H.B. No. 1970
    1-1                                AN ACT
    1-2  relating to the registration and titling of vessels and outboard
    1-3  motors.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Sections 31.003(7), (8), (9), (11), (12), and
    1-6  (14), Parks and Wildlife Code, are amended to read as follows:
    1-7              (7)  "Dealer" means a person customarily engaged in the
    1-8  business of buying, selling, or exchanging vessels <motorboats> or
    1-9  outboard motors at an established or permanent place of business in
   1-10  this state and that at each place of business there is a sign
   1-11  conspicuously displayed showing the name of the dealership so that
   1-12  it may be located by the public and sufficient space to maintain an
   1-13  office, service area, and display of products.
   1-14              (8)  "Vessel <Boat> livery" means a business
   1-15  establishment engaged in renting or hiring out vessels <motorboats>
   1-16  for profit.
   1-17              (9)  "Undocumented vessel <motorboat>" means a vessel
   1-18  that is not required to have, and does not have, a valid marine
   1-19  document issued by the Bureau of Customs of the United States
   1-20  government or its successor.
   1-21              (11)  "Manufacturer" means a person engaged in the
   1-22  business of manufacturing new and unused vessels <motorboats> and
   1-23  outboard motors for the purpose of sale or trade.
   1-24              (12)  "New" means every vessel <motorboat> or outboard
    2-1  motor after its manufacture and before its sale or other transfer
    2-2  to a person not a manufacturer or dealer.
    2-3              (14)  "Personal watercraft" means a vessel of a type
    2-4  <motorboat up to 10 feet in length,> which is specifically designed
    2-5  to be operated by a person or persons sitting, standing, or
    2-6  kneeling on the vessel rather than in the conventional manner of
    2-7  sitting or standing inside the vessel.
    2-8        SECTION 2.  The heading to Subchapter B, Chapter 31, Parks
    2-9  and Wildlife Code, is amended to read as follows:
   2-10        SUBCHAPTER B.  IDENTIFICATION OF VESSELS <MOTORBOATS>;
   2-11                          REQUIRED NUMBERING
   2-12        SECTION 3.  Section 31.021, Parks and Wildlife Code, is
   2-13  amended to read as follows:
   2-14        Sec. 31.021.  Required Numbering.  (a)  Each undocumented
   2-15  vessel <motorboat> on the water of this state shall be numbered in
   2-16  accordance with the provisions of this chapter unless specifically
   2-17  exempted.  The numbering system shall be in accord with the Federal
   2-18  Boating Act of 1958 and subsequent federal legislation.
   2-19        (b)  No person may operate or give permission for the
   2-20  operation of any vessel <motorboat> on the water of this state
   2-21  unless the vessel <motorboat> is numbered as required by this
   2-22  chapter, unless the certificate of number awarded to the vessel
   2-23  <motorboat> is in full force and effect, and unless the identifying
   2-24  number set forth in the certificate is properly displayed on each
   2-25  side of the bow of the vessel <motorboat>.
   2-26        SECTION 4.  Sections 31.022(a), (b), and (c) are amended to
   2-27  read as follows:
    3-1        (a)  A vessel <motorboat> is not required to be numbered
    3-2  under the provisions of this chapter if it is:
    3-3              (1)  operated within this state for a period not
    3-4  exceeding 90 consecutive days and is covered by a number in full
    3-5  force and effect which has been awarded under federal law or a
    3-6  federally approved numbering system of another state;
    3-7              (2)  from a country other than the United States
    3-8  temporarily using the water of this state;
    3-9              (3)  owned by the United States, a state, or a
   3-10  subdivision of a state; or
   3-11              (4)  a ship's lifeboat.
   3-12        (b)  The department may exempt from numbering a class of
   3-13  vessels <motorboats> if it finds that the numbering of the vessels
   3-14  <motorboats> of that class will not materially aid in their
   3-15  identification.  The department may also exempt a vessel
   3-16  <motorboat> if it finds that it belongs to a class of vessels
   3-17  <motorboats> that would be exempt from numbering under a numbering
   3-18  system of an agency of the federal government if it were subject to
   3-19  federal law.
