OLYMPIA, Wash. (AP) - A measure requiring that toys sold in Washington state be virtually toxin free was signed into law Tuesday by Gov. Chris Gregoire.

But Gregoire opened the door for significant changes to be made to the bill over the next year, announcing she would create an advisory group to assess its standards, timelines and testing requirements.

She said the advisory board would develop additional legislation she'll sponsor next session.

Gregoire said the federal government should be the entity determining nationwide safety standards, but "toy recalls from last year make it clear we cannot wait any longer for the federal government to take action.

"We in Washington are not going to wait to protect our children," Gregoire said before signing the bill. "The toys that pose a danger to our children are not welcome here in Washington state. But we must make sure we do not throw out the good with the bad toys."

She expressed concerns about several aspects of the bill, including reporting and testing requirements that could make it difficult for small toy makers and independent toy retailers to provide specialty toys.

She also directed the state Department of Ecology, working with the advisory group, to prepare rules to clarify that the bill does not apply to internal electronic components that are not accessible to children, such as chip boards and wiring in things like educational games.

"I think the governor's remarks today regarding how she intends to fix the legislation through rulemaking and an advisory committee really points out how bad of a bill this is for the citizens and businesses of the state," said Grant Nelson, governmental affairs director for the Association of Washington Business, which opposed the bill.

Nelson said that while everyone wants safe products for children, the current bill would hurt small toy manufacturers and retailers.

The governor's action came after weeks of intense lobbying by the toy industry, which wanted Gregoire to veto the bill, and from child health advocates, who wanted her to sign it in the same form in which it overwhelmingly passed both houses of the Legislature.

"As recent as this morning I talked to the CEO of Hasbro," the governor said on Tuesday.

But ultimately she decided it was time for the state to take a stand on the issue.

The measure states that any product made for children that contains more than .009 percent of lead, .004 percent of cadmium and .10 percent of phthalates cannot be made, sold or distributed in Washington state beginning in July 2009.

The measure also requires companies to disclose if their products contain other toxins identified by the Department of Ecology as high risk for children.

Covered by the requirements are children's cosmetics, children's jewelry, toys and car seats. Exempted toys include roller skates, toy steam engines, bicycles and tricycles, chemistry sets and video toys.

Parents said they were relieved to hear they were no longer on their own to watch for their children's safety, especially following the string of toy recalls that were issued in the past year.

"Well, you have to be careful," said Terri Weller. "She (my daughter) puts things in her mouth and you have to be very careful about what you're picking out for your children."

Opponents had said the measure would hurt local retailers and the state's sales tax revenue because fewer toys would be bought.

"I'm very concerned about it," said toy store owner Melissa Tennille. "We're really worried that we're going to go out of business or at the very least we're going to have to sell something other than toys."

The National Conference of State Legislatures said the Washington bill was even broader than a new law in California that prohibited toys and baby products from containing more than a trace amount of phthalates, a chemical used to soften plastics that scientists have linked to health problems.

Gregoire vetoed two sections of the measure, including a deadline for completion of the list of other potentially harmful toxins. In her veto letter, she noted that she will also ask the advisory group to make sure that the safety of car seats is not reduced by the language of the measure and to recommend any change in law that is needed.

"I have every confidence that there will be all the toys we could ever imagine here for sale in Washington state," said bill sponsor Rep. Mary Lou Dickerson, D-Seattle.

Officials from Mattel, Hasbro and the Toy Industry Association did not immediately return phone calls seeking comment after the bill signing. But the groups had previously said the bill in the original form it passed the Legislature was unworkable.

According to the state legislatures group, more than 80 measures addressing the presence of potentially dangerous substances in toys and other child products are pending in 25 states. Maine and Michigan, along with California, have enacted measures, though none is as broad as the new law in Washington state, said Scott Hendrick, a policy analyst for NCSL, an organization that monitors laws and pending measures across the country.

Congress has also weighed in on the issue, passing legislation to ban lead in toys as part of a bill to reauthorize the Consumer Product Safety Commission, which handles product recalls. House and Senate versions are awaiting a conference committee to resolve differences.