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Signed Into Law
Signed May 27, 2025Effective 2028-01-01
SB1267

Regular Session

Relating to certificates of number and certificates of title issued by and records kept by the Parks and Wildlife Department; creating a criminal offense.

Government Affairs & Regulatory Compliance Analysis

SB1267: Government Affairs Overview

SB1267 fundamentally restructures Texas vessel commerce by transitioning to an electronic titling (E-Title) system and slashing statutory filing deadlines from 45 days to 20 days. While the law takes effect in 2028 to allow for IT infrastructure development, it introduces immediate strict liability and criminal penalties for dealers and insurers who fail to disclose "Hull Damaged" status on vessels.

Sen. Carol Alvarado·Senate Bill·Regular Session

Moderate
Medium Cost
Effective:2028-01-01
Business Impact

Who SB1267 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

Regulatory Priority: moderate

Notable regulatory updates (effective 2028-01-01). Consider how these changes may affect your operations.

💧

Water

Affected business types:

  • Water utilities
  • Wastewater treatment facilities
  • Municipal water districts
  • Agricultural water users
View all water legislation
🚛

Transportation

Affected business types:

  • Trucking companies
  • Towing operators
  • Fleet operators
  • Logistics providers
View all transportation legislation

Key Operational Considerations

  • 1Lien Releases: Terms regarding lien release timelines must be amended to reflect the new statutory requirement to release liens on consumer goods within 30 days automatically, or 20 days upon demand.

Estimated Cost Impact

mediumModerate costs expected for implementation.

Enforcing Agencies

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SB1267
Moderate
Relating to certificates of number and certificates of title issued by and records kept by the Parks and Wildlife Department; creating a criminal offe...
Moderate Compliance Urgency
Requires near-term attention
Cost Impact
Medium
Effective
2028-01-01
Enforcing Agencies
County Tax Assessor-CollectorsTPWD
Primary Author: Sen. Carol Alvarado
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: January 1, 2028.
  • Compliance Deadline: January 1, 2028. (Note: While the law is effective then, your internal processes must be tested and ready *before* this date to meet the new 20-day filing requirement immediately upon enactment).
  • Agency Rulemaking: The Texas Parks and Wildlife Commission (TPWD) is mandated to adopt rules regarding fee schedules and E-Title technical standards prior to January 1, 2028. The period between 2025 and 2027 is the "regulatory gray zone" where technical specifications will be defined.

Immediate Action Plan

  • 1. Audit Processing Times: immediately measure your current average time-to-file for titles. If you exceed 20 days, begin process re-engineering now.
  • 2. Lobby the Rulemaking: Appoint a representative to monitor TPWD Commission meetings (2025-2027) to influence the definition of "Hull Damaged" and ensure E-Title software integrates with your existing Dealer Management Systems (DMS).
  • 3. Update Lien Software: Contact your loan origination software vendors to ensure they are preparing for the automatic 30-day lien release triggers required by 2028.
  • 4. Review Insurance: Verify your Professional Liability or Garage Keepers policy covers defense costs for statutory negligence regarding title branding errors.

Operational Changes Required

Contracts

  • Sales Agreements: Update "As-Is" and disclosure clauses. You cannot contract away the statutory duty to disclose a "Hull Damaged" brand; your agreements must explicitly acknowledge this disclosure to protect against fraud claims.
  • Lending & Security Agreements: Update "Events of Default" to include borrower failure to assist in E-Title transition. Floorplan agreements must be revised to cite the new Texas Parks and Wildlife Code sections regarding perfection of security interests in inventory.
  • Lien Releases: Terms regarding lien release timelines must be amended to reflect the new statutory requirement to release liens on consumer goods within 30 days automatically, or 20 days upon demand.

Hiring/Training

  • Intake & Appraisal Staff: Implement mandatory training on identifying "compromised hull integrity." Negligent failure to identify and report this damage is now a Class C Misdemeanor. Intentional concealment is a Class B Misdemeanor.
  • F&I Departments: Staff must be retrained to prioritize speed. The reduction of the filing window from 45 days to 20 days requires a "fund and file" workflow rather than batch processing.

