What you need to know about Texas Senate Bill 1267 (2025) for Boats

by Boat Alert / Last Updated: June 28, 2025 / Boat Buying

Imagine buying your dream boat, only to discover it’s got hidden damage or a murky ownership history that could sink your investment. Texas Senate Bill 1267 (SB1267), signed into law on May 27, 2025, and effective January 1, 2028, tackles these risks head-on.

Key Points:

• Mandatory “Hull Damaged” title branding with criminal penalties for noncompliance.
• A shortened title application window from 45 to 20 days.
• Authorization of electronic titles and ownership records.
• Stronger Hull Identification Number (HIN) enforcement and updated definitions to improve data accuracy.
• Broadened scope for “vessel livery” and other legal terms to reflect modern practices.
• Improved privacy protections and procedures for title cancellation and handling of security interests.

This game-changing legislation transforms how boats and outboard motors are titled, registered, and transferred in Texas, making the process smoother, safer, and more transparent for buyers, sellers, and dealers. Here’s a clear, layman-friendly breakdown of its key provisions:

Summary of Texas Senate Bill 1267 (2025) – (S.B. No. 1267)

• Purpose: Updates rules for boat and outboard motor ownership, registration, and titling in Texas to make transactions easier, more secure, and transparent, while preventing fraud and protecting consumers, dealers, and law enforcement.
• Electronic Titles and Records:
  • Allows boat and outboard motor titles to be stored and managed electronically, reducing paperwork.
  • Owners or secured parties can request paper titles if preferred.
  • Electronic titles are canceled when paper titles are issued, and vice versa, with the Texas Parks and Wildlife Department (TPWD) tracking these changes.
• Faster Title Application Deadlines:
  • New owners must apply for a title within 20 days of purchase or transfer (down from 45 days).
  • Dealers, distributors, or manufacturers must apply for titles within 20 days of selling a boat or outboard motor (down from 45 days).
  • Temporary facsimile numbers for new boats are valid for 20 days (down from 45 days).
• Hull Damage Disclosure:
  • Boats with hull damage (e.g., from collisions, sinking, or other incidents) must have “Hull Damaged” marked on their titles.
  • Owners or insurers must report hull damage within 20 days when transferring ownership.
  • Failure to report hull damage intentionally is a Class B misdemeanor; negligent failure is a Class C misdemeanor.
• Fraud and Theft Prevention:
  • Strengthens rules for hull identification numbers (HINs) and outboard motor serial numbers with inspections and sworn statements for missing or altered numbers.
  • TPWD can charge fees over $25 for issuing HINs or serial numbers, set by the Parks and Wildlife Commission.
• Exemptions from Titling:
  • Certain boats are exempt from titling, including those owned by the U.S., state, or foreign governments, lifeboats, amphibious vehicles titled under transportation laws, documented vessels (U.S. Coast Guard), foreign-documented vessels, barges, and outboard motors over 40 years old with 25 horsepower or less.
• Public Records and Privacy:
  • Ownership records are public but exclude sensitive information like phone numbers, emails, Social Security numbers, or taxpayer IDs.
  • TPWD can charge fees for accessing records and provide them in various formats, including self-authenticating formats for legal use.
• Security Interests (Liens):
  • Security interests (e.g., loans on boats) must be noted on the title and are perfected when TPWD receives a valid application.
  • Secured parties must provide a termination statement within 20 days (or 30 days for personal use) after the loan is paid off, or face liability for losses.
  • Buyers in the ordinary course of business (not dealers) can take ownership free of unlisted security interests if they act in good faith.
• Ownership Transfers:
  • Sellers must provide a manufacturer’s or importer’s certificate of origin or a properly endorsed title to buyers.
  • For electronic titles, sellers must provide a record of transfer.
  • Buyers can enforce their right to receive proper transfer documents.
  • Transfers by secured parties (e.g., repossession) or by law (e.g., inheritance, bankruptcy) require specific statements and documentation to update titles.
• Record Keeping:
  • TPWD must maintain detailed records, including HINs, serial numbers, owner names, and security interests, searchable by various identifiers.
  • Records are kept for at least 10 years after a security interest ends and are shared with government agencies for safety, security, or law enforcement.
• Consumer Protections:
  • Certificates of title are considered reliable evidence of ownership.
  • Buyers are protected from hidden liens if they purchase in good faith without knowledge of the lien.
  • TPWD can reject title applications if they suspect fraud or incomplete documentation.
• Penalties and Enforcement:
  • TPWD can cancel titles if issued in error, suspected of fraud, or if the vessel becomes documented by the U.S. Coast Guard or a foreign government.
  • For disputed titles without a termination statement, applicants may need to post a bond (up to twice the vessel’s value) to cover potential claims.
• Terminology Updates:
  • Replaces “manufacturer’s or importer’s certificate” with “certificate of origin” for clarity.
  • Adds definitions for terms like “cancel,” “electronic,” “hull identification number,” “owner of record,” and “security interest” to align with legal standards.
• Transition Rules:
  • Existing titles, security interests, and transactions from before January 1, 2028, remain valid.
  • Perfected security interests stay valid until their original expiration or three years after the effective date (January 1, 2031), whichever is earlier.
• Economic Impact:
  • Supports Texas’s recreational boating industry by improving resale value, preventing theft, and ensuring clear ownership, benefiting consumers, dealers, and manufacturers.

Key Points

• It seems likely that Texas Senate Bill 1267 (SB1267) from 2025 updates boat ownership and registration rules.
• Research suggests it aims to make buying and selling boats easier and more secure, with measures like electronic titles and faster application deadlines.
• The evidence leans toward it protecting consumers by requiring damaged boats to be clearly marked and strengthening fraud prevention.

