under.
I think anyone who understands why an address is not a name 
understands why this is a bad idea.  However, the people who are 
making these noises do not have this understanding.  This is 
political and imposing technology on it is difficult.  While this may 
resemble legislating that pi = 22/7, it is going to be much more 
difficult to explain that it is.
While I agree that this is really dumb, I think we need to take it 
very seriously and not just brush it off.  Those who are in a 
position to have influence (and you know who you are) should move 
quickly to nip this in the bud.  The longer it takes to do so, the 
longer (and more effort) it will take to kill it off.   It will 
assume a life of its own and more and more people will have to be 
convinced that it can't be done. And the more time it is going to 
take to kill it off.  If there is some local organization in CA that 
is pushing this, it could be dealt with fairly easily.  But if 
someone gets journalists or legislators behind it, it is going to be 
much harder.
I *thought* this had been killed off over a year ago, when it came up 
on this list.  But apparently not.
Take care,
John