BILL NUMBER: AB 2430	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 16, 2004
	AMENDED IN ASSEMBLY  MAY 17, 2004
	AMENDED IN ASSEMBLY  APRIL 21, 2004
	AMENDED IN ASSEMBLY  APRIL 12, 2004

INTRODUCED BY   Assembly Member Wiggins
   (Principal coauthor:  Senator Chesbro)
   (Coauthor:  Senator Machado)

                        FEBRUARY 19, 2004

   An act to amend Sections 5500 and 5501 of, and to add Section 5513
to, the Public Utilities Code, relating to commercial air carriers,
and declaring the urgency thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2430, as amended, Wiggins.  Commercial air carriers:  hot air
balloons.
   (1) Existing law requires the Public Utilities Commission to
require every commercial air operator, as defined, to procure and
continue in effect, adequate protection against liability for
personal bodily injuries and property damage as a result of an
accident, that may be imposed by law upon the operator and upon any
person using, operating, or renting an aircraft, as defined, with the
permission of the operator.
   This bill would exclude from the definition of commercial air
operator a person or other entity furnishing or providing
transportation by hot air balloon for entertainment or recreational
purposes.  The bill would exclude from the definition of aircraft a
hot air balloon furnished or providing transportation for
entertainment or recreational purposes.
   The bill, notwithstanding those provisions, would require that any
person providing transportation by hot air balloon for hire, for
entertainment or recreational purposes,  provide 
 maintain in force at least $1,000,000 of liability insurance for
personal injury, wrongful death, and property damage resulting from
the operation of the balloon.  The bill would require that  a
notice  be provided  to every passenger that identifies both
the insurer providing a policy of liability insurance to the person
providing that transportation and the amount of insurance coverage
provided by that policy.
   (2) The bill would declare that it is to take effect immediately
as an urgency statute.
   Vote:  2/3.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 5500 of the Public Utilities Code is amended to
read:
   5500.  As used in this article, "commercial air operator" means
any person owning, controlling, operating, renting, or managing
aircraft for any commercial purpose for compensation.  "Commercial
air operator" does not include any person owning, controlling,
operating, renting, managing, furnishing, or otherwise providing
transportation by hot air balloon for entertainment or recreational
purposes.
  SEC. 2.  Section 5501 of the Public Utilities Code is amended to
read:
   5501.  As used in this article, "aircraft" means any contrivance
used for navigation of, or flight in, the air.  "Aircraft" does not
include a hot air balloon furnished or providing transportation for
entertainment or recreational purposes.
  SEC. 3.  Section 5513 is added to the Public Utilities Code, to
read:
   5513.  Notwithstanding any other provision of this article, any
person owning, controlling, operating, renting, managing, furnishing,
or otherwise providing transportation by hot air balloon for hire,
for entertainment or recreational purposes, shall  provide a
notice   maintain in force liability insurance in a
minimum amount of one million dollars ($1,000,000) for injury to or
wrongful death of passengers or other persons, and for property
damage, resulting from operation of the balloon.  A notice shall be
provided  to every passenger that identifies both the insurer
providing a policy of liability insurance to the person providing
that transportation and the amount of insurance coverage provided by
that policy.
  SEC. 4.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   The Public Utilities Commission currently requires the hot air
balloon industry in this state to obtain liability insurance
equivalent to that required for commercial airlines.  Hot air balloon
companies cannot get the required insurance due to spiraling
insurance costs and a dwindling number of insurers.  In order to
allow hot air balloon companies to seek more reasonable liability
insurance appropriate to the industry, and thereby making it possible
for those companies to stay in business, it is necessary that this
act take effect immediately.