HTA Letter to CPSC on Registration of Small Batch Manufacturers in the CPSIA Reform Law

August 19, 2011

Office of the Secretary
Consumer Product Safety Commission
Room 502
4330 East-West Highway,
Bethesda, Maryland, 20814

Dear Mr. Stevenson:

On behalf of the Handmade Toy Alliance, an alliance now numbering 670 toy stores, toymakers and children's product manufacturers from across the country who want to preserve unique handmade toys, clothes, and children's goods in the USA, we respectfully request your clarification and action in regards to the registration requirements for small batch manufacturers in the newly signed CPSIA reform law, H.R. 2715.

Congress has now expressed its clear intent to provide regulatory relief to the small businesses we represent. As you know, H.R. 2715 allows small batch manufacturers to assure compliance with applicable product safety laws through less expensive alternative testing methods and exempts them from testing altogether when no affordable alternative testing methods are identified by the Commission.

The Handmade Toy Alliance would like to be fully engaged with the CPSC as it interprets H.R. 2715. Our goal, as always, is to create a regulatory environment which protects both public health and the welfare of the small businesses we represent.

It has come to our attention that members of the Commission are interpreting H.R. 2715's requirement for small batch manufacturers to register with the CPSC as a technicality which requires the completion of an official registration process by the Commission before relief willbe provided. This interpretation is contrary to our understanding of the law and contrary to congressional intent as we understand it through dozens of conversations with bothRepublicans and Democrats in the House and Senate.

The text of the law reads:

Any small batch manufacturer that utilizes alternative requirements or an exemption...shall register with the Commission prior to using such alternative requirements or exemptions pursuant to any guidelines issued by the Commission to carry out this requirement.

The word any in this sentence makes it clear that a manufacturer's ability to register with the Commission is not predicated upon whether or not the Commission has issued guidelines for registration. If the word any were not present in the sentence, the meaning would be different. However, the inclusion of the word any makes it clear that small batch manufacturers may still register with the Commission even in the absence any official guidelines. It is our interpretation that, in the absence of any guidelines from the CPSC, a small batch manufacturer may register with the CPSC in any manner which the manufacturer deems appropriate.

Our interpretation is supported by the previous section of the law, which reads:

The Commission may not require third party testing of a covered product by a third party conformity assessment body until the Commission has provided either an alternative testing requirement or an exemption...

This sentence clearly states Congress's intent that, in the absence of any action by the CPSC, third party testing will not be required for covered products made by small batch manufacturers. Relief is not contingent upon the CPSC's ability to identify alternative testing methods. Nor should relief be made contingent upon the establishment of registration guidelines.

We therefore formally request the Commission to make an immediate finding of fact that relief for small batch manufacturers under H.R. 2715 is not contingent upon the promulgation of registration guidelines by the Commission.

Notwithstanding our position on this interpretation, we would like express our interest to help create a sensible registration process as soon as possible. Registration should be simple and straightforward for both the Commission and small batch manufactures. We agree with Senator Rockefeller, who spoke on the Senate floor:

The creation of a new public [sic] registry for small batch manufacturers...can be implemented without notice and comment or even a hearing. As such, the Commission should act to effectuate the new mandates of this bill in a most expeditious manner.

Senator Pryor then seconded this view:

I also share the Senator’s view that nothing in H.R. 2715 is intended to delay the Commission’s rulemaking with respect to third party testing and believe that the Commission should conclude its testing rulemakings in the next 2 months.

We agree with Senators Rockefeller and Pryor that 2 months is an appropriate timeline to complete registration guidelines. This will allow enough time for small batch manufacturers to register prior to the expiration of the ASTM F963 and lead in substrate testing stays of enforcement on December 31. If the registration process is not completed by October 31, 2011, there will not be enough time to notify small businesses before the expiration of these stays. As we have stated previously, the last two months of the year are the busiest season for our members. So, the earlier they can begin to register, the better.

