Texas 2025 - 89th Regular

Texas Senate Bill SB1267 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		By: Alvarado S.B. No. 1267
2		-
3		-
	2	+	(In the Senate - Filed February 13, 2025; February 28, 2025,
	3	+	read first time and referred to Committee on Water, Agriculture and
	4	+	Rural Affairs; March 31, 2025, reported favorably by the following
	5	+	vote: Yeas 9, Nays 0; March 31, 2025, sent to printer.)
	6	+	Click here to see the committee vote
4	7
5	8
6	9		A BILL TO BE ENTITLED
7	10		AN ACT
8	11		relating to certificates of number and certificates of title issued
9	12		by and records kept by the Parks and Wildlife Department; creating a
10	13		criminal offense.
11	14		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	15		SECTION 1. Section 31.003, Parks and Wildlife Code, is
13	16		amended by amending Subdivisions (2), (8), and (11) and adding
14	17		Subdivisions (19), (20), (21), (22), (23), (24), (25), (26), and
15	18		(27) to read as follows:
16	19		(2) "Vessel" means any watercraft[, other than a
17	20		seaplane on water,] used or capable of being used for
18	21		transportation on water, except:
19	22		(A) a watercraft exempted by commission rule;
20	23		(B) a watercraft that operates only on a
21	24		permanently fixed, manufactured course, the movement of which is
22	25		restricted to or guided by means of a mechanical device to which the
23	26		watercraft is attached or by which the watercraft is controlled;
24	27		(C) a seaplane; and
25	28		(D) a stationary floating structure that:
26	29		(i) does not have and is not designed to
27	30		have a mode of propulsion of its own;
28	31		(ii) is dependent for utilities upon a
29	32		continuous utility hookup to a source originating on shore; and
30	33		(iii) has a permanent, continuous hookup to
31	34		a shoreside sewage system.
32	35		(8) "Vessel livery" means a person [business
33	36		establishment] engaged in advertising, renting, or hiring out
34	37		vessels for consideration [profit]. The term includes a
35	38		recreational equipment timeshare business that leases or rents
36	39		vessels for consideration.
37	40		(11) "Manufacturer" means a person engaged in the
38	41		business of manufacturing or importing new and unused vessels and
39	42		outboard motors for the purpose of sale or trade.
40	43		(19) "Cancel" means, with respect to a certificate of
41	44		title, to make the certificate ineffective.
42	45		(20) "Certificate of title" means, with respect to a
43	46		vessel or outboard motor, a record, created by the department under
44	47		this chapter or by a governmental agency of another jurisdiction
45	48		under the law of that jurisdiction, that is designated as a
46	49		certificate of title by the department or agency and is evidence of
47	50		ownership of a vessel or outboard motor.
48	51		(21) "Electronic" means relating to technology having
49	52		electrical, digital, magnetic, wireless, optical, electromagnetic,
50	53		or similar capabilities.
51	54		(22) "Hull identification number" means the
52	55		alphanumeric designation assigned to a vessel under 33 C.F.R. Part
53	56		181.
54	57		(23) "Owner of record" or "recorded owner" means an
55	58		owner indicated in the files of the department.
56	59		(24) "Purchase" means, with respect to a vessel or
57	60		outboard motor, to take by any voluntary transaction that creates
58	61		an interest in the vessel or outboard motor.
59	62		(25) "Purchaser" means a person who takes by purchase.
60	63		(26) "Record" means information inscribed on a
61	64		tangible medium or stored in an electronic or other medium and
62	65		retrievable in perceivable form.
63	66		(27) "Security interest" means, with respect to a
64	67		vessel or outboard motor, an interest in the vessel or outboard
65	68		motor that secures payment or performance of an obligation if the
66	69		interest is created by contract or arises under Section 2.401,
67	70		2.505, 2.711(c), or 2A.508(e), Business & Commerce Code, except
68	71		that the retention or reservation of title by a seller of a vessel
69	72		or outboard motor notwithstanding shipment or delivery to the buyer
70	73		under Section 2.401 of that code is limited in effect to a
71	74		reservation of a security interest. The term:
72	75		(A) includes any interest of a consignor in a
73	76		vessel or outboard motor in a transaction that is subject to Chapter
74	77		9, Business & Commerce Code; and
75	78		(B) does not include:
76	79		(i) the special property interest of a
77	80		buyer of a vessel or outboard motor on identification of that vessel
78	81		or outboard motor to a contract for sale under Section 2.501,
79	82		Business & Commerce Code, unless a buyer acquires a security
80	83		interest by complying with Chapter 9 of that code;
81	84		(ii) the right of a seller or lessor of a
82	85		vessel or outboard motor under Chapter 2 or 2A, Business & Commerce
83	86		Code, to retain or acquire possession of the vessel or outboard
84	87		motor:
85	88		(a) except as otherwise provided by
86	89		Section 2.505, Business & Commerce Code; or
87	90		(b) unless a seller or lessor acquires
88	91		a security interest by complying with Chapter 9, Business &
89	92		Commerce Code; or
90	93		(iii) an interest created by a transaction
91	94		in the form of a lease, unless the transaction created a security
92	95		interest under Section 1.203, Business & Commerce Code.
93	96		SECTION 2. Section 31.022(a), Parks and Wildlife Code, is
94	97		amended to read as follows:
95	98		(a) A vessel is not required to be numbered under the
96	99		provisions of this chapter if it is:
97	100		(1) operated within this state for a period not
98	101		exceeding 90 consecutive days and is covered by a number in full
99	102		force and effect which has been awarded under federal law or a
100	103		federally approved numbering system of another state;
101	104		(2) from a country other than the United States
102	105		temporarily using the water of this state;
103	106		(3) owned by the United States, a state, or a
104	107		subdivision of a state; [or]
105	108		(4) a ship's lifeboat; or
106	109		(5) an amphibious vehicle for which a certificate of
107	110		title is issued under Chapter 501, Transportation Code, or a
108	111		similar law of another state.
109	112		SECTION 3. Section 31.028, Parks and Wildlife Code, is
110	113		amended to read as follows:
111	114		Sec. 31.028. CERTIFICATE OF NUMBER. The certificate of
112	115		number shall be pocket-size. The certificate, [or] a facsimile of
113	116		the certificate, or an electronic version of the certificate
114	117		provided by the department [it] shall be carried on board the vessel
115	118		at all times. It does not have to be on the person of the operator
116	119		if prior to trial the operator can produce for examination a valid
117	120		certificate of number.
118	121		SECTION 4. Section 31.037(c), Parks and Wildlife Code, is
119	122		amended to read as follows:
120	123		(c) The new owner of a vessel shall, not later than the 20th
121	124		[45th] day after the date ownership was transferred, submit an
122	125		application to the department with:
123	126		(1) evidence of ownership;
124	127		(2) the new owner's name and address;
125	128		(3) the number of the vessel; and
126	129		(4) a fee of $2 or an amount set by the commission,
127	130		whichever amount is more.
128	131		SECTION 5. Sections 31.039(a) and (b), Parks and Wildlife
129	132		Code, are amended to read as follows:
130	133		(a) Ownership [Except as provided by Subsection (c), all
131	134		ownership] records of the department made or kept under this
132	135		chapter are public records, including the information required
133	136		under Section 31.049, except the following information is not a
134	137		public record:
135	138		(1) an owner identifier as prescribed by 33 C.F.R.
