§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

(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]