DISPLAY OF REGISTRATION.

SEC. 861. DISPLAY OF REGISTRATION.(a) In General.—Subsection (a) of section 4101 (relating to registration) is amended—(1) by striking “Every” and inserting the following:“(1) In general.—Every”, and(2) by adding at the end the following new paragraph:“(2) Display of registration.—Every operator of a vessel required by the Secretary to register under this section shall display proof of registration through an identification device prescribed by the Secretary on each vessel used by such operator to transport any taxable fuel.”.(b) Civil Penalty for Failure To Display Registration.—118 STAT. 1619(1) In general.—Part I of subchapter B of chapter 68 (relating to assessable penalties), as amended by this Act, is amended by inserting after section 6717 the following new section:“SEC. 6718. FAILURE TO DISPLAY TAX REGISTRATION ON VESSELS.“(a) Failure To Display Registration.—Every operator of a vessel who fails to display proof of registration pursuant to section 4101(a)(2) shall pay a penalty of $500 for each such failure. With respect to any vessel, only one penalty shall be imposed by this section during any calendar month.“(b) Multiple Violations.—In determining the penalty under subsection (a) on any person, subsection (a) shall be applied by increasing the amount in subsection (a) by the product of such amount and the aggregate number of penalties (if any) imposed with respect to prior months by this section on such person (or a related person or any predecessor of such person or related person).“(c) Reasonable Cause Exception.—No penalty shall be imposed under this section with respect to any failure if it is shown that such failure is due to reasonable cause.” .(2) Clerical amendment.—The table of sections for part I of subchapter B of chapter 68, as amended by this Act, is amended by inserting after the item relating to section 6717 the following new item: “Sec. 6718. Failure to display tax registration on vessels.”. (c) Effective Dates.—(1) Subsection (a).—The amendments made by subsection (a) shall take effect on January 1, 2005.(2) Subsection (b).—The amendments made by subsection (b) shall apply to penalties imposed after December 31, 2004.