To amend title 46, United States Code, to exempt old vessels that only operate within inland waterways from the fire-retardant materials requirement if the owners of such vessels make annual structural alterations to at least 10 percent of the areas of the vessels that are not constructed of fire-retardant materials and for other purposes.

SECTION 1. FIRE-RETARDANT MATERIALS EXEMPTION.

    Section 3503 of title 46, United States Code, is amended to read as 
follows:
``Sec. 3503. Fire-retardant materials
    ``(a)(1) A passenger vessel of the United States having berth or 
stateroom accommodations for at least 50 passengers shall be granted a 
certificate of inspection only if--
            ``(A) the vessel is constructed of fire-retardant 
        materials; and
            ``(B) the vessel--
                    ``(i) is operating engines, boilers, main 
                electrical distribution panels, fuel tanks, oil tanks, 
                and generators that meet current Coast Guard 
                regulations;
                    ``(ii) is operating boilers and main electrical 
                generators that are contained within noncombustible 
                enclosures equipped with fire suppression systems; and
                    ``(iii) has multiple forms of egress off the 
                vessel's bow and stern.
    ``(2) Before December 1, 2028, this section does not apply to any 
vessel in operation before January 1, 1968, and operating only within 
the Boundary Line.
    ``(b)(1) When a vessel is exempted from the fire-retardant 
standards of subsection (a)--
            ``(A) the owner or managing operator of the vessel shall--
                    ``(i) notify in writing prospective passengers, 
                prior to the sale of any ticket for boarding and to be 
                affirmatively recognized by such passenger prior to 
                purchase, and any crew member that the vessel does not 
                comply with applicable fire safety standards due 
                primarily to the wooden construction of passenger 
                berthing areas; and
                    ``(ii) display in clearly legible font prominently 
                throughout the vessel, including in each state room the 
                following: `THIS VESSEL FAILS TO COMPLY WITH SAFETY 
                RULES AND REGULATIONS OF THE U.S. COAST GUARD.';
            ``(B) the owner or managing operator of the vessel--
                    ``(i) may not disclaim liability to a passenger or 
                crew member for death, injury, or any other loss caused 
                by fire due to the negligence of the owner or managing 
                operator; and
                    ``(ii) shall acquire prior to entering service, and 
                maintain, liability insurance in an amount to be 
                prescribed by the Federal Maritime Commission;
            ``(C) the penalties provided in section 3504(c) of this 
        title apply to a violation of this subsection;
            ``(D) the owner or managing operator of the vessel shall--
                    ``(i) make annual structural alteration to not less 
                than 10 percent of the areas of the vessel that are not 
                constructed of fire retardant materials;
                    ``(ii) prioritize alterations in galleys, 
                engineering areas of the vessel, including all spaces 
                and compartments containing, or adjacent to spaces and 
                compartments containing, engines, boilers, main 
                electrical distribution panels, fuel tanks, oil tanks, 
                and generators;
                    ``(iii) ensure, to the satisfaction of the Coast 
                Guard, that the combustible fire-load has been reduced 
                pursuant to clause (i) during each annual inspection 
                for certification; and
                    ``(iv) provide advance notice to the Coast Guard 
                regarding the structural alterations made pursuant to 
                clause (i) and comply with any noncombustible material 
                requirements prescribed by the Coast Guard;
            ``(E) the Coast Guard, in making the determination required 
        in subparagraph (D)(iii), shall consider, to the extent 
        practicable, the goal of preservation of the historic integrity 
        of the vessel in areas carrying or accessible to passengers or 
        generally visible to the public;
            ``(F) the owner or managing operator of the vessel shall 
        annually notify all ports of call and State emergency 
        management offices of jurisdiction that the vessel does not 
        comply with applicable fire safety standards due primarily to 
        the wooden construction of passenger berthing areas;
            ``(G) the crews manning such vessel shall receive 
        specialized training, above minimum standards, in regards to 
        shipboard firefighting that is specialized for exempted vessels 
        and approved by the Coast Guard; and
            ``(H) the owner or managing operator of the vessel shall, 
        to the extent practicable, take all steps to retain previously 
        trained crew knowledgeable of such vessel or to hire crew 
        trained in operations aboard exempted vessels.
    ``(2) The Secretary shall conduct an annual audit and inspection of 
any vessel exempted from the fire-retardant standards of subsection 
(a).
    ``(c) The Secretary shall prescribe regulations to carry out this 
section. Such regulations shall include the manner in which prospective 
passengers are to be notified.
    ``(d) In addition to other penalties permitted by law, the 
Secretary is authorized to immediately withdraw a certificate of 
inspection for a passenger vessel that does not comply with any 
requirement under this section.''.

Summary: This bill revises the requirements for passenger vessels that are exempt from fire-retardant materials standards. Vessels in operation before January 1, 1968, that operate within inland waterways are exempt from the new requirements until December 1, 2028. Exempt vessel operators must follow certain requirements including notifying prospective passengers in writing prior to the sale of any ticket for boarding and making annual structural alterations to at least 10 of areas of the vessel that are not constructed of fire-retardant materials. Additionally, the Department of Transportation (DOT)must conduct an annual inspection of any vessel that is exempted from fire-retardant materials standards. DOTmay withdraw a certificate of inspection for any vessel that does not comply with requirements under this bill.