At the end of 2005, Governor Schwarzenegger signed into law SB 833, a bill sponsored by State Senator Bill Morrow. SB 833 required businesses to obtain prior express consent before sending commercial faxes.

On February 27, a California federal court overturned that state’s law restricting business faxes, sending the nation’s small businesses a resounding victory. The U.S. District Court for the Eastern District of California ruled that the fax ban undermined existing federal law by regulating interstate fax transmissions.

The legal challenge arose last fall after the California Legislature passed a fax ban requiring businesses to obtain prior express consent before sending commercial faxes to their customers. California’s law directly conflicted with the federal Junk Fax Prevention Act, which waives the prior consent requirement in cases where the fax sender and the recipient have an established business relationship. Having to obtain prior express consent before sending a fax would have imposed significant costs on businesses, especially smaller ones, attempting to do business with California residents or entities.

The case was fought on the grounds that the California Legislature had disregarded the U.S. Constitution, which makes federal law supreme when it conflicts with state law.

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