Texas 2025 - 89th Regular

Texas House Bill HB4895 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R4440 AB-F
2	2	By: Vasut H.B. No. 4895
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to certificates of number and certificates of title issued
10	10	by and records kept by the Parks and Wildlife Department; creating a
11	11	criminal offense.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Section 31.003, Parks and Wildlife Code, is
14	14	amended by amending Subdivisions (2), (8), and (11) and adding
15	15	Subdivisions (19), (20), (21), (22), (23), (24), (25), (26), and
16	16	(27) to read as follows:
17	17	(2) "Vessel" means any watercraft[, other than a
18	18	seaplane on water,] used or capable of being used for
19	19	transportation on water, except:
20	20	(A) a watercraft exempted by commission rule;
21	21	(B) a watercraft that operates only on a
22	22	permanently fixed, manufactured course, the movement of which is
23	23	restricted to or guided by means of a mechanical device to which the
24	24	watercraft is attached or by which the watercraft is controlled;
25	25	(C) a seaplane; and
26	26	(D) a stationary floating structure that:
27	27	(i) does not have and is not designed to
28	28	have a mode of propulsion of its own;
29	29	(ii) is dependent for utilities upon a
30	30	continuous utility hookup to a source originating on shore; and
31	31	(iii) has a permanent, continuous hookup to
32	32	a shoreside sewage system.
33	33	(8) "Vessel livery" means a person [business
34	34	establishment] engaged in advertising, renting, or hiring out
35	35	vessels for consideration [profit]. The term includes a
36	36	recreational equipment timeshare business that leases or rents
37	37	vessels for consideration.
38	38	(11) "Manufacturer" means a person engaged in the
39	39	business of manufacturing or importing new and unused vessels and
40	40	outboard motors for the purpose of sale or trade.
41	41	(19) "Cancel" means, with respect to a certificate of
42	42	title, to make the certificate ineffective.
43	43	(20) "Certificate of title" means, with respect to a
44	44	vessel or outboard motor, a record, created by the department under
45	45	this chapter or by a governmental agency of another jurisdiction
46	46	under the law of that jurisdiction, that is designated as a
47	47	certificate of title by the department or agency and is evidence of
48	48	ownership of a vessel or outboard motor.
49	49	(21) "Electronic" means relating to technology having
50	50	electrical, digital, magnetic, wireless, optical, electromagnetic,
51	51	or similar capabilities.
52	52	(22) "Hull identification number" means the
53	53	alphanumeric designation assigned to a vessel under 33 C.F.R. Part
54	54	181.
55	55	(23) "Owner of record" or "recorded owner" means an
56	56	owner indicated in the files of the department.
57	57	(24) "Purchase" means, with respect to a vessel or
58	58	outboard motor, to take by any voluntary transaction that creates
59	59	an interest in the vessel or outboard motor.
60	60	(25) "Purchaser" means a person who takes by purchase.
61	61	(26) "Record" means information inscribed on a
62	62	tangible medium or stored in an electronic or other medium and
63	63	retrievable in perceivable form.
64	64	(27) "Security interest" means, with respect to a
65	65	vessel or outboard motor, an interest in the vessel or outboard
66	66	motor that secures payment or performance of an obligation if the
67	67	interest is created by contract or arises under Section 2.401,
68	68	2.505, 2.711(c), or 2A.508(e), Business & Commerce Code, except
69	69	that the retention or reservation of title by a seller of a vessel
70	70	or outboard motor notwithstanding shipment or delivery to the buyer
71	71	under Section 2.401 of that code is limited in effect to a
72	72	reservation of a security interest. The term:
73	73	(A) includes any interest of a consignor in a
74	74	vessel or outboard motor in a transaction that is subject to Chapter
75	75	9, Business & Commerce Code; and
76	76	(B) does not include:
77	77	(i) the special property interest of a
78	78	buyer of a vessel or outboard motor on identification of that vessel
79	79	or outboard motor to a contract for sale under Section 2.501,
80	80	Business & Commerce Code, unless a buyer acquires a security
81	81	interest by complying with Chapter 9 of that code;
82	82	(ii) the right of a seller or lessor of a
83	83	vessel or outboard motor under Chapter 2 or 2A, Business & Commerce
84	84	Code, to retain or acquire possession of the vessel or outboard
85	85	motor:
86	86	(a) except as otherwise provided by
87	87	Section 2.505, Business & Commerce Code; or
88	88	(b) unless a seller or lessor acquires
89	89	a security interest by complying with Chapter 9, Business &
90	90	Commerce Code; or
91	91	(iii) an interest created by a transaction
92	92	in the form of a lease, unless the transaction created a security
93	93	interest under Section 1.203, Business & Commerce Code.
94	94	SECTION 2. Section 31.022(a), Parks and Wildlife Code, is
95	95	amended to read as follows:
96	96	(a) A vessel is not required to be numbered under the
97	97	provisions of this chapter if it is:
98	98	(1) operated within this state for a period not
99	99	exceeding 90 consecutive days and is covered by a number in full
100	100	force and effect which has been awarded under federal law or a
101	101	federally approved numbering system of another state;
102	102	(2) from a country other than the United States
103	103	temporarily using the water of this state;
104	104	(3) owned by the United States, a state, or a
105	105	subdivision of a state; [or]
106	106	(4) a ship's lifeboat; or
107	107	(5) an amphibious vehicle for which a certificate of
108	108	title is issued under Chapter 501, Transportation Code, or a
109	109	similar law of another state.
110	110	SECTION 3. Section 31.028, Parks and Wildlife Code, is
111	111	amended to read as follows:
112	112	Sec. 31.028. CERTIFICATE OF NUMBER. The certificate of
113	113	number shall be pocket-size. The certificate, [or] a facsimile of
114	114	the certificate, or an electronic version of the certificate
115	115	provided by the department [it] shall be carried on board the vessel
116	116	at all times. It does not have to be on the person of the operator
117	117	if prior to trial the operator can produce for examination a valid
118	118	certificate of number.
119	119	SECTION 4. Section 31.037(c), Parks and Wildlife Code, is
120	120	amended to read as follows:
121	121	(c) The new owner of a vessel shall, not later than the 20th
122	122	[45th] day after the date ownership was transferred, submit an
123	123	application to the department with:
124	124	(1) evidence of ownership;
125	125	(2) the new owner's name and address;
126	126	(3) the number of the vessel; and
127	127	(4) a fee of $2 or an amount set by the commission,
128	128	whichever amount is more.
129	129	SECTION 5. Sections 31.039(a) and (b), Parks and Wildlife
130	130	Code, are amended to read as follows:
131	131	(a) Ownership [Except as provided by Subsection (c), all
132	132	ownership] records of the department made or kept under this
133	133	chapter are public records, including the information required
134	134	under Section 31.049, except the following information is not a
135	135	public record:
136	136	(1) an owner identifier as prescribed by 33 C.F.R.
137	137	Section 174.17;
138	138	(2) the phone number, e-mail address, social security
139	139	number, or taxpayer identification number of an owner of a vessel or
140	140	outboard motor; and
141	141	(3) any other information contained in an ownership
142	142	record that is not subject to public disclosure under Chapter 552,
143	143	Government Code, or other law.
