Sec. 31.041.  DUTIES OF DEALERS, DISTRIBUTORS, AND MANUFACTURERS; LICENSE REQUIRED.  (a)  A person may not engage in business in this state as a dealer, distributor, or manufacturer unless the person holds a license issued under this section and enters into a license agreement with the department.  A dealer must have a license for each place of business owned and operated by the person.
(b)  The commission shall establish the form and manner for display of a license issued under this section.
(c)  The department shall issue a dealer, distributor, or manufacturer number to each dealer, distributor, or manufacturer licensed under this section in the manner provided by Section 31.031(b).
(d)  A dealer, distributor, or manufacturer of vessels in this state may use the dealer's, distributor's, or 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.  The number shall be attached to any vessel that the dealer, distributor, or manufacturer sends temporarily on the water.  For purposes of this subsection, "show, demonstrate, or test" does not include the use of a vessel for recreational purposes or for participation in a contest or event.  The commission, however, may establish rules concerning the issuance and price of validation cards permitting the limited and temporary use of vessels for recreational purposes or participation in contests or events.  Any fees collected by the department under this subsection shall be deposited in the game, fish, and water safety account established under Section 11.032.
(e)  The application for a license under this section 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.  An application submitted by a dealer 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, distributor, or manufacturer issued by the comptroller under Chapter 151, Tax Code, if the dealer, distributor, or manufacturer has a tax permit.  The two-year fee for a dealer's, distributor's, or manufacturer's number is $500. A license may not be issued until the provisions of this section have been satisfied.
(f)  A dealer, distributor, or manufacturer holding a dealer's, distributor's, or manufacturer's license may issue a reasonable temporary facsimile of the number issued under Subsection (c), which may be used by any authorized person. The form of the facsimile and the manner of display of the number shall be prescribed by the department.
(g)  A dealer, distributor, or manufacturer holding a dealer's, distributor's, or manufacturer's license 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 normal course of the dealer's, distributor's, or manufacturer's business.
(h)  Not later than the 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 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.
Acts 1975, 64th Leg., p. 1405, ch. 545, Sec. 1, eff. Sept. 1, 1975.  Amended by Acts 1983, 68th Leg., p. 1328, ch. 277, Sec. 4, eff. Sept. 1, 1983;  Acts 1985, 69th Leg., ch. 267, art. 2, Sec. 4, eff. Sept. 1, 1985;  Acts 1993, 73rd Leg., ch. 450, Sec. 12, eff. Sept. 1, 1993;  Acts 1993, 73rd Leg., ch. 587, Sec. 36, eff. Oct. 1, 1993;  Acts 1995, 74th Leg., ch. 76, Sec. 13.01, eff. Sept. 1, 1995;  Acts 2003, 78th Leg., ch. 200, Sec. 8(f), eff. Sept. 1, 2003;  Acts 2003, 78th Leg., ch. 1133, Sec. 6, eff. Sept. 1, 2003.
Amended by: 
Acts 2005, 79th Leg., Ch. 108 (S.B. 489), Sec. 2, eff. September 1, 2005.
Acts 2007, 80th Leg., R.S., Ch. 776 (H.B. 3764), Sec. 1, eff. September 1, 2007.
Acts 2019, 86th Leg., R.S., Ch. 1249 (H.B. 4032), Sec. 4, eff. September 1, 2019.
Acts 2019, 86th Leg., R.S., Ch. 1249 (H.B. 4032), Sec. 5, eff. September 1, 2019.