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c) The State/LEA will maintain and enforce regulations designed to impose adequate security and accountability measures for controlled property to mitigate the risk of loss or theft of property. Program participants shall implement controls to ensure properry made available under this agreement is used for official law enforcement use only. The State/LEA shall take appropriate administrative and./or disciplinary action against individuals that violate provisions of the Memorardum of Agreement (MOA) between the Federal Govemment and the State/U.S. Tenitory and/or this SPO, including unauthorieed use of property. d) All property transferred to the State/LEA via the program is on an as-is, where-is basis. e) LESO resewes the rigbt to recall property issued to a StatelLEA at any time. f) Geaeral use of definitions/terrns; i) Demilitarization {DEMIL code)-a code assigned to DoD property that indicates the degree of required physical destnrction" identifies items requiring specialized capabilities orprocedurss, arrd identifies items which do not require DEMIL but may require Trade Seeurity Confrols (TSC). Program participants are not authorized to conduct physical demilitarization of properfy. ii) "Controlled property"-items with a DEMIL code of B, C, D, E, F, G, and Q (with an Integrity Code of *3". Title and owuership of contolled properry remains with the DoD in perpetuity and will not be relinquished to the State/LEA, When a StatelLEA no longer has a legitimate law enforcement use for contolled property, they shall notif the LESO and the property will be transferred to another program participating State/LEA (via standard transfer process) or returned to DLA Disp Svcs for disposition. iii)'T.Ion-controlled" properfr"-items with a DEMIL code of A or Q (with an Integnty Code of "6')" These items are conditionally fansferred to the StatelLEA and will remain on State/LEA accountable inventory for one year from the ship date. However, after one year frorn the ship date, DLA will relinquish ownership and title for the property to the StatelLEA without issuance of further documentation, During this one year period, the State/LEA remains responsible for the accountability and physical control of the properly and the LESO retains the right to recall the property. Participants should retua any $operry in this one year period that becomes excess to their needs or they otherwise determine is not serviceable. (1) The LEA receives title and ownership of DEMIL "A" and "Q6" property as governmental entities. Title and ownership of this property does not pass &om DoD to any private individual or StatelLEA official in their private capacity. Such property shall be maintained and ultimately disposed of IAW provisions in State and local laws that govern public property. (2) Sales/gifting of DEMIL"A" and "Q6" property after one year frorn the ship date inconsistent with State/local law may constitute grounds to deny future participation in the program. (3) After one year from ship date, DEMIL "A" and "Q6" property may be transferred, cannibalized for usable parts, sold, donated, or scrapped. (4) Once the property is no longer on the LEA accountable inventory, the property is no longer zubject to the annual physical inventory requirements and rvill not be inventoried during a LESO Program Compliance Review (PCR). g) All physical hansfers of property require LESO approval, Progarn participants will not physically transfer property until the LESO approval process is complete. Program participants may request their SC/SPOC approval to temporarily conditionally loan properly to another program participant (if mission requires). If the SC/SPOC approves the temporary conditional loan, it shall be done using an acceptable Equiprnent Custody Rcceipt (ECR}. At the end ofthe temporary conditional loan, the item (s) shall be refirmed to the original LEA for accountability. All requests for conditional loans will be based on bona fide law enforcement requirements. Page? of 12 Yersion-February 2021