By 2023, residents will no longer be able to sell or make shoes or handbags or clothes made out of fur after California became the first American state to ban the sale and manufacturing of animal fur.
Animal rights groups have been calling for a ban for years and lauded the move.
Governor Gavin Newsom also signed a bill banning most animals from circus shows, except cats, dogs and horses. It does not apply to rodeos.
“California is a leader when it comes to animal welfare and today that leadership includes banning the sale of fur,” Mr Newsom said in a statement.
The ban does not apply to leather, cow hides and the full skin of deer, sheep and goats, the San Francisco Chronicle reports. It also does not apply to stuffed animals.
Those found breaking the law could face a fine of $500 (£395) or in repeat cases, $1,000.
“We applaud Gov Newsom and the state’s lawmakers for recognising that California citizens do not want their state’s markets to contribute to the demand for fur products,” a statement from Humane Society USA said.
But the decision was criticised by the Fur Information Council’s spokesman Keith Kaplan. He claimed it was part of a “radical vegan agenda using fur as the first step to other bans on what we wear and eat.”
Last May, fashion house Prada announced that it would stop using fur, starting with its spring-summer 2020 line.