136	139		Section 174.17;
137	140		(2) the phone number, e-mail address, social security
138	141		number, or taxpayer identification number of an owner of a vessel or
139	142		outboard motor; and
140	143		(3) any other information contained in an ownership
141	144		record that is not subject to public disclosure under Chapter 552,
142	145		Government Code, or other law.
143	146		(b) The commission may by rule charge a fee for access to
144	147		ownership records and other records made or kept under this
145	148		chapter. The department may provide a record in any medium. If
146	149		requested, the department shall provide a record in a format that is
147	150		self-authenticating under Rule 902, Texas Rules of Evidence.
148	151		SECTION 6. Sections 31.041(h) and (i), Parks and Wildlife
149	152		Code, are amended to read as follows:
150	153		(h) Not later than the 20th [45th] day after a dealer,
151	154		distributor, or manufacturer holding a dealer's, distributor's, or
152	155		manufacturer's license sells at the first or a subsequent sale a
153	156		vessel or outboard motor, the dealer, distributor, or manufacturer
154	157		shall apply, in the name of the purchaser of the vessel or outboard
155	158		motor, for a certificate of number or a certificate of title for the
156	159		vessel or outboard motor, as applicable, and file with the
157	160		department each document necessary to transfer the certificate of
158	161		number or certificate of title.
159	162		(i) A person purchasing a vessel may use the temporary
160	163		facsimile number issued under Subsection (f) for a period not to
161	164		exceed 20 [45] days from the date the dealer, distributor, or
162	165		manufacturer applies for a certificate of number or a certificate
163	166		of title under Subsection (h). The person shall retain the
164	167		facsimile number on the vessel for the period described by this
165	168		subsection.
166	169		SECTION 7. Sections 31.043(b) and (d), Parks and Wildlife
167	170		Code, are amended to read as follows:
168	171		(b) The owner of a vessel that does not have a
169	172		manufacturer's hull identification number may file an application
170	173		for a hull identification number with the department on forms
171	174		approved by it. The application must include a sworn statement
172	175		describing the vessel, proving legal ownership, and, if known,
173	176		stating the reason for the lack of hull identification number. The
174	177		application must be signed by the owner of the vessel and must be
175	178		accompanied by a fee of $25, or an amount set by the commission,
176	179		whichever is greater, and a certificate from a game warden
177	180		commissioned by the department stating that the vessel has been
178	181		inspected by the officer and appears to be as applied for. On
179	182		receipt of the application in approved form, the department shall
180	183		enter the information on the records of its office and shall issue
181	184		to the applicant a hull identification number.
182	185		(d) A person who has a vessel with an altered, defaced,
183	186		mutilated, or removed hull identification number or an outboard
184	187		motor with an altered, defaced, mutilated, or removed serial number
185	188		shall file a sworn statement with the department describing the
186	189		vessel or outboard motor, proving legal ownership, and, if known,
187	190		stating the reason for the destruction, removal, or defacement of
188	191		the number. The statement must be accompanied by a fee of $25, or an
189	192		amount set by the commission, whichever is greater, and a
190	193		certificate from a game warden commissioned by the department that
191	194		the vessel or outboard motor has been inspected by the officer and
192	195		appears to be as applied for. On receipt of the statement in
193	196		approved form, the department shall enter the information on
194	197		records of its office and shall issue to the applicant a hull
195	198		identification number or outboard motor serial number.
196	199		SECTION 8. Subchapter B-1, Chapter 31, Parks and Wildlife
197	200		Code, is amended by adding Section 31.0445 to read as follows:
198	201		Sec. 31.0445. DEFINITIONS. In this subchapter:
199	202		(1) "Barge" means a vessel that is not self-propelled
200	203		or fitted for propulsion by sail, paddle, oar, or similar device.
201	204		(2) "Builder's certificate" means a certificate of the
202	205		facts of build of a vessel described in 46 C.F.R. Section 67.99.
203	206		(3) "Buyer" includes, with respect to a vessel or
204	207		outboard motor, a person who contracts to buy the vessel or outboard
205	208		motor.
206	209		(4) "Certificate of origin" means a record created by
207	210		a manufacturer or importer as proof of identity of a vessel or
208	211		outboard motor. The term includes a manufacturer's certificate or
209	212		statement of origin and an importer's certificate or statement of
210	213		origin. The term does not include a builder's certificate.
211	214		(5) "Debtor" has the meaning assigned by Section
212	215		9.102, Business & Commerce Code.
213	216		(6) "Documented vessel" means a vessel covered by a
214	217		certificate of documentation issued under 46 U.S.C. Section 12105.
215	218		The term does not include a foreign-documented vessel.
216	219		(7) "Electronic certificate of title" means a
217	220		certificate of title consisting of information that is stored
218	221		solely in an electronic medium and is retrievable in perceivable
219	222		form.
220	223		(8) "Foreign-documented vessel" means a vessel the
221	224		ownership of which is recorded in a registry maintained by a country
222	225		other than the United States that identifies each person that has an
223	226		ownership interest in the vessel and includes a unique alphanumeric
224	227		designation for the vessel.
225	228		(9) "Hull damaged" means, with respect to a vessel:
226	229		(A) the integrity of the vessel's hull is
227	230		compromised by a collision, allision, lightning strike, fire,
228	231		explosion, running aground, or similar occurrence; or
229	232		(B) the sinking of the vessel in a manner that
230	233		creates a significant risk to the integrity of the vessel's hull.
231	234		(10) "Lease" and "lessor" have the meanings assigned
232	235		by Section 2A.103, Business & Commerce Code.
233	236		(11) "Lien creditor" has the meaning assigned by
234	237		Section 9.102, Business & Commerce Code.
235	238		(12) "Notice" has the meaning assigned by Section
236	239		1.202, Business & Commerce Code.
237	240		(13) "Secured party" means, with respect to a vessel
238	241		or outboard motor, a person:
239	242		(A) in whose favor a security interest is created
240	243		or provided for under a security agreement, regardless of whether
241	244		any obligation to be secured is outstanding;
242	245		(B) who is a consignor under Chapter 9, Business &
243	246		Commerce Code; or
244	247		(C) who holds a security interest arising under
245	248		Section 2.401, 2.505, 2.711(c), or 2A.508(e), Business & Commerce
246	249		Code.
247	250		(14) "Secured party of record" means the secured party
248	251		whose name is indicated as the name of the secured party in the
249	252		files of the department or, if the files indicate more than one
250	253		secured party, the one first indicated.
251	254		(15) "Title brand" means a designation of previous
252	255		damage, use, or condition that must be indicated on a certificate of
253	256		title.
254	257		(16) "Transfer of ownership" means a voluntary or
255	258		involuntary conveyance of an interest in a vessel or an outboard
256	259		motor.
257	260		(17) "Written certificate of title" means a
258	261		certificate of title consisting of information inscribed on a
259	262		tangible medium.
260	263		SECTION 9. Sections 31.045(b) and (d), Parks and Wildlife
261	264		Code, are amended to read as follows:
262	265		(b) The ownership of a new vessel or a new outboard motor is
263	266		evidenced by a manufacturer's or [an] importer's certificate of
264	267		origin executed on a form prescribed by the department.
