Report Title:

Disposition of vehicles, vessels, and aircraft

Description:

Expressly provides an owner, lien holder, or other person with interest in a derelict or abandoned vehicle, vessel, or aircraft with notice and the opportunity to request a post-custodial administrative hearing before disposition of the vehicle, vessel, or aircraft.

HOUSE OF REPRESENTATIVES

H.B. NO.

585

TWENTY-THIRD LEGISLATURE, 2005

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO THE DISPOSITION OF VEHICLES, VESSELS, AND AIRCRAFT.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The purpose of this Act is to amend sections 200-42, 200-49, 261-17.6, 261-71, 261-73, 290-2, and 290-9, Hawaii Revised Statutes, to expressly provide an owner or lien holder of a derelict or abandoned vehicle, vessel, or aircraft, with notice and the opportunity to request a post-custodial hearing before disposition of the vehicle, vessel, or aircraft.

SECTION 2. Section 200-42, Hawaii Revised Statutes, is amended to read as follows:

"§200-42 Notice to owner. Upon taking custody of any vessel, [a written notice shall immediately be posted on the vessel and a duplicate original sent by registered or certified mail, with a return receipt requested, to] the department as soon as reasonably possible shall:

(1) Give public notice of the reasons for which the vessel is being taken into custody, the intended disposition, and the procedure for requesting an administrative hearing;

(2) When the vessel is left in its original location, post a notice of the reasons for which the vessel is being taken into custody, the intended disposition, and the procedure for requesting an administrative hearing on the vessel; and

(3) Serve a duplicate original of the notice of reasons for which the vessel is being taken into custody, the intended disposition, and the procedure for requesting an administrative hearing by certified mail, return receipt requested on:

(A) The registered or documented owner [registered] of the vessel, if known, at the owner's last known address on record with the department or [documented by] the United States Coast Guard or [any] to such other address known to the department which is more current;

(B) Any lien [holder or] 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;

(C) Any operator of the vessel on record with the department or the United States Coast Guard [at their respective last known address on record with the department or the United States Coast Guard.]; and

(D) Any other person known to have an interest in the vessel whose name and most current address are known to the department.

(b) The notice shall contain a brief description of the vessel, the reason for which the vessel is being taken into custody, the location of custody, [and] the intended disposition of the vessel if not repossessed within twenty days after the mailing of the notice[. Such], and the procedure for requesting an administrative hearing. Absent evidence to the contrary, a notice shall be deemed received by the owner, lien holder, or operator of, or other person known to have an interest in, the vessel five days after the mailing. The owner, lien holder, or operator[,] of, or other person known to have an interest in, the vessel 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], or other person known to have an interest in, the 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. The chairperson shall appoint a hearings officer to conduct the hearing. The hearings officer's decision may be appealed pursuant to section 91-14."

SECTION 3. Section 200-49, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

"(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 the reasons for which the vessel is being taken into custody, the intended disposition, and the procedure for requesting an administrative hearing;

(2) When [possible,] the vessel is left in its original location, post a notice of the reasons for which the vessel is being taken into custody, the intended disposition, and the procedure for requesting an administrative hearing on the vessel; and

(3) Serve a duplicate original of the notice of the reasons for which the vessel is being taken into custody, the intended disposition, and the 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[;] or to such other address known to the department which is more current;

(B) [All] Any 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[.]; and

(D) Any other person known to have an interest in the vessel whose name and most current address are known to the department.

(b) The notice shall contain a brief description of the vessel, the reason for which the vessel is being taken into custody, the location of custody, and the intended disposition of the vessel if not repossessed within twenty days after the mailing of the notice, and the procedure for requesting an administrative hearing. Absent evidence to the contrary, a notice shall be deemed received by the owner, lien holder, operator, or other person known to have an interest in the vessel five days after the mailing. The owner, lien holder, or operator of, or other person known to have an interest in, 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], or other person known to have an interest in, the 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. The chairperson shall appoint a hearings officer to conduct the hearing. The hearings officer's decision may be appealed pursuant to section 91-14."

SECTION 4. Section 261-17.6, Hawaii Revised Statutes, is amended as follows:

(1) By amending subsection (b) to read as follows:

"(b) [Written notice of the removal of any vehicle shall immediately be sent by registered or certified mail, with a return receipt, to the legal and registered owner of the vehicle at the address on record at the vehicle licensing division.] Upon removing any vehicle from the area within the airport's jurisdiction, the department as soon as reasonably possible shall:

(1) Give public notice of the reasons for which the vehicle is being removed, the intended disposition, and the procedure for requesting an administrative hearing; and

(2) Serve notice of the reasons for which the vehicle is being removed, the intended disposition, and the procedure for requesting an administrative hearing by certified mail, return receipt requested on:

(A) The registered or documented owner of the vehicle, if known, at the owner's last known address on record at the vehicle licensing division or to such other address known to the department which is more current;

(B) Any 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 vehicle licensing division; and

(C) Any other person known to have an interest in the vehicle whose most current address are known to the department.

