BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2709


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          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  








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               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).)









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          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  








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            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  








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            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  








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            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








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          The Balloon Council  

          Analysis Prepared  
          by:              Matt Dean / PUB. S. / (916) 319-3744