ISPA is involved in a number of other advocacy issues that can directly affect the mattress industry. Recent examples of this work include:
Protecting the Mattress Industry
ISPA Leads Coalition to Stimulate Mattress Sales
ISPA leads a coalition of trade associations representing manufacturers, suppliers and retailers in the home furnishings industries to support legislation that will enact new tax incentives to boost sales of mattresses and other products.
The coalition has been successful in securing Congressman Hank Johnson to introduce H.R. 3382, the Home Improvements Revitalize the Economy Act of 2009 (the HIRE Act). The HIRE Act would enact these tax incentives and was introduced in the U.S. House of Representatives in July 2009. ISPA is seeking support among legislators for the HIRE Act in Congress. ISPA members should participate in this effort by sending a letter to their Congressman and Senators expressing support for stimulating the mattress industry though our Legislative Action Center. Talking points on the legislation are also available.
Those with close personal and/or professional ties to either the Obama Administration officials or officials in Congress are urged to contact Chris Hudgins, Vice President of Government Relations.
Stimulus Legislation Provides Relief to Manufacturers
The American Economic Recovery and Reinvestment Act (also known as the stimulus bill) included several provisions that could help your company claim tax benefits, and encourage the sales of new mattresses. Included was a home buyer tax credit intended to stimulate the housing market and a provision to allow small businesses to carry back losses for five years was included (which has since been expanded). This extension will provide tax relief for some companies that posted a loss. ISPA supported both of these provisions during the legislative process.
Grassroots Advocacy
ISPA's Legislative Action Center
The ISPA Legislative Action Center keeps you informed about legislation and regulatory developments that directly impact your business. Watch for "Action Alerts" so you can make a difference for your business and the mattress industry through grassroots political action. The Legislative Action Center also includes a “Grassroots Toolbox” which contains all the tools you need to become an effective advocate for the industry.
Plant Tours
Plant tours are a great way to develop a relationship with your representatives in Congress. They also provide an opportunity for you to be heard on the issues that affect your business. The National Association of Manufacturers has developed A Guide to Successful Plant Tours. If you are interested in conducting a plant tour, please contact Chris Hudgins.
Trade
Congress Approves Tariff Suspensions
The U.S. House and Senate have passed, and the President has signed, a "Miscellaneous Tariff Bill" to renew a number of expired tariffs (and establish new ones) for a number of imported goods that are not made in the United States. The legislation includes tariff suspensions on certain rayon fiber used in some mattress components. The suspensions are usually considered by Congress every three years. However, Congress failed to enact legislation to renew the suspensions prior to their expiration at the end of 2009. As a result, the suspended tariffs became reinstated at the beginning of this year, raising costs for U.S. companies that must import these materials. To address the duties that have already been paid, the legislation applies retroactively to January 1, 2010. ISPA and ISPA members previously joined other affected industries in urging Congress to renew the tariff suspensions.
Financial Reform Bill Addresses Debit/Credit Card Fees
President Obama has signed financial reform legislation which includes a provision requiring the Federal Reserve to determine whether the transaction fees charged by financial institutions are “reasonable and proportional to the cost incurred by the issuer with respect to the transaction.” ISPA took no position on the overall financial reform bill but previously supported efforts to lower transaction charges for businesses. Merchants currently pay transaction fees when they process debit or credit card transactions, but not when they accept checks. The actions taken by the Federal Reserve could lead to lower transaction fees for merchants.
Treasury Department Curbs No Interest, No Payment Loans
The Office of The Comptroller of Currency (OCC) and the Office of Thrift Supervision (OTS) within the Treasury Department have issued guidance which eliminates no interest, no payment deferred interest financing programs, which some retailers use to finance consumers' purchases of mattresses and furniture. Instead, OCC and OTS would require that all consumers make minimum monthly payments. This requirement took effect on February 22, 2010. ISPA joined other organizations in asking the House Financial Services Committee and the Senate Banking Committee to review this issue.
Federal Trade Commission’s Green Guides
ISPA submitted comments to the FTC on its Green Guides which govern environmental marking claims. The FTC has not announced a timeline for updating the Green Guides. See ISPA’s Sustainability page for more information.
