BILL ANALYSIS SB 1499 Page 1 Date of Hearing: June 24, 2008 ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS Mike Eng, Chair SB 1499 (Scott) - As Amended: March 24, 2008 SENATE VOTE : 22-17 SUBJECT : Metallic balloons. SUMMARY : Prohibits the sale or distribution of metallic balloons filled with a gas lighter than air, as specified. Specifically, this bill : 1)Repeals existing law regarding the selling or distribution of balloons with electrically conductive materials on January 1, 2010. 2)Prohibits a person from selling or distributing any balloon that is constructed of electrically conductive material, and filled with a gas lighter than air, or any balloon filled with a gas lighter than air that is attached to an electrically conductive string, tether, streamer, or other electrically conductive appurtenance, effective January 1, 2010. 3)Specifies that any person who violates this provision is guilty of an infraction punishable by a fine not to exceed $100. 4)Specifies that a person who violates these provisions who has been previously convicted twice of violating this law, including these provisions in effect prior to January 1, 2010, is guilty of a misdemeanor. 5)Exempts manned hot air balloons or balloons used in governmental or scientific research projects from these provisions. EXISTING LAW : 1)Prohibits any person from selling or distributing any balloon that is constructed of electrically conductive material, and filled with a gas lighter than air without: a) Affixing an object of sufficient weight to the balloon SB 1499 Page 2 or its appurtenance to counter the lift capability of the balloon; b) Affixing a statement on the balloon warning the consumer about the risk if the balloon comes in contact with electrical power lines; and, c) A printed identification of the manufacturer of the balloon. 2)Prohibits a person from selling or distributing any balloon filled with a gas lighter than air that is attached to an electrically conductive string, tether, streamer, or other electrically conductive appurtenance. 3)Prohibits a person from selling or distributing any balloon that is constructed of electrically conductive material and filled with a gas lighter than air and that is attached to another balloon constructed of electrically conductive material and filled with a gas lighter than air. 4)Prohibits a person or a group from releasing outdoors, balloons made of electrically conductive material and filled with a gas lighter than air, as part of a public or civic event, promotional activity, or product advertisement. 5)Specifies that a person who violates these provisions shall be guilty of an infraction punishable by a fine not exceeding $100 for a first or second infraction. 6)Specifies that a person who has been previously convicted twice of violating these provisions is guilty of a misdemeanor. 7)Exempts manned hot air balloons or balloons used in governmental or scientific research projects from these provisions. FISCAL EFFECT : Unknown COMMENTS : Purpose of this bill . According to the author's office, "Metallic balloons are one of the leading causes of power outages in numerous cities throughout the state. They are great SB 1499 Page 3 conductors of electricity and can easily cause shorts and groundings if they come in contact with the power lines. Mylar balloons can cause unnecessary power outages to thousands of homes and businesses." Background . Existing law makes it a crime to sell or distribute metallic balloons without a weight, warning and printed identification of the manufacturer printed on the balloon. The measure which enacted this provision, SB 1990 (Ayala), initially proposed to ban the sale and distributions of these balloons, as does this bill. However, as enacted, SB 1990 prohibited the sale or distribution of any balloon constructed of electrically conductive material and filled with a gas lighter than air, without affixing a weight to counter the lift capability of the balloon and a warning statement about the risks involved should the balloon come in contact with electrical power lines. SB 1990 also included a provision requiring electrical corporations to report to the Public Utilities Commission (PUC) the number of electrical service disruptions caused by balloons constructed of electrically constructive material from January 1991 until June 1993, and the PUC was in turn to report to the Legislature its findings by the end of 1993. This one-time reporting requirement was later repealed by SB 111 (Knight, Chapter 193, Statute of 2004). Given the many years that have passed since the report, the PUC was unable to confirm those findings from the 1993 report, however stated in a letter addressed to the author that metallic balloons do present a legitimate