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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 Governmentand the State/U.S.Territory and/or this SPO,including unauthorizeduse of property. <br />d)All property transferredto 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 transferredto another program <br />participating State/LEA (via standard transfer process)or returned to DLA Disp Sves for disposition. <br />iii)"Non-controlled"property"-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/giftingof DEMIL"A"and "Q6"property after one year from the ship date inconsistent with <br />Statellocal 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/SPOC 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-February2021