Brief Description: Modifying provisions regarding abandoned or derelict vessels.

Sponsors: Senate Committee on Natural Resources, Ocean & Recreation (originally sponsored by Senators Rockefeller, Regala, Oke, Berkey and Spanel).

Hearing Date: 2/17/06

Staff: Jason Callahan (786-7117).

Background:

Removal of derelict or abandoned vessels

An authorized public entity (APE), which includes most public owners of aquatic lands and shorelines, has the discretionary authority to remove and destroy a vessel within its jurisdiction that has become abandoned or derelict. The Department of Natural Resources (Department) has an oversight and rulemaking role in the removal and disposal process.

Taking possession of derelict vessels

Prior to taking action on a vessel, an APE must attempt to notify the vessel's owner of its intent to remove the vessel. Notice must be mailed to the last known address of any identifiable owners, posted clearly on the vessel, and printed in a newspaper in the county in which the vessel is located. All notices must include specified information, including the procedures that must be followed to reclaim possession of the vessel, possible financial liabilities, and the rights of the APE after custody of the vessel is claimed.

Once the APE takes custody of a vessel, the APE may use or dispose of the vessel in any environmentally sound manner. However, the APE must first attempt to derive some value from the vessel either in whole or scrap. If a value can be derived, then that amount will be subtracted from the financial liabilities of the owner. If the vessel has no salvageable value, then the APE must utilize the least costly disposal method.

The owner of a derelict or abandoned vessel is responsible for reimbursing the APE for all costs associated with the removal and disposal of the derelict or abandoned vessel. These costs include administrative costs and costs associated with any environmental damage caused by the vessel.

Challenging custody of a derelict vessel

An owner seeking to redeem a vessel that is in the custody of an APE, or wishing to contest the amount of liability owed, must bring an action within 20 days of custody of the vessel being taken. If a lawsuit is not commenced within 20 days, the right to a hearing will be deemed waived.

The Derelict Vessel Removal Account

Monies in the Derelict Vessel Removal Account (Account) are used to reimburse APE for 75 percent of the costs associated with removing and disposing of abandoned or derelict vessels when the owner of the vessel is unknown or unable to pay. The APE may contribute its 25 percent of removal costs through in-kind services. Priority for use of the Account's funds must be given to the removal of vessels that are in danger of breaking up, sinking, presenting environmental risks, or blocking navigation channels. Prioritization guidelines have been developed by the Department.

Summary of Bill:

New crime

It is a misdemeanor to cause a vessel to become abandoned or derelict on any aquatic lands in the state.

Contesting possession of a vessel or fees due

The owner of a vessel that has been taken into custody by an APE may request a hearing with the Department, instead of a court, to contest the action of taking custody or to contest the amount of reimbursement due. The written hearing request must be filed within 20 days of an APE taking custody of the vessel. If the vessel has already been reclaimed by the owner, a challenge to the reimbursement due must be filed no later than the day the vessel was redeemed. If the owner does not file a challenge within the established time frame, then the right to a hearing is deemed waived.

The Department must hear the challenge to custody or reimbursement amount and determine the validity of the claim. The Department must provide a hearing date and location to the vessel owner and the appropriate APE within five business days. For vessels still in custody of the APE, the hearing may not be more than 10 days from the date that the hearing request was delivered. The Department must set a hearing date within 60 days of the request for vessels that have already been redeemed by the owner.

Any APE that takes possession of a vessel may require full reimbursement of cost prior to releasing the vessel to the owner.

APE cost-share ratio

The maximum amount of funding from the Account to APEs is increased from 75 percent of the total reasonable and auditable costs for handling a derelict vessel to 90 percent of total costs. The APE is responsible for the remaining 10 percent of costs.

Revenue and spending changes for the Derelict Vessel Removal Account

The Account is specifically authorized to accept gifts, grants, and endowments. Any revenue from these sources may be used as directed by the grantor, as long as those uses is not inconsistent with the requirements of the state law on derelict and abandoned vessels.

Monies in the Account may be used to remove derelict and abandoned vessels located at moorage facilities.

Appropriation: None.

Fiscal Note: Available.

Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.