Democratic Sen. Jack Scott of Altadena originally wanted an outright ban on the balloons. Utility companies say they short electrical lines when they're released, causing hundreds of power outages throughout the state each year.
Scott watered down the bill under pressure from the balloon industry. The version that ultimately passed the Legislature merely required labels on the balloons warning of the danger when they contact power lines.
Schwarzenegger took no position on the merits of the bill in Sunday's veto. He says it just is not a priority as he wades through hundreds of bills before Tuesday's signing deadline.