CIVIL PENALTIES.

SEC. 115. CIVIL PENALTIES. (a) Consumer Product Safety Act.—Section 20(a) (15 U.S.C. 2069(a)) is amended— (1) by striking “$2,000” and inserting in lieu thereof “$5,000”; (2) by striking “$500,000” each place it appears and inserting in lieu thereof “$1,250,000”; and (3) by adding at the end thereof the following: “(3) (A) The maximum penalty amounts authorized in paragraph (1) shall be adjusted for inflation as provided in this paragraph. “(B) Not later than December 1, 1994, and December 1 of each fifth calendar year thereafter, the Commission shall prescribe and publish in the Federal Register a schedule of maximum authorized penalties that shall apply for violations that occur after January 1 of the year immediately following such publication. “(C) The schedule of maximum authorized penalties shall be prescribed by increasing each of the amounts referred to in paragraph (1) by the cost-of-living adjustment for the preceding five years. Any increase determined under the preceding sentence shall be rounded to— “(i) in the case of penalties greater than $1,000 but less than or equal to $10,000, the nearest multiple of $1,000; “(ii) in the case of penalties greater than $10,000 but less than or equal to $100,000, the nearest multiple of $5,000; “(iii) in the case of penalties greater than $100,000 but less than or equal to $200,000, the nearest multiple of $10,000; and “(iv) in the case of penalties greater than $200,000, the nearest multiple of $25,000. “(D) For purposes of this subsection: “(i) The term ‘Consumer Price Index’ means the Consumer Price Index for all-urban consumers published by the Department of Labor. “(ii) The term ‘cost-of-living adjustment for the preceding five years’ means the percentage by which— “(I) the Consumer Price Index for the month of June of the calendar year preceding the adjustment; exceeds 104 STAT. 3119 “(II) the Consumer Price Index for the month of June preceding the date on which the maximum authorized penalty was last adjusted.”. (b) Federal Hazardous Substances Act.—Section 5 of the Federal Hazardous Substances Act (15 U.S.C. 1264) is amended by adding at the end the following: “(c) (1) Any person who knowingly violates section 4 shall be subject to a civil penalty not to exceed $5,000 for each such violation. Subject to paragraph (2), a violation of subsections (a), (b), (c), (d), (f), (g), (i) (j), and (k) of section 4 shall constitute a separate offense with respect to each substance involved, except that the maximum civil penalty shall not exceed $1,250,000 for any related series of violations. A violation of section 4(e) shall constitute a separate violation with respect to each failure or refusal to allow or perform an act required by section 4(e); and, if such violation is a continuing one, each day of such violation shall constitute a separate offense, except that the maximum civil penalty shall not exceed $1,250,000 for any related series of violations. “(2) The second sentence of paragraph (1) of this subsection shall not apply to violations of subsection (a) or (c) of section 4— “(A) if the person who violated such subsection is not the manufacturer, importer, or private labeler or a distributor of the substances involved; and “(B) if such person did not have either (i) actual knowledge that such person’s distribution or sale of the substance violated such subsection, or (ii) notice from the Commission that such distribution or sale would be a violation of such subsection. “(3) In determining the amount of any penalty to be sought upon commencing an action seeking to assess a penalty for a violation of section 4, the Commission shall consider the nature of the substance, the severity of the risk of injury, the occurrence or absence of injury, the amount of the substance distributed, and the appropriateness of such penalty in relation to the size of the business of the person charged. “(4) Any civil penalty under this subsection may be compromised by the Commission. In determining the amount of such penalty or whether it should be remitted or mitigated, and in what amount, the Commission shall consider the appropriateness of such penalty to the size of the business of the persons charged, the nature of the substance involved, the severity of the risk of injury, the occurrence or absence of injury, and the amount of the substance distributed. The amount of such penalty when finally determined, or the amount agreed on compromise, may be deducted from any sums owing by the United States to the person charged. “(5) As used in the first sentence of paragraph (1), the term ‘knowingly’ means (A) having actual knowledge, or (B) the presumed having of knowledge deemed to be possessed by a reasonable person who acts in the circumstances, including knowledge obtainable upon the exercise of due care to ascertain the truth of representations. “(6) (A) The maximum penalty amounts authorized in paragraph (1) shall be adjusted for inflation as provided in this paragraph. “(B) Not later than December 1, 1994, and December 1 of each fifth calendar year thereafter, the Commission shall prescribe and publish in the Federal Register a schedule of maximum authorized penalties that shall apply for violations that occur after January 1 of the year immediately following such publication. 