The notice shall contain a brief description of the vehicle, the reasons for which the vehicle is being removed, the location of custody, [and] the intended disposition of the vehicle if not repossessed within thirty days after the mailing of the notice[. A notice need not be sent to a legal or registered owner or to any person with an unrecorded interest in the vehicle whose name or address cannot be determined.], and the procedure for requesting an administrative hearing. Absent evidence to the contrary, a notice shall be deemed received by the owner, lien holder, or other person known to have an interest in the vehicle five days after the mailing. The owner, lien holder, or other person known to have an interest in the vehicle 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 other person known to have an interest in the vehicle to contest the basis given by the department for the removal of the vehicle. The hearing must be held within five working days of the department's receipt of the written request. The director shall appoint a hearings officer to conduct the hearing. The hearings officer's decision may be appealed pursuant to section 91-14."

(2) By amending subsection (h) to read as follows:

"(h) A derelict vehicle may be [immediately] disposed of or sold as junk [without having to comply with the requirements of subsections (b) through (f).] only after first complying with the requirements set forth in subsection (b)."

SECTION 5. Section 261-71, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Upon taking custody of any such aircraft [a written notice shall immediately be posted on the aircraft and a duplicate original thereof shall be sent by certified mail, with a return receipt, to the], the department as soon as reasonably possible shall:

(1) Give public notice of the reasons for which the aircraft is being taken into custody, the intended disposition, and the procedure for requesting an administrative hearing;

(2) When the aircraft is left in its original location, post a notice of the reasons for which the aircraft is being taken into custody, the intended disposition, and the procedure for requesting an administrative hearing on the aircraft; and

(3) Serve a duplicate original of the notice of the reasons for which the aircraft is being taken into custody, the intended disposition, and the procedure for requesting an administrative hearing by certified mail, return receipt requested on:

(A) The registered or documented owner of the aircraft, if known, at the owner's last known address [shown] on [the records of] record at the Federal Aviation Administration or to such other address known to the department of transportation which is more current; [to all]

(B) Any lien holders who have properly filed a financing statement indexed in the name of the registered or documented owner, in the [state] bureau of conveyances or who are shown on the records of the Federal Aviation Administration; and [to any]

(C) Any other person known to have any interest in the aircraft whose name and most current address [is] are known to the department of transportation.

The notice shall contain a brief description of the aircraft, the reasons for which the aircraft is being taken into custody, the location of custody, [and] the intended disposition of the aircraft if not repossessed within twenty days after the mailing of the notice[. A notice need not be sent to any purported owner or any other person whose interest in the aircraft is not recorded with the Federal Aviation Administration or not known to the department of transportation.], and the procedure for requesting an administrative hearing. Absent evidence to the contrary, a notice shall be deemed received by the owner, lien holder, or other person known to have an interest in the aircraft five days after the mailing. The owner, lien holder, or other person known to have an interest in the aircraft 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 other person known to have an interest in the aircraft to contest the basis given by the department for the taking into custody of the aircraft. The hearing must be held within five working days of the department's receipt of the written request. The director shall appoint a hearings officer to conduct the hearing. The hearings officer's decision may be appealed pursuant to section 91-14."

SECTION 6. Section 261-73, Hawaii Revised Statutes, is amended to read as follows:

§261-73 Custody and disposal of derelict aircraft. (a) An aircraft which has been left unattended for a continuous period of more than twenty-four hours is a derelict, if:

(1) The aircraft is obstructing a taxiway, runway or ramp parking area, or is endangering life or property; or

(2) The aircraft has been parked or otherwise left at a state airport or on public property contrary to law or rules having the force and effect of law, or the aircraft has been left on private property without authorization of the owner or occupant of the property and if:

(A) The aircraft's certificate of registration or aviation document is no longer effective and the registered owner no longer resides at the address listed in the aircraft registration document records of the Federal Aviation Administration; or

(B) The last registered owner disclaims ownership and the current owner's name or address cannot be determined; or

(C) The aircraft identification numbers and other means of identification have been removed so as to nullify efforts to locate or identify the owner; or

(D) The aircraft registration records of the Federal Aviation Administration contain no record that the aircraft has ever been registered and the owner's name or address cannot be determined.

