Towing Vessel Safety Act of 1996

Towing Vessel Safety Act of 1996 - Amends Federal marine safety law to require the Secretary of Transportation, in prescribing regulations for towing vessels, to: (1) consider the characteristics and nature of the service of towing vessels; (2) consult with the Towing Safety Advisory Committee; and (3) require the installation of certain navigational safety equipment on each towing vessel (other than one used only for towing disabled vessels).

Revises the marine casualty reporting deadline to require that marine casualties be reported as soon as practicable, but in no case later than within five days (currently, within five days). Increases from $1,000 to up to $25,000 the civil penalty for vessel owners and operators for failing to report marine casualties.

Requires the Secretary to report to the Congress on the feasibility of establishing a differential global positioning satellite navigation system and creating electronic charts for U.S. inland waterways.

Revises antidiscrimination provisions to prohibit a vessel owner or operator from temporarily removing a seaman because he or she refuses in good faith to violate marine safety regulations.

Requires towing vessels to be: (1) manned by a licensed master; and (2) operated by a licensed individual. Directs the Secretary to prescribe regulations which establish licenses for masters and mates of such vessels, subject to specified conditions.

Subjects towing vessels to Federal inspection laws, with specified exceptions.

Increases civil penalties for violations of licensing (from $5,000 to $25,000) and manning (from $1,000 to up to $25,000) requirements committed by owners and operators of uninspected towing vessels.