89R4440 AB-F
By: Vasut H.B. No. 4895
A BILL TO BE ENTITLED
AN ACT
relating to certificates of number and certificates of title issued
by and records kept by the Parks and Wildlife Department; creating a
criminal offense.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 31.003, Parks and Wildlife Code, is
amended by amending Subdivisions (2), (8), and (11) and adding
Subdivisions (19), (20), (21), (22), (23), (24), (25), (26), and
(27) to read as follows:
(2) "Vessel" means any watercraft[, other than a
seaplane on water,] used or capable of being used for
transportation on water, except:
(A) a watercraft exempted by commission rule;
(B) a watercraft that operates only on a
permanently fixed, manufactured course, the movement of which is
restricted to or guided by means of a mechanical device to which the
watercraft is attached or by which the watercraft is controlled;
(C) a seaplane; and
(D) a stationary floating structure that:
(i) does not have and is not designed to
have a mode of propulsion of its own;
(ii) is dependent for utilities upon a
continuous utility hookup to a source originating on shore; and
(iii) has a permanent, continuous hookup to
a shoreside sewage system.
(8) "Vessel livery" means a person [business
establishment] engaged in advertising, renting, or hiring out
vessels for consideration [profit]. The term includes a
recreational equipment timeshare business that leases or rents
vessels for consideration.
(11) "Manufacturer" means a person engaged in the
business of manufacturing or importing new and unused vessels and
outboard motors for the purpose of sale or trade.
(19) "Cancel" means, with respect to a certificate of
title, to make the certificate ineffective.
(20) "Certificate of title" means, with respect to a
vessel or outboard motor, a record, created by the department under
this chapter or by a governmental agency of another jurisdiction
under the law of that jurisdiction, that is designated as a
certificate of title by the department or agency and is evidence of
ownership of a vessel or outboard motor.
(21) "Electronic" means relating to technology having
electrical, digital, magnetic, wireless, optical, electromagnetic,
or similar capabilities.
(22) "Hull identification number" means the
alphanumeric designation assigned to a vessel under 33 C.F.R. Part
181.
(23) "Owner of record" or "recorded owner" means an
owner indicated in the files of the department.
(24) "Purchase" means, with respect to a vessel or
outboard motor, to take by any voluntary transaction that creates
an interest in the vessel or outboard motor.
(25) "Purchaser" means a person who takes by purchase.
(26) "Record" means information inscribed on a
tangible medium or stored in an electronic or other medium and
retrievable in perceivable form.
(27) "Security interest" means, with respect to a
vessel or outboard motor, an interest in the vessel or outboard
motor that secures payment or performance of an obligation if the
interest is created by contract or arises under Section 2.401,
2.505, 2.711(c), or 2A.508(e), Business & Commerce Code, except
that the retention or reservation of title by a seller of a vessel
or outboard motor notwithstanding shipment or delivery to the buyer
under Section 2.401 of that code is limited in effect to a
reservation of a security interest. The term:
(A) includes any interest of a consignor in a
vessel or outboard motor in a transaction that is subject to Chapter
9, Business & Commerce Code; and
(B) does not include:
(i) the special property interest of a
buyer of a vessel or outboard motor on identification of that vessel
or outboard motor to a contract for sale under Section 2.501,
Business & Commerce Code, unless a buyer acquires a security
interest by complying with Chapter 9 of that code;
(ii) the right of a seller or lessor of a
vessel or outboard motor under Chapter 2 or 2A, Business & Commerce
Code, to retain or acquire possession of the vessel or outboard
motor:
(a) except as otherwise provided by
Section 2.505, Business & Commerce Code; or
(b) unless a seller or lessor acquires
a security interest by complying with Chapter 9, Business &
Commerce Code; or
(iii) an interest created by a transaction
in the form of a lease, unless the transaction created a security
interest under Section 1.203, Business & Commerce Code.
SECTION 2. Section 31.022(a), Parks and Wildlife Code, is
amended to read as follows:
(a) A vessel is not required to be numbered under the
provisions of this chapter if it is:
(1) operated within this state for a period not
exceeding 90 consecutive days and is covered by a number in full
force and effect which has been awarded under federal law or a
federally approved numbering system of another state;
(2) from a country other than the United States
temporarily using the water of this state;
(3) owned by the United States, a state, or a
subdivision of a state; [or]
(4) a ship's lifeboat; or
(5) an amphibious vehicle for which a certificate of
title is issued under Chapter 501, Transportation Code, or a
similar law of another state.
SECTION 3. Section 31.028, Parks and Wildlife Code, is
amended to read as follows:
Sec. 31.028. CERTIFICATE OF NUMBER. The certificate of
number shall be pocket-size. The certificate, [or] a facsimile of
the certificate, or an electronic version of the certificate
provided by the department [it] shall be carried on board the vessel
at all times. It does not have to be on the person of the operator
if prior to trial the operator can produce for examination a valid
certificate of number.
SECTION 4. Section 31.037(c), Parks and Wildlife Code, is
amended to read as follows:
(c) The new owner of a vessel shall, not later than the 20th
[45th] day after the date ownership was transferred, submit an
application to the department with:
(1) evidence of ownership;
(2) the new owner's name and address;
(3) the number of the vessel; and
(4) a fee of $2 or an amount set by the commission,
whichever amount is more.
SECTION 5. Sections 31.039(a) and (b), Parks and Wildlife
Code, are amended to read as follows:
(a) Ownership [Except as provided by Subsection (c), all
ownership] records of the department made or kept under this
chapter are public records, including the information required
under Section 31.049, except the following information is not a
public record:
(1) an owner identifier as prescribed by 33 C.F.R.
Section 174.17;
(2) the phone number, e-mail address, social security
number, or taxpayer identification number of an owner of a vessel or
outboard motor; and
(3) any other information contained in an ownership
record that is not subject to public disclosure under Chapter 552,
Government Code, or other law.
