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The California law for balloons is listed in the California Penal Code Chapter 1559 Section 653.1. The text of the California balloon law can be found below or at www.leginfo.ca.gov

Balloons; electrically conductive material or appurtenance; sale, distribution or release outdoors; reports

1. No person shall sell or distribute any balloon which is constructed of electrically conductive material, and filled with a gas lighter than air without:

* Affixing an object of sufficient weight to the balloon or its appurtenance ex: ribbon, string, etc. to counter the lift capability of the balloon.
It was later stated that the weight must not be consumable, i.e., no tying foils to bags of candy.

* Affixing a statement on the balloon, or ensuring that a statement is so affixed, that warns the consumer about the risk if the balloon come in contact with electrical power lines.
This is already printed on most balloons, but you need to make sure. Add your own warning if it's not printed.

* A printed identification of the manufacturer of the balloon. 

2. No person shall sell or distribute any balloon filled with a gas lighter than air, which is attached to an electrically conductive string, tether, streamer, or other electrically conductive appurtenance.
No metallized ribbon on helium filled latex or foils, even if weighted. No helium filled arches built around steel cable, or with metallized ribbons.

3. No person shall sell or distribute any balloon which is constructed of electrically conductive material and filled with a gas lighter than air, which, is attached to another balloon constructed of electrically conductive material, and filled with a gas lighter than air.
No tying helium filled foils together - each must be individually tied to the weight. No helium filled foil arches (but air-filled foil arches - even on conductive aluminum rod or EMT frames - are OK).

4. 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.
No foil balloon releases.

5. Any person who violates subdivision (a), (b), (c) or (d) shall be guilty of an infraction punishable by a fine not exceeding one hundred dollars ($100). Any person who violates subdivision (a), (b), (c) or (d) who has been previously convicted twice of violating subdivision (a), (b), (c) or (d) shall be guilty of a misdemeanor.
Go directly to jail. Do not pass "Go." Do not collect $200.

6. This section shall not apply to manned hot air balloons, or to balloons used in governmental or scientific research projects.

7. Electrical corporations shall report to the Public Utilities Commission every other month, from January 1, 1991, until June 30, 1993 on electrical service disruptions caused by balloons constructed of electrically conductive material, including but not limited to, the location of the service disruption, the composition of the balloon, and the extent of the disruption. The commission shall provide a copy of each electrical corporation's bimonthly report to a representative designated by the metallic balloon manufacturers and shall report the following by December 31, 1993, to the legislature:
* The number of outages reported by each electrical corporation on a monthly basis.

* A comparison of the monthly outages reported pursuant to Chapter 1122 of the Statutes of 1988, with the monthly outages reported by each electrical corporation pursuant to this act, reflecting the numerical trend of the outages.