104 STAT. 3120 “(C) The schedule of maximum authorized penalties shall be prescribed by increasing each of the amounts referred to in paragraph (1) by the cost-of-living adjustment for the preceding five years. Any increase determined under the preceding sentence shall be rounded to— “(i) in the case of penalties greater than $1,000 but less than or equal to $10,000, the nearest multiple of $1,000; “(ii) in the case of penalties greater than $10,000 but less than or equal to $100,000, the nearest multiple of $5,000; “(iii) in the case of penalties greater than $100,000 but less than or equal to $200,000, the nearest multiple of $10,000; and “(iv) in the case of penalties greater than $200,000, the nearest multiple of $25,000. “(D) For purposes of this subsection: “(i) The term ‘Consumer Price Index’ means the Consumer Price Index for all-urban consumers published by the Department of Labor. “(ii) The term ‘cost-of-living adjustment for the preceding five years’ means the percentage by which— “(I) the Consumer Price Index for the month of June of the calendar year preceding the adjustment; exceeds “(II) the Consumer Price Index for the month of June preceding the date on which the maximum authorized penalty was last adjusted.”. (c) Flammable Fabrics Act.—Section 5 of the Flammable Fabrics Act (15 U.S.C. 1264) is amended by adding at the end the following: “(e) (1) Any person who knowingly violates a regulation or standard under section 4 shall be subject to a civil penalty not to exceed $5,000 for each such violation, except that the maximum civil penalty shall not exceed $1,250,000 for any related series of violations. “(2) In determining the amount of any penalty to be sought upon commencing an action seeking to assess a penalty for a violation of a regulation or standard under section 4, the Commission shall consider the nature and number of the violations, the severity of the risk of injury, the occurrence or absence of injury, and the appropriateness of such penalty in relation to the size of the business of the person charged. “(3) Any civil penalty under this subsection may be compromised by the Commission. In determining the amount of such penalty or whether it should be remitted or mitigated, and in what amount, the Commission shall consider the nature and number of the violations, the appropriateness of such penalty to the size of the business of the persons charged, the severity of the risk of injury, and the occurrence or absence of injury. The amount of such penalty when finally determined, or the amount agreed on compromise, may be deducted from any sums owing by the United States to the person charged. “(4) As used in paragraph (1), the term ‘knowingly’ means (A) having actual knowledge, or (B) the presumed having of knowledge deemed to be possessed by a reasonable person who acts in the circumstances, including knowledge obtainable upon the exercise of due care to ascertain the truth of representations. “(5) (A) The maximum penalty amounts authorized in paragraph (1) shall be adjusted for inflation as provided in this paragraph. “(B) Not later than December 1, 1994, and December 1 of each fifth calendar year thereafter, the Commission shall prescribe and publish in the Federal Register a schedule of maximum authorized 104 STAT. 3121 penalties that shall apply for violations that occur after January 1 of the year immediately following such publication. “(C) The schedule of maximum authorized penalties shall be prescribed by increasing each of the amounts referred to in paragraph (1) by the cost-of-living adjustment for the preceding five years. Any increase determined under the preceding sentence shall be rounded to— “(i) in the case of penalties greater than $1,000 but less than or equal to $10,000, the nearest multiple of $1,000; “(ii) in the case of penalties greater than $10,000 but less than or equal to $100,000, the nearest multiple of $5,000; “(iii) in the case of penalties greater than $100,000 but less than or equal to $200,000, the nearest multiple of $10,000; and “(iv) in the case of penalties greater than $200,000, the nearest multiple of $25,000. “(D) For purposes of this subsection: “(i) The term ‘Consumer Price Index’ means the Consumer Price Index for all-urban consumers published by the Department of Labor. “(ii) The term ‘cost-of-living adjustment for the preceding five years’ means the percentage by which— “(I) the Consumer Price Index for the month of June of the calendar year preceding the adjustment; exceeds “(II) the Consumer Price Index for the month of June preceding the date on which the maximum authorized penalty was last adjusted.”. (d) Report on Civil Penalties.— (1) Beginning 1 year after the date of enactment of this Act, and every year thereafter, the Consumer Product Safety Commission shall submit to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Energy and Commerce of the House of Representatives the information specified in paragraph (2) of this subsection. Such information may be included in the annual report to the Congress submitted by the Commission. (2) The Commission shall submit information with respect to the imposition of civil penalties under the statutes which it administers. The information shall include the number of civil penalties imposed, an identification of the violations that led to the imposition of such penalties, and the amount of revenue recovered from the imposition of such penalties.