265	268		(d) The ownership of a vessel [exempted from numbering under
266	269		Section 31.022(c) of this code] is not required to be evidenced by a
267	270		certificate of title issued by the department for:
268	271		(1) a vessel exempted from numbering under Section
269	272		31.022(c);
270	273		(2) a watercraft owned by the United States, a state, a
271	274		foreign government, or a political subdivision of the United
272	275		States, a state, or a foreign government;
273	276		(3) a watercraft used solely as a lifeboat on another
274	277		watercraft; or
275	278		(4) an amphibious vehicle for which a certificate of
276	279		title is issued under Chapter 501, Transportation Code, or a
277	280		similar law of another state.
278	281		SECTION 10. Section 31.046, Parks and Wildlife Code, is
279	282		amended by amending Subsections (a) and (b) and adding Subsection
280	283		(a-1) to read as follows:
281	284		(a) Except as provided by [in] Subsections (b) and (c) [of
282	285		this section], the owner of a vessel or outboard motor for which
283	286		this state is the state of principal use shall deliver to the
284	287		department or to a county tax assessor-collector an application for
285	288		a certificate of title for the vessel or outboard motor, with the
286	289		applicable fee, not later than the 20th day after the later of:
287	290		(1) the date of purchase or transfer of ownership; or
288	291		(2) the date that this state becomes the state of
289	292		principal use [purchaser of a vessel or an outboard motor shall
290	293		apply to the department or to a county tax assessor-collector for a
291	294		certificate of title not later than the 45th day after the date of
292	295		the sale of the vessel or outboard motor].
293	296		(a-1) For purposes of Subsection (a), the state of principal
294	297		use of a vessel or outboard motor is the state on whose waters a
295	298		vessel or outboard motor is or will be used, operated, navigated, or
296	299		employed more than on the waters of any other state during a
297	300		calendar year.
298	301		(b) A manufacturer or a dealer who sells a vessel or an
299	302		outboard motor to a person other than a manufacturer or a dealer
300	303		shall apply to the department or to a county tax assessor-collector
301	304		for a certificate of title for the vessel or outboard motor in the
302	305		name of the purchaser not later than the 20th [45th] day after the
303	306		date of the sale.
304	307		SECTION 11. Sections 31.047(b), (c), and (f), Parks and
305	308		Wildlife Code, are amended to read as follows:
306	309		(b) The form must contain:
307	310		(1) the owner's name, principal residence address,
308	311		mailing address, and owner identifier as prescribed by 33 C.F.R.
309	312		Section 174.17;
310	313		(2) a description of the vessel or outboard motor,
311	314		including, as appropriate, the manufacturer, make, model, year,
312	315		length, construction material, manufacturer's or builder's number,
313	316		hull identification number [(HIN)], motor number, outdrive number,
314	317		primary operation purpose, vessel type, propulsion type, engine
315	318		drive type, fuel type, and horsepower;
316	319		(3) name and address of purchaser;
317	320		(4) date of purchase;
318	321		(5) name and address of any security interest owner;
319	322		(6) the appropriate affidavit as required by Section
320	323		160.042, Tax Code;
321	324		(7) if the application is for a vessel:
322	325		(A) a statement that the vessel is not a
323	326		documented vessel or a foreign-documented vessel; and
324	327		(B) a statement that the vessel is hull damaged,
325	328		if the applicant knows that the vessel is hull damaged;
326	329		(8) if previously titled or registered:
327	330		(A) transferor's name and address;
328	331		(B) when applicable, name of the state in which
329	332		the vessel or outboard motor was previously titled or registered;
330	333		and
331	334		(C) any title brand known to the applicant and,
332	335		if known, the jurisdiction under whose law the title brand was
333	336		designated; and
334	337		(9) [(7)] other information required by the
335	338		department to show the ownership of the vessel or outboard motor, a
336	339		security interest in the vessel or outboard motor, or a further
337	340		description of items listed in the subdivision.
338	341		(c) The application must be accompanied by other evidence
339	342		reasonably required by the department to establish that the
340	343		applicant or other person is entitled to a certificate of title or a
341	344		noted security interest. The evidence may include:
342	345		(1) a certificate of title issued by another state or
343	346		jurisdiction;
344	347		(2) a manufacturer's or importer's certificate of
345	348		origin;
346	349		(3) a bill of sale, assignment, or contract;
347	350		(4) a promissory note;
348	351		(5) a security agreement;
349	352		(6) an invoice;
350	353		(7) a bill of lading;
351	354		(8) an affidavit;
352	355		(9) a probate or heirship proceeding or information;
353	356		(10) a judgment of a court of competent jurisdiction;
354	357		(11) evidence of an involuntary transfer, as defined
355	358		by [in Subdivision (5) of Subsection (a) of] Section 31.053(b)
356	359		[31.053, as amended], which may be in affidavit form attaching
357	360		copies of any pertinent underlying documents;
358	361		(12) if the vessel was a documented vessel, a record
359	362		issued by the Coast Guard that shows the vessel is no longer
360	363		documented and identifies the applicant as the owner, or is
361	364		accompanied by a record that identifies the applicant as the owner;
362	365		(13) if the vessel was a foreign-documented vessel, a
363	366		record issued by the foreign country that shows the vessel is no
364	367		longer a foreign-documented vessel and identifies the applicant as
365	368		the owner, or is accompanied by a record that identifies the
366	369		applicant as the owner; or
367	370		(14) [(12)] other documents.
368	371		(f) An application for a certificate of title on a homemade
369	372		vessel, the origin of which is based on the affidavit of the person
370	373		building the vessel, proof of materials incorporated into the
371	374		vessel, and the like, must be accompanied by a certificate from a
372	375		game warden commissioned by the department that the vessel has been
373	376		inspected by such officer and appears to be as applied for. The
374	377		applicant shall pay a fee of $25, or an amount set by the
375	378		commission, whichever is greater, to the department for this
376	379		inspection.
377	380		SECTION 12. Subchapter B-1, Chapter 31, Parks and Wildlife
378	381		Code, is amended by adding Section 31.0485 to read as follows:
379	382		Sec. 31.0485. ISSUANCE, REJECTION, AND CANCELLATION OF
380	383		CERTIFICATE OF TITLE. (a) Unless an application for a certificate
381	384		of title is rejected under Subsection (c) or (d), the department
382	385		shall issue a certificate of title for the vessel or outboard motor
383	386		in accordance with Subsection (b) not later than the 20th day after
384	387		the date the department receives an application that complies with
385	388		this chapter.
386	389		(b) If the department issues electronic certificates of
387	390		title, the department shall issue an electronic certificate of
388	391		title unless in the application the secured party of record or, if
389	392		none, the owner of record, requests that the department issue a
390	393		written certificate of title.
391	394		(c) Except as provided by Subsection (d), the department may
392	395		reject an application for a certificate of title only if:
393	396		(1) the application does not comply with this chapter
394	397		or other applicable law;
395	398		(2) the application does not contain documentation
396	399		sufficient for the department to determine whether the applicant is
397	400		entitled to a certificate of title; or
398	401		(3) the department finds a reasonable basis for
399	402		concluding that the application is fraudulent or issuance of a
400	403		certificate of title to the applicant would facilitate a fraudulent
401	404		or illegal act.
402	405		(d) The department shall reject an application for a
403	406		certificate of title for a vessel that is a documented vessel or a
404	407		foreign-documented vessel.
