SB1267

Hull damage must follow the title. The definition covers compromised hull integrity from collisions, fire, grounding and similar events, or sinking that creates significant risk to hull integrity—not every cosmetic scratch. At or before transferring a Texas-titled vessel, a recorded owner with notice of damage that occurred during that ownership must apply for a “Hull Damaged” title or mark and deliver the existing title to the recipient. An insurer transferring such a vessel must first apply for a branded title. The department has 20 days after the specified submission to issue the branded title. “Notice” includes actual knowledge, notification or reason to know from known circumstances. Final law, sections 8 and 16; Meaning of notice.

Intentionally or knowingly violating those duties—or soliciting or colluding in an owner’s failure—is a Class B Parks and Wildlife Code misdemeanor; negligent failure is Class C. Under the code’s ordinary penalty provisions, Class B carries a $200–$2,000 fine, up to 180 days in jail, or both; Class C carries a $25–$500 fine. These are future-effective disclosure offenses, not a crime merely for owning a damaged boat. Final law, section 16; Class B penalty; Class C penalty.

Title and application records must carry more identifying, ownership, lender and damage-brand information, including relevant brands from other jurisdictions. The department must maintain searchable records and preserve security-interest information for at least 10 years after receiving a termination statement. Ownership records remain public subject to exclusions: owner identifiers, phone numbers, email addresses, Social Security and taxpayer numbers, and information protected by other law. The old owner-identifier-only subsection is replaced, not a repeal of that protection. Requested records must be supplied in a self-authenticating evidentiary format—one not requiring separate proof that the document is genuine. Final law, sections 5, 11, 13, 21–22; Prior public-record rule.

The lending provisions specify how to perfect a security interest—make the lender’s claim effective against competing claims—through title applications, with exceptions for inventory, certain barges, construction and other stated situations. Filing and attachment of the interest both matter. They add release-statement deadlines after debt and lending commitments end: generally 20 days after a signed owner demand, or, for personal/family/household-use property, 30 days after payoff and the end of lending commitments, whichever applicable deadline is earlier. They also add liability for certain failures to release, and documented procedures for transfers after default, court proceedings or other legal events. A missing-title release application requires notice and safeguards and may require a bond. Filing a lender transfer statement does not excuse its other commercial-law duties. Final law, sections 21 and 31.0569–31.0579; Attachment of a security interest.

Holding a title certificate alone does not confer a right to possess the boat, and an omitted statutory or common-law lien is not automatically invalid. Qualifying ordinary-course buyers retain commercial-law protections even without completed title paperwork; there are also specific protections for good-faith buyers and competing lenders when a title omits an existing security interest. These are conditional rules, not a promise that any buyer gets clear title despite every lien. A recipient can obtain a court order enforcing the specified duties to deliver or facilitate transfer documents. Final law, sections 19 and 21; Entrusted-goods buyers; Ordinary-course buyer protections.

The act excludes certain fixed-course craft, seaplanes and qualifying stationary shore-connected structures from “vessel”; expands rental/livery and importer definitions; and adds numbering/title exceptions for amphibious vehicles already titled under vehicle law. The title subchapter also excludes federally or foreign-documented vessels, barges, vessels under construction or completed under contract before delivery, and qualifying old, small outboard motors. Some identification-number and homemade-vessel inspection fees may be set above $25 by the commission; the act does not set a particular higher fee. Final law, sections 1–2, 7–11 and 20.

Vasut’s sole House amendment added the exemption for an outboard motor at least 40 years old and no more than 25 horsepower; the House adopted it May 5 and the Senate concurred May 12. All earlier substantive versions match, and that exemption is the final text change. A separate law, HB630, put the same motor exemption into effect September 1, 2025; SB1267 carries it into the 2028 rewrite rather than making owners wait until 2028 for that exemption. House amendment; Amendment index; Five versions; HB630 final law; September 2025 exemption.

Compare the published text versions in the official text index. A change is not attributed to a specific amendment here without a verified record.

Buyers gain more damage history and defined title protections; owners, dealers, insurers and lenders face tighter paperwork and disclosure responsibilities. Digital records may reduce replacement-card needs, while fees may rise and disclosure failures may carry criminal penalties. The transition preserves valid pre-2028 transactions, records and already-started proceedings, and established priorities. Previously perfected security interests remain perfected until the earlier of their old-law lapse or three years after the effective date, with the act’s other transition rules also applying. Existing interests are not simply erased on January 1, 2028. Final law, section 23.

The March 30 introduced and May 6 post-House fiscal notes say overall revenue and court impacts cannot be determined: future fees, digital-card choices, offenses and case numbers are unknown. Department implementation costs were assumed absorbable with existing resources, and correctional/enforcement effects were not expected to be significant. That is not a zero-cost estimate or an appropriation. The enrolled fiscal link repeats the May 6 note. Introduced fiscal note; Post-House fiscal note; Enrolled fiscal link.