Hawaii-2010-SB2091-Introduced

SECTION 1. Chapter 290, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . vessels abandoned on public roadways and streets

§290- Disposition by counties of certain abandoned vessels and trailers. The counties may cause a vessel, as defined in section 200-23, or its trailer that has been abandoned on a public highway, roadway, or street, as those terms are defined in section 291C-1, to be taken into custody and disposed of. For the purposes of this section, a vessel or trailer is "abandoned" if it has been left unattended for a continuous period of not less than hours.

§290- Notice to owner, lien holder, or operator. Upon taking custody of any vessel or trailer, a written notice shall immediately be posted on the vessel or trailer and a duplicate original sent by registered or certified mail, with a return receipt requested, to the registered owner with the department of land and natural resources or documented by the United States Coast Guard or any lien holder or operator of the vessel or trailer on record with the department or the United States Coast Guard at the owner, lien holder, or operator's last known address on record with the department or the United States Coast Guard. The notice shall contain a brief description of the vessel or trailer, the location of custody, and the intended disposition of the vessel or trailer if not repossessed within twenty days after the mailing of the notice. The owner, lien holder, or operator, of the vessel or trailer shall have ten days after receipt of the mailed notice 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 or trailer to contest the basis given by the county for the impoundment of the vessel or trailer. The hearing shall be held within five working days of the county's receipt of the written request for an administrative hearing.

§290- Public auction. If the vessel or trailer is not repossessed within twenty days after the mailing of the notice, the vessel or trailer shall be disposed of by public auction, through oral tenders, or by sealed bids, after at least one public notice has been given; provided that the public auction shall not be held less than five days after the public notice is given. Where no bid is received, the vessel or trailer may be sold by negotiation, disposed of as junk, or donated to any governmental agency.

§290- Possession by interested party. Any person having an interest in the vessel or trailer may take possession of the vessel or trailer prior to the date of public auction upon payment to the county of all use fees, towing, handling and storage charges, appraisal and advertising expenses, and any other expenses incurred in connection with the vessel or trailer. If the person taking possession of the vessel or trailer is not the registered or documented owner, the person, prior to taking possession of the vessel or trailer, shall pay the foregoing expenses and post satisfactory security that shall not exceed the value of the vessel or trailer. The security, if not forfeited, shall be returned to the person posting it within two years after its receipt by the county.

§290- When public auction not required. Public auction shall not be required when the appraised value of any vessel or trailer is less than $5,000, as determined by an independent appraiser who has at least one year of experience in the sale or purchase of vessels or trailers. Upon that determination, after at least one public notice of intended disposition has been given, the vessel or trailer may be sold by negotiation, disposed of as junk, or donated to any governmental agency.

§290- Effect of sale. The transfer of interest by sale hereunder shall be evidenced by a bill of sale from the county, shall be considered a transfer by operation of law, and shall be governed by provisions applicable thereto.

§290- Disposition of proceeds. The county shall deposit that portion of the proceeds of the sale of a vessel or trailer that represents expenses, fees, and charges due the county for expenses under this part, the expenses of the auction, and any other expense incurred in taking into custody and disposing of an abandoned vessel or trailer into the general fund of the county. The owner may recover any balance of the proceeds from the county only if the owner files a claim for the balance with the county within one year after the execution of the bill of sale. If no claim is made within the year allowed, the money shall become a county realization. A lien holder shall receive priority in payment from the balance of the proceeds to the extent of the lien holder's lien on the vessel or trailer. If the proceeds of the sale are insufficient to cover the expenses, fees, and charges, the expenses of the auction, and the other expenses incurred in taking into custody and disposing of the vessel or trailer, the county may bring an action for the deficiency in a court of appropriate jurisdiction against the registered or documented owner or any person who had an interest in the vessel or trailer when custody was taken by the county."

SECTION 2. Chapter 290, Hawaii Revised Statutes, is amended by amending its title to read as follows:

"CHAPTER 290

ABANDONED VEHICLES AND VESSELS"

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	2091
TWENTY-FIFTH LEGISLATURE, 2010
STATE OF HAWAII