144	144	(b) The commission may by rule charge a fee for access to
145	145	ownership records and other records made or kept under this
146	146	chapter. The department may provide a record in any medium. If
147	147	requested, the department shall provide a record in a format that is
148	148	self-authenticating under Rule 902, Texas Rules of Evidence.
149	149	SECTION 6. Sections 31.041(h) and (i), Parks and Wildlife
150	150	Code, are amended to read as follows:
151	151	(h) Not later than the 20th [45th] day after a dealer,
152	152	distributor, or manufacturer holding a dealer's, distributor's, or
153	153	manufacturer's license sells at the first or a subsequent sale a
154	154	vessel or outboard motor, the dealer, distributor, or manufacturer
155	155	shall apply, in the name of the purchaser of the vessel or outboard
156	156	motor, for a certificate of number or a certificate of title for the
157	157	vessel or outboard motor, as applicable, and file with the
158	158	department each document necessary to transfer the certificate of
159	159	number or certificate of title.
160	160	(i) A person purchasing a vessel may use the temporary
161	161	facsimile number issued under Subsection (f) for a period not to
162	162	exceed 20 [45] days from the date the dealer, distributor, or
163	163	manufacturer applies for a certificate of number or a certificate
164	164	of title under Subsection (h). The person shall retain the
165	165	facsimile number on the vessel for the period described by this
166	166	subsection.
167	167	SECTION 7. Sections 31.043(b) and (d), Parks and Wildlife
168	168	Code, are amended to read as follows:
169	169	(b) The owner of a vessel that does not have a
170	170	manufacturer's hull identification number may file an application
171	171	for a hull identification number with the department on forms
172	172	approved by it. The application must include a sworn statement
173	173	describing the vessel, proving legal ownership, and, if known,
174	174	stating the reason for the lack of hull identification number. The
175	175	application must be signed by the owner of the vessel and must be
176	176	accompanied by a fee of $25, or an amount set by the commission,
177	177	whichever is greater, and a certificate from a game warden
178	178	commissioned by the department stating that the vessel has been
179	179	inspected by the officer and appears to be as applied for. On
180	180	receipt of the application in approved form, the department shall
181	181	enter the information on the records of its office and shall issue
182	182	to the applicant a hull identification number.
183	183	(d) A person who has a vessel with an altered, defaced,
184	184	mutilated, or removed hull identification number or an outboard
185	185	motor with an altered, defaced, mutilated, or removed serial number
186	186	shall file a sworn statement with the department describing the
187	187	vessel or outboard motor, proving legal ownership, and, if known,
188	188	stating the reason for the destruction, removal, or defacement of
189	189	the number. The statement must be accompanied by a fee of $25, or an
190	190	amount set by the commission, whichever is greater, and a
191	191	certificate from a game warden commissioned by the department that
192	192	the vessel or outboard motor has been inspected by the officer and
193	193	appears to be as applied for. On receipt of the statement in
194	194	approved form, the department shall enter the information on
195	195	records of its office and shall issue to the applicant a hull
196	196	identification number or outboard motor serial number.
197	197	SECTION 8. Subchapter B-1, Chapter 31, Parks and Wildlife
198	198	Code, is amended by adding Section 31.0445 to read as follows:
199	199	Sec. 31.0445. DEFINITIONS. In this subchapter:
200	200	(1) "Barge" means a vessel that is not self-propelled
201	201	or fitted for propulsion by sail, paddle, oar, or similar device.
202	202	(2) "Builder's certificate" means a certificate of the
203	203	facts of build of a vessel described in 46 C.F.R. Section 67.99.
204	204	(3) "Buyer" includes, with respect to a vessel or
205	205	outboard motor, a person who contracts to buy the vessel or outboard
206	206	motor.
207	207	(4) "Certificate of origin" means a record created by
208	208	a manufacturer or importer as proof of identity of a vessel or
209	209	outboard motor. The term includes a manufacturer's certificate or
210	210	statement of origin and an importer's certificate or statement of
211	211	origin. The term does not include a builder's certificate.
212	212	(5) "Debtor" has the meaning assigned by Section
213	213	9.102, Business & Commerce Code.
214	214	(6) "Documented vessel" means a vessel covered by a
215	215	certificate of documentation issued under 46 U.S.C. Section 12105.
216	216	The term does not include a foreign-documented vessel.
217	217	(7) "Electronic certificate of title" means a
218	218	certificate of title consisting of information that is stored
219	219	solely in an electronic medium and is retrievable in perceivable
220	220	form.
221	221	(8) "Foreign-documented vessel" means a vessel the
222	222	ownership of which is recorded in a registry maintained by a country
223	223	other than the United States that identifies each person that has an
224	224	ownership interest in the vessel and includes a unique alphanumeric
225	225	designation for the vessel.
226	226	(9) "Hull damaged" means, with respect to a vessel:
227	227	(A) the integrity of the vessel's hull is
228	228	compromised by a collision, allision, lightning strike, fire,
229	229	explosion, running aground, or similar occurrence; or
230	230	(B) the sinking of the vessel in a manner that
231	231	creates a significant risk to the integrity of the vessel's hull.
232	232	(10) "Lease" and "lessor" have the meanings assigned
233	233	by Section 2A.103, Business & Commerce Code.
234	234	(11) "Lien creditor" has the meaning assigned by
235	235	Section 9.102, Business & Commerce Code.
236	236	(12) "Notice" has the meaning assigned by Section
237	237	1.202, Business & Commerce Code.
238	238	(13) "Secured party" means, with respect to a vessel
239	239	or outboard motor, a person:
240	240	(A) in whose favor a security interest is created
241	241	or provided for under a security agreement, regardless of whether
242	242	any obligation to be secured is outstanding;
243	243	(B) who is a consignor under Chapter 9, Business &
244	244	Commerce Code; or
245	245	(C) who holds a security interest arising under
246	246	Section 2.401, 2.505, 2.711(c), or 2A.508(e), Business & Commerce
247	247	Code.
248	248	(14) "Secured party of record" means the secured party
249	249	whose name is indicated as the name of the secured party in the
250	250	files of the department or, if the files indicate more than one
251	251	secured party, the one first indicated.
252	252	(15) "Title brand" means a designation of previous
253	253	damage, use, or condition that must be indicated on a certificate of
254	254	title.
255	255	(16) "Transfer of ownership" means a voluntary or
256	256	involuntary conveyance of an interest in a vessel or an outboard
257	257	motor.
258	258	(17) "Written certificate of title" means a
259	259	certificate of title consisting of information inscribed on a
260	260	tangible medium.
261	261	SECTION 9. Sections 31.045(b) and (d), Parks and Wildlife
262	262	Code, are amended to read as follows:
263	263	(b) The ownership of a new vessel or a new outboard motor is
264	264	evidenced by a manufacturer's or [an] importer's certificate of
265	265	origin executed on a form prescribed by the department.
266	266	(d) The ownership of a vessel [exempted from numbering under
267	267	Section 31.022(c) of this code] is not required to be evidenced by a
268	268	certificate of title issued by the department for:
269	269	(1) a vessel exempted from numbering under Section
270	270	31.022(c);
271	271	(2) a watercraft owned by the United States, a state, a
272	272	foreign government, or a political subdivision of the United
273	273	States, a state, or a foreign government;
274	274	(3) a watercraft used solely as a lifeboat on another
275	275	watercraft; or
276	276	(4) an amphibious vehicle for which a certificate of
277	277	title is issued under Chapter 501, Transportation Code, or a
278	278	similar law of another state.
