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  








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               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  








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          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."









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          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  








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          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








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          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