(a) Except as otherwise provided in this chapter, at least 20 days before impounding a vessel, the state agency or municipality responsible for impounding the vessel shall post a written notice on the vessel , if possible, and on the Alaska Online Public Notice System or the municipality's official website. A copy of that notice must be sent by certified mail, with a return receipt, to the owner of the vessel at the owner's last known address or the address on record with the United States Coast Guard or the Department of Administration and to all lienholders shown on the records of the United States Coast Guard or a state agency.

(b) The notice must contain the

(1) name or number of the vessel, if known;

(2) name and address of the owner, if known;

(3) intended action against the vessel; and

(4) hearing procedure under (c) of this section.

(c) Except as provided in AS 30.30.065, the owner of a vessel may file a written demand for a pre-impoundment hearing with the state agency or municipality that sent the notice within 15 days after the postmark date of the notice required under (a) of this section. If the written demand is made by a person who is not the owner of the vessel, the written demand must establish that the person requesting the hearing has an interest in the vessel. An owner or a person with a financial or security interest in a vessel who fails to request or attend a scheduled hearing waives the right to a hearing.

(d) A pre-impoundment hearing must be conducted within 10 business days after the receipt of a written demand for a pre-impoundment hearing unless the person requesting the hearing consents to a later date.

(e) An individual who has authority to direct the impoundment of a vessel at issue in a pre-impoundment hearing may not serve as the hearing officer. The hearing shall be conducted in an informal manner. The provisions of AS 44.62 (Administrative Procedure Act) do not apply to a hearing conducted under this section.

(f) The state agency or municipality responsible for impounding a vessel has the burden of showing substantial evidence that the vessel is derelict. After the hearing, the hearing officer shall issue a written decision of whether there is substantial evidence that the vessel is derelict. A copy of the decision shall be provided to the vessel owner and the person requesting the hearing, if other than the vessel owner.

(g) If the hearing officer determines that there is substantial evidence establishing that the vessel is derelict, then the state agency or municipality may impound the vessel and proceed with disposition of the vessel as provided under AS 30.30.055.