   3-20        (c)  All canoes, kayaks, punts, rowboats, <sailboats, and>
   3-21  rubber rafts, or other vessels under 14 feet in length when
   3-22  paddled, poled, oared, or windblown are exempt from the numbering
   3-23  provisions of this chapter.
   3-24        SECTION 5.  Section 31.023, Parks and Wildlife Code, is
   3-25  amended to read as follows:
   3-26        Sec. 31.023.  VESSELS <BOATS> NUMBERED UNDER FEDERAL OR OTHER
   3-27  STATE LAW.  The owner of any vessel <or motorboat> for which a
    4-1  current certificate of number has been awarded under any federal
    4-2  law or a federally approved numbering system of another state
    4-3  shall, if the <motorboat or> vessel is operated on the water of
    4-4  this state in excess of 90 consecutive days, make application for a
    4-5  certificate of number in the manner prescribed in this chapter for
    4-6  residents of this state.
    4-7        SECTION 6.  Sections 31.024(a), (b), (c), and (e), Parks and
    4-8  Wildlife Code, are amended to read as follows:
    4-9        (a)  The owner of each vessel <motorboat> requiring numbering
   4-10  by this state shall file an application for a number with the
   4-11  department or a county tax assessor-collector.
   4-12        (b)  The application shall be signed by the owner of the
   4-13  vessel <motorboat> and shall be accompanied by the fee prescribed
   4-14  in Section 31.026 of this code.  If the application is received by
   4-15  a county tax assessor-collector, the application and the portion of
   4-16  the fee not retained by the tax assessor-collector as a collection
   4-17  fee shall be sent to the department.
   4-18        (c)  On receipt of the application in approved form, the
   4-19  department shall enter it on the records of its office and issue to
   4-20  the applicant a certificate of number stating the number awarded to
   4-21  the vessel <motorboat> and the name and address of the owner.
   4-22        (e)  The department or county tax assessor-collector may not
   4-23  issue a certificate of number unless the tax due on the vessel
   4-24  <motorboat> under Chapter 160, Tax Code, is paid.
   4-25        SECTION 7.  Sections 31.026 and 31.030, Parks and Wildlife
   4-26  Code, are amended to read as follows:
   4-27        Sec. 31.026.  Fees.  (a)  Each application for an original or
    5-1  renewal certificate of number for a vessel <motorboat> shall be
    5-2  accompanied by a two-year fee determined by the following
    5-3  classification schedule or determined in the same classifications
    5-4  by the commission, whichever amount is more:
    5-5        Class          Description of Vessel <Boat>           Fee
    5-6        Class A        less than 16 feet in length            $12
    5-7        Class 1        16 feet or over and less than
    5-8                         26 feet in length                    $18
    5-9        Class 2        26 feet or over and less than
   5-10                         40 feet in length                    $24
   5-11        Class 3        40 feet or more in length              $30
   5-12        (b)  The fee for a vessel <boat> less than 16 feet in length
   5-13  owned by a vessel <boat> livery and used for rental purposes is $6
   5-14  for each original and renewal application for a certificate of
   5-15  number or an amount set by the commission, whichever amount is
   5-16  more.
   5-17        (c)  Owners of newly purchased vessels <motorboats> or other
   5-18  vessels <motorboats> not previously operated in this state shall
   5-19  pay the full registration fee.
   5-20        <(d)  In order to establish a two-year staggered registration
   5-21  period, fees for currently registered motorboats may be less than
   5-22  the full fee specified in Subsection (a) of this section if the
   5-23  expiration date established by the department is prior to March 21,
   5-24  1974.>
   5-25        Sec. 31.030.  Duplicate Certificates and Decals.  (a)  If a
   5-26  certificate of number becomes lost, mutilated, or illegible, the
   5-27  owner of the vessel <motorboat> for which the certificate was
    6-1  issued may obtain a duplicate on application to the department and
    6-2  the payment of a fee of $2 or an amount set by the commission,
    6-3  whichever amount is more.