Small batch manufacturer registration can and should be as simple as filling out a registration form or sending an email to a specified address at the CPSC. The Commission may also want to allow outsourcing of this task to trade associations or businesses who could collect and compile a database for the Commission. We would like to discuss alternatives with the Commission as soon as possible, as well as ways in which our organization can help publicize the registration process to our members.

Thank you again for taking the time to read and consider our comments.

Respectfully Submitted,

The Handmade Toy Alliance

Congress Passes CPSIA Relief for Small Businesses!

In the past three years, Handmade Toy Alliance members were quoted in hundreds of news articles, testified 5 times on Capitol Hill in both the House and Senate, met with 4 out of 5 of the CPSC commissioners, phoned in to dozens of conference calls, wrote dozens of letters to the CPSC and hundreds of letters to Congress, and brought together over 600 likeminded small businesses--all to reform the CPSIA, a one-size-fits-all law that was killing our businesses.

And, just when it seemed that the debt ceiling crisis was going to swallow Washington whole and prevent any chance of CPSIA reform for another legislative session, the balance suddenly tipped yesterday. Within 8 hours, both the House and the Senate passed a bipartisan bill that provides a meaningful way forward for our members. Only two members voted against it in the House and it passed unanimously in the Senate.

While we did not write this bill, we were able to significantly influence it's design through dozens of meetings with Republican and Democratic staffers. It's not a perfect solution to the many problems of the CPSIA, but it does offer the promise of meaningful relief for small batch manufacturers. Basically, the new law will require the CPSC to identify "alternative testing methods" which are economically practical for each product safety standard which would otherwise require third party testing. And, if the CPSC is unable to identify an economically feasible alternative for a given standard, it must exempt small batch manufacturers from the testing requirement. And, it gives the CPSC the flexibility to recognize other standards, like EN-71 in the Europen Union, which paves the way for the return of small batch products from Europe.

These new rules will apply to standards such as the 100ppm lead in substrate rule, the ASTM toy safety standard, and a variety of other standards which apply to many different types of children's products. Notably, it does not apply to the lead in paint standard, the small parts standard for products designed for children under age 3, the lead in metal jewelry standard, and standards that apply to pacifiers, cribs, and durable nursery equipment; those standards will still require third party testing as they do now.

What is a small batch manufacturer? Basically, it's a business or group of similarly-owned businesses that make less than $1 million in revenue per year (indexed for inflation) from the sale of consumer goods. And, in order to qualify for these alternative testing methods or exemptions, products cannot be made in quantities greater than 7,500 per year. Qualifying small businesses will also need to register with the CPSC.

What this means is that the CPSC must act to ensure that product safety certification is affordable for small businesses. How that plays out over the next few years is very much in question, however, and it will require the HTA and other groups to remain steadfast advocates for our members. The importance of the HTA and other trade organizations will only grow as a result of this new law.

If this law is to work for us, we need your continued support! The fight is far from over--it's just moved from Congress back to the CPSC. The HTA could use your support now, more than ever. If you aren't already a member, please join us now. The HTA has low cost and even free options for membership. Not only will we be working to make sure that this new version of CPSIA does what it needs to for small batch producers, we will continue to promote members and offer great cooperative marketing opportunities.

Donate to the HTA

Yesterday morning, our members were facing a drop dead date on December 31, 2011, when two important CPSC stays of enforcement on third party testing requirements were set to expire. Today, we now have a way forward that will stop the CPSIA's one-size-fits-all approach and will hopefully keep our family businesses alive. That is the victory in today's votes.

We did this together! Thank you!

As Seen in Today's Issue of The Hill

Fix the CPSIA!

Fix the CPSIA: ‘Unintended Consequences’ Cost Thousands of Small Business Jobs

The Consumer Product Safety Improvement Act (CPSIA) passed by Congress in 2008 was intended to make products safer, but after three years it has also effectively ended the American Dream for many small businesses and needlessly raised consumer prices. Both Democrats and Republicans agree that the law's "unintended consequences" must be urgently fixed.