problem. The letter states, "These balloons cause numerous distribution-level power outages each year resulting in serious economic losses to those affected. Although we do not track the specific number of outages in a database separate from that of the utilities, there are several hundred instances of power outages caused by these metallic balloons each year." Support . Southern California Edison (SCE) writes in support, "Electrical outages caused by Mylar balloons impact both our residential and non-residential customers. During 2007, we experienced 478 outages due to Mylar balloons which affected 161,006 customers?.SCE supports SB 1499 as an effort to avoid outages and avoid the unnecessary adverse economic impacts that follow electric system outages." SB 1499 Page 4 Californians Against Waste writes, "Metallic balloons are a serious threat to California's infrastructure and they also threaten the environment. Lighter than air balloons can easily detach from weights and be blown by winds into the environment - if they are not intentionally released. Once in the environment, like most litter, balloons can be quickly transported into the marine environment, where they persist for hundred, perhaps thousands, of years?.Every year, over 10,000 balloons are cleaned from California's beaches during Coastal Cleanup Day. This figure probably only represents the tiniest fraction of the number of balloons that are actually deposited into the oceans every year." Opposition . The California State Floral Association states in opposition, "The proponents of this measure allege the need for this legislation is that power outages attributable to metallic balloons cause economic harm to California's utilities. It is clear that adoption of this bill will have real and immediate economic impacts on California's neighborhood florists. The Balloon Council estimates annual sales of helium-filled metallic balloons of $100 million in California and another $900 million of indirect sales, such as metallic balloons attached to flowers and plants. In many party stores, the sales of helium-filled metallic balloons exceed 50% of the revenue for those small businesses." The Teamsters writes in opposition, "We are fundamentally opposed to adding new police responsibilities to store clerks. They will now be subject to discipline, discharge and potential criminal liability for an unlawful sale of a balloon. Balloons will join spray cans, glues, laser pointers, tobacco, alcohol, food stamps, cold medication, prescription drugs, and WIC [Women, Infants, and Children] vouchers for which store clerks bear the primary responsibility for enforcing laws limiting the sale of specified products." Previous legislation . SB 1990 (Ayala, Chapter 94, Statutes of 1990) prohibits the sale or distribution of any balloon constructed of electrically conductive material and filled with a gas lighter than air, without affixing a weight to counter the lift capability of the balloon and a warning statement about the risks involved should the balloon come in contact with electrical power lines. SB 111 (Knight, Chapter 193, Statutes of 2004) repealed the SB 1499 Page 5 obsolete requirement of the PUC to report to the Legislature on electrical service disruptions caused by metallic balloons by December 31, 1993. REGISTERED SUPPORT / OPPOSITION : Support Burbank Water and Power California Coalition of Utility Employees California Hospital Association California Medical Association California Municipal Utilities Association California Professional Firefighters Californians Against Waste City of Azusa City of Glendale Water & Power International Brotherhood of Electrical Workers, Local Union #47 International Brotherhood of Electrical Workers, Local Union #639 Los Angeles County Sheriff's Department Mayor Marsha R. Ramos, City of Burbank Pacific Gas and Electric Company Providence Saint Joseph Medical Center Roseville Electric Sempra Energy Southern California Edison Southern California Public Power Authority State Association of Electrical Workers The Utility Reform Network Turlock Irrigation District Opposition Air Faire Antioch Florist Balloon Council Balloon Creations by Carolyn Balloon Wholesalers International Blooms & Bears Florist California Grocers Association California Retailers Association California State Floral Association California Teamsters Continental Sales SB 1499 Page 6 County Splendor Flowers & Gifts Creative Balloons Doli Florist Marshall's Florist & Fine Gifts Mattipack, LLC Monrovia Floral National Federation of Independent Business Pinelli's Flowerland Pioneer Balloon Rust Florist The Balloonery, Inc. UNITE HERE! United Food & Commercial Workers Wood'n Goodies Analysis Prepared by : Rebecca May / B. & P. / (916) 319-3301