    6-4        (b)  If a registration decal becomes lost, mutilated, or
    6-5  illegible, the owner of the vessel <motorboat> for which the decal
    6-6  was issued may obtain a replacement decal on application to the
    6-7  department and the payment of a fee of $2 or an amount set by the
    6-8  commission, whichever amount is more.
    6-9        SECTION 8.  Section 31.031(b), Parks and Wildlife Code, is
   6-10  amended to read as follows:
   6-11        (b)  All basic numbers of each series shall begin with 1000.
   6-12  TX-1000-AA through TX-9999-AA will be allotted to dealers and
   6-13  manufacturers.  TX-1000-AB through TX-9999-ZZ will be allotted to
   6-14  all other vessel <boat> owners and livery operators.
   6-15        SECTION 9.  Sections 31.032 and 31.033, Parks and Wildlife
   6-16  Code, are amended to read as follows:
   6-17        Sec. 31.032.  Numbering on Bow.  The owner shall paint on or
   6-18  attach to each side of the <motorboat or> vessel near the bow the
   6-19  identification number and a validation decal in the manner
   6-20  prescribed by the department.  The number shall read from left to
   6-21  right and shall be of block characters of good proportion of not
   6-22  less than three inches in height.  The numbers shall be of a color
   6-23  which will contrast with the hull material of the vessel and so
   6-24  maintained as to be clearly visible and legible.
   6-25        Sec. 31.033.  Unauthorized Numbers Prohibited.  (a)  No
   6-26  person may paint, attach, or otherwise display on either side of
   6-27  the bow of a vessel <motorboat> a number other than the number
    7-1  awarded to the vessel <motorboat> or granted reciprocity under this
    7-2  chapter.
    7-3        (b)  No person may deface or alter the certificate of number
    7-4  or the number assigned to and appearing on the bow of a vessel
    7-5  <boat>.
    7-6        SECTION 10.  Section 31.0341(b), Parks and Wildlife Code, is
    7-7  amended to read as follows:
    7-8        (b)  The county tax assessor-collector is entitled to a fee
    7-9  of 10 percent of the amount of the fee for each certificate.  The
   7-10  amount retained by the tax assessor-collector shall be deposited to
   7-11  the credit of the officers salary fund of the county to be used for
   7-12  the sole purpose of paying the salaries of persons issuing vessel
   7-13  <boat> certificates of number.
   7-14        SECTION 11.  Sections 31.036, 31.037, and 31.040, Parks and
   7-15  Wildlife Code, are amended to read as follows:
   7-16        Sec. 31.036.  þNProof of Ownershipää.  (a)  A certificate of
   7-17  title is required as proof of ownership of a vessel <motorboat> for
   7-18  which a certificate of number is sought <unless the motorboat is of
   7-19  the type for which no certificate of title is required under
   7-20  Section 31.045 of this code>.
   7-21        (b)  A certified statement of ownership is sufficient proof
   7-22  of ownership for a vessel <motorboat> of a type for which a
   7-23  certificate of title is not required.
   7-24        Sec. 31.037.  þNChange in Ownership Interest; Notice to
   7-25  Departmentää.  (a)  The owner of a vessel <motorboat> numbered in
   7-26  this state shall notify the department within a reasonable time of
   7-27  the transfer of all or any part of his interest in the vessel
    8-1  <motorboat>, other than the creation of a security interest, or of
    8-2  the destruction or abandonment of the vessel <motorboat>.  The
    8-3  notice shall be accompanied by a surrender of the certificate of
    8-4  number.
    8-5        (b)  If the vessel <boat> is destroyed or abandoned, the
    8-6  department shall cancel the certificate and enter the cancellation
    8-7  in its records.
    8-8        (c)  The purchaser of a vessel <motorboat> shall present
    8-9  evidence of his ownership to the department within a reasonable
   8-10  time along with his name, address, and the number of the vessel
   8-11  <motorboat> and shall at the same time pay to the department a fee
   8-12  of $2 or an amount set by the commission, whichever amount is more.
   8-13  On receipt of the application and fee the department shall transfer
   8-14  the certificate of number issued for the vessel <motorboat> to the
   8-15  new owner.  Unless the application is made and fee paid within a
   8-16  reasonable time the vessel <motorboat> is without a certificate of
   8-17  number, and it is unlawful for any person to operate the vessel
   8-18  <motorboat> until the certificate is issued.