(b) The commission may by rule charge a fee for access to
ownership records and other records made or kept under this
chapter. The department may provide a record in any medium. If
requested, the department shall provide a record in a format that is
self-authenticating under Rule 902, Texas Rules of Evidence.
SECTION 6. Sections 31.041(h) and (i), Parks and Wildlife
Code, are amended to read as follows:
(h) Not later than the 20th [45th] day after a dealer,
distributor, or manufacturer holding a dealer's, distributor's, or
manufacturer's license sells at the first or a subsequent sale a
vessel or outboard motor, the dealer, distributor, or manufacturer
shall apply, in the name of the purchaser of the vessel or outboard
motor, for a certificate of number or a certificate of title for the
vessel or outboard motor, as applicable, and file with the
department each document necessary to transfer the certificate of
number or certificate of title.
(i) A person purchasing a vessel may use the temporary
facsimile number issued under Subsection (f) for a period not to
exceed 20 [45] days from the date the dealer, distributor, or
manufacturer applies for a certificate of number or a certificate
of title under Subsection (h). The person shall retain the
facsimile number on the vessel for the period described by this
subsection.
SECTION 7. Sections 31.043(b) and (d), Parks and Wildlife
Code, are amended to read as follows:
(b) The owner of a vessel that does not have a
manufacturer's hull identification number may file an application
for a hull identification number with the department on forms
approved by it. The application must include a sworn statement
describing the vessel, proving legal ownership, and, if known,
stating the reason for the lack of hull identification number. The
application must be signed by the owner of the vessel and must be
accompanied by a fee of $25, or an amount set by the commission,
whichever is greater, and a certificate from a game warden
commissioned by the department stating that the vessel has been
inspected by the officer and appears to be as applied for. On
receipt of the application in approved form, the department shall
enter the information on the records of its office and shall issue
to the applicant a hull identification number.
(d) A person who has a vessel with an altered, defaced,
mutilated, or removed hull identification number or an outboard
motor with an altered, defaced, mutilated, or removed serial number
shall file a sworn statement with the department describing the
vessel or outboard motor, proving legal ownership, and, if known,
stating the reason for the destruction, removal, or defacement of
the number. The statement must be accompanied by a fee of $25, or an
amount set by the commission, whichever is greater, and a
certificate from a game warden commissioned by the department that
the vessel or outboard motor has been inspected by the officer and
appears to be as applied for. On receipt of the statement in
approved form, the department shall enter the information on
records of its office and shall issue to the applicant a hull
identification number or outboard motor serial number.
SECTION 8. Subchapter B-1, Chapter 31, Parks and Wildlife
Code, is amended by adding Section 31.0445 to read as follows:
Sec. 31.0445. DEFINITIONS. In this subchapter:
(1) "Barge" means a vessel that is not self-propelled
or fitted for propulsion by sail, paddle, oar, or similar device.
(2) "Builder's certificate" means a certificate of the
facts of build of a vessel described in 46 C.F.R. Section 67.99.
(3) "Buyer" includes, with respect to a vessel or
outboard motor, a person who contracts to buy the vessel or outboard
motor.
(4) "Certificate of origin" means a record created by
a manufacturer or importer as proof of identity of a vessel or
outboard motor. The term includes a manufacturer's certificate or
statement of origin and an importer's certificate or statement of
origin. The term does not include a builder's certificate.
(5) "Debtor" has the meaning assigned by Section
9.102, Business & Commerce Code.
(6) "Documented vessel" means a vessel covered by a
certificate of documentation issued under 46 U.S.C. Section 12105.
The term does not include a foreign-documented vessel.
(7) "Electronic certificate of title" means a
certificate of title consisting of information that is stored
solely in an electronic medium and is retrievable in perceivable
form.
(8) "Foreign-documented vessel" means a vessel the
ownership of which is recorded in a registry maintained by a country
other than the United States that identifies each person that has an
ownership interest in the vessel and includes a unique alphanumeric
designation for the vessel.
(9) "Hull damaged" means, with respect to a vessel:
(A) the integrity of the vessel's hull is
compromised by a collision, allision, lightning strike, fire,
explosion, running aground, or similar occurrence; or
(B) the sinking of the vessel in a manner that
creates a significant risk to the integrity of the vessel's hull.
(10) "Lease" and "lessor" have the meanings assigned
by Section 2A.103, Business & Commerce Code.
(11) "Lien creditor" has the meaning assigned by
Section 9.102, Business & Commerce Code.
(12) "Notice" has the meaning assigned by Section
1.202, Business & Commerce Code.
(13) "Secured party" means, with respect to a vessel
or outboard motor, a person:
(A) in whose favor a security interest is created
or provided for under a security agreement, regardless of whether
any obligation to be secured is outstanding;
(B) who is a consignor under Chapter 9, Business &
Commerce Code; or
(C) who holds a security interest arising under
Section 2.401, 2.505, 2.711(c), or 2A.508(e), Business & Commerce
Code.
(14) "Secured party of record" means the secured party
whose name is indicated as the name of the secured party in the
files of the department or, if the files indicate more than one
secured party, the one first indicated.
(15) "Title brand" means a designation of previous
damage, use, or condition that must be indicated on a certificate of
title.
(16) "Transfer of ownership" means a voluntary or
involuntary conveyance of an interest in a vessel or an outboard
motor.
(17) "Written certificate of title" means a
certificate of title consisting of information inscribed on a
tangible medium.
SECTION 9. Sections 31.045(b) and (d), Parks and Wildlife
Code, are amended to read as follows:
(b) The ownership of a new vessel or a new outboard motor is
evidenced by a manufacturer's or [an] importer's certificate of
origin executed on a form prescribed by the department.
