Project Linus has posted updated info about this law:
This is from their website:
Additional Information on CPSIA
As presently written the Consumer Product Safety Improvement Act (CPSIA) may affect charitable organizations such as ours. In response to this act we recently mailed an informational letter to friends of Project Linus. In that letter we also included a sample letter that can be used to contact state representatives, the Consumer Product Safety Commission (CPSC), and/or Energy and Commerce Committee members who oversee this commission.
Please review our informational letter below. In addition, we strongly urge you to contact your state representative, the CPSC, and/or Energy and Commerce Committee members. You may use our sample letter or draft your own.
http://www.projectlinus.org/cpsia.html#IL[/b]