1. Fire-retardant materials exemption Section 3503 of title 46, United States Code, is amended to read as follows: 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