(d) The ownership of a vessel [exempted from numbering under
Section 31.022(c) of this code] is not required to be evidenced by a
certificate of title issued by the department for:
(1) a vessel exempted from numbering under Section
31.022(c);
(2) a watercraft owned by the United States, a state, a
foreign government, or a political subdivision of the United
States, a state, or a foreign government;
(3) a watercraft used solely as a lifeboat on another
watercraft; or
(4) an amphibious vehicle for which a certificate of
title is issued under Chapter 501, Transportation Code, or a
similar law of another state.
SECTION 10. Section 31.046, Parks and Wildlife Code, is
amended by amending Subsections (a) and (b) and adding Subsection
(a-1) to read as follows:
(a) Except as provided by [in] Subsections (b) and (c) [of
this section], the owner of a vessel or outboard motor for which
this state is the state of principal use shall deliver to the
department or to a county tax assessor-collector an application for
a certificate of title for the vessel or outboard motor, with the
applicable fee, not later than the 20th day after the later of:
(1) the date of purchase or transfer of ownership; or
(2) the date that this state becomes the state of
principal use [purchaser of a vessel or an outboard motor shall
apply to the department or to a county tax assessor-collector for a
certificate of title not later than the 45th day after the date of
the sale of the vessel or outboard motor].
(a-1) For purposes of Subsection (a), the state of principal
use of a vessel or outboard motor is the state on whose waters a
vessel or outboard motor is or will be used, operated, navigated, or
employed more than on the waters of any other state during a
calendar year.
(b) A manufacturer or a dealer who sells a vessel or an
outboard motor to a person other than a manufacturer or a dealer
shall apply to the department or to a county tax assessor-collector
for a certificate of title for the vessel or outboard motor in the
name of the purchaser not later than the 20th [45th] day after the
date of the sale.
SECTION 11. Sections 31.047(b), (c), and (f), Parks and
Wildlife Code, are amended to read as follows:
(b) The form must contain:
(1) the owner's name, principal residence address,
mailing address, and owner identifier as prescribed by 33 C.F.R.
Section 174.17;
(2) a description of the vessel or outboard motor,
including, as appropriate, the manufacturer, make, model, year,
length, construction material, manufacturer's or builder's number,
hull identification number [(HIN)], motor number, outdrive number,
primary operation purpose, vessel type, propulsion type, engine
drive type, fuel type, and horsepower;
(3) name and address of purchaser;
(4) date of purchase;
(5) name and address of any security interest owner;
(6) the appropriate affidavit as required by Section
160.042, Tax Code;
(7) if the application is for a vessel:
(A) a statement that the vessel is not a
documented vessel or a foreign-documented vessel; and
(B) a statement that the vessel is hull damaged,
if the applicant knows that the vessel is hull damaged;
(8) if previously titled or registered:
(A) transferor's name and address;
(B) when applicable, name of the state in which
the vessel or outboard motor was previously titled or registered;
and
(C) any title brand known to the applicant and,
if known, the jurisdiction under whose law the title brand was
designated; and
(9) [(7)] other information required by the
department to show the ownership of the vessel or outboard motor, a
security interest in the vessel or outboard motor, or a further
description of items listed in the subdivision.
(c) The application must be accompanied by other evidence
reasonably required by the department to establish that the
applicant or other person is entitled to a certificate of title or a
noted security interest. The evidence may include:
(1) a certificate of title issued by another state or
jurisdiction;
(2) a manufacturer's or importer's certificate of
origin;
(3) a bill of sale, assignment, or contract;
(4) a promissory note;
(5) a security agreement;
(6) an invoice;
(7) a bill of lading;
(8) an affidavit;
(9) a probate or heirship proceeding or information;
(10) a judgment of a court of competent jurisdiction;
(11) evidence of an involuntary transfer, as defined
by [in Subdivision (5) of Subsection (a) of] Section 31.053(b)
[31.053, as amended], which may be in affidavit form attaching
copies of any pertinent underlying documents;
(12) if the vessel was a documented vessel, a record
issued by the Coast Guard that shows the vessel is no longer
documented and identifies the applicant as the owner, or is
accompanied by a record that identifies the applicant as the owner;
(13) if the vessel was a foreign-documented vessel, a
record issued by the foreign country that shows the vessel is no
longer a foreign-documented vessel and identifies the applicant as
the owner, or is accompanied by a record that identifies the
applicant as the owner; or
(14) [(12)] other documents.
(f) An application for a certificate of title on a homemade
vessel, the origin of which is based on the affidavit of the person
building the vessel, proof of materials incorporated into the
vessel, and the like, must be accompanied by a certificate from a
game warden commissioned by the department that the vessel has been
inspected by such officer and appears to be as applied for. The
applicant shall pay a fee of $25, or an amount set by the
commission, whichever is greater, to the department for this
inspection.
SECTION 12. Subchapter B-1, Chapter 31, Parks and Wildlife
Code, is amended by adding Section 31.0485 to read as follows:
Sec. 31.0485. ISSUANCE, REJECTION, AND CANCELLATION OF
CERTIFICATE OF TITLE. (a) Unless an application for a certificate
of title is rejected under Subsection (c) or (d), the department
shall issue a certificate of title for the vessel or outboard motor
in accordance with Subsection (b) not later than the 20th day after
the date the department receives an application that complies with
this chapter.
(b) If the department issues electronic certificates of
title, the department shall issue an electronic certificate of
title unless in the application the secured party of record or, if
none, the owner of record, requests that the department issue a
written certificate of title.
(c) Except as provided by Subsection (d), the department may
reject an application for a certificate of title only if:
(1) the application does not comply with this chapter
or other applicable law;
(2) the application does not contain documentation
sufficient for the department to determine whether the applicant is
entitled to a certificate of title; or
(3) the department finds a reasonable basis for
concluding that the application is fraudulent or issuance of a
certificate of title to the applicant would facilitate a fraudulent
or illegal act.
(d) The department shall reject an application for a
certificate of title for a vessel that is a documented vessel or a
foreign-documented vessel.
(e) On issuance of a written certificate of title, the
department promptly shall send the certificate of title to the
secured party of record or, if none, to the owner of record, at the
address indicated for that person in the files of the department.
