By: Geren H.B. No. 2926
A BILL TO BE ENTITLED
AN ACT
relating to the licensing of marine manufacturers, dealers, and
distributors.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 31.003, Parks and Wildlife Code, is
amended to read as follows:
Sec. 31.003. Definitions. In this chapter:
(1) "Boat" means a vessel not more than 65 feet in
length, measured from end to end over the deck, excluding sheer.
(2) "Vessel" means any watercraft, other than a
seaplane on water, used or capable of being used for transportation
on water.
(3) "Motorboat" means any vessel propelled or designed
to be propelled by machinery, whether or not the machinery is
permanently or temporarily affixed or is the principal source of
propulsion.
(4) "Owner" means the person who rightfully claims
lawful possession of a vessel by virtue of the legal title or an
equitable interest.
(5) "Water of this state" means any public water
within the territorial limits of this state.
(6) "Operate" means to navigate or otherwise use a
motorboat or a vessel.
(7) "Dealer" means a person [customarily] engaged in
the business of buying, selling, selling on consignment, displaying
for sale, and [or] exchanging at least five vessels not exempted
from numbering under Section 31.022(c) of this code, motorboats, or
outboard motors during a calendar year at an established or
permanent place of business in this state. [and that] At [at] each
place of business there shall be [is] a sign conspicuously
displayed showing the name of the dealership so that it may be
located by the public and sufficient space to maintain an office,
service area, and display of products.
(8) "Vessel livery" means a business establishment
engaged in renting or hiring out vessels for profit.
(9) Repealed by Acts 1997, 75th Leg., ch. 1363, Sec.
12, eff. Sept. 1, 1997.
(10) "Reasonable time" means 15 days.
(11) "Manufacturer" means a person engaged in the
business of manufacturing new and unused vessels and outboard
motors for the purpose of sale or trade.
(12) "New" means every vessel or outboard motor after
its manufacture and before its sale or other transfer to a person
not a manufacturer or dealer.
(13) "Outboard motor" means any self-contained
internal combustion propulsion system, excluding fuel supply,
which is used to propel a vessel and which is detachable as a unit
from the vessel.
(14) "Personal watercraft" means a type of motorboat
that is specifically designed to be operated by a person or persons
sitting, standing, or kneeling on the vessel rather than in the
conventional manner of sitting or standing inside the vessel.
(15) "Authorized agent" means a dealer who is
authorized by the department under Section 31.006 of this code to
collect taxes and fees and issue certificates of number.
(16) "Distributor" means a person who offers for sale,
sells, or processes for distribution new boats and outboard motors
to dealers in Texas.
SECTION 2. Section 31.041, Parks and Wildlife Code, is
amended to read as follows:
Sec. 31.041, Dealer's, Distributor's, and Manufacturer's
License [Number] (a) A person may not engage in business as a
dealer, distributor, or manufacturer, directly or indirectly,
without a license for each location from which the person engages in
business. The form and manner of the display of the license shall
be prescribed by the department.
(b) The department shall issue a dealer, distributor, or
manufacturer number to each dealer, distributor, or manufacturer
licensed under the authority of Section 31.041(a) of this code. The
number shall be patterned as prescribed by Section 31.031(b).
(c) [(a)] A dealer, distributor, or manufacturer may use
[obtain] a dealer's, distributor's, or [and] manufacturer's number
for vessels the dealer, distributor, or manufacturer wishes to
show, demonstrate, or test on the water of this state instead of
securing a certificate of number for each vessel. Show,
demonstrate, or test does not include the use of a vessel for
recreational purposes or participation in a contest or event. The
number shall be attached to any vessel that the dealer,
distributor, or manufacturer sends temporarily to the water.
(d) [(b)] The application for a license [number] must state
that the applicant is a dealer, distributor, or manufacturer within
the meaning of this chapter, and the facts stated on the application
must be sworn before an officer authorized to administer oaths. The
application must be accompanied by photographs of the business
sufficient to show any sign the business is required to display and
the extent of the space the business is required to maintain. The
application must also be accompanied by a copy of the tax permit of
the dealer or manufacturer issued by the comptroller under Chapter
151, Tax Code, if the dealer or manufacturer has a tax permit. The
two-year fee for a dealer's, distributor's, or [and] manufacturer's
number is $500 [$45] or an amount set by the commission, whichever
amount is more. No license [number] may be issued until the
provisions of this section have been satisfied.
(e) [(c)] A dealer, distributor or manufacturer holding a
dealer's, distributor's and manufacturer's license [number] may
issue a reasonable temporary facsimile of the number which may be
used by any authorized persons. A person purchasing a vessel may
use the dealer's number for a period not to exceed 15 days prior to
filing an application for a certificate of number. The form of the
facsimile and the manner of display of the number shall be
prescribed by the department.
(f) [(d)] A dealer, distributor or manufacturer holding a
dealer's, distributor's or manufacturer's license [number] may
transfer a certificate of number or a certificate of title to a
vessel or outboard motor without securing a certificate of number
or certificate of title in the dealer's, distributor's or
manufacturer's name if the vessel or outboard motor is sold in the
course of the dealer's, distributor's or manufacturer's business.