The safety of our products is our top priority. Our member companies want to focus on improving safety instead of generating paperwork. We want to invest in our products and employees instead of spending millions of dollars for unnecessary and redundant testing. The CPSIA has jeopardized the availability of and, in some cases, banned safe products such as books, bicycles, musical instruments, rhinestones, youth model ATVs and motorcycles, and clothing with zippers.

HR 1939 maintains the CPSIA's important safety provisions but adopts some modest, common sense reforms. HR 1939 amends the CPSIA to ease regulatory burdens where appropriate, eliminate duplication and needless paperwork, and improve the accuracy of information in the CPSC’s public database. With unrealistic deadlines and new regulatory burdens fast approaching, the time is now to fix the CPSIA.

It’s Time to Put Politics Aside. Support HR 1939 and Save U.S. Jobs

A message from the National Association of Manufacturers, with thanks to:

Alliance for Children’s Product Safety
American Apparel & Footwear Association
American Pyrotechnics Association
The Art and Creative Materials Institute
Association of Home Appliance Manufacturers
Bicycle Product Suppliers Association
Craft and Hobby Association
Fashion Jewelry and Accessories Trade Association
Handmade Toy Alliance
HandsOn Science Partnership
International Sleep Products Association
Juvenile Products Manufacturers Association
Motorcycle Industry Council
National Retail Federation
National School Supply & Equipment Association
Promotional Products Association
International Retail Industry Leaders Association
Specialty Vehicle Institute of America

Press Release: HTA Urges CPSC to Stay Enforcement of ASTM Testing for Small Batch Manufacturers

Stamford, CT – July 5, 2011 – In a letter dated July 3, 2011, the Handmade Toy Alliance (HTA) addressed the Consumer Product Safety Commission’s (CPSC) recent staff briefing package on the “notice of requirements” for laboratories to become accepted to test for ASTM F963 as presented to the Commission and public. Primarily geared towards testing laboratories, this notice also signals to stakeholders such as the HTA that once approved and published in the Federal Register, all children’s products falling under toy guidelines manufactured 90 days after publish date will need to be tested and certified by a CPSC accepted laboratory.

“To begin requiring third party testing to the ASTM F-963 standard will dramatically and permanently harm small batch toymakers,” shares Dan Marshall, HTA President and owner of Peapods Natural Toys (MN). “We are therefore petitioning the Commission to delay the publication of lab certification standards for ASTM F-963 or to stay indefinitely the enforcement of the ASTM F-963 third party testing requirement for small batch manufacturers.”

Currently, Congress is considering substantive changes to the Consumer Product Safety Improvement Act (CPSIA) which would significantly reduce the compliance costs for small batch manufacturers. “We have received clear indications from the leadership of both the Democratic and Republican parties of their intention to modify the CPSIA in order to reduce its unintended consequences for small batch manufacturers,” states Randall Hertzler, HTA Vice President and owner of euroSource (PA). “While this legislation is pending and progressing, it is simply unnecessary to employ a ruling that will imperil thousands of small business.”

“The vast majority of HTA members are extremely small businesses, consisting of no employees, very small revenues and a limited number of products produced in short quantities,” explains Jill Chuckas, HTA Board member and owner of Crafty Baby (CT). “Yet, the CPSIA treats these micro businesses exactly the same as large, multi-national corporations. A typical HTA manufacturer making only a few thousand units of a toy per year simply cannot afford to absorb fixed testing costs (often at $500 to $3500 per toy created).”

The HTA also states concerns regarding the timing of this proposed rule making, which, by estimates, will bring ASTM F-963 into effect in mid-October, directly in the middle of holiday production runs. “Large companies who mass produce product for holiday sales complete their production runs at least 6 months prior to sale,” shares Mary Newell, HTA Treasurer and owner of Terrapin Toys (OR). “Imposing third party testing requirements in mid-October will have a much more negative impact of small batch toymakers like those in our membership who generally are crafting and creating product right up until the actual holidays.”