On issuance of an electronic certificate of title, the department
promptly shall send a record evidencing the certificate of title to
the owner of record and, if there is one, to the secured party of
record, at the address indicated for that person in the files of the
department. The department may send the record to the person's
mailing address or, if indicated in the files of the department, an
electronic address.
(f) If the department issues a written certificate of title
for a vessel or outboard motor, any electronic certificate of title
for the vessel or outboard motor is canceled and replaced by the
written certificate of title. The department shall maintain in the
files of the department the date and time of cancellation.
(g) Before the department issues an electronic certificate
of title, any written certificate of title for the vessel or
outboard motor must be surrendered to the department. If the
department issues an electronic certificate of title, the
department shall destroy or otherwise cancel the written
certificate of title for the vessel or outboard motor that has been
surrendered to the department and maintain in the files of the
department the date and time of destruction or other cancellation.
If a written certificate of title being canceled is not destroyed,
the department shall indicate on the face of the certificate that it
has been canceled.
(h) The department may cancel a certificate of title issued
by the department only if the department:
(1) could have rejected the application for the
certificate under Subsection (c);
(2) is required to cancel the certificate under this
section or another provision of this chapter; or
(3) receives satisfactory evidence that the vessel is
a documented vessel or a foreign-documented vessel.
SECTION 13. Section 31.049, Parks and Wildlife Code, is
amended by amending Subsection (a) and adding Subsections (f), (g),
and (h) to read as follows:
(a) A certificate of title must be on a form prescribed by
the department and must contain:
(1) the name and mailing address of the owner of the
vessel or outboard motor and, if not all owners are listed, an
indication that there are additional owners indicated in the files
of the department;
(2) the name and mailing address of the owner of a
security interest in the vessel or outboard motor and, if not all
security interests are listed, an indication that there are
additional security interests indicated in the files of the
department; [and]
(3) a description of the vessel or outboard motor,
including, as appropriate, the hull identification number, motor
number, outdrive number, make, year, length, vessel type, hull
material, propulsion type, engine drive type, fuel type, and
horsepower;
(4) the date the certificate was issued;
(5) all title brands indicated in the files of the
department covering the vessel, including brands indicated on a
certificate issued by a governmental agency of another jurisdiction
and delivered to the department; and
(6) a form for the owner of record to indicate, in
connection with a transfer of ownership interest, that the vessel
is hull damaged.
(f) This chapter does not preclude the department from
noting on a certificate of title the name and mailing address of a
secured party that is not a secured party of record.
(g) For each title brand indicated on a certificate of
title, the certificate must identify the jurisdiction under whose
law the title brand was designated or the jurisdiction that issued
the certificate on which the title brand was designated. If the
meaning of a title brand is not easily ascertainable or cannot be
accommodated on the certificate, the certificate may state:
"Previously branded in (insert the jurisdiction under whose law the
title brand was designated or that issued the certificate of title
on which the title brand was designated)."
(h) If the files of the department indicate that a vessel
was previously registered or titled in a foreign country, the
department shall indicate on the certificate of title that the
vessel was registered or titled in that country.
SECTION 14. The heading to Section 31.050, Parks and
Wildlife Code, is amended to read as follows:
Sec. 31.050. FORM OF MANUFACTURER'S AND IMPORTER'S
CERTIFICATE OF ORIGIN.
SECTION 15. Sections 31.050(a) and (b), Parks and Wildlife
Code, are amended to read as follows:
(a) A manufacturer's [certificate] or [an] importer's
certificate of origin must include:
(1) a description of the vessel or outboard motor as
required by [Subdivision (2) of Subsection (b) of] Section
31.047(b)(2) [31.047 of this code];
(2) the name and place of construction or other
origin;
(3) the signature of the manufacturer or an equivalent
of the signature of the manufacturer; and
(4) the endorsement of the original and each
subsequent transferee, including the applicant for the original
certificate of title.
(b) A lien, security interest, or other encumbrance may not
be shown on a manufacturer's or importer's certificate of origin.
SECTION 16. Subchapter B-1, Chapter 31, Parks and Wildlife
Code, is amended by adding Section 31.0505 to read as follows:
Sec. 31.0505. HULL DAMAGED TITLE BRAND. (a) Unless
Subsection (b) applies, at or before the time the owner of record
transfers an ownership interest in a hull-damaged vessel that is
covered by a certificate of title issued by the department, if the
damage occurred while that person was an owner of the vessel and the
person has notice of the damage at the time of the transfer, the
owner shall:
(1) deliver to the department an application for a new
certificate of title that complies with Section 31.046 and includes
the title brand "Hull Damaged"; or
(2) indicate on the certificate of title in the place
designated for that purpose that the vessel is hull damaged and
deliver the certificate to the transferee.
(b) Before an insurer transfers an ownership interest in a
hull-damaged vessel that is covered by a certificate of title
issued by the department, the insurer shall deliver to the
department an application for a new certificate of title that
complies with Section 31.046 and includes the title brand "Hull
Damaged".
(c) Not later than the 20th day after the date of delivery to
the department of an application under Subsection (a)(1) or (b) or a
certificate of title under Subsection (a)(2), the department shall
issue a new certificate of title that indicates that the vessel is
title branded "Hull Damaged".
(d) A person commits an offense if the person:
(1) intentionally or knowingly:
(A) fails to comply with Subsection (a) or (b);
or
(B) solicits or colludes in a failure by an owner
of record to comply with Subsection (a); or
(2) negligently fails to comply with Subsection (a) or
(b).
(e) An offense under Subsection (d)(1) is a Class B Parks
and Wildlife Code misdemeanor. An offense under Subsection (d)(2)
is a Class C Parks and Wildlife Code misdemeanor.
