SACRAMENTO ? Californians who want to talk on the phone while driving will have to invest in a hands-free headset or use speaker phones under a new law signed by Gov. Arnold Schwarzenegger Friday morning.

The law, which will take effect in July 2008, prohibits motorists from holding a cell phone while driving. It establishes fines and requires motorists to use hands-free technology, such as Bluetooth or an earplug.

The law is intended to reduce traffic accidents. Hand-held cell phones contributed to six fatal accidents in the state last year, according to the California Highway Patrol.

Similar laws are in place in Connecticut, New Jersey and New York.

If cited, motorists would be fined $20 for the first offense and $50 for subsequent ones. The citation would be an infraction, not a moving violation, which boosts insurance rates.