“For almost 3 years now, our membership has been working tirelessly together in order to better understand and manage the CPSIA. The basic language within the law is extremely difficult at best for our membership to comprehend, particularly without the assistance of attorneys and technical support staff,” states Marshall. “We have urged the Commission to author a simplified guide to the ASTM F-963 standards for small businesses, to no avail. Without such clear guidance, small batch manufacturers cannot negotiate fairly or openly with the third party labs they would be required to employ.”

The HTA consists of 653 member businesses, including retail stores, toymakers and children's product manufacturers from across the country who want to preserve consumer access to unique handmade toys, clothes and all manner of small batch children's goods in the USA. Formed in November of 2008 in response to the CPSIA, HTA members are parents, grandparents and consumers who are passionate about their businesses as well as the safety of the children in their lives. While in support of the spirit of the law, the unintended consequences of the CPSIA have motivated members of the HTA to work to enact change at a federal level. For more information, visit www.handmadetoyalliance.org.

Image from Wee Wonderfuls.

HTA Letter to CPSC on Upcoming ASTM Toy Safety Testing Requirements

July 3, 2011

Office of the Secretary
Consumer Product Safety Commission
Room 502
4330 East-West Highway,
Bethesda, Maryland, 20814


RE: Commencement of ASTM F-963 Toy Safety Testing Requirements and Petition for a Stay of Enforcement

Dear Honorable Commissioners:

We are alarmed to learn that the Commission is proceeding this month with rulemaking to begin certifying third party labs to test for the ASTM F-963 Toy Safety Standard. Unless the Commission's course is altered, the result of this process will be the initiation of third party testing requirements for all toys made after mid-October of this year as mandated by the Consumer Product Safety Improvement Act (CPSIA).

To begin requiring third party testing to the ASTM F-963 standard will dramatically and permanently harm small batch toymakers. We are therefore petitioning the Commission to delay the publication of lab certification standards for ASTM F-963 or to stay indefinitely the enforcement of the ASTM F-963 third party testing requirement for small batch manufacturers.

We request this action for four reasons.

First, our members simply cannot afford to pay for third party testing of toys they produce in small batches. ASTM F-963 testing fees range from $500 to $3,500 or more per toy. A manufacturer making only a few thousand units of a toy per year simply cannot afford to absorb this fixed cost, which is borne easily by larger corporations.

Second, the timing of the CPSC's proposed actions is markedly unfair to small batch manufacturers. Many, if not all, small batch toymakers continue to make their toys for the holiday season right up until the third week of December. Large-scale manufacturers, however, almost always complete their holiday production runs by early summer. Imposing third party testing requirements in mid-October will therefore have a much more negative impact on small batch toymakers.

Third, the language of the ASTM F-963 standard itself is extremely difficult for a typical small batch toymaker to comprehend. It is intended solely for the use of product safety engineers. The result of this complexity is that our members are much more at the mercy of third party labs and must rely entirely on these labs to determine which standards apply to a given product. Labs can therefore require and bill for redundant or unnecessary tests under the standard that they could not impose on larger companies which employ a dedicated compliance staff. We have urged the Commission to author a simplified guide to the ASTM F-963 standards for small businesses, but to no avail. Without such a document, small batch manufacturers cannot negotiate fairly or openly with the third party labs they would be required to employ.

Fourth, as the Commission is well aware, Congress is actively considering substantive changes to the CPSIA which would significantly reduce the compliance costs for small batch manufacturers. Leadership of both the Democratic and Republican parties have expressed their intentions to modify the CPSIA in order to reduce its unintended consequences for small batch toymakers. While this legislation is pending and progressing it makes little sense to unnecessarily imperil thousands of small businesses.