   8-19        Sec. 31.040.  VESSEL <BOAT> LIVERIES.  (a)  The owner or
   8-20  operator of a vessel <boat> livery shall obtain a certificate of
   8-21  number for all vessels <capable of> being used as motorboats <that
   8-22  are used> to rent or let for hire.
   8-23        (b)  To receive certificates of number, the owner of a vessel
   8-24  <boat> livery shall apply directly to the department on application
   8-25  forms provided by the department.  The application must state that
   8-26  the applicant is a vessel <boat> livery within the meaning of this
   8-27  chapter, and the facts stated in the application must be sworn
    9-1  before an officer authorized to administer oaths.
    9-2        (c)  The owner of a vessel <boat> livery shall keep a record
    9-3  of the name and address of the persons hiring any vessel <designed
    9-4  or> operated as a motorboat, the vessel's certificate of number,
    9-5  the time and date of departure, and the expected time of return.
    9-6  The record shall be kept for six months.
    9-7        SECTION 12.  Section 31.041, Parks and Wildlife Code, is
    9-8  amended to read as follows:
    9-9        Sec. 31.041.  DEALER'S AND MANUFACTURER'S NUMBER.  (a)  A
   9-10  dealer or manufacturer of vessels <motorboats> in this state may
   9-11  obtain a dealer's and manufacturer's number for vessels
   9-12  <motorboats> he wishes to show, demonstrate, or test on the water
   9-13  of this state instead of securing a certificate of number for each
   9-14  vessel <boat>.  The number shall be attached to any vessel
   9-15  <motorboat> that he sends temporarily on the water.
   9-16        (b)  The application for a number must state that the
   9-17  applicant is a dealer or manufacturer within the meaning of this
   9-18  chapter, and the facts stated on the application must be sworn
   9-19  before an officer authorized to administer oaths.  The application
   9-20  must be accompanied by photographs of the business sufficient to
   9-21  show the required sign and space.  The application must also be
   9-22  accompanied by a copy of the tax permit of the dealer or
   9-23  manufacturer issued by the comptroller under Chapter 151, Tax Code,
   9-24  if the dealer or manufacturer has a tax permit.  The two-year fee
   9-25  for a dealer's and manufacturer's number is $45 or an amount set by
   9-26  the commission, whichever amount is more.  No number may be issued
   9-27  until the provisions of this section have been satisfied.
   10-1        (c)  A dealer or manufacturer holding a dealer's and
   10-2  manufacturer's number may issue a reasonable temporary facsimile of
   10-3  the number which may be used by any authorized person.  A person
   10-4  purchasing a vessel <motorboat> may use the dealer's number for a
   10-5  period not to exceed 15 days prior to filing an application for a
   10-6  certificate of number.  The form of the facsimile and the manner of
   10-7  display shall be prescribed by the department.
   10-8        (d)  A dealer or manufacturer holding a dealer's and
   10-9  manufacturer's number may transfer a certificate of number or a
  10-10  certificate of title to a vessel or outboard motor without securing
  10-11  a certificate of number or certificate of title in the dealer's
  10-12  name if the vessel or outboard motor is sold in the normal course
  10-13  of the dealer's or manufacturer's business.  Any other person
  10-14  transferring a vessel and outboard motor must secure a certificate
  10-15  of number and certificate of title in the person's name before
  10-16  transferring the certificate of number or the certificate of title.
  10-17        SECTION 13.  Section 31.042(b), Parks and Wildlife Code, is
  10-18  amended to read as follows:
  10-19        (b)  Causes for cancellation of certificates and voiding of
  10-20  numbers include:
  10-21              (1)  surrender of the certificate for cancellation;
  10-22              (2)  issuance of a new number for the same vessel
  10-23  <boat>;
  10-24              (3)  issuance of a marine document by the Bureau of
  10-25  Customs for the same vessel;
  10-26              (4)  false or fraudulent certification in an
  10-27  application for number;
   11-1              (5)  failure to pay the prescribed fee; and
   11-2              (6)  dismantling, destruction, or other change in the
   11-3  form or character of the vessel <motorboat> or outboard motor so
   11-4  that it is no longer correctly described in the certificate or it
   11-5  no longer meets the definition of a vessel <motorboat> or outboard
   11-6  motor.
