BILL ANALYSIS Ó AB 2709 Page 1 Date of Hearing: April 19, 2016 Consultant: Matt Dean ASSEMBLY COMMITTEE ON PUBLIC SAFETY Reginald Byron Jones-Sawyer, Sr., Chair AB 2709 (Quirk) - As Amended April 14, 2016 SUMMARY: Increases the punishments for selling, distributing or releasing balloons made of or attached to electrically conductive material. Specifically, this bill: 1)Sunsets existing provisions of law regarding electrically conductive balloon sales, distribution and release on January 1, 2018, unless a later enacted statute, that is enacted before January 1, 2018, deletes or extends that date. 2)Prohibits selling or distributing balloons made of, or attached to, electrically conductive material. 3)Prohibits releasing balloons made of, or attached to, electrically conductive material. 4)Punishes selling or distributing balloons made of, or attached to, electrically conductive material as follows: a) A first offense is punished as an infraction punishable by a fine of up to $250; and b) A second subsequent offense is punishable as a AB 2709 Page 2 misdemeanor. 5)Punishes releasing balloons made of, or attached to, electrically conductive material as an infraction with a fine of up to $250. 6)States that these prohibitions do not apply to manned hot air balloons, or to balloons used in governmental or scientific research projects. EXISTING LAW: 1)Prohibits any person from selling or distributing any balloon made of electrically conductive material and filled with a gas lighter than air without: a) Affixing an object of sufficient weight to the balloon or its appurtenance to counter the lift capability of the balloon, b) 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, and c) A printed identification of the manufacturer of the balloon. (Pen. Code, § 653.1, subd. (a).) 2)Prohibits any 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. (Pen. Code, § 653.1, subd. (b).) 3)Prohibits any 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. (Pen. Code, § 653.1, subd. (c).) AB 2709 Page 3 4)Prohibits any person or group from releasing balloons made of electrically conductive material and filled with a gas lighter than air, outdoors as part of a public or civic event, promotional activity, or product advertisement. (Pen. Code, § 653.1, subd. (d).) 5)Punishes a violation of the above prohibited conduct as an infraction with a fine of not more than $100, unless the person has twice been convicted of any of the above. A third or subsequent conviction is a misdemeanor. (Pen. Code, § 653.1, subd. (e).) 6)States that these prohibitions do not apply to manned hot air balloons, or to balloons used in governmental or scientific research projects. (Pen. Code, § 653.1, subd. (f).) FISCAL EFFECT: Unknown COMMENTS: 1)Author's Statement: According to the author, "As each of us who has experienced power outages knows, loss of electricity means a halt and disruption to almost every kind of activity we engage in every day. Business operations and manufacturing can be halted, traffic signals and street lights can stop working, lights and computers at home can turn off and can even be damaged. "Metallic balloons can cause power outages and cause a significant portion of preventable power outages. These shiny metallic balloons are made of electrically conductive material, and can cause significant damage to power lines and equipment when they come into close proximity to power lines and cause an electric arc. Costs to repair damaged equipment from just a single metallic balloon cost thousands of dollars. And the loss of power due to metallic balloons represents a significant cost to California's economy on the order of tens of millions of dollars. Even though balloons are currently required to have weights attached, the ongoing number of power outages due to metallic balloons is evidence that these requirements are not sufficient for addressing the problem. There are beautiful alternative balloons made of other AB 2709 Page 4 materials that do not conduct electricity and do not put power lines at risk. While not all power outages can be avoided, power outages caused by metallic balloons can be prevented by prohibiting electrically conductive balloons from being sold in California, and phasing into currently available alternatives." 2)Balloons and Power Outages: Since 2011, there have been over 6,500 power outages in California caused by balloons made of or attached to electrically conductive material. These metallic balloons, or metallic balloon strings, are one of two primary types of balloons available for regular consumers. One type of balloons are typically constructed of Mylar nylon and coated with a metallic finish. When these electrically conductive metallic balloons come into contact with electrical lines, they can cause a bridge which often results in a power outage. If these balloons are not weighted and they are released, they can travel for many miles and end up tangling in power lines far away from where they were released. In an average year, PG&E will have 300 