§200-49  Disposition of derelict vessel.  (a)  The chairperson may cause a derelict vessel to be immediately taken into custody.  Upon taking custody of a derelict vessel, the department, as soon as reasonably possible shall:

     (1)  Give public notice of intended disposition and procedure for requesting an administrative hearing;

     (2)  When possible, post a notice of intended disposition and procedure for requesting an administrative hearing on the vessel; and

     (3)  Serve a duplicate original of the notice of intended disposition and procedure for requesting an administrative hearing by certified mail, return receipt requested on:

          (A)  The registered or documented owner of the vessel, if known, at the owner's last known address on record with the department or the United States Coast Guard;

          (B)  All lien holders who have properly filed a financing statement, referencing the name of the registered or documented owner, in the bureau of conveyances or who are shown on the records of the department or the United States Coast Guard; and

          (C)  Any operator of the vessel on record with the department or the United States Coast Guard.

     (b)  The owner, lien holder, or operator of the vessel shall have five working days after the date of the public notice or receipt of the mailed notice, whichever occurs later, to request an administrative hearing.  A request for an administrative hearing shall be made in writing to the department, shall not be deemed delivered until the time that the department receives the written request, and shall be solely for the purpose of allowing the owner, lien holder, or operator of the impounded vessel to contest the basis given by the department for the impoundment of the vessel.  The administrative hearing shall be held within five working days of delivery of the written request.

     (c)  If the vessel is not repossessed within ten working days after the date of the public notice or mailing of the notice, whichever occurs later, the vessel may be disposed of by negotiated sale except that, when two or more purchasers indicate an interest in purchasing the vessel, the vessel shall be sold at public auction to the highest bidder.  If no purchaser expresses a desire to purchase the vessel, the vessel may be destroyed or donated to any governmental agency. [L 1991, c 272, pt of §2; am L 1998, c 2, §55; am L 2004, c 70, §6; am L 2021, c 218, §7]

Case Notes

  A vessel and its accompanying mooring and live-aboard permits are constitutionally protected "property", of which an individual may not be deprived without notice and an opportunity to be heard.  91 H. 1, 979 P.2d 586 (1999).

  State had no statutory basis upon which to charge fees for the impoundment and disposal of vessel under §200-44 or this section where vessel had not been repossessed and State had engaged in the negotiated sale of the vessel for a purchase price of $0.00.  91 H. 1, 979 P.2d 586 (1999).

  Where an owner's right to a hearing subsequent to impoundment of a derelict vessel was not clearly established under §200-48, this section, or other law at the time of state boating officers' actions, it was not unreasonable for officers to have believed it was lawful to dispose of vessel without a hearing; thus officers, in individual capacities, entitled to qualified immunity in 42 U.S.C. §1983 action.  91 H. 1, 979 P.2d 586 (1999).