405	408		(e) On issuance of a written certificate of title, the
406	409		department promptly shall send the certificate of title to the
407	410		secured party of record or, if none, to the owner of record, at the
408	411		address indicated for that person in the files of the department.
409	412		On issuance of an electronic certificate of title, the department
410	413		promptly shall send a record evidencing the certificate of title to
411	414		the owner of record and, if there is one, to the secured party of
412	415		record, at the address indicated for that person in the files of the
413	416		department. The department may send the record to the person's
414	417		mailing address or, if indicated in the files of the department, an
415	418		electronic address.
416	419		(f) If the department issues a written certificate of title
417	420		for a vessel or outboard motor, any electronic certificate of title
418	421		for the vessel or outboard motor is canceled and replaced by the
419	422		written certificate of title. The department shall maintain in the
420	423		files of the department the date and time of cancellation.
421	424		(g) Before the department issues an electronic certificate
422	425		of title, any written certificate of title for the vessel or
423	426		outboard motor must be surrendered to the department. If the
424	427		department issues an electronic certificate of title, the
425	428		department shall destroy or otherwise cancel the written
426	429		certificate of title for the vessel or outboard motor that has been
427	430		surrendered to the department and maintain in the files of the
428	431		department the date and time of destruction or other cancellation.
429	432		If a written certificate of title being canceled is not destroyed,
430	433		the department shall indicate on the face of the certificate that it
431	434		has been canceled.
432	435		(h) The department may cancel a certificate of title issued
433	436		by the department only if the department:
434	437		(1) could have rejected the application for the
435	438		certificate under Subsection (c);
436	439		(2) is required to cancel the certificate under this
437	440		section or another provision of this chapter; or
438	441		(3) receives satisfactory evidence that the vessel is
439	442		a documented vessel or a foreign-documented vessel.
440	443		SECTION 13. Section 31.049, Parks and Wildlife Code, is
441	444		amended by amending Subsection (a) and adding Subsections (f), (g),
442	445		and (h) to read as follows:
443	446		(a) A certificate of title must be on a form prescribed by
444	447		the department and must contain:
445	448		(1) the name and mailing address of the owner of the
446	449		vessel or outboard motor and, if not all owners are listed, an
447	450		indication that there are additional owners indicated in the files
448	451		of the department;
449	452		(2) the name and mailing address of the owner of a
450	453		security interest in the vessel or outboard motor and, if not all
451	454		security interests are listed, an indication that there are
452	455		additional security interests indicated in the files of the
453	456		department; [and]
454	457		(3) a description of the vessel or outboard motor,
455	458		including, as appropriate, the hull identification number, motor
456	459		number, outdrive number, make, year, length, vessel type, hull
457	460		material, propulsion type, engine drive type, fuel type, and
458	461		horsepower;
459	462		(4) the date the certificate was issued;
460	463		(5) all title brands indicated in the files of the
461	464		department covering the vessel, including brands indicated on a
462	465		certificate issued by a governmental agency of another jurisdiction
463	466		and delivered to the department; and
464	467		(6) a form for the owner of record to indicate, in
465	468		connection with a transfer of ownership interest, that the vessel
466	469		is hull damaged.
467	470		(f) This chapter does not preclude the department from
468	471		noting on a certificate of title the name and mailing address of a
469	472		secured party that is not a secured party of record.
470	473		(g) For each title brand indicated on a certificate of
471	474		title, the certificate must identify the jurisdiction under whose
472	475		law the title brand was designated or the jurisdiction that issued
473	476		the certificate on which the title brand was designated. If the
474	477		meaning of a title brand is not easily ascertainable or cannot be
475	478		accommodated on the certificate, the certificate may state:
476	479		"Previously branded in (insert the jurisdiction under whose law the
477	480		title brand was designated or that issued the certificate of title
478	481		on which the title brand was designated)."
479	482		(h) If the files of the department indicate that a vessel
480	483		was previously registered or titled in a foreign country, the
481	484		department shall indicate on the certificate of title that the
482	485		vessel was registered or titled in that country.
483	486		SECTION 14. The heading to Section 31.050, Parks and
484	487		Wildlife Code, is amended to read as follows:
485	488		Sec. 31.050. FORM OF MANUFACTURER'S AND IMPORTER'S
486	489		CERTIFICATE OF ORIGIN.
487	490		SECTION 15. Sections 31.050(a) and (b), Parks and Wildlife
488	491		Code, are amended to read as follows:
489	492		(a) A manufacturer's [certificate] or [an] importer's
490	493		certificate of origin must include:
491	494		(1) a description of the vessel or outboard motor as
492	495		required by [Subdivision (2) of Subsection (b) of] Section
493	496		31.047(b)(2) [31.047 of this code];
494	497		(2) the name and place of construction or other
495	498		origin;
496	499		(3) the signature of the manufacturer or an equivalent
497	500		of the signature of the manufacturer; and
498	501		(4) the endorsement of the original and each
499	502		subsequent transferee, including the applicant for the original
500	503		certificate of title.
501	504		(b) A lien, security interest, or other encumbrance may not
502	505		be shown on a manufacturer's or importer's certificate of origin.
503	506		SECTION 16. Subchapter B-1, Chapter 31, Parks and Wildlife
504	507		Code, is amended by adding Section 31.0505 to read as follows:
505	508		Sec. 31.0505. HULL DAMAGED TITLE BRAND. (a) Unless
506	509		Subsection (b) applies, at or before the time the owner of record
507	510		transfers an ownership interest in a hull-damaged vessel that is
508	511		covered by a certificate of title issued by the department, if the
509	512		damage occurred while that person was an owner of the vessel and the
510	513		person has notice of the damage at the time of the transfer, the
511	514		owner shall:
512	515		(1) deliver to the department an application for a new
513	516		certificate of title that complies with Section 31.046 and includes
514	517		the title brand "Hull Damaged"; or
515	518		(2) indicate on the certificate of title in the place
516	519		designated for that purpose that the vessel is hull damaged and
517	520		deliver the certificate to the transferee.
518	521		(b) Before an insurer transfers an ownership interest in a
519	522		hull-damaged vessel that is covered by a certificate of title
520	523		issued by the department, the insurer shall deliver to the
521	524		department an application for a new certificate of title that
522	525		complies with Section 31.046 and includes the title brand "Hull
523	526		Damaged".
524	527		(c) Not later than the 20th day after the date of delivery to
525	528		the department of an application under Subsection (a)(1) or (b) or a
526	529		certificate of title under Subsection (a)(2), the department shall
527	530		issue a new certificate of title that indicates that the vessel is
528	531		title branded "Hull Damaged".
529	532		(d) A person commits an offense if the person:
530	533		(1) intentionally or knowingly:
531	534		(A) fails to comply with Subsection (a) or (b);
532	535		or
533	536		(B) solicits or colludes in a failure by an owner
534	537		of record to comply with Subsection (a); or
535	538		(2) negligently fails to comply with Subsection (a) or
536	539		(b).
537	540		(e) An offense under Subsection (d)(1) is a Class B Parks
538	541		and Wildlife Code misdemeanor. An offense under Subsection (d)(2)
539	542		is a Class C Parks and Wildlife Code misdemeanor.
540	543		SECTION 17. Section 31.051, Parks and Wildlife Code, is
541	544		amended to read as follows:
542	545		Sec. 31.051. REPLACEMENT CERTIFICATES OF TITLE. The
543	546		department shall provide by regulation for the replacement of
544	547		[lost, mutilated, or stolen] certificates of title.
545	548		SECTION 18. Sections 31.052(a), (c), and (d), Parks and
546	549		Wildlife Code, are amended to read as follows:
547	550		(a) Except as provided by this section and Section
548	551		31.050(c), and except for statutory liens, security interests in a
549	552		vessel or outboard motor shall be noted on the certificate of title
550	553		of the vessel or outboard motor to which the security interest
551	554		applies. On recordation of a security interest on the certificate
552	555		of title, the recorded security interest owner and assignees under
553	556		Subsection (c) obtain priority over the rights of a lien creditor[,
554	557		as defined by Section 9.102, Business & Commerce Code,] for so long
555	558		as the security interest is recorded on the certificate of title.
556	559		(c) A security interest owner may assign a security interest
557	560		recorded under this chapter without making any filing or giving any
558	561		notice under this chapter. The security interest assigned remains
559	562		valid and perfected and retains its priority, securing the
560	563		obligation assigned to the assignee, against transferees from and
561	564		creditors of the debtor, including lien creditors[, as defined by
562	565		Section 9.102, Business & Commerce Code].
563	566		(d) An assignee or assignor may, but need not to retain the
564	567		validity, perfection, and priority of the security interest
565	568		assigned, as evidence of the assignment of the security interest
566	569		recorded under this chapter, apply to the department or a county
567	570		assessor-collector for the assignee to be named as security
568	571		interest owner on the certificate of title and notify the debtor of
569	572		the assignment. Failure to make application under this subsection
570	573		or notify a debtor of an assignment does not create a cause of
571	574		action against the recorded security interest owner, the assignor,
572	575		or the assignee or affect the continuation of the perfected status
573	576		of the assigned security interest in favor of the assignee against
574	577		transferees from and creditors of the debtor, including lien
575	578		creditors[, as defined by Section 9.102, Business & Commerce Code].
576	579		SECTION 19. Section 31.053, Parks and Wildlife Code, is
577	580		amended by amending Subsections (a) and (c) and adding Subsections
578	581		(a-1), (g), and (h) to read as follows:
579	582		(a) No person may sell, assign, transfer, or otherwise
580	583		dispose of an interest in a vessel or an outboard motor without:
581	584		(1) if the transferee is not a manufacturer or a dealer
582	585		and the vessel or outboard motor is new, delivering to the
583	586		department a manufacturer's or importer's certificate of origin
584	587		showing the endorsement of the manufacturer and all intervening
585	588		owners;
586	589		(2) if the transferee is a manufacturer or a dealer and
587	590		the vessel or outboard motor is new, delivering to the transferee a
588	591		manufacturer's or importer's certificate of origin showing the
589	592		endorsement of the manufacturer and all intervening owners;
590	593		(3) if the vessel or outboard motor is not covered by a
591	594		certificate of title or a manufacturer's or importer's certificate
592	595		of origin and if the transferor is a manufacturer or dealer,
593	596		delivering to the department sufficient evidence of title or other
594	597		information to permit the issuance of a certificate of title for the
595	598		vessel or outboard motor in the name of the transferee;
596	599		(4) if the vessel or outboard motor is not covered by a
597	600		certificate of title or a manufacturer's or importer's certificate
598	601		of origin and if the transferor is not a manufacturer or dealer,
599	602		delivering to the transferee sufficient evidence of title or other
600	603		information to permit the transferee to apply for and receive a
601	604		certificate of title for the vessel or outboard motor in the name of
602	605		the transferee; or
603	606		(5) delivering to the transferee a certificate of
604	607		title for the vessel or outboard motor in the name of the transferor
605	608		and properly endorsed to show the transfer or evidence of an
606	609		involuntary transfer.
607	610		(a-1) For a voluntary transfer, if the transferor does not
608	611		have possession of the certificate of title, the person in
609	612		possession of the certificate of title shall facilitate the
610	613		transferor's compliance with this section, except that a secured
611	614		party does not have a duty to facilitate the transferor's
612	615		compliance with this section if the proposed transfer is prohibited
613	616		by the security agreement.
614	617		(c) The transferor shall provide the documents or evidence
615	618		required by Subsection (a) [of this section] to the department or
616	619		the transferee, as appropriate, in sufficient time to allow the
617	620		transferee to register and obtain a certificate of title for the
618	621		vessel or outboard motor not later than the 20th [45th] day after
619	622		the date of the sale.
620	623		(g) If the certificate of title is an electronic certificate
621	624		of title, the transferor shall promptly sign and deliver to the
622	625		transferee a record evidencing the transfer of ownership to the
623	626		transferee.
624	627		(h) The transferee has a right enforceable by specific
625	628		performance to require the transferor comply with Subsection
626	629		(a)(5), (a-1), or (g).
627	630		SECTION 20. Section 31.055, Parks and Wildlife Code, is
628	631		amended to read as follows:
629	632		Sec. 31.055. EXCEPTIONS. This subchapter does not apply
630	633		to:
631	634		(1) a vessel [vessels] with a valid marine document
632	635		issued by the United States Coast Guard's National Vessel
633	636		Documentation Center or a federal agency that is a successor to the
634	637		National Vessel Documentation Center;
635	638		(2) a foreign-documented vessel;
636	639		(3) a barge; or
637	640		(4) a vessel before delivery if the vessel is under
638	641		construction or completed under contract.
639	642		SECTION 21. Subchapter B-1, Chapter 31, Parks and Wildlife
640	643		Code, is amended by adding Sections 31.0563, 31.0565, 31.0567,
641	644		31.0569, 31.057, 31.0573, 31.0575, 31.0577, 31.0579, 31.058, and
642	645		31.0582 to read as follows:
643	646		Sec. 31.0563. RECORDS. (a) For each record relating to a
644	647		certificate of title submitted to the department, the department
645	648		shall maintain a file that includes:
646	649		(1) the hull identification number of the vessel or
647	650		the serial number of the outboard motor;
648	651		(2) all the information submitted with the application
649	652		under Section 31.046, including the date and time the application
650	653		was submitted to the department;
651	654		(3) the name of each secured party to the vessel or
652	655		outboard motor; and
653	656		(4) the name of each person known to the department to
654	657		be claiming an ownership interest in the vessel or outboard motor.
655	658		(b) In addition to the information described by Subsection
656	659		(a), the department shall maintain a list of all title brands known
657	660		to the department and stolen-property reports relating to vessels
658	661		or outboard motors made known to the department.
659	662		(c) The department shall maintain the information described
660	663		in this section in a manner that is searchable by hull
661	664		identification number of the vessel, the motor number, the vessel
662	665		number, and the name of the owner of record. The department may
663	666		maintain the information described in this section in a manner that
664	667		is searchable by other methods.
665	668		(d) The department shall provide to federal, state, and
666	669		local governmental entities the information described by this
667	670		section, on request of the governmental entities and for the
668	671		purposes of safety, security, or law enforcement.
669	672		(e) The department shall retain the evidence used to
670	673		establish the accuracy of the information in its files relating to
671	674		the ownership of a vessel or outboard motor and the information on
672	675		the certificate of title in accordance with the record retention
673	676		schedule established under the department's records management
674	677		program.
675	678		(f) The department shall retain in its files all information
676	679		regarding a security interest in a vessel or outboard motor for at
677	680		least 10 years after the department receives a termination
678	681		statement regarding the security interest. The information must be
679	682		accessible by the hull identification number of the vessel or
680	683		serial number of the outboard motor and any other methods provided
681	684		by the department.
682	685		(g) If a person submits a record to the department, or
683	686		submits information that is accepted by the department, and
684	687		requests an acknowledgment of the filing or submission, the
685	688		department shall send to the person an acknowledgment showing the
686	689		hull identification number of the vessel or serial number of the
687	690		outboard motor to which the record or submission relates, the
688	691		information in the filed record or submission, and the date and time
689	692		the record was received or the submission accepted. A request
690	693		described by this subsection must contain the hull identification
691	694		number of the vessel and serial number of the outboard motor and be
692	695		delivered by means authorized by the department.
693	696		Sec. 31.0565. EFFECT OF CERTIFICATE OF TITLE ON INFORMATION
694	697		IN CERTIFICATE. A certificate of title is prima facie evidence of
695	698		the accuracy of the information in the record that constitutes the
696	699		certificate.
697	700		Sec. 31.0567. EFFECT OF POSSESSION OF CERTIFICATE OF TITLE;
698	701		JUDICIAL PROCESS. Possession of a certificate of title does not
699	702		provide a right to obtain possession of a vessel or outboard motor.
700	703		Garnishment, attachment, levy, replevin, or other judicial process
701	704		against the certificate is not effective to determine possessory
702	705		rights to the vessel or outboard motor. This chapter does not
703	706		prohibit enforcement under the laws of this state of a security
704	707		interest in, levy on, or foreclosure of a statutory or common-law
705	708		lien on a vessel or outboard motor. Absence of an indication of a
706	709		statutory or common-law lien on a certificate of title does not
707	710		invalidate the lien.
708	711		Sec. 31.0569. PERFECTION OF SECURITY INTEREST. (a) A
709	712		security interest in a vessel or outboard motor may be perfected
710	713		only by delivery to the department of an application for a
711	714		certificate of title that identifies the secured party and
712	715		otherwise complies with Section 31.049. The security interest is
713	716		perfected on the later of delivery to the department of the
714	717		application and the applicable fee or attachment of the security
715	718		interest under Section 9.203, Business & Commerce Code.
716	719		(b) If the interest of a person named as owner, lessor,
717	720		consignor, or bailor in an application for a certificate of title
718	721		delivered to the department is a security interest, the application
719	722		sufficiently identifies the person as a secured party.
720	723		Identification on the application for a certificate of title of a
721	724		person as owner, lessor, consignor, or bailor is not by itself a
722	725		factor in determining whether the person's interest is a security
723	726		interest.
724	727		(c) If the department has issued a certificate of title for
725	728		a vessel or outboard motor, a security interest in the vessel or
726	729		outboard motor may be perfected by delivery to the department of an
727	730		application, on a form prescribed by the department, to have the
728	731		security interest added to the certificate of title. The
729	732		application must be signed by an owner of the vessel or outboard
730	733		motor or by the secured party and must include:
731	734		(1) the name of the owner of record;
732	735		(2) the name and mailing address of the secured party;
733	736		(3) the hull identification number of the vessel and
734	737		serial number of the outboard motor, as applicable; and
735	738		(4) the certificate of title, if the department has
736	739		issued a written certificate of title for the vessel or outboard
737	740		motor.
738	741		(d) A security interest perfected under Subsection (c) is
739	742		perfected on the later of:
740	743		(1) delivery to the department of the application and
741	744		all applicable fees; or
742	745		(2) attachment of the security interest under Section
743	746		9.203, Business & Commerce Code.
744	747		(e) On delivery of an application that complies with
745	748		Subsection (c) and payment of all applicable fees, the department
746	749		shall issue a new certificate of title under Section 31.0485 and
747	750		deliver the new certificate of title or a record evidencing an
748	751		electronic certificate of title as required by Subsection (e) of
749	752		that section. The department shall maintain in the files of the
750	753		department the date and time of delivery of the application to the
751	754		department.
752	755		(f) If a secured party assigns a perfected security interest
753	756		in a vessel or outboard motor, the receipt by the department of a
754	757		statement providing the name of the assignee as secured party is not
755	758		required to continue the perfected status of the security interest
756	759		against creditors of and transferees from the original debtor. A
757	760		purchaser of a vessel or outboard motor subject to a security
758	761		interest who obtains a release from the secured party indicated in
759	762		the files of the department or on the certificate of title takes
760	763		free of the security interest and of the rights of a transferee
761	764		unless the transfer is indicated in the files of the department or
762	765		on the certificate of title.
763	766		(g) This section does not apply to a security interest:
764	767		(1) issued for a vessel or outboard motor by a person
765	768		during any period in which the vessel or outboard motor is inventory
766	769		held for sale or lease by the person or is leased by the person as
767	770		lessor if the person is in the business of selling vessels or
768	771		outboard motors;
769	772		(2) in a barge for which no application for a
770	773		certificate of title has been delivered to the department; or
771	774		(3) in a vessel or outboard motor before delivery if
772	775		the vessel or outboard motor is under construction or completed
773	776		under contract and for which no application for a certificate of
774	777		title has been delivered to the department.
775	778		(h) If a certificate of documentation for a documented
776	779		vessel is deleted or canceled, a security interest in the vessel
777	780		that was valid immediately before deletion or cancellation against
778	781		a third party as a result of compliance with 46 U.S.C. Section 31321
779	782		is and remains perfected until the earlier of:
780	783		(1) four months after deletion or cancellation of the
781	784		certificate of documentation; or
782	785		(2) the perfection of the security interest under this
783	786		section.
784	787		(i) A security interest in a vessel or outboard motor
785	788		arising under Section 2.401, 2.505, 2.711(c), or 2A.508(e),
786	789		Business & Commerce Code, is perfected when it attaches but becomes
787	790		unperfected when the debtor obtains possession of the vessel or
788	791		outboard motor, unless before the debtor obtains possession the
789	792		security interest is perfected under Subsection (a) or (c).
790	793		(j) A security interest in a vessel or outboard motor as
791	794		proceeds of other collateral is perfected to the extent provided in
792	795		Section 9.315, Business & Commerce Code.
793	796		(k) A security interest in a vessel or outboard motor
794	797		perfected under the law of another jurisdiction is perfected to the
795	798		extent provided in Section 9.316(d), Business & Commerce Code.
796	799		Sec. 31.057. TERMINATION STATEMENT. (a) A secured party
797	800		indicated in the files of the department as having a security
798	801		interest in a vessel or outboard motor shall deliver a termination
799	802		statement to the department and, on the debtor's request, to the
800	803		debtor, not later than the earlier of:
801	804		(1) the 20th day after the date the secured party
802	805		receives a signed demand from an owner for a termination statement
803	806		and there is no obligation secured by the vessel or outboard motor
804	807		subject to the security interest and no commitment to make an
805	808		advance, incur an obligation, or otherwise give value secured by
806	809		the vessel or outboard motor; or
807	810		(2) if the vessel or outboard motor is used or bought
808	811		for use primarily for personal, family, or household purposes, the
809	812		30th day after the date that no obligation is secured by the vessel
810	813		or outboard motor and no commitment exists to make an advance, incur
811	814		an obligation, or otherwise give value secured by the vessel or
812	815		outboard motor.
813	816		(b) If a written certificate of title has been issued and
814	817		delivered to a secured party and a termination statement is
815	818		required under Subsection (a), the secured party, not later than
816	819		the date required by Subsection (a), shall deliver the certificate
817	820		of title to the debtor or to the department with the statement. If
818	821		the certificate of title is lost, stolen, mutilated, destroyed, or
819	822		is otherwise unavailable or illegible, the secured party shall
820	823		deliver with the statement, not later than the date required by
821	824		Subsection (a), an application for a replacement certificate of
822	825		title meeting the requirements prescribed in the regulations
823	826		adopted under Section 31.051.
824	827		(c) On delivery to the department of a termination statement
825	828		authorized by the secured party, and, if applicable, an application
826	829		for a replacement certificate of title meeting the requirements
827	830		prescribed in the regulations adopted under Section 31.051, the
828	831		security interest to which the statement relates ceases to be
829	832		perfected. If the security interest to which the statement relates
830	833		was indicated on the certificate of title, the department shall
831	834		issue a new certificate of title and deliver the new certificate of
832	835		title or a record evidencing an electronic certificate of title.
833	836		The department shall maintain in its files the date and time of
834	837		delivery to the department of the termination statement.
835	838		(d) A secured party that fails to comply with this section
836	839		is liable for:
837	840		(1) any loss that the secured party had reason to know
838	841		might result from the secure party's failure to comply and which
839	842		could not reasonably have been prevented; and
840	843		(2) the cost of an application for a certificate of
841	844		title under Section 31.047 or a replacement certificate of title
842	845		under the regulations adopted under Section 31.051.
843	846		Sec. 31.0573. EFFECT OF MISSING OR INCORRECT INFORMATION.
844	847		Except as otherwise provided by Section 9.337, Business & Commerce
845	848		Code, a certificate of title or other record required or authorized
846	849		by this chapter is effective, regardless of whether it contains
847	850		incorrect information or does not contain required information.
848	851		Sec. 31.0575. TRANSFER OF OWNERSHIP BY SECURED PARTY'S
849	852		TRANSFER STATEMENT. (a) In this section, "secured party's
850	853		transfer statement" means a record signed by the secured party of
851	854		record stating:
852	855		(1) there has been a default on an obligation secured
853	856		by the vessel or outboard motor;
854	857		(2) the secured party of record is exercising or has
855	858		exercised post-default remedies with respect to the vessel or
856	859		outboard motor;
857	860		(3) by reason of the exercise, the secured party of
858	861		record has the right to transfer the ownership interest of an owner,
859	862		and the name of the owner;
860	863		(4) the name and last known mailing address of the
861	864		owner of record and the secured party of record;
862	865		(5) the name of the transferee;
863	866		(6) other information required by Section 31.047(b);
864	867		and
865	868		(7) one of the following:
866	869		(A) that the certificate of title is an
867	870		electronic certificate of title;
868	871		(B) that the secured party does not have
869	872		possession of the written certificate of title issued in the name of
870	873		the owner of record; or
871	874		(C) that the secured party is delivering the
872	875		written certificate of title to the department with the secured
873	876		party's transfer statement.
874	877		(b) Unless the department rejects a secured party's
875	878		transfer statement for a reason stated in Section 31.0485(c), not
876	879		later than the 20th day after the date of delivery to the department
877	880		of the statement and payment of fees due under this chapter and
878	881		taxes payable under Chapter 160, Tax Code, in connection with the
879	882		statement or the acquisition or use of the vessel or outboard motor,
880	883		the department shall:
881	884		(1) accept the statement;
882	885		(2) amend the files of the department to reflect the
883	886		transfer; and
884	887		(3) if the name of the owner whose ownership interest
885	888		is being transferred is indicated on the certificate of title:
886	889		(A) cancel the certificate of title, regardless
887	890		of whether the certificate of title has been delivered to the
888	891		department;
889	892		(B) issue a new certificate of title indicating
890	893		the transferee as owner; and
891	894		(C) deliver the new certificate of title or a
892	895		record evidencing an electronic certificate of title.
893	896		(c) The submission to the department of a secured party's
894	897		transfer statement, or the issuance of a certificate of title under
895	898		Subsection (b), is not a disposition of the vessel or outboard motor
896	899		and does not relieve the secured party of the secured party's duties
897	900		under Chapter 9, Business & Commerce Code.
898	901		Sec. 31.0577. TRANSFER BY OPERATION OF LAW. (a) In this
899	902		section:
900	903		(1) "By operation of law" means, with respect to a
901	904		vessel or outboard motor, in accordance with a law or judicial order
902	905		affecting ownership of the vessel or outboard motor:
903	906		(A) because of death, divorce or other family law
904	907		proceeding, merger, consolidation, dissolution, or bankruptcy;
905	908		(B) through the exercise of the rights of a lien
906	909		creditor or a person having a lien created by statute or rule of
907	910		law; or
908	911		(C) through other legal process.
909	912		(2) "Transfer-by-law statement" means a record signed
910	913		by a transferee stating that by operation of law the transferee has
911	914		acquired or has the right to acquire an ownership interest in a
912	915		vessel or outboard motor.
913	916		(b) A transfer-by-law statement must contain:
914	917		(1) the name and last known mailing address of the
915	918		owner of record and the transferee and the other information
916	919		required by Section 31.047(b);
917	920		(2) documentation sufficient to establish the
918	921		transferee's ownership interest or right to acquire the ownership
919	922		interest;
920	923		(3) a statement that:
921	924		(A) the certificate of title is an electronic
922	925		certificate of title;
923	926		(B) the transferee does not have possession of
924	927		the written certificate of title issued in the name of the owner of
925	928		record; or
926	929		(C) the transferee is delivering the written
927	930		certificate of title to the department with the transfer-by-law
928	931		statement; and
929	932		(4) except for a transfer described in Subsection
930	933		(a)(1)(A), evidence that notification of the transfer and the
931	934		intent to file the transfer-by-law statement has been sent to all
932	935		persons indicated in the files of the department as having an
933	936		interest, including a security interest, in the vessel or outboard
934	937		motor.
935	938		(c) Unless the department rejects a transfer-by-law
936	939		statement for a reason stated in Section 31.0485(c) or because the
937	940		statement does not include documentation satisfactory to the
938	941		department as to the transferee's ownership interest or right to
939	942		acquire the ownership interest, not later than the 20th day after
940	943		the date of delivery to the department of the statement and payment
941	944		of fees due under this chapter and taxes payable under Chapter 160,
942	945		Tax Code, in connection with the statement or with the acquisition
943	946		or use of the vessel or outboard motor, the department shall:
944	947		(1) accept the statement;
945	948		(2) amend the files of the department to reflect the
946	949		transfer; and
947	950		(3) if the name of the owner whose ownership interest
948	951		is being transferred is indicated on the certificate of title:
949	952		(A) cancel the certificate of title, regardless
950	953		of whether the certificate of title has been delivered to the
951	954		department;
952	955		(B) issue a new certificate of title indicating
953	956		the transferee as owner;
954	957		(C) indicate on the new certificate of title any
955	958		security interest indicated on the canceled certificate of title,
956	959		unless a court order provides otherwise; and
957	960		(D) deliver the new certificate of title or a
958	961		record evidencing an electronic certificate of title.