279	279	SECTION 10. Section 31.046, Parks and Wildlife Code, is
280	280	amended by amending Subsections (a) and (b) and adding Subsection
281	281	(a-1) to read as follows:
282	282	(a) Except as provided by [in] Subsections (b) and (c) [of
283	283	this section], the owner of a vessel or outboard motor for which
284	284	this state is the state of principal use shall deliver to the
285	285	department or to a county tax assessor-collector an application for
286	286	a certificate of title for the vessel or outboard motor, with the
287	287	applicable fee, not later than the 20th day after the later of:
288	288	(1) the date of purchase or transfer of ownership; or
289	289	(2) the date that this state becomes the state of
290	290	principal use [purchaser of a vessel or an outboard motor shall
291	291	apply to the department or to a county tax assessor-collector for a
292	292	certificate of title not later than the 45th day after the date of
293	293	the sale of the vessel or outboard motor].
294	294	(a-1) For purposes of Subsection (a), the state of principal
295	295	use of a vessel or outboard motor is the state on whose waters a
296	296	vessel or outboard motor is or will be used, operated, navigated, or
297	297	employed more than on the waters of any other state during a
298	298	calendar year.
299	299	(b) A manufacturer or a dealer who sells a vessel or an
300	300	outboard motor to a person other than a manufacturer or a dealer
301	301	shall apply to the department or to a county tax assessor-collector
302	302	for a certificate of title for the vessel or outboard motor in the
303	303	name of the purchaser not later than the 20th [45th] day after the
304	304	date of the sale.
305	305	SECTION 11. Sections 31.047(b), (c), and (f), Parks and
306	306	Wildlife Code, are amended to read as follows:
307	307	(b) The form must contain:
308	308	(1) the owner's name, principal residence address,
309	309	mailing address, and owner identifier as prescribed by 33 C.F.R.
310	310	Section 174.17;
311	311	(2) a description of the vessel or outboard motor,
312	312	including, as appropriate, the manufacturer, make, model, year,
313	313	length, construction material, manufacturer's or builder's number,
314	314	hull identification number [(HIN)], motor number, outdrive number,
315	315	primary operation purpose, vessel type, propulsion type, engine
316	316	drive type, fuel type, and horsepower;
317	317	(3) name and address of purchaser;
318	318	(4) date of purchase;
319	319	(5) name and address of any security interest owner;
320	320	(6) the appropriate affidavit as required by Section
321	321	160.042, Tax Code;
322	322	(7) if the application is for a vessel:
323	323	(A) a statement that the vessel is not a
324	324	documented vessel or a foreign-documented vessel; and
325	325	(B) a statement that the vessel is hull damaged,
326	326	if the applicant knows that the vessel is hull damaged;
327	327	(8) if previously titled or registered:
328	328	(A) transferor's name and address;
329	329	(B) when applicable, name of the state in which
330	330	the vessel or outboard motor was previously titled or registered;
331	331	and
332	332	(C) any title brand known to the applicant and,
333	333	if known, the jurisdiction under whose law the title brand was
334	334	designated; and
335	335	(9) [(7)] other information required by the
336	336	department to show the ownership of the vessel or outboard motor, a
337	337	security interest in the vessel or outboard motor, or a further
338	338	description of items listed in the subdivision.
339	339	(c) The application must be accompanied by other evidence
340	340	reasonably required by the department to establish that the
341	341	applicant or other person is entitled to a certificate of title or a
342	342	noted security interest. The evidence may include:
343	343	(1) a certificate of title issued by another state or
344	344	jurisdiction;
345	345	(2) a manufacturer's or importer's certificate of
346	346	origin;
347	347	(3) a bill of sale, assignment, or contract;
348	348	(4) a promissory note;
349	349	(5) a security agreement;
350	350	(6) an invoice;
351	351	(7) a bill of lading;
352	352	(8) an affidavit;
353	353	(9) a probate or heirship proceeding or information;
354	354	(10) a judgment of a court of competent jurisdiction;
355	355	(11) evidence of an involuntary transfer, as defined
356	356	by [in Subdivision (5) of Subsection (a) of] Section 31.053(b)
357	357	[31.053, as amended], which may be in affidavit form attaching
358	358	copies of any pertinent underlying documents;
359	359	(12) if the vessel was a documented vessel, a record
360	360	issued by the Coast Guard that shows the vessel is no longer
361	361	documented and identifies the applicant as the owner, or is
362	362	accompanied by a record that identifies the applicant as the owner;
363	363	(13) if the vessel was a foreign-documented vessel, a
364	364	record issued by the foreign country that shows the vessel is no
365	365	longer a foreign-documented vessel and identifies the applicant as
366	366	the owner, or is accompanied by a record that identifies the
367	367	applicant as the owner; or
368	368	(14) [(12)] other documents.
369	369	(f) An application for a certificate of title on a homemade
370	370	vessel, the origin of which is based on the affidavit of the person
371	371	building the vessel, proof of materials incorporated into the
372	372	vessel, and the like, must be accompanied by a certificate from a
373	373	game warden commissioned by the department that the vessel has been
374	374	inspected by such officer and appears to be as applied for. The
375	375	applicant shall pay a fee of $25, or an amount set by the
376	376	commission, whichever is greater, to the department for this
377	377	inspection.
378	378	SECTION 12. Subchapter B-1, Chapter 31, Parks and Wildlife
379	379	Code, is amended by adding Section 31.0485 to read as follows:
380	380	Sec. 31.0485. ISSUANCE, REJECTION, AND CANCELLATION OF
381	381	CERTIFICATE OF TITLE. (a) Unless an application for a certificate
382	382	of title is rejected under Subsection (c) or (d), the department
383	383	shall issue a certificate of title for the vessel or outboard motor
384	384	in accordance with Subsection (b) not later than the 20th day after
385	385	the date the department receives an application that complies with
386	386	this chapter.
387	387	(b) If the department issues electronic certificates of
388	388	title, the department shall issue an electronic certificate of
389	389	title unless in the application the secured party of record or, if
390	390	none, the owner of record, requests that the department issue a
391	391	written certificate of title.
392	392	(c) Except as provided by Subsection (d), the department may
393	393	reject an application for a certificate of title only if:
394	394	(1) the application does not comply with this chapter
395	395	or other applicable law;
396	396	(2) the application does not contain documentation
397	397	sufficient for the department to determine whether the applicant is
398	398	entitled to a certificate of title; or
399	399	(3) the department finds a reasonable basis for
400	400	concluding that the application is fraudulent or issuance of a
401	401	certificate of title to the applicant would facilitate a fraudulent
402	402	or illegal act.
403	403	(d) The department shall reject an application for a
404	404	certificate of title for a vessel that is a documented vessel or a
405	405	foreign-documented vessel.
406	406	(e) On issuance of a written certificate of title, the
407	407	department promptly shall send the certificate of title to the
408	408	secured party of record or, if none, to the owner of record, at the
409	409	address indicated for that person in the files of the department.