SECTION 17. Section 31.051, Parks and Wildlife Code, is
amended to read as follows:
Sec. 31.051. REPLACEMENT CERTIFICATES OF TITLE. The
department shall provide by regulation for the replacement of
[lost, mutilated, or stolen] certificates of title.
SECTION 18. Sections 31.052(a), (c), and (d), Parks and
Wildlife Code, are amended to read as follows:
(a) Except as provided by this section and Section
31.050(c), and except for statutory liens, security interests in a
vessel or outboard motor shall be noted on the certificate of title
of the vessel or outboard motor to which the security interest
applies. On recordation of a security interest on the certificate
of title, the recorded security interest owner and assignees under
Subsection (c) obtain priority over the rights of a lien creditor[,
as defined by Section 9.102, Business & Commerce Code,] for so long
as the security interest is recorded on the certificate of title.
(c) A security interest owner may assign a security interest
recorded under this chapter without making any filing or giving any
notice under this chapter. The security interest assigned remains
valid and perfected and retains its priority, securing the
obligation assigned to the assignee, against transferees from and
creditors of the debtor, including lien creditors[, as defined by
Section 9.102, Business & Commerce Code].
(d) An assignee or assignor may, but need not to retain the
validity, perfection, and priority of the security interest
assigned, as evidence of the assignment of the security interest
recorded under this chapter, apply to the department or a county
assessor-collector for the assignee to be named as security
interest owner on the certificate of title and notify the debtor of
the assignment. Failure to make application under this subsection
or notify a debtor of an assignment does not create a cause of
action against the recorded security interest owner, the assignor,
or the assignee or affect the continuation of the perfected status
of the assigned security interest in favor of the assignee against
transferees from and creditors of the debtor, including lien
creditors[, as defined by Section 9.102, Business & Commerce Code].
SECTION 19. Section 31.053, Parks and Wildlife Code, is
amended by amending Subsections (a) and (c) and adding Subsections
(a-1), (g), and (h) to read as follows:
(a) No person may sell, assign, transfer, or otherwise
dispose of an interest in a vessel or an outboard motor without:
(1) if the transferee is not a manufacturer or a dealer
and the vessel or outboard motor is new, delivering to the
department a manufacturer's or importer's certificate of origin
showing the endorsement of the manufacturer and all intervening
owners;
(2) if the transferee is a manufacturer or a dealer and
the vessel or outboard motor is new, delivering to the transferee a
manufacturer's or importer's certificate of origin showing the
endorsement of the manufacturer and all intervening owners;
(3) if the vessel or outboard motor is not covered by a
certificate of title or a manufacturer's or importer's certificate
of origin and if the transferor is a manufacturer or dealer,
delivering to the department sufficient evidence of title or other
information to permit the issuance of a certificate of title for the
vessel or outboard motor in the name of the transferee;
(4) if the vessel or outboard motor is not covered by a
certificate of title or a manufacturer's or importer's certificate
of origin and if the transferor is not a manufacturer or dealer,
delivering to the transferee sufficient evidence of title or other
information to permit the transferee to apply for and receive a
certificate of title for the vessel or outboard motor in the name of
the transferee; or
(5) delivering to the transferee a certificate of
title for the vessel or outboard motor in the name of the transferor
and properly endorsed to show the transfer or evidence of an
involuntary transfer.
(a-1) For a voluntary transfer, if the transferor does not
have possession of the certificate of title, the person in
possession of the certificate of title shall facilitate the
transferor's compliance with this section, except that a secured
party does not have a duty to facilitate the transferor's
compliance with this section if the proposed transfer is prohibited
by the security agreement.
(c) The transferor shall provide the documents or evidence
required by Subsection (a) [of this section] to the department or
the transferee, as appropriate, in sufficient time to allow the
transferee to register and obtain a certificate of title for the
vessel or outboard motor not later than the 20th [45th] day after
the date of the sale.
(g) If the certificate of title is an electronic certificate
of title, the transferor shall promptly sign and deliver to the
transferee a record evidencing the transfer of ownership to the
transferee.
(h) The transferee has a right enforceable by specific
performance to require the transferor comply with Subsection
(a)(5), (a-1), or (g).
SECTION 20. Section 31.055, Parks and Wildlife Code, is
amended to read as follows:
Sec. 31.055. EXCEPTIONS. This subchapter does not apply
to:
(1) a vessel [vessels] with a valid marine document
issued by the United States Coast Guard's National Vessel
Documentation Center or a federal agency that is a successor to the
National Vessel Documentation Center;
(2) a foreign-documented vessel;
(3) a barge; or
(4) a vessel before delivery if the vessel is under
construction or completed under contract.
SECTION 21. Subchapter B-1, Chapter 31, Parks and Wildlife
Code, is amended by adding Sections 31.0563, 31.0565, 31.0567,
31.0569, 31.057, 31.0573, 31.0575, 31.0577, 31.0579, 31.058, and
31.0582 to read as follows:
Sec. 31.0563. RECORDS. (a) For each record relating to a
certificate of title submitted to the department, the department
shall maintain a file that includes:
(1) the hull identification number of the vessel or
the serial number of the outboard motor;
(2) all the information submitted with the application
under Section 31.046, including the date and time the application
was submitted to the department;
(3) the name of each secured party to the vessel or
outboard motor; and
(4) the name of each person known to the department to
be claiming an ownership interest in the vessel or outboard motor.
(b) In addition to the information described by Subsection
(a), the department shall maintain a list of all title brands known
to the department and stolen-property reports relating to vessels
or outboard motors made known to the department.
(c) The department shall maintain the information described
in this section in a manner that is searchable by hull
identification number of the vessel, the motor number, the vessel
number, and the name of the owner of record. The department may
maintain the information described in this section in a manner that
is searchable by other methods.
(d) The department shall provide to federal, state, and
local governmental entities the information described by this
section, on request of the governmental entities and for the
purposes of safety, security, or law enforcement.