For these reasons, we urge the Commission to delay the third party testing requirement for the ASTM F-963 standard or stay its enforcement for toys made in batches of fewer than 10,000 units per year.

On behalf of our 653 member small businesses, we appreciate your willingness to consider our concerns. We hope to preserve the long American tradition of hand-crafted children's goods while ensuring safety for the children who enjoy them.

Respectfully,

The Handmade Toy Alliance

Image from mypapercrane.com.

Press Release: HTA Calls on House Energy and Commerce Committee to Support Reform of CPSIA

The Handmade Toy Alliance (HTA) representing small batch manufacturers and specialty toy retailers, today called on the House Energy and Commerce Committee to support H.R. 1939 (Enhancing CPSC Authority and Discretion Act of 2011, ECADA) during House Energy and Commerce Committee markup. ECADA addresses the unintended consequences of the Consumer Product Safety Improvement Act (CPSIA) – a law that threatens to destroy the small batch children’s product manufacturing industry and specialty toy shops in the United States.
Passed by Congress in 2008 in reaction to lead-in-paint toy recalls by multinational companies, the CPSIA’s unintended consequences have devastated small businesses throughout America. The law's third party testing requirements, which will go into force at the end of 2011, and other mandates contained in the law, will force many more small crafters and retailers out of business.
“We need a solution because time is running out,” said Randall Hertzler (PA), HTA Vice President. “The time for politics is past. The Committee can save small businesses by supporting this bill.” “The unintended consequences of the CPSIA fall disproportionately on small batch children's product manufacturers, retailers, and importers. ECADA has language that provides meaningful reform for members of the HTA while still maintaining safety protections for consumers”, added Dan Marshall (MN), HTA President.
The ECADA would amend provisions of the CPSIA to provide relief to small and micro-businesses by requiring the Consumer Product Safety Commission (CPSC) to implement rulemaking to specify an alternative test or exemption as well as require a cost-benefit analysis to justify testing costs. The bill goes a long way towards restoring and preserving the culture of handmade and specialty children's products in America.
About the Handmade Toy Alliance
The HTA was formed in November of 2008 in response to the CPSIA, and consists of 649 member businesses. Our members businesses include specialty toy stores, toymakers and small batch children's product manufacturers who want to preserve consumer access to safe, unique handmade toys, clothes and all manner of small batch children's goods. For more information, visit www.handmadetoyalliance.org.
Image courtesy of HTA Member Crafty Baby.

Is this YOUR Congressman? We need your help! A CALL TO ACTION

Cross-posted from HTA Member Milagros Boutique in Portland, OR.

The Handmade Toy Alliance has worked three long years to get to this point. Namely, getting a change to the Consumer Product Safety Improvment Act (CPSIA) that will stem the tide of tainted toys, almost all of which are imported, without imposing a regulatory environment on small, ethical manufacturers and crafters that will literally drive them out of business with red tape.

Since the day we opened our doors, we have been a staunch promoter of our local craft industry. We have been working side by side with countless local crafters trying to improve the CPSIA so that it does not put these small enterprises out of business. Your action to help save these small business is needed now more than ever.

How can you help?

A CPSIA amendment is currently in mark up in the Committee of Energy and Commerce in the House of Representatives. This amendment should be presented for a vote in this committee soon but surprisingly, despite all the rhetoric about supporting Main Street, not a single Democrat has voiced support. If this does not change, thousands of small businesses stand to be sacrificed at the alter of partisan politics.

We NEED your help! We need bipartisan support for this legislation to have any hope of it progressing through both houses of Congress. If your Congressman is on this list below, please call them NOW! Ask them to support the CPSIA amendment known as the ECADA. Learn more about the amendment.