410	410	On issuance of an electronic certificate of title, the department
411	411	promptly shall send a record evidencing the certificate of title to
412	412	the owner of record and, if there is one, to the secured party of
413	413	record, at the address indicated for that person in the files of the
414	414	department. The department may send the record to the person's
415	415	mailing address or, if indicated in the files of the department, an
416	416	electronic address.
417	417	(f) If the department issues a written certificate of title
418	418	for a vessel or outboard motor, any electronic certificate of title
419	419	for the vessel or outboard motor is canceled and replaced by the
420	420	written certificate of title. The department shall maintain in the
421	421	files of the department the date and time of cancellation.
422	422	(g) Before the department issues an electronic certificate
423	423	of title, any written certificate of title for the vessel or
424	424	outboard motor must be surrendered to the department. If the
425	425	department issues an electronic certificate of title, the
426	426	department shall destroy or otherwise cancel the written
427	427	certificate of title for the vessel or outboard motor that has been
428	428	surrendered to the department and maintain in the files of the
429	429	department the date and time of destruction or other cancellation.
430	430	If a written certificate of title being canceled is not destroyed,
431	431	the department shall indicate on the face of the certificate that it
432	432	has been canceled.
433	433	(h) The department may cancel a certificate of title issued
434	434	by the department only if the department:
435	435	(1) could have rejected the application for the
436	436	certificate under Subsection (c);
437	437	(2) is required to cancel the certificate under this
438	438	section or another provision of this chapter; or
439	439	(3) receives satisfactory evidence that the vessel is
440	440	a documented vessel or a foreign-documented vessel.
441	441	SECTION 13. Section 31.049, Parks and Wildlife Code, is
442	442	amended by amending Subsection (a) and adding Subsections (f), (g),
443	443	and (h) to read as follows:
444	444	(a) A certificate of title must be on a form prescribed by
445	445	the department and must contain:
446	446	(1) the name and mailing address of the owner of the
447	447	vessel or outboard motor and, if not all owners are listed, an
448	448	indication that there are additional owners indicated in the files
449	449	of the department;
450	450	(2) the name and mailing address of the owner of a
451	451	security interest in the vessel or outboard motor and, if not all
452	452	security interests are listed, an indication that there are
453	453	additional security interests indicated in the files of the
454	454	department; [and]
455	455	(3) a description of the vessel or outboard motor,
456	456	including, as appropriate, the hull identification number, motor
457	457	number, outdrive number, make, year, length, vessel type, hull
458	458	material, propulsion type, engine drive type, fuel type, and
459	459	horsepower;
460	460	(4) the date the certificate was issued;
461	461	(5) all title brands indicated in the files of the
462	462	department covering the vessel, including brands indicated on a
463	463	certificate issued by a governmental agency of another jurisdiction
464	464	and delivered to the department; and
465	465	(6) a form for the owner of record to indicate, in
466	466	connection with a transfer of ownership interest, that the vessel
467	467	is hull damaged.
468	468	(f) This chapter does not preclude the department from
469	469	noting on a certificate of title the name and mailing address of a
470	470	secured party that is not a secured party of record.
471	471	(g) For each title brand indicated on a certificate of
472	472	title, the certificate must identify the jurisdiction under whose
473	473	law the title brand was designated or the jurisdiction that issued
474	474	the certificate on which the title brand was designated. If the
475	475	meaning of a title brand is not easily ascertainable or cannot be
476	476	accommodated on the certificate, the certificate may state:
477	477	"Previously branded in (insert the jurisdiction under whose law the
478	478	title brand was designated or that issued the certificate of title
479	479	on which the title brand was designated)."
480	480	(h) If the files of the department indicate that a vessel
481	481	was previously registered or titled in a foreign country, the
482	482	department shall indicate on the certificate of title that the
483	483	vessel was registered or titled in that country.
484	484	SECTION 14. The heading to Section 31.050, Parks and
485	485	Wildlife Code, is amended to read as follows:
486	486	Sec. 31.050. FORM OF MANUFACTURER'S AND IMPORTER'S
487	487	CERTIFICATE OF ORIGIN.
488	488	SECTION 15. Sections 31.050(a) and (b), Parks and Wildlife
489	489	Code, are amended to read as follows:
490	490	(a) A manufacturer's [certificate] or [an] importer's
491	491	certificate of origin must include:
492	492	(1) a description of the vessel or outboard motor as
493	493	required by [Subdivision (2) of Subsection (b) of] Section
494	494	31.047(b)(2) [31.047 of this code];
495	495	(2) the name and place of construction or other
496	496	origin;
497	497	(3) the signature of the manufacturer or an equivalent
498	498	of the signature of the manufacturer; and
499	499	(4) the endorsement of the original and each
500	500	subsequent transferee, including the applicant for the original
501	501	certificate of title.
502	502	(b) A lien, security interest, or other encumbrance may not
503	503	be shown on a manufacturer's or importer's certificate of origin.
504	504	SECTION 16. Subchapter B-1, Chapter 31, Parks and Wildlife
505	505	Code, is amended by adding Section 31.0505 to read as follows:
506	506	Sec. 31.0505. HULL DAMAGED TITLE BRAND. (a) Unless
507	507	Subsection (b) applies, at or before the time the owner of record
508	508	transfers an ownership interest in a hull-damaged vessel that is
509	509	covered by a certificate of title issued by the department, if the
510	510	damage occurred while that person was an owner of the vessel and the
511	511	person has notice of the damage at the time of the transfer, the
512	512	owner shall:
513	513	(1) deliver to the department an application for a new
514	514	certificate of title that complies with Section 31.046 and includes
515	515	the title brand "Hull Damaged"; or
516	516	(2) indicate on the certificate of title in the place
517	517	designated for that purpose that the vessel is hull damaged and
518	518	deliver the certificate to the transferee.
519	519	(b) Before an insurer transfers an ownership interest in a
520	520	hull-damaged vessel that is covered by a certificate of title
521	521	issued by the department, the insurer shall deliver to the
522	522	department an application for a new certificate of title that
523	523	complies with Section 31.046 and includes the title brand "Hull
524	524	Damaged".
525	525	(c) Not later than the 20th day after the date of delivery to
526	526	the department of an application under Subsection (a)(1) or (b) or a
527	527	certificate of title under Subsection (a)(2), the department shall
528	528	issue a new certificate of title that indicates that the vessel is
529	529	title branded "Hull Damaged".
530	530	(d) A person commits an offense if the person:
531	531	(1) intentionally or knowingly:
532	532	(A) fails to comply with Subsection (a) or (b);
533	533	or
534	534	(B) solicits or colludes in a failure by an owner
535	535	of record to comply with Subsection (a); or
536	536	(2) negligently fails to comply with Subsection (a) or
537	537	(b).
538	538	(e) An offense under Subsection (d)(1) is a Class B Parks
539	539	and Wildlife Code misdemeanor. An offense under Subsection (d)(2)
540	540	is a Class C Parks and Wildlife Code misdemeanor.
541	541	SECTION 17. Section 31.051, Parks and Wildlife Code, is
542	542	amended to read as follows:
543	543	Sec. 31.051. REPLACEMENT CERTIFICATES OF TITLE. The
544	544	department shall provide by regulation for the replacement of
545	545	[lost, mutilated, or stolen] certificates of title.
