Apparently, Californian's every where decided the answer to that question was no. However, I believe this is because the potheads all got high the night before, passed out and forgot to go to the polls.

The purpose of legalizing marajuana was to create a new source of taxable income for the state. Which I believe to mean is that the guy on the street would still be selling his "illegal" pot, but now he will be charged with tax evasion instead of possession to sell.