BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  SB 1499|
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                                 THIRD READING


          Bill No:  SB 1499
          Author:   Scott (D)
          Amended:  3/24/08
          Vote:     21

           
           SENATE PUBLIC SAFETY COMMITTEE  :  4-0, 4/8/08
          AYES:  Romero, Cogdill, Cedillo, Margett
          NO VOTE RECORDED:  Perata

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8


          SUBJECT  :    Metallic balloons:  January 2010 ban

           SOURCE  :     Burbank Water and Power
                      California Municipal Utilities Association


           DIGEST  :    This bill prohibits the sale or distribution of  
          "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," beginning on  
          January 1, 2010, violators of the bill are subject to  
          either an infraction or a misdemeanor penalty, as  
          specified.

           ANALYSIS  :    Existing law prohibits the sale or  
          distribution of "any balloon that is constructed of  
          electrically conductive material, and filled with a gas  
          lighter than air without:
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          1. Affixing an object of sufficient weight to the balloon  
             or its appurtenance to counter the lift capability of  
             the balloon.

          2. Affixing a statement on the balloon, or ensuring that a  
             statement is so affixed, that warns the consumer about  
             the risk if the balloon comes in contact with electrical  
             power lines.
           
          3. A printed identification of the manufacturer of the  
             balloon.  

          Existing law prohibits the sale or distribution of any  
          balloon filled with a gas lighter than air that is attached  
          to an electrically conductive string, tether, streamer, or  
          other electrically conductive appurtenance.  

          Existing law prohibits the sale or distribution of 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.  
           

          Existing law provides that no "person or group shall  
          release, 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."  

          Existing law provides that the penalty for violating the  
          above-enumerated prohibitions is an infraction punishable  
          by a fine not exceeding $100 or, where the violator has  
          been previously convicted twice of violating one or more of  
          these provisions, a misdemeanor.

          This bill repeals this section on January 1, 2010.

          This bill prohibits, effective on January 1, 2010, the sale  
          or distribution of "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  

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          string, tether, streamer, or other electrically conductive  
          appurtenance."

          This bill provides that its provisions shall not apply to  
          manned hot air balloons, or to balloons used in  
          governmental or scientific research projects.

          This bill provides that any person who violates this new  
          offense "shall be guilty of an infraction punishable by a  
          fine not exceeding ? ($100)."

          This bill provides that any person who violates this new  
          offense who has been previously convicted twice of  
          violating its provisions or the provisions of its statutory  
          predecessor, shall be guilty of a misdemeanor.

           Prior legislation  .  SB 1900 (Ayala), Chapter 1559, Statutes  
          of 1990.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

           SUPPORT  :   (Verified  4/21/08)

          Burbank Water and Power (co-source)
          California Municipal Utilities Association (co-source)
          Mayor, City of Burbank
          Pacific Gas and Electric Company

           OPPOSITION  :    (Verified  4/22/08)

          California Grocers Association
          California Retailers Association
          California State Floral Association
          National Federation of Independent Business
          The Balloon Council
          United Food and Commercial Workers

           ARGUMENTS IN SUPPORT  :    The author states:

            "Metallic balloons are one of the leading causes of power  
            outages in numerous cities throughout the state.  The  
            shiny balloons are typically coated with a thin metallic  
            coating deposited on the outer surface; hence they are  

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            often referred to as 'Mylar balloons'.

            "These balloons are great conductors 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.  Of great  
            concern is the potential for injury to someone carrying a  
            metallic balloon that comes in contact with a power line,  
            or utility employees working on equipment.

            "This bill would, as of January 1, 2010, make it a crime  
            for any person to sell or distribute 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.  In short,  
            this bill will ban the sale and distribution of metallic  
            balloons.

            "Any person who violates this crime shall be guilty of an  
            infraction punishable by a fine not exceeding one hundred  
            dollars ($100).  Any person who has been previously  
            convicted twice of violating this crime shall be guilty  
            of a misdemeanor.  This section shall not apply to manned  
            hot air balloons, or to balloons used in governmental or  
            scientific research projects."

           ARGUMENTS IN OPPOSITION  :    The Balloon Council, a trade  
          association representing manufacturers, distributors, and  
          retailers of balloons, states in opposition:
           
             "Under current law, it is illegal to release  
            helium-filled metallic balloons and retailers of metallic  
            balloons are required to attach a weight to them prior to  
            sale so that they will not float away.  In addition, a  
            consumer warning is also required to be printed on the  
            balloon itself.  This bill would criminalize the sale of  
            metallic balloons that are filled with helium.  In  
            addition it would also criminalize the sale of  
            non-metallic (i.e. latex) balloons that are attached to  
            electronically conductive material of any sort.

            "We estimate that there are approximately $100 million of  

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            helium-filled metallic balloons sold 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.  By  
            outlawing the sale and distribution of metallic balloons  
            and latex balloons that have electrically conductive  
            strings or attachments, SB 1499 would have a devastating  
            economic impact on thousands of California businesses,  
            both small and large.  

            "Weighed against the devastating economic impact of this  
            bill on manufacturers, retailers, and consumers, is an  
            argument that several hundred incidents occur in which  
            balloons are released and cause power outages.  However,  
            the facts are that these outages are so miniscule in  
            their economic impact that they are the reportable  
            threshold of the California Public Utilities Commission.   
            Apparently, there is not one case in which the cost of  
            the outage exceeded $20,000 because, of the roughly 6,000  
            annual power outages, the CPUC reports none attributable  
            to metallic balloons.

            "SB 1499 is truly a solution in search of a problem."


          RJG:mw  4/22/08   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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