546	546	SECTION 18. Sections 31.052(a), (c), and (d), Parks and
547	547	Wildlife Code, are amended to read as follows:
548	548	(a) Except as provided by this section and Section
549	549	31.050(c), and except for statutory liens, security interests in a
550	550	vessel or outboard motor shall be noted on the certificate of title
551	551	of the vessel or outboard motor to which the security interest
552	552	applies. On recordation of a security interest on the certificate
553	553	of title, the recorded security interest owner and assignees under
554	554	Subsection (c) obtain priority over the rights of a lien creditor[,
555	555	as defined by Section 9.102, Business & Commerce Code,] for so long
556	556	as the security interest is recorded on the certificate of title.
557	557	(c) A security interest owner may assign a security interest
558	558	recorded under this chapter without making any filing or giving any
559	559	notice under this chapter. The security interest assigned remains
560	560	valid and perfected and retains its priority, securing the
561	561	obligation assigned to the assignee, against transferees from and
562	562	creditors of the debtor, including lien creditors[, as defined by
563	563	Section 9.102, Business & Commerce Code].
564	564	(d) An assignee or assignor may, but need not to retain the
565	565	validity, perfection, and priority of the security interest
566	566	assigned, as evidence of the assignment of the security interest
567	567	recorded under this chapter, apply to the department or a county
568	568	assessor-collector for the assignee to be named as security
569	569	interest owner on the certificate of title and notify the debtor of
570	570	the assignment. Failure to make application under this subsection
571	571	or notify a debtor of an assignment does not create a cause of
572	572	action against the recorded security interest owner, the assignor,
573	573	or the assignee or affect the continuation of the perfected status
574	574	of the assigned security interest in favor of the assignee against
575	575	transferees from and creditors of the debtor, including lien
576	576	creditors[, as defined by Section 9.102, Business & Commerce Code].
577	577	SECTION 19. Section 31.053, Parks and Wildlife Code, is
578	578	amended by amending Subsections (a) and (c) and adding Subsections
579	579	(a-1), (g), and (h) to read as follows:
580	580	(a) No person may sell, assign, transfer, or otherwise
581	581	dispose of an interest in a vessel or an outboard motor without:
582	582	(1) if the transferee is not a manufacturer or a dealer
583	583	and the vessel or outboard motor is new, delivering to the
584	584	department a manufacturer's or importer's certificate of origin
585	585	showing the endorsement of the manufacturer and all intervening
586	586	owners;
587	587	(2) if the transferee is a manufacturer or a dealer and
588	588	the vessel or outboard motor is new, delivering to the transferee a
589	589	manufacturer's or importer's certificate of origin showing the
590	590	endorsement of the manufacturer and all intervening owners;
591	591	(3) if the vessel or outboard motor is not covered by a
592	592	certificate of title or a manufacturer's or importer's certificate
593	593	of origin and if the transferor is a manufacturer or dealer,
594	594	delivering to the department sufficient evidence of title or other
595	595	information to permit the issuance of a certificate of title for the
596	596	vessel or outboard motor in the name of the transferee;
597	597	(4) if the vessel or outboard motor is not covered by a
598	598	certificate of title or a manufacturer's or importer's certificate
599	599	of origin and if the transferor is not a manufacturer or dealer,
600	600	delivering to the transferee sufficient evidence of title or other
601	601	information to permit the transferee to apply for and receive a
602	602	certificate of title for the vessel or outboard motor in the name of
603	603	the transferee; or
604	604	(5) delivering to the transferee a certificate of
605	605	title for the vessel or outboard motor in the name of the transferor
606	606	and properly endorsed to show the transfer or evidence of an
607	607	involuntary transfer.
608	608	(a-1) For a voluntary transfer, if the transferor does not
609	609	have possession of the certificate of title, the person in
610	610	possession of the certificate of title shall facilitate the
611	611	transferor's compliance with this section, except that a secured
612	612	party does not have a duty to facilitate the transferor's
613	613	compliance with this section if the proposed transfer is prohibited
614	614	by the security agreement.
615	615	(c) The transferor shall provide the documents or evidence
616	616	required by Subsection (a) [of this section] to the department or
617	617	the transferee, as appropriate, in sufficient time to allow the
618	618	transferee to register and obtain a certificate of title for the
619	619	vessel or outboard motor not later than the 20th [45th] day after
620	620	the date of the sale.
621	621	(g) If the certificate of title is an electronic certificate
622	622	of title, the transferor shall promptly sign and deliver to the
623	623	transferee a record evidencing the transfer of ownership to the
624	624	transferee.
625	625	(h) The transferee has a right enforceable by specific
626	626	performance to require the transferor comply with Subsection
627	627	(a)(5), (a-1), or (g).
628	628	SECTION 20. Section 31.055, Parks and Wildlife Code, is
629	629	amended to read as follows:
630	630	Sec. 31.055. EXCEPTIONS. This subchapter does not apply
631	631	to:
632	632	(1) a vessel [vessels] with a valid marine document
633	633	issued by the United States Coast Guard's National Vessel
634	634	Documentation Center or a federal agency that is a successor to the
635	635	National Vessel Documentation Center;
636	636	(2) a foreign-documented vessel;
637	637	(3) a barge; or
638	638	(4) a vessel before delivery if the vessel is under
639	639	construction or completed under contract.
640	640	SECTION 21. Subchapter B-1, Chapter 31, Parks and Wildlife
641	641	Code, is amended by adding Sections 31.0563, 31.0565, 31.0567,
642	642	31.0569, 31.057, 31.0573, 31.0575, 31.0577, 31.0579, 31.058, and
643	643	31.0582 to read as follows:
644	644	Sec. 31.0563. RECORDS. (a) For each record relating to a
645	645	certificate of title submitted to the department, the department
646	646	shall maintain a file that includes:
647	647	(1) the hull identification number of the vessel or
648	648	the serial number of the outboard motor;
649	649	(2) all the information submitted with the application
650	650	under Section 31.046, including the date and time the application
651	651	was submitted to the department;
652	652	(3) the name of each secured party to the vessel or
653	653	outboard motor; and
654	654	(4) the name of each person known to the department to
655	655	be claiming an ownership interest in the vessel or outboard motor.
656	656	(b) In addition to the information described by Subsection
657	657	(a), the department shall maintain a list of all title brands known
658	658	to the department and stolen-property reports relating to vessels
659	659	or outboard motors made known to the department.
660	660	(c) The department shall maintain the information described
661	661	in this section in a manner that is searchable by hull
662	662	identification number of the vessel, the motor number, the vessel
663	663	number, and the name of the owner of record. The department may
664	664	maintain the information described in this section in a manner that
665	665	is searchable by other methods.
666	666	(d) The department shall provide to federal, state, and
667	667	local governmental entities the information described by this
668	668	section, on request of the governmental entities and for the
669	669	purposes of safety, security, or law enforcement.
670	670	(e) The department shall retain the evidence used to
671	671	establish the accuracy of the information in its files relating to
672	672	the ownership of a vessel or outboard motor and the information on
673	673	the certificate of title in accordance with the record retention
674	674	schedule established under the department's records management
675	675	program.
676	676	(f) The department shall retain in its files all information
677	677	regarding a security interest in a vessel or outboard motor for at
678	678	least 10 years after the department receives a termination
679	679	statement regarding the security interest. The information must be
680	680	accessible by the hull identification number of the vessel or
681	681	serial number of the outboard motor and any other methods provided
682	682	by the department.