Lacey Act Declaration Deadlines Issued
The United State Department of Agriculture (USDA) has issued a revised phase-in timeline for meeting the declaration requirements under amendments to the Lacey Act. The Lacey Act prohibits importers from obtaining or selling components containing plants or trees that have been illegally harvested under U.S. or foreign laws. The law also requires importers to issue a declaration at the time of import that details the species and source of the trees or plants used in their products. Thanks to the efforts of ISPA and other industries, USDA has postponed the declaration requirement, which will be phased-in over the next few years. At this time, mattress sets are not included in the immediate phase-in schedule which extends through late 2010, but may be added later.
Labor
Obama Appoints Controversial Union Lawyer to National Labor Relations Board
President Obama made 15 "recess appointments" in March 2010, including the appointment of controversial union lawyer Craig Becker and labor lawyer Mark Pearce to the National Labor Relations Board (NLRB). With these appointments, the NLRB now has a three-to-one Democratic majority. A pending Republican nomination to the NLRB, (which would fill all vacant seats on the Board) was not included in the appointments.
A recess appointment allows the President to temporarily appoint officials without going through the Senate confirmation process. The President had originally sought formal Senate confirmation of Becker's nomination, but that move faced stiff opposition from Senate Republicans and a few Democrats because of his work as a lawyer for the AFL-CIO and the Service Employees International Union. As a result, Becker's nomination failed to advance in the Senate. These appointments to the NLRB are seen as a major victory for labor groups, which hope that the NLRB will speed up union certification elections and take other pro-union actions such as implementing portion of the “card check” legislation.
"Card Check" Union Formation
Labor leaders have been pressing Congress to consider the so called Employee Free Choice Act (EFCA). This legislation effectively eliminates the long-established secret ballot process that protects workers from undue influence and coercion by fellow employees and union officials. In its place, EFCA would allow a workplace to be unionized by having workers signing a so-called card check. Perhaps more importantly, the bill also requires mandatory binding arbitration when management/union negotiations break down, raising the possibility of a government arbitrator forcing an employer to comply with a new labor contract against its will. Previous attempts by Congress to pass EFCA narrowly failed.
Bed Bugs/Renovated Mattresses
New York City Bed Bug Task Force
The New York City Council has created a task force to recommend how health officials should address the city’s growing bed bug problem. Among issues under consideration is a ban on the sale of renovated mattresses in the city. ISPA testified in support of this proposal, and also used this opportunity to encourage the city to consider setting up a used mattress components recycling facility to service the metro New York City area.
Federal Bed Bugs Legislation
Separately, Congressman G.K. Butterfield (D-NC) introduced the Don't Let the Bed Bugs Bite Act of 2009. The legislation would authorize funding for states to combat bed bugs and require the Center for Disease Control and Prevention to study the health implications of bed bugs. ISPA met with Congressman Butterfield's staff and offered additional options for combating bed bugs. It is unclear whether the bill will receive consideration in the House.
Building Code Requirements
Fire Code Officials Reject Retrofit Sprinkler Requirement
The International Code Council (ICC) develops model residential and building codes for local officials to adopt in their states and localities. In years past, the ICC has considered various proposals that would affect how mattresses are made, stored and sold. In 2009 ICC officials considered proposed changes to the model code that would require all new and existing mattress and upholstered furniture retail, manufacturing, and warehousing facilities be retrofitted with automatic sprinkler systems. This change would have imposed substantial costs on mattress and furniture retailers. ISPA and other affected trade associations succeeded in defeating this requirement. In May 2010, proponents of the sprinkler mandate appealed this decision, but their appeal failed. ISPA will continue to monitor ICC activities for further developments.
Separately, ICC officials approved a code change which would require new and remodeled mattress factories and storage facilities over 2,500 square feet and retail stores over 5,000 square feet to have a sprinkler system installed.
Localities still must adopt the updated ICC code in order for these requirements to become law in a specific jurisdiction.
Other Activities
Sustainability/Environment
See ISPA’s Sustainability section for more information.
