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c) The State/LEA will maintain and enforce regulations designed to impose adequate security and <br />accountability measures for controlled property to mitigate the risk of loss or theft of property. Program <br />participants shall implement controls to ensure property made available under this agreement is used for <br />official law enforcement use only. The State/LEA shall take appropriate administrative and/or disciplinary <br />action against individuals that violate provisions of the Memorandum of Agreement (MOA) between the <br />Federal Government and the State/U.S. Territory and/or this SPO, including unauthorized use of property. <br />d) All property transferred to the State/LEA via the program is on an as -is, where -is basis. <br />e) LESO reserves the right to recall property issued to a State/LEA at any time. <br />f) General use of definitions/terms: <br />i) Demilitarization (DEMIL code) -a code assigned to DoD property that indicates the degree of required <br />physical destruction, identifies items requiring specialized capabilities or procedures, and identifies items <br />which do not require DEMIL but may require Trade Security Controls (TSC). Program participants are <br />not authorized to conduct physical demilitarization of property. <br />ii) "Controlled property" -items with a DEMIL code of B, C, D, E, F, G, and Q (with an Integrity Code <br />of "3". Title and ownership of controlled property remains with the DoD in perpetuity and will not be <br />relinquished to the State/LEA. When a State/LEA no longer has a legitimate law enforcement use for <br />controlled property, they shall notify the LESO and the property will be transferred to another program <br />participating State/LEA (via standard transfer process) or returned to DLA Disp Svcs for disposition. <br />iii) "Non -controlled" properly" -items with a DEMIL code of A or Q (with an Integrity Code of "6"). <br />These items are conditionally transferred to the State/LEA and will remain on State/LEA accountable <br />inventory for one year from the ship date. However, after one year from the ship date, DLA will relinquish <br />ownership and title for the property to the State/LEA without issuance of further documentation. During <br />this one year period, the State/LEA remains responsible for the accountability and physical control of the <br />property and the LESO retains the right to recall the property. Participants should return any property in <br />this one year period that becomes excess to their needs or they otherwise determine is not serviceable. <br />(1) The LEA receives title and ownership of DEMIL "A" and "Q6" property as governmental <br />entities. Title and ownership of this property does not pass from DoD to any private individual or <br />State/LEA official in their private capacity. Such property shall be maintained and ultimately <br />disposed of IAW provisions in State and local laws that govern public property. <br />(2) Sales/gifting of DEMIL"A" and "Q6" property after one year from the ship date inconsistent with <br />State/local law may constitute grounds to deny future participation in the program. <br />(3) After one year from ship date, DEMIL "A" and "Q6" property may be transferred, cannibalized <br />for usable parts, sold, donated, or scrapped. <br />(4) Once the property is no longer on the LEA accountable inventory, the property is no longer <br />subject to the annual physical inventory requirements and will not be inventoried during a LESO <br />Program Compliance Review (PCR). <br />g) All physical transfers of property require LESO approval. Program participants will not physically transfer <br />property until the LESO approval process is complete. Program participants may request their SC/SPOC <br />approval to temporarily conditionally loan property to another program participant (if mission requires). If the <br />SC/SPDC approves the temporary conditional loan, it shall be done using an acceptable Equipment Custody <br />Receipt (ECR). At the end of the temporary conditional loan, the item (s) shall be returned to the original LEA <br />for accountability. All requests for conditional loans will be based on bona fide law enforcement requirements. <br />Page 2 of 12 Version -February 2021 <br />