(b) The director of transportation may cause a derelict aircraft to be immediately taken into custody. Upon taking custody of a derelict aircraft the director as soon as reasonably possible shall [concurrently]:

(1) Give public notice of the reasons for which the aircraft is being taken into custody, the intended disposition[;], and the procedure for requesting an administrative hearing;

(2) When [possible,] the aircraft is left in its original location, post a notice of the reasons for which the aircraft is being taken into custody, the intended disposition, and the procedure for requesting an administrative hearing on the aircraft; and

(3) Serve a duplicate original of the notice of the reasons for which the aircraft is being taken into custody, the intended disposition, and the procedure for requesting an administrative hearing by certified mail, return receipt requested[:], on:

(A) [On the] The registered or documented owner of the aircraft, if known, at the owner's last known address [shown] on [the records in] record at the Federal Aviation Administration[;] or to such other address known to the department which is more current; and

(B) [On all] Any lien holders who have properly filed a financing statement indexed in the name of the registered or documented owner, in the bureau of conveyances or who are shown [in] on the records of the Federal Aviation Administration; and

(C) [On any] Any other person known to have an interest in the aircraft whose name and most current address [is] are known to the department of transportation.

(c) If the aircraft is not repossessed within twenty days after the giving and mailing of the notice, whichever occurs later, the aircraft may be disposed of by negotiated sale, except that, when two or more purchasers indicate an interest in purchasing the aircraft, the aircraft will be sold at public auction to the highest bidder. If no purchaser expresses a desire to purchase the aircraft, the aircraft may be destroyed or disposed of by any other method authorized for abandoned aircraft.

(d) The notice shall contain a brief description of the aircraft, the reasons for which the aircraft is being taken into custody, the location of custody, the intended disposition of the aircraft if not repossessed within twenty days after the mailing of notice, and the procedure for requesting an administrative hearing. Absent evidence to the contrary, a notice shall be deemed received by the owner, lien holder, or other person known to have an interest in the aircraft five days after the mailing. The owner, lien holder, or other person known to have an interest in the aircraft 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 other person known to have an interest in the aircraft to contest the basis given by the department for the taking into custody of the aircraft. The hearing must be held within five working days of the department's receipt of the written request. The director shall appoint a hearings officer to conduct the hearing. The hearings officer's decision may be appealed pursuant to section 91-14."

SECTION 7. Section 290-2, Hawaii Revised Statutes, is amended to read as follows:

"§290-2 Notice to owner. (a) Upon taking custody of any abandoned or derelict vehicle, [a written notice shall immediately be sent by registered or certified mail to the legal and registered owner of the vehicle at the address on record at the vehicle licensing division.] the county or the housing and community development corporation of Hawaii, as soon as reasonably possible shall:

(1) Give public notice of the reasons for which the vehicle is being taken into custody, the intended disposition, and the procedure for requesting an administrative hearing;

(2) When the vehicle is left in its original location, post a notice of the reasons for the vehicle's being taken into custody, the intended disposition, and the procedure for requesting an administrative hearing on the vehicle; and

(3) Serve a duplicate original of the notice of the reasons for which the vehicle is being taken into custody, the intended disposition, and the procedure for requesting an administrative hearing by certified mail, return receipt requested on:

(A) The registered or documented owner of the vehicle, if known, at the owner's last known address on record at the vehicle licensing division or to such other address known to the county or the housing and community development corporation of Hawaii which is more current;

(B) Any 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 vehicle licensing division; and

(C) Any other person known to have an interest in the vehicle whose name and most current address are known to the county or the housing and community development corporation of Hawaii.

(b) The notice shall contain a brief description of the vehicle, the reasons for which the vehicle is being taken into custody, the location of custody, [and] the intended disposition of the vehicle if not repossessed within ten days after the mailing of the notice[. A notice need not be sent to a legal or registered owner or any person with an unrecorded interest in the vehicle whose name or address cannot be determined.], and the procedure for requesting an administrative hearing. Absent evidence to the contrary, a notice shall be deemed received by the [legal or registered] owner, lien holder, or other person known to have an interest in the vehicle five days after the mailing. The owner, lien holder, or other person known to have an interest in the vehicle shall have five 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 other person known to have an interest in the vehicle to contest the basis given by the county or the housing and community development corporation of Hawaii for the taking into custody of the vehicle. The hearing must be held within five working days of the county or the housing and community development corporation of Hawaii's receipt of the written request. The county or the housing and community development corporation of Hawaii, whichever has authority for taking the abandoned or derelict vehicle into custody, shall appoint a hearings officer to conduct the hearing. The hearings officer's decision may be appealed pursuant to section 91-14."

SECTION 8. Section 290-9, Hawaii Revised Statutes, is amended to read as follows:

"§290-9 Disposition of derelict vehicle. A derelict vehicle may be [immediately] disposed of or sold as junk [without having to comply with the requirements of section 290-2 and 290-5.] only after first complying with the requirements set forth in section 290-2."

SECTION 9. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 10. This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

BY REQUEST