Bill Overview

Texas SB1267, also known as the Uniform Certificate of Title for Vessels Act (UCOTVA), was signed into law on May 27, 2025, and will take effect on January 1, 2028. It focuses on improving the process for boat ownership and transfer in Texas.

Key Changes

• Allows electronic boat titles and registration numbers for easier management.
• Reduces the time to apply for a boat title after purchase from 45 days to 20 days.
• Requires boats with damaged hulls to have this noted on their titles, with penalties for non-compliance.
• Strengthens rules for boat identification numbers to prevent fraud and theft.
• Excludes certain boats, like government-owned or amphibious vehicles, from needing a title.
• Updates processes and terms for boat manufacturers and dealers.

Benefits

• Makes transactions more transparent and streamlined for buyers, sellers, and dealers.
• Protects consumers from buying damaged or stolen boats.
• Helps law enforcement track and recover stolen boats.

Detailed Analysis of Texas Senate Bill 1267 (SB1267) 2025

This note provides a comprehensive overview of Texas Senate Bill 1267 (SB1267) from the 2025 legislative session, focusing on its implications for boat ownership and registration. The bill was signed into law on May 27, 2025, by Governor Greg Abbott and is set to take effect on January 1, 2028.

Background and Purpose

SB1267 aims to amend the Texas Parks and Wildlife Code, revising provisions related to certificates of number and title issued by the Texas Parks and Wildlife Department (TPWD). The primary goal is to enhance vessel financing, insurance, resale value, theft prevention, and market transparency, thereby preventing fraud and protecting dealers and consumers. The recreational boating industry, which contributes significantly to the U.S. economy with $230 billion and supports 812,000 jobs across 36,000 marine businesses, stands to benefit from these changes.

Key Provisions and Changes

The bill introduces several specific changes to streamline and secure boat ownership processes:

• Electronic Titles and Registration: SB1267 authorizes the use of electronic certificates of number on board vessels, providing an alternative to physical documents. This move towards digital records aims to simplify management and reduce paperwork for owners and dealers.
• Reduced Application Deadlines: The deadline for new owners to submit a title application to TPWD is shortened from 45 days to 20 days after ownership transfer. Similarly, dealers, distributors, or manufacturers must apply for a certificate of title within 20 days, down from 45 days, with the temporary use of facsimiles also reduced to 20 days.
• Hull Damage Branding: A significant consumer protection measure is the requirement to brand titles with “Hull Damaged” for vessels with known hull damage. Owners or insurers must apply for a new title with this brand within 20 days, with non-compliance classified as a Class B misdemeanor for intentional or knowing failure, and a Class C misdemeanor for negligent failure.
• Hull Identification Number (HIN) Enforcement: The bill strengthens HIN enforcement through inspections and documentation, aiming to combat fraud and theft. It also allows the Parks and Wildlife Commission to set fees above $25 for manufacturer’s hull ID and sworn statements for altered hull or motor numbers.
• Exclusions and Definitions: Certain vessels, such as those owned by the U.S., state, or foreign governments, lifeboats, and amphibious vehicles with titles under other laws, are excluded from title requirements. The bill also adds numerous definitions, including “cancel,” “certificate of title,” “electronic,” “hull identification number,” “owner of record,” and others, to clarify legal terms.
• Public Records and Security Interests: Records for certificates of title are public, excluding sensitive information like owner identifiers, phone numbers, emails, Social Security numbers, and taxpayer IDs. Security interests are perfected by delivering a title application identifying the secured party, with termination statements required within 20 days for personal use or 30 days for household use, with liability for non-compliance.

Implementation and Impact

The bill grants rulemaking authority to the Parks and Wildlife Commission to ensure effective implementation. It repeals certain outdated provisions of the Parks and Wildlife Code, specifically Sections 31.039(c), 31.049(b), and 31.049(c), to align with the new framework.

The impact on stakeholders is significant:

• Consumers: Enhanced transparency and protection against fraud, with clearer information on boat conditions and ownership history.
• Dealers and Manufacturers: Streamlined processes with shorter deadlines and updated terminology, such as renaming manufacturer’s/importer’s certificate to certificate of origin.
• Law Enforcement: Improved tools to track and recover stolen boats through stronger HIN enforcement and electronic records.

Texas becomes the 7th jurisdiction to enact UCOTVA, aligning with national standards supported by organizations like the Marine Retailers Association of the Americas (MRAA), National Marine Manufacturers Association (NMMA), Boat History Report, National Association of State Boating Law Administrators (NASBLA), and the Uniform Law Commission.

Economic and Social Considerations

The recreational boating industry’s economic contribution underscores the importance of these reforms. By improving resale value and preventing theft, SB1267 supports the industry’s $230 billion impact and 812,000 jobs, fostering economic growth and community engagement in boating activities.

Effective Date and Legislative Process

Signed into law on May 27, 2025, SB1267 will take effect on January 1, 2028, providing a transition period for stakeholders to adapt to the new requirements. The bill was authored by Senator Carol Alvarado and sponsored in the House by Representative Cody Vasut, reflecting bipartisan support.

Detailed Table of Key Changes

Conclusion

SB1267 represents a comprehensive update to Texas boat titling and registration, aiming to enhance security, transparency, and efficiency. Its provisions protect consumers, support the boating industry, and align with national standards, with a delayed effective date of January 1, 2028, to ensure smooth implementation.

Key Citations

• Texas Boating Bill Protects Consumers Marine Retailers Association
• Texas Legislature Online Bill Analysis SB1267

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