   11-7        SECTION 14.  Sections 31.043(a) and (c), Parks and Wildlife
   11-8  Code, are amended to read as follows:
   11-9        (a)  All vessels <boats> manufactured for sale in Texas shall
  11-10  carry a manufacturer's serial number clearly imprinted on the
  11-11  structure of the vessel <boat> or displayed on a plate permanently
  11-12  attached to the vessel <boat>.
  11-13        (c)  No person may wilfully destroy, remove, alter, cover, or
  11-14  deface the manufacturer's serial number or plate bearing the serial
  11-15  number or the serial number issued by the department.  No person
  11-16  may possess a vessel <boat> with a serial number that has been
  11-17  altered, defaced, mutilated, or removed.  A person who has a vessel
  11-18  <boat> with an altered or missing serial number shall file a sworn
  11-19  statement with the department describing the vessel <boat>, proving
  11-20  legal ownership, and, if known, stating the reason for the
  11-21  destruction, removal, or defacement of the serial number.
  11-22        SECTION 15.  The heading to Subchapter B-1, Chapter 31, Parks
  11-23  and Wildlife Code, is amended to read as follows:
  11-24    SUBCHAPTER B-1.  CERTIFICATES OF TITLE FOR VESSELS <MOTORBOATS>
  11-25                          AND OUTBOARD MOTORS
  11-26        SECTION 16.  Sections 31.045 and 31.046, Parks and Wildlife
  11-27  Code, are amended to read as follows:
   12-1        Sec. 31.045.  OWNERSHIP OF VESSELS <MOTORBOATS> AND OUTBOARD
   12-2  MOTORS; CERTIFICATES OF TITLE.  (a)  The ownership of a vessel
   12-3  <motorboat> or of an outboard motor is evidenced by a certificate
   12-4  of title issued by the department, unless the vessel <motorboat> or
   12-5  the outboard motor is new.
   12-6        (b)  The ownership of a new vessel <motorboat> or a new
   12-7  outboard motor is evidenced by a manufacturer's or an importer's
   12-8  certificate executed on a form prescribed by the department.
   12-9        (c)  <The ownership of a vessel, other than a motorboat more
  12-10  than 14 feet long, or of an outboard motor, other than an outboard
  12-11  motor having a manufacturer's rating of 12 or more horsepower, may,
  12-12  but is not required to be, evidenced by a certificate of title
  12-13  issued by the department, unless the vessel or outboard motor is
  12-14  new.>
  12-15        <(d)  The ownership of a new vessel, other than a motorboat
  12-16  more than 14 feet long, or of a new outboard motor, other than an
  12-17  outboard motor having a manufacturer's rating of 12 or more
  12-18  horsepower, may, but is not required to be, evidenced by a
  12-19  manufacturer's or importer's certificate executed on a form
  12-20  prescribed by the department.>
  12-21        <(e)>  Separate certificates are required for vessels
  12-22  <motorboats> and for outboard motors.
  12-23        (d)  The ownership of a vessel exempted from numbering under
  12-24  Section 31.022(c) of this code is not required to be evidenced by a
  12-25  certificate of title issued by the department.
  12-26        Sec. 31.046.  þNApplication for Certificate of Titleää.  (a)
  12-27  Except as provided in Subsections (b) and (c) of this section, the
   13-1  purchaser of a  vessel <motorboat> or an outboard motor shall apply
   13-2  to the department or to a county tax assessor-collector for a
   13-3  certificate of title not later than 20 days after the date of the
   13-4  sale of the  vessel <motorboat> or outboard motor.
   13-5        (b)  A manufacturer or a dealer who sells a  vessel
   13-6  <motorboat> or an outboard motor to a person other than a
   13-7  manufacturer or a dealer shall apply to the department or to a
   13-8  county tax assessor-collector for a certificate of title for the
   13-9  vessel <motorboat> or outboard motor in the name of the purchaser
  13-10  not later than 20 days after the date of the sale.
