California fax regulations become effective January 1st.

In October, California Governor Arnold Schwarzenegger signed a law that prohibits unsolicited fax transmissions without the prior consent of a recipient and without an exemption for cases where there is an "established business relationship."

The California law does exempt faxes sent by a nonprofit trade or professional association that are in furtherance of the association's tax-exempt purpose, provided that 1) the recipient is a member who voluntarily provided a fax number to the association; 2) the fax is not primarily for the purpose of advertising goods or services from a third party; and 3) the member has not requested that the association stop sending faxes advertising the availability of third party goods or services.

The California Chamber of Commerce was among the business organizations that opposed the legislation, pointing out that it conflicts with federal law. President Bush signed a law earlier this year that restricts "junk faxes," but allows an exemption in cases where the business or organization has an established business relationship with the recipient.

Recipients of unsolicited faxes can bring action against the sender--if the sender is located in California or if the recipient is located in California--for $500 per violation if a court deems the violation willful. The law went into effect January 1, 2006.