Reporting & Record-Keeping

  • Digital Credentials: Designate a compliance officer to manage secure digital logins for the TPWD E-Title system once live.
  • Lien Retention: Align document retention policies with TPWD’s new standard; the agency will retain lien records for 10 years post-termination. You should match this to defend against future title disputes.
  • Hull Damage Checklists: Create and archive a physical or digital "Hull Integrity Checklist" for every trade-in to prove due diligence against potential criminal negligence charges.

Fees & Costs

  • Fee Escalation: Do not budget based on the current statutory minimums ($25). The Commission is authorized to set fees higher by rule to fund the electronic system. Expect significant increases in title transfer and HIN inspection fees in the FY2028 budget.

Strategic Ambiguities & Considerations

  • "Hull Damaged" Definition: The statute defines this as "compromised integrity." It is unclear if cosmetic gouges or minor structural repairs constitute "compromised integrity." This ambiguity creates liability risk until TPWD clarifies the technical threshold via rulemaking.
  • "Facilitation" Duty: Section 19 requires a person in possession of a title to "facilitate" its transfer. The scope of this affirmative duty is undefined—it is unclear if this requires lenders to actively chase down borrowers or merely process paperwork.
  • Fee Caps: The legislation sets floor amounts (minimums) but no ceiling for fees, leaving the upper limit entirely to Commission discretion.

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Feb 13, 2025
Passed Senate
Apr 9, 2025
Passed House
May 6, 2025
Signed
May 27, 2025
Effective
Jan 1, 2028
TopicsCrimesCrimes--miscellaneousElectronic Information SystemsParks & WildlifeParks & Wildlife--water SafetyBoats & BoatingRecords ManagementParks & Wildlife CommissionParks & Wildlife DepartmentFees & Other Nontax RevenueFees & Other Nontax Revenue--stateVehicles & TrafficVehicles & Traffic--vehicle Registration
03

Senate Authors

Sen. Carol AlvaradoDemocrat · Primary Author

House Sponsor

Rep. Cody VasutRepublican · Primary Sponsor

Bill Text(with markup)

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View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

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Quick Reference

Frequently Asked Questions

Common questions about SB1267

Q

What does Texas SB1267 do?

SB1267 fundamentally restructures Texas vessel commerce by transitioning to an electronic titling (E-Title) system and slashing statutory filing deadlines from 45 days to 20 days. While the law takes effect in 2028 to allow for IT infrastructure development, it introduces immediate strict liability and criminal penalties for dealers and insurers who fail to disclose "Hull Damaged" status on vessels.

Q

Who authored SB1267?

SB1267 was authored by Texas Senator Carol Alvarado during the Regular Session.

Q

When was SB1267 signed into law?

SB1267 was signed into law by Governor Greg Abbott on May 27, 2025.

Q

Which agencies enforce SB1267?

SB1267 is enforced by County Tax Assessor-Collectors and Texas Parks and Wildlife Department (TPWD).

Q

How significant are the changes in SB1267?

The regulatory priority for SB1267 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of SB1267?

The cost impact of SB1267 is estimated as "medium". This may vary based on industry and implementation requirements.

Q

What topics does SB1267 address?

SB1267 addresses topics including crimes, crimes--miscellaneous, electronic information systems, parks & wildlife and parks & wildlife--water safety.

Q

What are the key dates for SB1267?

Key dates for SB1267: Effective date is 2028-01-01. Rulemaking: Must adopt regulations for the replacement of certificates of title (Section 17). (Prior to 2028-01-01); Authorized to set fees by rule for title transfers, hull identification number (HIN) inspections, and record access (Sections 4, 5, 7, 11). (Prior to 2028-01-01). Consult with legal counsel regarding applicability.

Q

What are the penalties under SB1267?

SB1267 establishes the following penalties: criminal penalty of Class B Parks and Wildlife Code Misdemeanor for Intentionally or knowingly failing to disclose 'Hull Damaged' status or apply for a branded title upon transfer (Section 16).; criminal penalty of Class C Parks and Wildlife Code Misdemeanor for Negligently failing to disclose 'Hull Damaged' status or apply for a branded title upon transfer (Section 16).. Consult with legal counsel for specific applicability to your situation.

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JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026