683	683	(g) If a person submits a record to the department, or
684	684	submits information that is accepted by the department, and
685	685	requests an acknowledgment of the filing or submission, the
686	686	department shall send to the person an acknowledgment showing the
687	687	hull identification number of the vessel or serial number of the
688	688	outboard motor to which the record or submission relates, the
689	689	information in the filed record or submission, and the date and time
690	690	the record was received or the submission accepted. A request
691	691	described by this subsection must contain the hull identification
692	692	number of the vessel and serial number of the outboard motor and be
693	693	delivered by means authorized by the department.
694	694	Sec. 31.0565. EFFECT OF CERTIFICATE OF TITLE ON INFORMATION
695	695	IN CERTIFICATE. A certificate of title is prima facie evidence of
696	696	the accuracy of the information in the record that constitutes the
697	697	certificate.
698	698	Sec. 31.0567. EFFECT OF POSSESSION OF CERTIFICATE OF TITLE;
699	699	JUDICIAL PROCESS. Possession of a certificate of title does not
700	700	provide a right to obtain possession of a vessel or outboard motor.
701	701	Garnishment, attachment, levy, replevin, or other judicial process
702	702	against the certificate is not effective to determine possessory
703	703	rights to the vessel or outboard motor. This chapter does not
704	704	prohibit enforcement under the laws of this state of a security
705	705	interest in, levy on, or foreclosure of a statutory or common-law
706	706	lien on a vessel or outboard motor. Absence of an indication of a
707	707	statutory or common-law lien on a certificate of title does not
708	708	invalidate the lien.
709	709	Sec. 31.0569. PERFECTION OF SECURITY INTEREST. (a) A
710	710	security interest in a vessel or outboard motor may be perfected
711	711	only by delivery to the department of an application for a
712	712	certificate of title that identifies the secured party and
713	713	otherwise complies with Section 31.049. The security interest is
714	714	perfected on the later of delivery to the department of the
715	715	application and the applicable fee or attachment of the security
716	716	interest under Section 9.203, Business & Commerce Code.
717	717	(b) If the interest of a person named as owner, lessor,
718	718	consignor, or bailor in an application for a certificate of title
719	719	delivered to the department is a security interest, the application
720	720	sufficiently identifies the person as a secured party.
721	721	Identification on the application for a certificate of title of a
722	722	person as owner, lessor, consignor, or bailor is not by itself a
723	723	factor in determining whether the person's interest is a security
724	724	interest.
725	725	(c) If the department has issued a certificate of title for
726	726	a vessel or outboard motor, a security interest in the vessel or
727	727	outboard motor may be perfected by delivery to the department of an
728	728	application, on a form prescribed by the department, to have the
729	729	security interest added to the certificate of title. The
730	730	application must be signed by an owner of the vessel or outboard
731	731	motor or by the secured party and must include:
732	732	(1) the name of the owner of record;
733	733	(2) the name and mailing address of the secured party;
734	734	(3) the hull identification number of the vessel and
735	735	serial number of the outboard motor, as applicable; and
736	736	(4) the certificate of title, if the department has
737	737	issued a written certificate of title for the vessel or outboard
738	738	motor.
739	739	(d) A security interest perfected under Subsection (c) is
740	740	perfected on the later of:
741	741	(1) delivery to the department of the application and
742	742	all applicable fees; or
743	743	(2) attachment of the security interest under Section
744	744	9.203, Business & Commerce Code.
745	745	(e) On delivery of an application that complies with
746	746	Subsection (c) and payment of all applicable fees, the department
747	747	shall issue a new certificate of title under Section 31.0485 and
748	748	deliver the new certificate of title or a record evidencing an
749	749	electronic certificate of title as required by Subsection (e) of
750	750	that section. The department shall maintain in the files of the
751	751	department the date and time of delivery of the application to the
752	752	department.
753	753	(f) If a secured party assigns a perfected security interest
754	754	in a vessel or outboard motor, the receipt by the department of a
755	755	statement providing the name of the assignee as secured party is not
756	756	required to continue the perfected status of the security interest
757	757	against creditors of and transferees from the original debtor. A
758	758	purchaser of a vessel or outboard motor subject to a security
759	759	interest who obtains a release from the secured party indicated in
760	760	the files of the department or on the certificate of title takes
761	761	free of the security interest and of the rights of a transferee
762	762	unless the transfer is indicated in the files of the department or
763	763	on the certificate of title.
764	764	(g) This section does not apply to a security interest:
765	765	(1) issued for a vessel or outboard motor by a person
766	766	during any period in which the vessel or outboard motor is inventory
767	767	held for sale or lease by the person or is leased by the person as
768	768	lessor if the person is in the business of selling vessels or
769	769	outboard motors;
770	770	(2) in a barge for which no application for a
771	771	certificate of title has been delivered to the department; or
772	772	(3) in a vessel or outboard motor before delivery if
773	773	the vessel or outboard motor is under construction or completed
774	774	under contract and for which no application for a certificate of
775	775	title has been delivered to the department.
776	776	(h) If a certificate of documentation for a documented
777	777	vessel is deleted or canceled, a security interest in the vessel
778	778	that was valid immediately before deletion or cancellation against
779	779	a third party as a result of compliance with 46 U.S.C. Section 31321
780	780	is and remains perfected until the earlier of:
781	781	(1) four months after deletion or cancellation of the
782	782	certificate of documentation; or
783	783	(2) the perfection of the security interest under this
784	784	section.
785	785	(i) A security interest in a vessel or outboard motor
786	786	arising under Section 2.401, 2.505, 2.711(c), or 2A.508(e),
787	787	Business & Commerce Code, is perfected when it attaches but becomes
788	788	unperfected when the debtor obtains possession of the vessel or
789	789	outboard motor, unless before the debtor obtains possession the
790	790	security interest is perfected under Subsection (a) or (c).
791	791	(j) A security interest in a vessel or outboard motor as
792	792	proceeds of other collateral is perfected to the extent provided in
793	793	Section 9.315, Business & Commerce Code.
794	794	(k) A security interest in a vessel or outboard motor
795	795	perfected under the law of another jurisdiction is perfected to the
796	796	extent provided in Section 9.316(d), Business & Commerce Code.
797	797	Sec. 31.057. TERMINATION STATEMENT. (a) A secured party
798	798	indicated in the files of the department as having a security
799	799	interest in a vessel or outboard motor shall deliver a termination
800	800	statement to the department and, on the debtor's request, to the
801	801	debtor, not later than the earlier of:
802	802	(1) the 20th day after the date the secured party
803	803	receives a signed demand from an owner for a termination statement
804	804	and there is no obligation secured by the vessel or outboard motor
805	805	subject to the security interest and no commitment to make an
806	806	advance, incur an obligation, or otherwise give value secured by
807	807	the vessel or outboard motor; or
808	808	(2) if the vessel or outboard motor is used or bought
809	809	for use primarily for personal, family, or household purposes, the
810	810	30th day after the date that no obligation is secured by the vessel
811	811	or outboard motor and no commitment exists to make an advance, incur
812	812	an obligation, or otherwise give value secured by the vessel or
813	813	outboard motor.