outages caused by metallic balloons -affecting nearly 165,000 homes. ( < http://www.sanluisobispo.com/news/weather/weather-watch/article 58874343.html > ) Moreover, Mylar is not a biodegradable material, meaning these balloons often end up in nature preserves or the ocean where wildlife eat the Mylar, most often resulting in wildlife death. Latex balloons, on the other hand, are both biodegradable (because they are made of rubber) and not electrically conductive. This bill would only ban the first type of balloons in an effort to reduce the negative effect these balloons have on power and wildlife. This bill, if passed, would not go into effect until January 1, 2018. At that time, it would increase the potential fine from not more than $100 to not more than $250. Additionally, the bill would require only one prior conviction, rather than the existing requirement for two prior convictions, for selling and distributing balloons made of or attached to electrically conductive material for a violation to be punishable as a misdemeanor. 3)Argument in Support: According to Pacific Gas and Electric Company, "PG&E conducts public service announcements during AB 2709 Page 5 the months of February, May and June when there is an increase in the number of Mylar balloons sold throughout the state due to various holidays. These efforts are meant to raise public awareness of the electric outage risks associated with Mylar balloons should they come into contact with our transmission and/or distribution lines. However, even with these efforts we have witnessed a steady increase in the number of Mylar balloon-related outages over the last ten years. Most notably, in 2015 alone we experienced 370 outages, impacting over 198 thousand customers spanning a total of over 14 million minutes without power. "Mylar balloon-related outages are not solely a reliability issue. When making contact with power lines, there is a risk of wildfire. For example, last year the Webb Fire in Butte County which burned 75 acres was caused by a Mylar balloon making contact with power lines. "PG&E takes our responsibility to provide safe, reliable and affordable electric delivery services to our customers seriously. Mylar balloon-related outages are a public safety issue and can impact both our residential and non-residential customers. Our non-residential customers include public safety providers, businesses, schools, hospitals and military facilities. PG&E supports AB 2709 in an effort to reduce outages and avoid the unnecessary adverse impacts that follow electric system outages." 4)Argument in Opposition: According to the California Teamsters Public Affairs Council, "Our members are employed by four of the largest suppliers of helium gas in California, whose use in balloons constitutes approximately 20% of the sales of helium in this state. Each balloon contains 30-40 cents of helium and about 60 million foil balloons are sold in this state annually. As such, the bill would eliminate the sales of $15-$20 million in sales by our employers and would, therefore, be harmful to our members' jobs. "There is only one alternative to foil balloons. This is a plastic balloon material that is held under patent by a Japanese company. As such, this bill would create a state mandated monopoly for one company. Plastic balloons are AB 2709 Page 6 already nearly twice the price of foil balloons. This is a recipe for some very expensive birthday parties, weddings and anniversaries. "Under current law, balloons need to be weighed down and it is unlawful to release them. While there are some outages that are caused by foil balloons, most do not cause service disruptions and a are a small number in comparison to outages caused by animals, trees, accidents and other causes. Public education is the key to dealing with this issue, not a ban on an entire product." 5)Prior Legislation: SB 1499 (Scott), of the 2007-2008 Legislative Session, would have increased the fine for a violation of those provisions punished as an infraction. The bill would have further specified the type of weight that must be attached to the balloon and the specifications for the required warning, and would have required that the consumer be provided a separate warning notice, as specified. The bill would also have prohibited a manufacturer or distributor from sending or shipping these types of balloons to retailers without the shipment containing a notice describing the retailer's responsibilities. SB 1499 was vetoed by the Governor. REGISTERED SUPPORT / OPPOSITION: Support California Municipal Utilities Association (Sponsor) California Fire Chiefs Association City of Glendale Water and Power Department Fire Districts Association of California Los Angeles Mayor Eric Garcetti Pacific Gas and Electric Company Southern California Edison Southern California Public Power Authority Opposition California Grocers Association California Teamsters Public Affairs Council AB 2709 Page 7 The Balloon Council Analysis Prepared by: Matt Dean / PUB. S. / (916) 319-3744