104 STAT. 3120 PUBLIC LAW 101-608 —NOV. 16, 1990 "(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 15 USC 1194. 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. Fe<i?ral "(B) Not later than December 1, 1994, and December 1 of each publication ^^^^ calendar year thereafter, the Commission shall prescribe and publish in the Federal Register a schedule of maximum authorized
�
