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.