§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 ten days after the date of the public notice or receipt of
the mailed notice, whichever occurs later, to request in writing an
administrative hearing.  This administrative hearing is solely for the purpose
of allowing the owner, lien holder, or operator of an impounded vessel to
contest the basis given by the department for the impoundment of the vessel. 
The hearing must be held within five working days of the department's receipt
of the written request.



(c)  If the vessel is not repossessed within
twenty 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 will be sold at public auction to the highest bidder, unless the vessel
is exempt from public auction under section 200-45.  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]



 



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.



  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.



  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.