  13-11        (c)  A dealer who acquires a  vessel <motorboat> or an
  13-12  outboard motor, other than a new  vessel <motorboat> or outboard
  13-13  motor, is not required to apply for a certificate of title in the
  13-14  name of the dealer, but on resale of the  vessel <motorboat> or
  13-15  outboard motor shall apply for the subsequent purchaser under
  13-16  Subsection (b) of this section and shall submit to the department
  13-17  or to a county tax assessor-collector the endorsed certificate of
  13-18  title acquired by the dealer.
  13-19        (d)  The department or county tax assessor-collector may not
  13-20  issue a certificate of title unless the tax due on the vessel
  13-21  <motorboat> or outboard motor under Chapter 160, Tax Code, is paid.
  13-22        SECTION 17.  Sections 31.047(b) and (f), Parks and Wildlife
  13-23  Code, are amended to read as follows:
  13-24        (b)  The form must contain:
  13-25              (1)  the name and address of the owner;
  13-26              (2)  a description of the vessel <motorboat> or
  13-27  outboard motor, including, as appropriate, the manufacturer, make,
   14-1  model, year, length, construction material, manufacturer's or
   14-2  builder's number, hull identification number (HIN), motor number,
   14-3  outdrive number, and horsepower;
   14-4              (3)  name and address of purchaser;
   14-5              (4)  date of purchase;
   14-6              (5)  name and address of any security interest owner;
   14-7  <and>
   14-8              (6)  the appropriate affidavit as required by Section
   14-9  160.042, Tax Code; and
  14-10              (7)  other information required by the department to
  14-11  show the ownership of the vessel <motorboat> or outboard motor, a
  14-12  security interest in the vessel <motorboat> or outboard motor, or a
  14-13  further description of items listed in the subdivision.
  14-14        (f)  An application for a certificate of title on a homemade
  14-15  vessel <boat>, the origin of which is based on the affidavit of the
  14-16  person building the vessel <boat>, proof of materials incorporated
  14-17  into the vessel <boat>, and the like, must be accompanied by a
  14-18  certificate from a peace officer, as defined in the Code of
  14-19  Criminal Procedure, that the vessel <boat> has been inspected by
  14-20  such officer and appears to be as applied for.  The applicant shall
  14-21  pay a fee of $25 to the employer of the peace officer for this
  14-22  inspection.
  14-23        SECTION 18.  Section 31.048(b), Parks and Wildlife Code, is
  14-24  amended to read as follows:
  14-25        (b)  If the fee is collected by a county tax
  14-26  assessor-collector, the tax assessor-collector shall retain 10
  14-27  percent of the fee collected and send the remainder to the
   15-1  department.  The amount retained by the tax assessor-collector
   15-2  shall be deposited to the credit of the officers salary fund of the
   15-3  county to be used for the sole purpose of paying the salaries of
   15-4  persons issuing vessel <boat> and outboard motor certificates of
   15-5  title.
   15-6        SECTION 19.  Sections 31.049(a), (b), (c), and (e), Parks and
   15-7  Wildlife Code, are amended to read as follows:
   15-8        (a)  A certificate of title must be on a form prescribed by
   15-9  the department and must contain:
  15-10              (1)  the name and address of the owner of the vessel
  15-11  <motorboat> or outboard motor;
  15-12              (2)  the name of the owner of a security interest in
  15-13  the vessel <motorboat> or outboard motor; and
  15-14              (3)  a description of the vessel <motorboat> or
  15-15  outboard motor.
  15-16        (b)  If there is no lien on the vessel <motorboat> or
  15-17  outboard motor, the original certificate of title shall be
  15-18  delivered to the owner and a copy retained by the department.
  15-19        (c)  If there is a lien on the vessel <motorboat> or outboard
  15-20  motor, the original certificate of title shall be sent to the first
  15-21  lienholder, a duplicate original certificate shall be sent to the
  15-22  owner, and a copy shall be retained by the department.
