(a) A licensed dealer, distributor, or manufacturer (hereinafter "licensee") may use the licensee's number to show, demonstrate, or test a vessel on the water of this state without acquiring a certificate of number and registration decals. The licensee's number shall be attached, affixed, or inscribed on both sides of the vessel in an easily visible location. The use of removable signs which can be temporarily but firmly attached to the vessel is permissible.     
      (b) A licensee may not use the licensee's number for the use of a vessel on the water of this state for recreational purposes or for participation in contests or events, except as permitted in this subchapter.     
      (c) On a limited and temporary basis, a licensee, or person or persons authorized by the licensee, may use a vessel for recreational purposes or participation in contests or events only if:      
        (1) the licensee's number is either temporarily or permanently attached, affixed, or inscribed on both sides of the vessel in an easily visible location;       
        (2) a department-issued validation decal is either temporarily or permanently prominently displayed on both sides of the vessel in an easily visible location;       
        (3) a department-issued validation card is aboard the vessel; and       
        (4) the temporary use does not occur on more than six consecutive days, and does not occur on more than twelve days in any calendar month.       
      (d) A validation card must immediately be made available for inspection upon the request of any peace officer, marine safety officer, or department employee acting within the scope of their official duties.     
      (e) A dealer, distributor, or manufacturer license shall include one validation card and two validation decals, which shall be issued at the time the license is issued. Additional validation cards may be purchased separately upon payment of the fee specified in §53.18 of this title (relating to Other Fees). Each additional validation card includes two validation decals. Validation decals may not be purchased separately.     
      (f) A licensee shall maintain at the licensee's place of business a current daily log accounting for each use of each validation card issued to the licensee. The log shall be retained for a period of two years and must immediately be made available for inspection during normal business hours at the request of any peace officer, marine safety officer, or department employee acting within the scope of their official duties. The log shall indicate, for each use of a validation card:      
        (1) the date and location of the use;       
        (2) the hull identification number of the vessel;       
        (3) the specific business purpose of the recreational use, contest, or event;       
        (4) the name, address, and driver's license number or state-issued identification card number of the person or persons authorized by the licensee to operate the vessel; and       
        (5) the name of licensee's agent authorizing use of the validation card.       
      (g) A validation card is not valid if the corresponding license is not valid. A validation card and corresponding validation decals expire on the last day of the last month that a dealer, distributor, or manufacturer license is valid.     
      (h) Nothing in this subchapter authorizes the use of a licensee's number or a validation card and validation decals for purposes not related to the legitimate business activities of the licensee. "Legitimate business activities" means the sale, transfer, exchange, service, or transportation of a vessel or outboard motor.     
     Source Note:        The provisions of this §55.130 adopted to be effective October 9, 2007, 32 TexReg 7075