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Now that we've thrown 'em off the trail, use the form below to get in touch with the people at Engadget. Please fill in all of the required fields because they're required.
Here's the law itself:
http://www.leginfo.ca.gov/pub/07-08/bill/sen/sb_1551-1600/sb_1567_bill_20080805_enrolled.html
...
(11) An electronic communication device affixed to the center
uppermost portion of the interior of a windshield within an area that
is not greater than 5 inches square, if the device provides either
of the following:
(A) The capability for enforcement facilities of the Department of
the California Highway Patrol to communicate with a vehicle equipped
with the device.
(B) The capability for electronic toll and traffic management on
public or private roads or facilities.
...
it could be argued that a GPS system does 'traffic management'. If it has that feature
...
(12) A portable Global Positioning System (GPS), which may be
mounted in a 7-inch square in the lower corner of the windshield
farthest removed from the driver or in a 5-inch square in the lower
corner of the windshield nearest to the driver, if the system is used
only for door-to-door navigation while the motor vehicle is being
operated and outside of an airbag deployment zone.