  15-23        (e)  Title may be transferred <only> by surrender of the
  15-24  original certificate of title properly endorsed to show the
  15-25  transfer, <or> by evidence of an involuntary transfer as defined in
  15-26  Subdivision (5) of Subsection (a) of Section 31.053, or by
  15-27  following the provisions of Subsection (c) of Section 31.053 of
   16-1  this code <as amended>.
   16-2        SECTION 20.  Sections 31.050(a) and (c), Parks and Wildlife
   16-3  Code, are amended to read as follows:
   16-4        (a)  A manufacturer's certificate or an importer's
   16-5  certificate must include:
   16-6              (1)  a description of the vessel <motorboat> or
   16-7  outboard motor as required by Subdivision (2) of Subsection (b) of
   16-8  Section 31.047 of this code;
   16-9              (2)  the name and place of construction or other
  16-10  origin;
  16-11              (3)  the signature of the manufacturer or an equivalent
  16-12  of the signature of the manufacturer; and
  16-13              (4)  the endorsement of the original and each
  16-14  subsequent transferee, including the applicant for the original
  16-15  certificate of title.
  16-16        (c)  A security interest in a vessel <motorboat> or outboard
  16-17  motor held as inventory by a person who is in the business of
  16-18  selling or leasing goods of that kind may be perfected only by
  16-19  complying with Chapter 9, Business & Commerce Code.
  16-20        SECTION 21.  Section 31.052(a), Parks and Wildlife Code, is
  16-21  amended to read as follows:
  16-22        (a)  Except as provided in Subsection (c) of Section 31.050
  16-23  of this code and except for statutory liens, security interests in
  16-24  a vessel <motorboat> or outboard motor shall be noted on the
  16-25  certificate of title of the vessel <motorboat> or outboard motor to
  16-26  which the security interest applies.
  16-27        SECTION 22.  Section 31.053, Parks and Wildlife Code, is
   17-1  amended to read as follows:
   17-2        Sec. 31.053.  Transfers of Vessels <Motorboats> and Outboard
   17-3  Motors.  (a)  No person may sell, assign, transfer, or otherwise
   17-4  dispose of an interest in a vessel <motorboat> or an outboard motor
   17-5  without:
   17-6              (1)  if the transferee is not a manufacturer or a
   17-7  dealer and the vessel or outboard motor is new, delivering to the
   17-8  department a manufacturer's or importer's certificate showing the
   17-9  endorsement of the manufacturer and all intervening owners;
  17-10              (2)  if the transferee is a manufacturer or a dealer
  17-11  and the vessel or outboard motor is new, delivering to the
  17-12  transferee a manufacturer's or importer's certificate showing the
  17-13  endorsement of the manufacturer and all intervening owners;
  17-14              (3)  if the vessel <motorboat> or outboard motor is not
  17-15  covered by a certificate of title or a manufacturer's or importer's
  17-16  certificate and if the transferor is a manufacturer or dealer,
  17-17  delivering to the department sufficient evidence of title or other
  17-18  information to permit the issuance of a certificate of title for
  17-19  the vessel <motorboat> or outboard motor in the name of the
  17-20  transferee;
  17-21              (4)  if the vessel <motorboat> or outboard motor is not
  17-22  covered by a certificate of title or a manufacturer's or importer's
  17-23  certificate and if the transferor is not a manufacturer or dealer,
  17-24  delivering to the transferee sufficient evidence of title or other
  17-25  information to permit the transferee to apply for and receive a
  17-26  certificate of title for the vessel <motorboat> or outboard motor
  17-27  in the name of the transferee; or
   18-1              (5)  delivering to the transferee a certificate of
   18-2  title for the vessel <motorboat> or outboard motor in the name of
   18-3  the transferor and properly endorsed to show the transfer or
   18-4  evidence of an involuntary transfer.
   18-5        (b)  For the purposes of Subsection (a)(5) of this section
   18-6  <hereof> an involuntary transfer shall mean the transfer of
   18-7  ownership pursuant to a contractual or statutory lien which confers
   18-8  the power or right to the transfer.  The evidence shall reflect the
   18-9  proper exercise of the right conferred pursuant to the lien.