(e) The department shall retain the evidence used to
establish the accuracy of the information in its files relating to
the ownership of a vessel or outboard motor and the information on
the certificate of title in accordance with the record retention
schedule established under the department's records management
program.
(f) The department shall retain in its files all information
regarding a security interest in a vessel or outboard motor for at
least 10 years after the department receives a termination
statement regarding the security interest. The information must be
accessible by the hull identification number of the vessel or
serial number of the outboard motor and any other methods provided
by the department.
(g) If a person submits a record to the department, or
submits information that is accepted by the department, and
requests an acknowledgment of the filing or submission, the
department shall send to the person an acknowledgment showing the
hull identification number of the vessel or serial number of the
outboard motor to which the record or submission relates, the
information in the filed record or submission, and the date and time
the record was received or the submission accepted. A request
described by this subsection must contain the hull identification
number of the vessel and serial number of the outboard motor and be
delivered by means authorized by the department.
Sec. 31.0565. EFFECT OF CERTIFICATE OF TITLE ON INFORMATION
IN CERTIFICATE. A certificate of title is prima facie evidence of
the accuracy of the information in the record that constitutes the
certificate.
Sec. 31.0567. EFFECT OF POSSESSION OF CERTIFICATE OF TITLE;
JUDICIAL PROCESS. Possession of a certificate of title does not
provide a right to obtain possession of a vessel or outboard motor.
Garnishment, attachment, levy, replevin, or other judicial process
against the certificate is not effective to determine possessory
rights to the vessel or outboard motor. This chapter does not
prohibit enforcement under the laws of this state of a security
interest in, levy on, or foreclosure of a statutory or common-law
lien on a vessel or outboard motor. Absence of an indication of a
statutory or common-law lien on a certificate of title does not
invalidate the lien.
Sec. 31.0569. PERFECTION OF SECURITY INTEREST. (a) A
security interest in a vessel or outboard motor may be perfected
only by delivery to the department of an application for a
certificate of title that identifies the secured party and
otherwise complies with Section 31.049. The security interest is
perfected on the later of delivery to the department of the
application and the applicable fee or attachment of the security
interest under Section 9.203, Business & Commerce Code.
(b) If the interest of a person named as owner, lessor,
consignor, or bailor in an application for a certificate of title
delivered to the department is a security interest, the application
sufficiently identifies the person as a secured party.
Identification on the application for a certificate of title of a
person as owner, lessor, consignor, or bailor is not by itself a
factor in determining whether the person's interest is a security
interest.
(c) If the department has issued a certificate of title for
a vessel or outboard motor, a security interest in the vessel or
outboard motor may be perfected by delivery to the department of an
application, on a form prescribed by the department, to have the
security interest added to the certificate of title. The
application must be signed by an owner of the vessel or outboard
motor or by the secured party and must include:
(1) the name of the owner of record;
(2) the name and mailing address of the secured party;
(3) the hull identification number of the vessel and
serial number of the outboard motor, as applicable; and
(4) the certificate of title, if the department has
issued a written certificate of title for the vessel or outboard
motor.
(d) A security interest perfected under Subsection (c) is
perfected on the later of:
(1) delivery to the department of the application and
all applicable fees; or
(2) attachment of the security interest under Section
9.203, Business & Commerce Code.
(e) On delivery of an application that complies with
Subsection (c) and payment of all applicable fees, the department
shall issue a new certificate of title under Section 31.0485 and
deliver the new certificate of title or a record evidencing an
electronic certificate of title as required by Subsection (e) of
that section. The department shall maintain in the files of the
department the date and time of delivery of the application to the
department.
(f) If a secured party assigns a perfected security interest
in a vessel or outboard motor, the receipt by the department of a
statement providing the name of the assignee as secured party is not
required to continue the perfected status of the security interest
against creditors of and transferees from the original debtor. A
purchaser of a vessel or outboard motor subject to a security
interest who obtains a release from the secured party indicated in
the files of the department or on the certificate of title takes
free of the security interest and of the rights of a transferee
unless the transfer is indicated in the files of the department or
on the certificate of title.
(g) This section does not apply to a security interest:
(1) issued for a vessel or outboard motor by a person
during any period in which the vessel or outboard motor is inventory
held for sale or lease by the person or is leased by the person as
lessor if the person is in the business of selling vessels or
outboard motors;
(2) in a barge for which no application for a
certificate of title has been delivered to the department; or
(3) in a vessel or outboard motor before delivery if
the vessel or outboard motor is under construction or completed
under contract and for which no application for a certificate of
title has been delivered to the department.
(h) If a certificate of documentation for a documented
vessel is deleted or canceled, a security interest in the vessel
that was valid immediately before deletion or cancellation against
a third party as a result of compliance with 46 U.S.C. Section 31321
is and remains perfected until the earlier of:
(1) four months after deletion or cancellation of the
certificate of documentation; or
(2) the perfection of the security interest under this
section.
(i) A security interest in a vessel or outboard motor
arising under Section 2.401, 2.505, 2.711(c), or 2A.508(e),
Business & Commerce Code, is perfected when it attaches but becomes
unperfected when the debtor obtains possession of the vessel or
outboard motor, unless before the debtor obtains possession the
security interest is perfected under Subsection (a) or (c).
(j) A security interest in a vessel or outboard motor as
proceeds of other collateral is perfected to the extent provided in
Section 9.315, Business & Commerce Code.
(k) A security interest in a vessel or outboard motor
perfected under the law of another jurisdiction is perfected to the
extent provided in Section 9.316(d), Business & Commerce Code.
Sec. 31.057. TERMINATION STATEMENT. (a) A secured party
indicated in the files of the department as having a security
interest in a vessel or outboard motor shall deliver a termination
statement to the department and, on the debtor's request, to the
debtor, not later than the earlier of:
(1) the 20th day after the date the secured party
receives a signed demand from an owner for a termination statement
and there is no obligation secured by the vessel or outboard motor
subject to the security interest and no commitment to make an
advance, incur an obligation, or otherwise give value secured by
the vessel or outboard motor; or
(2) if the vessel or outboard motor is used or bought
for use primarily for personal, family, or household purposes, the
30th day after the date that no obligation is secured by the vessel
or outboard motor and no commitment exists to make an advance, incur
an obligation, or otherwise give value secured by the vessel or
outboard motor.
