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.