814	814	(b) If a written certificate of title has been issued and
815	815	delivered to a secured party and a termination statement is
816	816	required under Subsection (a), the secured party, not later than
817	817	the date required by Subsection (a), shall deliver the certificate
818	818	of title to the debtor or to the department with the statement. If
819	819	the certificate of title is lost, stolen, mutilated, destroyed, or
820	820	is otherwise unavailable or illegible, the secured party shall
821	821	deliver with the statement, not later than the date required by
822	822	Subsection (a), an application for a replacement certificate of
823	823	title meeting the requirements prescribed in the regulations
824	824	adopted under Section 31.051.
825	825	(c) On delivery to the department of a termination statement
826	826	authorized by the secured party, and, if applicable, an application
827	827	for a replacement certificate of title meeting the requirements
828	828	prescribed in the regulations adopted under Section 31.051, the
829	829	security interest to which the statement relates ceases to be
830	830	perfected. If the security interest to which the statement relates
831	831	was indicated on the certificate of title, the department shall
832	832	issue a new certificate of title and deliver the new certificate of
833	833	title or a record evidencing an electronic certificate of title.
834	834	The department shall maintain in its files the date and time of
835	835	delivery to the department of the termination statement.
836	836	(d) A secured party that fails to comply with this section
837	837	is liable for:
838	838	(1) any loss that the secured party had reason to know
839	839	might result from the secure party's failure to comply and which
840	840	could not reasonably have been prevented; and
841	841	(2) the cost of an application for a certificate of
842	842	title under Section 31.047 or a replacement certificate of title
843	843	under the regulations adopted under Section 31.051.
844	844	Sec. 31.0573. EFFECT OF MISSING OR INCORRECT INFORMATION.
845	845	Except as otherwise provided by Section 9.337, Business & Commerce
846	846	Code, a certificate of title or other record required or authorized
847	847	by this chapter is effective, regardless of whether it contains
848	848	incorrect information or does not contain required information.
849	849	Sec. 31.0575. TRANSFER OF OWNERSHIP BY SECURED PARTY'S
850	850	TRANSFER STATEMENT. (a) In this section, "secured party's
851	851	transfer statement" means a record signed by the secured party of
852	852	record stating:
853	853	(1) there has been a default on an obligation secured
854	854	by the vessel or outboard motor;
855	855	(2) the secured party of record is exercising or has
856	856	exercised post-default remedies with respect to the vessel or
857	857	outboard motor;
858	858	(3) by reason of the exercise, the secured party of
859	859	record has the right to transfer the ownership interest of an owner,
860	860	and the name of the owner;
861	861	(4) the name and last known mailing address of the
862	862	owner of record and the secured party of record;
863	863	(5) the name of the transferee;
864	864	(6) other information required by Section 31.047(b);
865	865	and
866	866	(7) one of the following:
867	867	(A) that the certificate of title is an
868	868	electronic certificate of title;
869	869	(B) that the secured party does not have
870	870	possession of the written certificate of title issued in the name of
871	871	the owner of record; or
872	872	(C) that the secured party is delivering the
873	873	written certificate of title to the department with the secured
874	874	party's transfer statement.
875	875	(b) Unless the department rejects a secured party's
876	876	transfer statement for a reason stated in Section 31.0485(c), not
877	877	later than the 20th day after the date of delivery to the department
878	878	of the statement and payment of fees due under this chapter and
879	879	taxes payable under Chapter 160, Tax Code, in connection with the
880	880	statement or the acquisition or use of the vessel or outboard motor,
881	881	the department shall:
882	882	(1) accept the statement;
883	883	(2) amend the files of the department to reflect the
884	884	transfer; and
885	885	(3) if the name of the owner whose ownership interest
886	886	is being transferred is indicated on the certificate of title:
887	887	(A) cancel the certificate of title, regardless
888	888	of whether the certificate of title has been delivered to the
889	889	department;
890	890	(B) issue a new certificate of title indicating
891	891	the transferee as owner; and
892	892	(C) deliver the new certificate of title or a
893	893	record evidencing an electronic certificate of title.
894	894	(c) The submission to the department of a secured party's
895	895	transfer statement, or the issuance of a certificate of title under
896	896	Subsection (b), is not a disposition of the vessel or outboard motor
897	897	and does not relieve the secured party of the secured party's duties
898	898	under Chapter 9, Business & Commerce Code.
899	899	Sec. 31.0577. TRANSFER BY OPERATION OF LAW. (a) In this
900	900	section:
901	901	(1) "By operation of law" means, with respect to a
902	902	vessel or outboard motor, in accordance with a law or judicial order
903	903	affecting ownership of the vessel or outboard motor:
904	904	(A) because of death, divorce or other family law
905	905	proceeding, merger, consolidation, dissolution, or bankruptcy;
906	906	(B) through the exercise of the rights of a lien
907	907	creditor or a person having a lien created by statute or rule of
908	908	law; or
909	909	(C) through other legal process.
910	910	(2) "Transfer-by-law statement" means a record signed
911	911	by a transferee stating that by operation of law the transferee has
912	912	acquired or has the right to acquire an ownership interest in a
913	913	vessel or outboard motor.
914	914	(b) A transfer-by-law statement must contain:
915	915	(1) the name and last known mailing address of the
916	916	owner of record and the transferee and the other information
917	917	required by Section 31.047(b);
918	918	(2) documentation sufficient to establish the
919	919	transferee's ownership interest or right to acquire the ownership
920	920	interest;
921	921	(3) a statement that:
922	922	(A) the certificate of title is an electronic
923	923	certificate of title;
924	924	(B) the transferee does not have possession of
925	925	the written certificate of title issued in the name of the owner of
926	926	record; or
927	927	(C) the transferee is delivering the written
928	928	certificate of title to the department with the transfer-by-law
929	929	statement; and
930	930	(4) except for a transfer described in Subsection
931	931	(a)(1)(A), evidence that notification of the transfer and the
932	932	intent to file the transfer-by-law statement has been sent to all
933	933	persons indicated in the files of the department as having an
934	934	interest, including a security interest, in the vessel or outboard
935	935	motor.
936	936	(c) Unless the department rejects a transfer-by-law
937	937	statement for a reason stated in Section 31.0485(c) or because the
938	938	statement does not include documentation satisfactory to the
939	939	department as to the transferee's ownership interest or right to
940	940	acquire the ownership interest, not later than the 20th day after
941	941	the date of delivery to the department of the statement and payment
942	942	of fees due under this chapter and taxes payable under Chapter 160,
943	943	Tax Code, in connection with the statement or with the acquisition
944	944	or use of the vessel or outboard motor, the department shall:
945	945	(1) accept the statement;
946	946	(2) amend the files of the department to reflect the
947	947	transfer; and
948	948	(3) if the name of the owner whose ownership interest
949	949	is being transferred is indicated on the certificate of title:
950	950	(A) cancel the certificate of title, regardless
951	951	of whether the certificate of title has been delivered to the
952	952	department;
953	953	(B) issue a new certificate of title indicating
954	954	the transferee as owner;
955	955	(C) indicate on the new certificate of title any
956	956	security interest indicated on the canceled certificate of title,
957	957	unless a court order provides otherwise; and
958	958	(D) deliver the new certificate of title or a
959	959	record evidencing an electronic certificate of title.