(b) If a written certificate of title has been issued and
delivered to a secured party and a termination statement is
required under Subsection (a), the secured party, not later than
the date required by Subsection (a), shall deliver the certificate
of title to the debtor or to the department with the statement. If
the certificate of title is lost, stolen, mutilated, destroyed, or
is otherwise unavailable or illegible, the secured party shall
deliver with the statement, not later than the date required by
Subsection (a), an application for a replacement certificate of
title meeting the requirements prescribed in the regulations
adopted under Section 31.051.
(c) On delivery to the department of a termination statement
authorized by the secured party, and, if applicable, an application
for a replacement certificate of title meeting the requirements
prescribed in the regulations adopted under Section 31.051, the
security interest to which the statement relates ceases to be
perfected. If the security interest to which the statement relates
was indicated on the certificate of title, the department shall
issue a new certificate of title and deliver the new certificate of
title or a record evidencing an electronic certificate of title.
The department shall maintain in its files the date and time of
delivery to the department of the termination statement.
(d) A secured party that fails to comply with this section
is liable for:
(1) any loss that the secured party had reason to know
might result from the secure party's failure to comply and which
could not reasonably have been prevented; and
(2) the cost of an application for a certificate of
title under Section 31.047 or a replacement certificate of title
under the regulations adopted under Section 31.051.
Sec. 31.0573. EFFECT OF MISSING OR INCORRECT INFORMATION.
Except as otherwise provided by Section 9.337, Business & Commerce
Code, a certificate of title or other record required or authorized
by this chapter is effective, regardless of whether it contains
incorrect information or does not contain required information.
Sec. 31.0575. TRANSFER OF OWNERSHIP BY SECURED PARTY'S
TRANSFER STATEMENT. (a) In this section, "secured party's
transfer statement" means a record signed by the secured party of
record stating:
(1) there has been a default on an obligation secured
by the vessel or outboard motor;
(2) the secured party of record is exercising or has
exercised post-default remedies with respect to the vessel or
outboard motor;
(3) by reason of the exercise, the secured party of
record has the right to transfer the ownership interest of an owner,
and the name of the owner;
(4) the name and last known mailing address of the
owner of record and the secured party of record;
(5) the name of the transferee;
(6) other information required by Section 31.047(b);
and
(7) one of the following:
(A) that the certificate of title is an
electronic certificate of title;
(B) that the secured party does not have
possession of the written certificate of title issued in the name of
the owner of record; or
(C) that the secured party is delivering the
written certificate of title to the department with the secured
party's transfer statement.
(b) Unless the department rejects a secured party's
transfer statement for a reason stated in Section 31.0485(c), not
later than the 20th day after the date of delivery to the department
of the statement and payment of fees due under this chapter and
taxes payable under Chapter 160, Tax Code, in connection with the
statement or the acquisition or use of the vessel or outboard motor,
the department shall:
(1) accept the statement;
(2) amend the files of the department to reflect the
transfer; and
(3) if the name of the owner whose ownership interest
is being transferred is indicated on the certificate of title:
(A) cancel the certificate of title, regardless
of whether the certificate of title has been delivered to the
department;
(B) issue a new certificate of title indicating
the transferee as owner; and
(C) deliver the new certificate of title or a
record evidencing an electronic certificate of title.
(c) The submission to the department of a secured party's
transfer statement, or the issuance of a certificate of title under
Subsection (b), is not a disposition of the vessel or outboard motor
and does not relieve the secured party of the secured party's duties
under Chapter 9, Business & Commerce Code.
Sec. 31.0577. TRANSFER BY OPERATION OF LAW. (a) In this
section:
(1) "By operation of law" means, with respect to a
vessel or outboard motor, in accordance with a law or judicial order
affecting ownership of the vessel or outboard motor:
(A) because of death, divorce or other family law
proceeding, merger, consolidation, dissolution, or bankruptcy;
(B) through the exercise of the rights of a lien
creditor or a person having a lien created by statute or rule of
law; or
(C) through other legal process.
(2) "Transfer-by-law statement" means a record signed
by a transferee stating that by operation of law the transferee has
acquired or has the right to acquire an ownership interest in a
vessel or outboard motor.
(b) A transfer-by-law statement must contain:
(1) the name and last known mailing address of the
owner of record and the transferee and the other information
required by Section 31.047(b);
(2) documentation sufficient to establish the
transferee's ownership interest or right to acquire the ownership
interest;
(3) a statement that:
(A) the certificate of title is an electronic
certificate of title;
(B) the transferee does not have possession of
the written certificate of title issued in the name of the owner of
record; or
(C) the transferee is delivering the written
certificate of title to the department with the transfer-by-law
statement; and
(4) except for a transfer described in Subsection
(a)(1)(A), evidence that notification of the transfer and the
intent to file the transfer-by-law statement has been sent to all
persons indicated in the files of the department as having an
interest, including a security interest, in the vessel or outboard
motor.
(c) Unless the department rejects a transfer-by-law
statement for a reason stated in Section 31.0485(c) or because the
statement does not include documentation satisfactory to the
department as to the transferee's ownership interest or right to
acquire the ownership interest, not later than the 20th day after
the date of delivery to the department of the statement and payment
of fees due under this chapter and taxes payable under Chapter 160,
Tax Code, in connection with the statement or with the acquisition
or use of the vessel or outboard motor, the department shall:
(1) accept the statement;
(2) amend the files of the department to reflect the
transfer; and
(3) if the name of the owner whose ownership interest
is being transferred is indicated on the certificate of title:
(A) cancel the certificate of title, regardless
of whether the certificate of title has been delivered to the
department;
(B) issue a new certificate of title indicating
the transferee as owner;
(C) indicate on the new certificate of title any
security interest indicated on the canceled certificate of title,
unless a court order provides otherwise; and
(D) deliver the new certificate of title or a
record evidencing an electronic certificate of title.