Any other person transferring a vessel or outboard motor must
secure a certificate of number or certificate of title in the
person's name before transferring the certificate of number or
certificate of title.
(g) No person may refuse to allow an authorized employee of
the department or peace officer to inspect a vessel, outboard
motor, or records relating to the possession, origination,
ownership, or transfer of a vessel or outboard motor at a
dealership, distributor or manufacturers place of business during
normal business hours.
(h) The Commission may adopt rules for the administration of
this chapter relating to Dealer's, Distributor's and
Manufacturer's, including application and renewal requirements,
record keeping, and reporting requirements.
(i) A proclamation of the Commission under this section
prevails over any conflicting provision of this chapter to the
extent of the conflict.
SECTION 3. Chapter 31, Parks and Wildlife Code, is amended
by adding new Section 31.0411 to read as follows:
Section 31.0411. Expiration and Transfer of Licenses. (a)
All licenses issued under the authority of Section 31.041 of this
code are valid only for a period of two years from the date of
issuance.
(b) All licenses issued under the authority of Section
31.041 of this code may not be transferred to another person except
that:
(1) a license issued in the name of a business shall
remain valid for the business location specified on the license if a
change of ownership and/or business name occurs; or
(2) a license may be transferred to a new address if
the business moves to another location and no change of ownership
occurs.
(c) The commission, by regulation, may prescribe
requirements necessary to clarify license transfer procedures and
may prescribe, by regulation, forms to be used and fees to be
charged for transfer of license issued under the authority of
Section 31.041 of this code and for replacement licenses.
SECTION 4. Section 31.021, Parks and Wildlife Code, is
amended to read as follows:
Section 31.021. Required Numbering (a) Each
[undocumented] vessel on the water of the state shall be numbered in
accordance with the provisions of this chapter unless specifically
exempted. The numbering system shall be in accord with the Federal
Boating Act of 1958 and subsequent federal legislation.
(b) No person may operate or give permission for the
operation if any vessel or may dock, moor, or store a vessel owned
by the person on the water of this state unless:
(1) the vessel is numbered as required by the chapter;
(2) the certificate of number awarded to the vessel is
in full force and effect; and
(3) the identifying number set forth in the
certificate is properly displayed on each side of the bow of the
vessel as required by this chapter.
SECTION 5. Section 31.032, Parks and Wildlife Code is
amended to read as follows:
Sec. 31.032. Numbering on Bow (a) The owner shall paint on
or attach to each side of the vessel near the bow the identification
number and a validation decal in the manner prescribed by the
department. The number shall read from left to right and shall be
of block characters of good proportion of not less than three inches
in height. The numbers shall be of a color which will contrast with
the hull material of the vessel and so maintained as to be clearly
visible and legible.
(b) A vessel documented by the United States Coast Guard and
required to be numbered by this chapter is exempt from attaching the
identification number near the bow. The owner shall attach the
validation decal in a manner prescribed by the department.
SECTION 6. Section 31.042, Parks and Wildlife Code, is
amended to read as follows:
Section 31.042. Cancellation of Certificates of Number;
Grounds (a) A certificate of number may be cancelled and the
identification number voided by the department even though the
action occurs before the expiration date on the certificate and
even though the certificate is not surrendered to the department.
(b) Causes for cancellation of certificates and voiding
numbers include:
(1) surrender of the certificate for cancellation;
(2) issuance of a new number for the same vessel;
[(3) issuance of a marine document by the Bureau of
Customs for the same vessel;]
(3) [(4)] false or fraudulent certification in an
applicant for number;
(4) [(5)] failure to pay the prescribed fee; and
(5) [(6)] dismantling, destruction, or other change
in the form or character of the vessel or outboard motor so that it
is no longer correctly described in the certificate or it no longer
meets the definition of a vessel or outboard motor.
SECTION 7. Section 31.127, Parks and Wildlife Code, is
amended to read as follows;
Section 31.127. Penalties (a) A person who violates or
fails to comply with any provision of this chapter, or who violates
or fails to comply with a proclamation of the commission entered
under this chapter, a city ordinance or order of a commissioners
court or a political subdivision of the state made or entered under
this chapter commits an offense that is a Class C Parks and Wildlife
Code misdemeanor.
(b) A person who violates Section 31.043(c) or 31.096 of
this code commits an offense that is a Class B Parks and Wildlife
Code misdemeanor.
(c) A person who operates a vessel in violation of Section
31.021(b) or 31.095 commits an offense punishable by a fine of not
less than $100 or more than $500.
(d) The operator of a vessel who is involved in a collision,
accident, or other casualty that results in death or serious bodily
injury to another person and fails to comply with Section 31.104
commits an offense that is a Parks and Wildlife Code felony.
(e) Except as provided by Subsection (d), the operator of a
vessel who is involved in a collision, accident, or other casualty
and fails to comply with Section 31.104 commits an offense that is a
Class A Parks and Wildlife Code misdemeanor.