• Rep. Tammy Baldwin (D-WI 2nd) (202) 225-2906 - Legislative Director: Ken Reidy ken.reidy@mail.house.gov
• Rep. John Barrow (D-GA 12th) (202) 225-2823 - Legislative Director: Hill Thomas hill.thomas@mail.house.gov
• Rep. G.K. Butterfield (D-NC 1st) (202) 225-3101 - Commerce LA: Saul Hernandez saul.hernandez@mail.house.gov
• Rep. Lois Capps (D-CA 23rd) (202) 225-3601 - Legislative Director: Jonathan Levenshus jonathan.levenshus@mail.house.gov
• Del. Donna M.C. Christensen (D-VI-At Large) (202) 225-1790 - Commerce LA: Angeline Muckle-Jabbar angeline.muckle-jabbar@mail.house.gov
• Rep. Diana DeGette (D-CO 1st) (202) 225-4431 - Legislative Director: Brendan Devine brendan.devine@mail.house.gov
• Rep. John D. Dingell (D-MI 15th) (202) 225-4071 - Commerce LA: Andrew Woelfling andrew.woelfling@mail.house.gov
• Rep. Mike Doyle (D-PA 14th) (202) 225-2135 - Chief of Staff: David Lucas David.Lucas@mail.house.gov
• Rep. Eliot L. Engel (D-NY 17th) (202) 225-2464 - Commerce LA: Travis Osen-Foss travis.osen-foss@mail.house.gov
• Rep. Anna G. Eshoo (D-CA 14th) (202) 225-8104 - Legislative Director: Casey Fromson casey.fromson@mail.house.gov
• Rep. Charlie Gonzalez (D-TX 20th) (202) 225-3236 - Legislative Director: Brenda Muniz brenda.muniz@mail.house.gov
• Rep. Gene Green (D-TX 29th) (202) 225-1688 - Legislative Director: Abigail Pinkele Abigail.Pinkele@mail.house.gov
• Rep. Jay Inslee (D-WA 1st) (202) 225-6311 - Legislative Director: Beth Osborne beth.osborne@mail.house.gov
• Rep. Edward J. Markey (D-MA 7th) (202) 225-2836 - Commerce LA: Ilya Fischhoff ilya.fischhoff@mail.house.gov
• Rep. Jim Matheson (D-UT 2nd) (202) 225-3011 - Commerce LA/LD: Shana Beavin shana.beavin@mail.house.gov
• Rep. Doris Matsui (D-CA 5th) (202) 225-7163 - Commerce LA/LD: Kyle Victor kyle.victor@mail.house.gov
• Rep. Frank Pallone Jr.(D-NJ 6th) (202) 225-4671 - Commerce LA: Tuley Wright tuley.wright@mail.house.gov
• Rep. Mike Ross (D-AR 4th) (202) 225-3772 - Commerce LA: Kate Callanan kate.callanan@mail.house.gov
• Rep. Bobby L. Rush (D-IL 1st) (202) 225-4372 - Commerce LA: Tim Robinson timothy.robinson@mail.house.gov
• Rep. Jan Schakowsky (D-IL 9th) (202) 225-2111 - Commerce LA: Megan Michaud megan.shannon-winterson@mail.house.gov
• Rep. Edolphus Towns (D-NY 10th) (202) 225-5936 - Commerce LA: Lars Hydle lars.hydle@mail.house.gov
• Rep. Henry A. Waxman (D-CA 30th) (202) 225-3976 - Commerce LA/LD: Zahava Goldman Zahava.Goldman@mail.house.gov
• Rep. Anthony Weiner (D-NY 9th) (202) 225-6616 - Commerce LA/LD: Yuri Beckelman yuri.beckelman@mail.house.gov

EVEN IF YOUR CONGRESSMAN IS NOT ON THE LIST, WE NEED YOU TO CALL NOW! Find you congressman and call BOTH their DC and local offices and urge them to support HR 1939!

Please share this post with your friends and family, post to your facebook page, tweet it, etc. If you value hand crafted goods, we need your help on this today!

Thank you!