(d) This section does not apply to a transfer of an interest
in a vessel or outboard motor by a secured party under Subchapter F,
Chapter 9, Business & Commerce Code.
Sec. 31.0579. APPLICATION FOR TERMINATION OF SECURITY
INTEREST WITHOUT CERTIFICATE OF TITLE. (a) Except as provided by
Sections 31.0575 and 31.0577, if the department receives,
unaccompanied by a signed certificate of title, an application for
a new certificate of title that includes an indication of a
termination statement, the department may issue a new certificate
of title under this section only if:
(1) all other requirements under Sections 31.047 and
31.0485 are met;
(2) the applicant provides an affidavit stating facts
showing the applicant is entitled to a termination statement;
(3) the applicant provides the department with
satisfactory evidence that notification of the application has been
sent to all persons indicated in the files of the department as
having a security interest in the vessel or outboard motor, not
earlier than the 45th day after the date the notification was sent,
and the department has not received an objection from any of those
persons; and
(4) the applicant submits any other information
required by the department as evidence of the applicant's right to
terminate the security interest, and the department has no credible
information indicating theft, fraud, or an undisclosed or
unsatisfied security interest, lien, or other claim to an interest
in the vessel or outboard motor.
(b) The department may indicate in a certificate of title
issued under Subsection (a) that the certificate of title was
issued without submission of a termination statement. Unless
credible information indicating theft, fraud, or an undisclosed or
unsatisfied security interest, lien, or other claim to an interest
in the vessel or outboard motor is delivered to the department not
later than the first anniversary of the date of the issuance of the
certificate of title under Subsection (a), on request in a form and
manner required by the department, the department shall remove the
indication from the certificate of title.
(c) Unless the department determines that the value of a
vessel or outboard motor is less than $5,000, the department may
require the applicant to post a bond or provide an equivalent source
of indemnity or security before the department issues a certificate
of title under Subsection (a). The bond, indemnity, or other
security may not exceed twice the value of the vessel or outboard
motor as determined by the department. The bond, indemnity, or
other security must be in a form required by the department and
provide for indemnification of any owner, purchaser, or other
claimant for any expense, loss, delay, or damage, including
reasonable attorney's fees and costs, but not including incidental
or consequential damages, resulting from issuance or amendment of
the certificate of title.
(d) Unless the department receives a claim for indemnity not
later than the first anniversary of the date of the issuance of a
certificate of title under Subsection (a), on request in a form and
manner required by the department, the department shall release any
bond, indemnity, or other security.
Sec. 31.058. RIGHTS OF PURCHASER OTHER THAN SECURED PARTY.
(a) In this section, "buyer in ordinary course of business" has the
meaning assigned by Section 1.201, Business & Commerce Code.
(b) A buyer in ordinary course of business has the
protections afforded by Sections 2.403(b) and 9.320(a), Business &
Commerce Code, regardless of whether:
(1) an existing certificate of title was signed and
delivered to the buyer; or
(2) a new certificate of title listing the buyer as
owner of record was issued.
(c) Except as provided by Sections 31.053 and 31.0582, the
rights of a purchaser of a vessel or outboard motor that is not a
buyer in ordinary course of business or a lien creditor are governed
by the Business & Commerce Code.
Sec. 31.0582. RIGHTS OF SECURED PARTY. (a) In this
section, "good faith" means honesty in fact and the observance of
reasonable commercial standards of fair dealing.
(b) Subject to Subsection (c), the effect of perfection and
nonperfection of a security interest and the priority of a
perfected or unperfected security interest with respect to the
rights of a purchaser or creditor, including a lien creditor, is
governed by the Business & Commerce Code.
(c) If, while a security interest in a vessel or outboard
motor is perfected by any method under this chapter, the department
issues a certificate of title that does not indicate that the vessel
or outboard motor is subject to the security interest or contain a
statement that it may be subject to security interests not
indicated on the certificate of title:
(1) a buyer of the vessel or outboard motor, other than
a person in the business of selling or leasing vessels or outboard
motors of that kind, takes free of the security interest if the
buyer, acting in good faith and without knowledge of the security
interest, gives value and receives possession of the vessel or
outboard motor; and
(2) the security interest is subordinate to a
conflicting security interest in the vessel or outboard motor that
is perfected under Section 31.0569, after creation of the
certificate and without the conflicting secured party's knowledge
of the security interest.
SECTION 22. The following provisions of the Parks and
Wildlife Code are repealed:
(1) Section 31.039(c); and
(2) Sections 31.049(b) and (c).
SECTION 23. (a) The rights, duties, and interests flowing
from a transaction, certificate of title, or record relating to a
vessel or outboard motor which was validly entered into or issued
before the effective date of this Act and would be subject to
Chapter 31, Parks and Wildlife Code, as amended by this Act, if it
had been entered into or issued on or after the effective date of
this Act, remain valid on and after the effective date of this Act.
(b) This Act does not affect an action or proceeding
commenced before the effective date of this Act.
(c) Except as provided by Subsection (d) of this section, a
security interest that is enforceable immediately before the
effective date of this Act and would have priority over the rights
of a person that becomes a lien creditor at that time is a perfected
security interest under this Act.
(d) A security interest perfected immediately before the
effective date of this Act remains perfected until the earlier of:
(1) the time perfection would have ceased under the
law under which the security interest was perfected; or
(2) three years after the effective date of this Act.
(e) This Act does not affect the priority of a security
interest in a vessel or outboard motor if immediately before the
effective date of this Act the security interest is enforceable and
perfected, and that priority is established.
SECTION 24. This Act takes effect January 1, 2028.