  18-10        (c)  The transferor shall provide the documents or evidence
  18-11  required by Subsection (a) of this section to the department or the
  18-12  transferee, as appropriate, in sufficient time to allow the
  18-13  transferee to register and obtain a certificate of title for the
  18-14  vessel or outboard motor not later than 20 days after the date of
  18-15  the sale.
  18-16        (d) <(b)>  Notwithstanding the provisions of Subsection (a)
  18-17  of this section <above>, a buyer of a new vessel <motorboat> or a
  18-18  new outboard motor in the ordinary course of business as provided
  18-19  in Section 9.307(a), <of the> Business & Commerce Code, takes the
  18-20  interest free of security interests as provided in that section.  A
  18-21  buyer of a vessel <motorboat> or outboard motor that is not new
  18-22  shall be governed by Subsection (a) of this section <above>.
  18-23        (e)  The transferee shall provide the department with
  18-24  sufficient evidence of ownership for transfer of a vessel or
  18-25  outboard motor if the transferee:
  18-26              (1)  failed to obtain the title from the transferor or
  18-27  the title was lost, stolen, or mutilated before the transfer was
   19-1  made; and
   19-2              (2)  has made reasonable efforts to contact the
   19-3  transferor to obtain the required documentation.
   19-4        SECTION 23.  Section 31.055, Parks and Wildlife Code, is
   19-5  amended to read as follows:
   19-6        Sec. 31.055.  Exceptions.  This subchapter does not apply
   19-7  to<:>
   19-8              <(1)>  vessels with a valid marine document issued by
   19-9  the Bureau of Customs of the United States or a federal agency that
  19-10  is a successor to the Bureau of Customs<;>
  19-11              <(2)  an outboard motor of less than 12 horsepower as
  19-12  determined by the manufacturer's rating; and>
  19-13              <(3)  a motorboat 14 feet or less in length>.
  19-14        SECTION 24.  Section 47.007(d), Parks and Wildlife Code, is
  19-15  amended to read as follows:
  19-16        (d)  An applicant for a commercial fish boat license must
  19-17  submit to the department the vessel's United States Coast Guard
  19-18  Certificate of Documentation or Texas' or other state's Certificate
  19-19  of Number for a vessel or motorboat.  The license issued by the
  19-20  department must contain:
  19-21              (1)  the name of the boat; and
  19-22              (2)  the number appearing on the United States Coast
  19-23  Guard Certificate of Documentation of Texas' or other state's
  19-24  Certificate of Number.
  19-25        SECTION 25.  Section 77.036(a), Parks and Wildlife Code, is
  19-26  amended to read as follows:
  19-27        (a)  An applicant for a commercial shrimp boat license issued
   20-1  under this subchapter must submit to the department the boat's
   20-2  United States Coast Guard certificate of documentation or the Texas
   20-3  certificate of number for a vessel <motorboat>.
   20-4        SECTION 26.  Section 76.102(a), Parks and Wildlife Code, is
   20-5  amended to read as follows:
   20-6        (a)  An applicant for an oyster boat license issued under
   20-7  this subchapter must submit to the department the boat's United
   20-8  States Coast Guard certificate of documentation or Texas' or other
   20-9  state's certificate of number for a vessel or motorboat.
  20-10        SECTION 27.  Sections 31.027 and 31.054 and Chapter 32, Parks
  20-11  and Wildlife Code, are repealed.
  20-12        SECTION 28.  To the extent that the changes in law made by
  20-13  this Act impose a requirement on a person, vessel, or outboard
  20-14  motor that did not previously apply to the person, vessel, or
  20-15  motor, the person, vessel, or motor need not comply with the
  20-16  requirement until January 1, 1994.
  20-17        SECTION 29.  This Act takes effect September 1, 1993.
  20-18        SECTION 30.  The importance of this legislation and the
  20-19  crowded condition of the calendars in both houses create an
  20-20  emergency and an imperative public necessity that the
  20-21  constitutional rule requiring bills to be read on three several
  20-22  days in each house be suspended, and this rule is hereby suspended.