959	962		(d) This section does not apply to a transfer of an interest
960	963		in a vessel or outboard motor by a secured party under Subchapter F,
961	964		Chapter 9, Business & Commerce Code.
962	965		Sec. 31.0579. APPLICATION FOR TERMINATION OF SECURITY
963	966		INTEREST WITHOUT CERTIFICATE OF TITLE. (a) Except as provided by
964	967		Sections 31.0575 and 31.0577, if the department receives,
965	968		unaccompanied by a signed certificate of title, an application for
966	969		a new certificate of title that includes an indication of a
967	970		termination statement, the department may issue a new certificate
968	971		of title under this section only if:
969	972		(1) all other requirements under Sections 31.047 and
970	973		31.0485 are met;
971	974		(2) the applicant provides an affidavit stating facts
972	975		showing the applicant is entitled to a termination statement;
973	976		(3) the applicant provides the department with
974	977		satisfactory evidence that notification of the application has been
975	978		sent to all persons indicated in the files of the department as
976	979		having a security interest in the vessel or outboard motor, not
977	980		earlier than the 45th day after the date the notification was sent,
978	981		and the department has not received an objection from any of those
979	982		persons; and
980	983		(4) the applicant submits any other information
981	984		required by the department as evidence of the applicant's right to
982	985		terminate the security interest, and the department has no credible
983	986		information indicating theft, fraud, or an undisclosed or
984	987		unsatisfied security interest, lien, or other claim to an interest
985	988		in the vessel or outboard motor.
986	989		(b) The department may indicate in a certificate of title
987	990		issued under Subsection (a) that the certificate of title was
988	991		issued without submission of a termination statement. Unless
989	992		credible information indicating theft, fraud, or an undisclosed or
990	993		unsatisfied security interest, lien, or other claim to an interest
991	994		in the vessel or outboard motor is delivered to the department not
992	995		later than the first anniversary of the date of the issuance of the
993	996		certificate of title under Subsection (a), on request in a form and
994	997		manner required by the department, the department shall remove the
995	998		indication from the certificate of title.
996	999		(c) Unless the department determines that the value of a
997	1000		vessel or outboard motor is less than $5,000, the department may
998	1001		require the applicant to post a bond or provide an equivalent source
999	1002		of indemnity or security before the department issues a certificate
1000	1003		of title under Subsection (a). The bond, indemnity, or other
1001	1004		security may not exceed twice the value of the vessel or outboard
1002	1005		motor as determined by the department. The bond, indemnity, or
1003	1006		other security must be in a form required by the department and
1004	1007		provide for indemnification of any owner, purchaser, or other
1005	1008		claimant for any expense, loss, delay, or damage, including
1006	1009		reasonable attorney's fees and costs, but not including incidental
1007	1010		or consequential damages, resulting from issuance or amendment of
1008	1011		the certificate of title.
1009	1012		(d) Unless the department receives a claim for indemnity not
1010	1013		later than the first anniversary of the date of the issuance of a
1011	1014		certificate of title under Subsection (a), on request in a form and
1012	1015		manner required by the department, the department shall release any
1013	1016		bond, indemnity, or other security.
1014	1017		Sec. 31.058. RIGHTS OF PURCHASER OTHER THAN SECURED PARTY.
1015	1018		(a) In this section, "buyer in ordinary course of business" has the
1016	1019		meaning assigned by Section 1.201, Business & Commerce Code.
1017	1020		(b) A buyer in ordinary course of business has the
1018	1021		protections afforded by Sections 2.403(b) and 9.320(a), Business &
1019	1022		Commerce Code, regardless of whether:
1020	1023		(1) an existing certificate of title was signed and
1021	1024		delivered to the buyer; or
1022	1025		(2) a new certificate of title listing the buyer as
1023	1026		owner of record was issued.
1024	1027		(c) Except as provided by Sections 31.053 and 31.0582, the
1025	1028		rights of a purchaser of a vessel or outboard motor that is not a
1026	1029		buyer in ordinary course of business or a lien creditor are governed
1027	1030		by the Business & Commerce Code.
1028	1031		Sec. 31.0582. RIGHTS OF SECURED PARTY. (a) In this
1029	1032		section, "good faith" means honesty in fact and the observance of
1030	1033		reasonable commercial standards of fair dealing.
1031	1034		(b) Subject to Subsection (c), the effect of perfection and
1032	1035		nonperfection of a security interest and the priority of a
1033	1036		perfected or unperfected security interest with respect to the
1034	1037		rights of a purchaser or creditor, including a lien creditor, is
1035	1038		governed by the Business & Commerce Code.
1036	1039		(c) If, while a security interest in a vessel or outboard
1037	1040		motor is perfected by any method under this chapter, the department
1038	1041		issues a certificate of title that does not indicate that the vessel
1039	1042		or outboard motor is subject to the security interest or contain a
1040	1043		statement that it may be subject to security interests not
1041	1044		indicated on the certificate of title:
1042	1045		(1) a buyer of the vessel or outboard motor, other than
1043	1046		a person in the business of selling or leasing vessels or outboard
1044	1047		motors of that kind, takes free of the security interest if the
1045	1048		buyer, acting in good faith and without knowledge of the security
1046	1049		interest, gives value and receives possession of the vessel or
1047	1050		outboard motor; and
1048	1051		(2) the security interest is subordinate to a
1049	1052		conflicting security interest in the vessel or outboard motor that
1050	1053		is perfected under Section 31.0569, after creation of the
1051	1054		certificate and without the conflicting secured party's knowledge
1052	1055		of the security interest.
1053	1056		SECTION 22. The following provisions of the Parks and
1054	1057		Wildlife Code are repealed:
1055	1058		(1) Section 31.039(c); and
1056	1059		(2) Sections 31.049(b) and (c).
1057	1060		SECTION 23. (a) The rights, duties, and interests flowing
1058	1061		from a transaction, certificate of title, or record relating to a
1059	1062		vessel or outboard motor which was validly entered into or issued
1060	1063		before the effective date of this Act and would be subject to
1061	1064		Chapter 31, Parks and Wildlife Code, as amended by this Act, if it
1062	1065		had been entered into or issued on or after the effective date of
1063	1066		this Act, remain valid on and after the effective date of this Act.
1064	1067		(b) This Act does not affect an action or proceeding
1065	1068		commenced before the effective date of this Act.
1066	1069		(c) Except as provided by Subsection (d) of this section, a
1067	1070		security interest that is enforceable immediately before the
1068	1071		effective date of this Act and would have priority over the rights
1069	1072		of a person that becomes a lien creditor at that time is a perfected
1070	1073		security interest under this Act.
1071	1074		(d) A security interest perfected immediately before the
1072	1075		effective date of this Act remains perfected until the earlier of:
1073	1076		(1) the time perfection would have ceased under the
1074	1077		law under which the security interest was perfected; or
1075	1078		(2) three years after the effective date of this Act.
1076	1079		(e) This Act does not affect the priority of a security
1077	1080		interest in a vessel or outboard motor if immediately before the
1078	1081		effective date of this Act the security interest is enforceable and
1079	1082		perfected, and that priority is established.
1080	1083		SECTION 24. This Act takes effect January 1, 2028.
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