; or (ii) the plan sponsor provided such notice during the 30-day period beginning on the first date on which the plan sponsor knew, or in exercising reasonable due diligence should have known, that such violation existed. (B) In any case in which the plan sponsor exercised reasonable diligence to meet the requirements of section 803(b)— (i) the total penalty assessed under this paragraph against such sponsor for a plan year may not exceed $500,000; and (ii) the Secretary may waive part or all of such penalty to the extent that the payment of such penalty would be excessive or otherwise inequitable relative to the violation involved. (11) The Secretary may assess against any plan sponsor of a composite plan a civil penalty of not more than $100 per day for each violation by such sponsor of the notice requirements under sections 801(b)(5) and 805(b)(2). . (3) Conforming amendment The table of contents in section 1 of such Act ( 29 U.S.C. 1001 note) is amended by inserting after the item relating to section 734 the following: Part 8—Composite Plans and Legacy Plans Sec. 801. Composite plan defined. Sec. 802. Funded ratios; actuarial assumptions. Sec. 803. Realignment program. Sec. 804. Limitation on increasing benefits. Sec. 805. Composite plan restrictions to preserve legacy plan funding. Sec. 806. Mergers and asset transfers of composite plans. . (b) Amendment to the Internal Revenue Code of 1986 (1) In general Part III of subchapter D of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following: C Composite Plans and Legacy Plans Sec. 437. Composite plan defined. Sec. 438. Funded ratios