960	960	(d) This section does not apply to a transfer of an interest
961	961	in a vessel or outboard motor by a secured party under Subchapter F,
962	962	Chapter 9, Business & Commerce Code.
963	963	Sec. 31.0579. APPLICATION FOR TERMINATION OF SECURITY
964	964	INTEREST WITHOUT CERTIFICATE OF TITLE. (a) Except as provided by
965	965	Sections 31.0575 and 31.0577, if the department receives,
966	966	unaccompanied by a signed certificate of title, an application for
967	967	a new certificate of title that includes an indication of a
968	968	termination statement, the department may issue a new certificate
969	969	of title under this section only if:
970	970	(1) all other requirements under Sections 31.047 and
971	971	31.0485 are met;
972	972	(2) the applicant provides an affidavit stating facts
973	973	showing the applicant is entitled to a termination statement;
974	974	(3) the applicant provides the department with
975	975	satisfactory evidence that notification of the application has been
976	976	sent to all persons indicated in the files of the department as
977	977	having a security interest in the vessel or outboard motor, not
978	978	earlier than the 45th day after the date the notification was sent,
979	979	and the department has not received an objection from any of those
980	980	persons; and
981	981	(4) the applicant submits any other information
982	982	required by the department as evidence of the applicant's right to
983	983	terminate the security interest, and the department has no credible
984	984	information indicating theft, fraud, or an undisclosed or
985	985	unsatisfied security interest, lien, or other claim to an interest
986	986	in the vessel or outboard motor.
987	987	(b) The department may indicate in a certificate of title
988	988	issued under Subsection (a) that the certificate of title was
989	989	issued without submission of a termination statement. Unless
990	990	credible information indicating theft, fraud, or an undisclosed or
991	991	unsatisfied security interest, lien, or other claim to an interest
992	992	in the vessel or outboard motor is delivered to the department not
993	993	later than the first anniversary of the date of the issuance of the
994	994	certificate of title under Subsection (a), on request in a form and
995	995	manner required by the department, the department shall remove the
996	996	indication from the certificate of title.
997	997	(c) Unless the department determines that the value of a
998	998	vessel or outboard motor is less than $5,000, the department may
999	999	require the applicant to post a bond or provide an equivalent source
1000	1000	of indemnity or security before the department issues a certificate
1001	1001	of title under Subsection (a). The bond, indemnity, or other
1002	1002	security may not exceed twice the value of the vessel or outboard
1003	1003	motor as determined by the department. The bond, indemnity, or
1004	1004	other security must be in a form required by the department and
1005	1005	provide for indemnification of any owner, purchaser, or other
1006	1006	claimant for any expense, loss, delay, or damage, including
1007	1007	reasonable attorney's fees and costs, but not including incidental
1008	1008	or consequential damages, resulting from issuance or amendment of
1009	1009	the certificate of title.
1010	1010	(d) Unless the department receives a claim for indemnity not
1011	1011	later than the first anniversary of the date of the issuance of a
1012	1012	certificate of title under Subsection (a), on request in a form and
1013	1013	manner required by the department, the department shall release any
1014	1014	bond, indemnity, or other security.
1015	1015	Sec. 31.058. RIGHTS OF PURCHASER OTHER THAN SECURED PARTY.
1016	1016	(a) In this section, "buyer in ordinary course of business" has the
1017	1017	meaning assigned by Section 1.201, Business & Commerce Code.
1018	1018	(b) A buyer in ordinary course of business has the
1019	1019	protections afforded by Sections 2.403(b) and 9.320(a), Business &
1020	1020	Commerce Code, regardless of whether:
1021	1021	(1) an existing certificate of title was signed and
1022	1022	delivered to the buyer; or
1023	1023	(2) a new certificate of title listing the buyer as
1024	1024	owner of record was issued.
1025	1025	(c) Except as provided by Sections 31.053 and 31.0582, the
1026	1026	rights of a purchaser of a vessel or outboard motor that is not a
1027	1027	buyer in ordinary course of business or a lien creditor are governed
1028	1028	by the Business & Commerce Code.
1029	1029	Sec. 31.0582. RIGHTS OF SECURED PARTY. (a) In this
1030	1030	section, "good faith" means honesty in fact and the observance of
1031	1031	reasonable commercial standards of fair dealing.
1032	1032	(b) Subject to Subsection (c), the effect of perfection and
1033	1033	nonperfection of a security interest and the priority of a
1034	1034	perfected or unperfected security interest with respect to the
1035	1035	rights of a purchaser or creditor, including a lien creditor, is
1036	1036	governed by the Business & Commerce Code.
1037	1037	(c) If, while a security interest in a vessel or outboard
1038	1038	motor is perfected by any method under this chapter, the department
1039	1039	issues a certificate of title that does not indicate that the vessel
1040	1040	or outboard motor is subject to the security interest or contain a
1041	1041	statement that it may be subject to security interests not
1042	1042	indicated on the certificate of title:
1043	1043	(1) a buyer of the vessel or outboard motor, other than
1044	1044	a person in the business of selling or leasing vessels or outboard
1045	1045	motors of that kind, takes free of the security interest if the
1046	1046	buyer, acting in good faith and without knowledge of the security
1047	1047	interest, gives value and receives possession of the vessel or
1048	1048	outboard motor; and
1049	1049	(2) the security interest is subordinate to a
1050	1050	conflicting security interest in the vessel or outboard motor that
1051	1051	is perfected under Section 31.0569, after creation of the
1052	1052	certificate and without the conflicting secured party's knowledge
1053	1053	of the security interest.
1054	1054	SECTION 22. The following provisions of the Parks and
1055	1055	Wildlife Code are repealed:
1056	1056	(1) Section 31.039(c); and
1057	1057	(2) Sections 31.049(b) and (c).
1058	1058	SECTION 23. (a) The rights, duties, and interests flowing
1059	1059	from a transaction, certificate of title, or record relating to a
1060	1060	vessel or outboard motor which was validly entered into or issued
1061	1061	before the effective date of this Act and would be subject to
1062	1062	Chapter 31, Parks and Wildlife Code, as amended by this Act, if it
1063	1063	had been entered into or issued on or after the effective date of
1064	1064	this Act, remain valid on and after the effective date of this Act.
1065	1065	(b) This Act does not affect an action or proceeding
1066	1066	commenced before the effective date of this Act.
1067	1067	(c) Except as provided by Subsection (d) of this section, a
1068	1068	security interest that is enforceable immediately before the
1069	1069	effective date of this Act and would have priority over the rights
1070	1070	of a person that becomes a lien creditor at that time is a perfected
1071	1071	security interest under this Act.
1072	1072	(d) A security interest perfected immediately before the
1073	1073	effective date of this Act remains perfected until the earlier of:
1074	1074	(1) the time perfection would have ceased under the
1075	1075	law under which the security interest was perfected; or
1076	1076	(2) three years after the effective date of this Act.
1077	1077	(e) This Act does not affect the priority of a security
1078	1078	interest in a vessel or outboard motor if immediately before the
1079	1079	effective date of this Act the security interest is enforceable and
1080	1080	perfected, and that priority is established.
1081	1081	SECTION 24. This Act takes effect January 1, 2028.