‘‘(F) Long-range acoustic devices. 
‘‘(G) Items in the Federal Supply Class of 
banned items. 
‘‘(2) The Secretary may not require, as a condition 
of a transfer under this section, that a Federal or State 
agency demonstrate the use of any small arms or ammuni-
tion. 
‘‘(3) The limitations under this subsection shall also 
apply with respect to the transfer of previously transferred 
property of the Department of Defense from one Federal 
or State agency to another such agency. 
‘‘(4)(A) The Secretary may waive the applicability of 
paragraph (1) to a vehicle described in subparagraph (B) 
of such paragraph (other than a mine-resistant ambush- 
protected vehicle), if the Secretary determines that such 
a waiver is necessary for disaster or rescue purposes or 
for another purpose where life and public safety are at 
risk, as demonstrated by the proposed recipient of the ve-
hicle. 
‘‘(B) If the Secretary issues a waiver under subpara-
graph (A), the Secretary shall— 
‘‘(i) submit to Congress notice of the waiver, 
and post such notice on a public Internet website of 
the Department, by not later than 30 days after the 
date on which the waiver is issued; and 
VerDate Sep 11 2014 
01:45 Mar 21, 2017
Jkt 069200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H1556.IH
H1556
lotter on DSK5VPTVN1PROD with BILLS
‘‘(ii) require, as a condition of the waiver, that 
the recipient of the vehicle for which the waiver is 
issued provides public notice of the waiver and the 
transfer, including the type of vehicle and the pur-
pose for which it is transferred, in the jurisdiction 
where the recipient is located by not later than 30 
days after the date on which the waiver is issued. 
‘‘(5) The Secretary may provide for an exemption to 
the limitation under subparagraph (D) of paragraph (1) 
in the case of parts for aircraft described in such subpara-
graph that are transferred as part of regular maintenance 
of aircraft in an existing fleet. 
‘‘(6) The Secretary shall require, as a condition of 
any transfer of property under this section, that the Fed-
eral or State agency that receives the property shall return 
the property to the Secretary if the agency— 
‘‘(A) is investigated by the Department of Jus-
tice for any violation of civil liberties; or 
‘‘(B) is otherwise found to have engaged in 
widespread abuses of civil liberties. 
‘‘(g) CONDITIONS FOR EXTENSION OF PROGRAM.— 
Notwithstanding any other provision of law, amounts au-
thorized to be appropriated or otherwise made available 
for any fiscal year may not be obligated or expended to 
VerDate Sep 11 2014 
01:45 Mar 21, 2017
Jkt 069200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H1556.IH
H1556
lotter on DSK5VPTVN1PROD with BILLS
carry out this section unless the Secretary submits to Con-
gress certification that for the preceding fiscal year that— 
‘‘(1) each Federal or State agency that has re-
ceived controlled property transferred under this sec-
tion has— 
‘‘(A) demonstrated 100 percent account-
ability for all such property, in accordance with 
paragraph (2) or (3), as applicable; or 
‘‘(B) been suspended from the program 
pursuant to paragraph (4); 
‘‘(2) with respect to each non-Federal agency 
that has received controlled property under this sec-
tion, the State coordinator responsible for each such 
agency has verified that the coordinator or an agent 
of the coordinator has conducted an in-person inven-
tory of the property transferred to the agency and 
that 100 percent of such property was accounted for 
during the inventory or that the agency has been 
suspended from the program pursuant to paragraph 
(4); 
‘‘(3) with respect to each Federal agency that 
has received controlled property under this section, 
the Secretary of Defense or an agent of the Sec-
retary has conducted an in-person inventory of the 
property transferred to the agency and that 100 per-
VerDate Sep 11 2014 
01:45 Mar 21, 2017
Jkt 069200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H1556.IH
H1556
lotter on DSK5VPTVN1PROD with BILLS
cent of such property was accounted for during the 
inventory or that the agency has been suspended 
from the program pursuant to paragraph (4); 
‘‘(4) the eligibility of any agency that has re-
ceived controlled property under this section for 
which 100 percent of the property was not ac-
counted for during an inventory described in para-
graph (1) or (2), as applicable, to receive any prop-
erty transferred under this section has been sus-
pended; and 
‘‘(5) each State coordinator has certified, for 
each non-Federal agency located in the State for 
which the State coordinator is responsible that— 
‘‘(A) the agency has complied with all re-
quirements under this section; or 
‘‘(B) the eligibility of the agency to receive 
property transferred under this section has been 
suspended; and 
‘‘(6) the Secretary of Defense has certified, for 
each Federal agency that has received property 
under this section that— 
‘‘(A) the agency has complied with all re-
quirements under this section; or 
VerDate Sep 11 2014 
01:45 Mar 21, 2017
Jkt 069200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H1556.IH
H1556
lotter on DSK5VPTVN1PROD with BILLS
‘‘(B) the eligibility of the agency to receive 
property transferred under this section has been 
suspended. 
‘‘(h) PROHIBITION ON OWNERSHIP OF CONTROLLED 
PROPERTY.—A Federal or State agency that receives con-
trolled property under this section may never take owner-
ship of the property. 
‘‘(i) NOTICE TO CONGRESS OF PROPERTY DOWN-
GRADES.—Not later than 30 days before downgrading the 
classification of any item of personal property from con-
trolled or Federal Supply Class, the Secretary shall submit 
to Congress notice of the proposed downgrade. 
‘‘(j) NOTICE TO CONGRESS OF PROPERTY CANNIBAL-
IZATION.—Before the Defense Logistics Agency author-
izes the recipient of property transferred under this sec-
tion to cannibalize the property, the Secretary shall submit 
to Congress notice of such authorization, including the 
name of the recipient requesting the authorization, the 
purpose of the proposed cannibalization, and the type of 
property proposed to be cannibalized. 
‘‘(k) QUARTERLY REPORTS ON USE OF CONTROLLED 
EQUIPMENT.—Not later than 30 days after the last day 
of a fiscal quarter, the Secretary shall submit to Congress 
a report on any uses of controlled property transferred 
under this section during that fiscal quarter. 
VerDate Sep 11 2014 
01:45 Mar 21, 2017
Jkt 069200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H1556.IH
H1556
lotter on DSK5VPTVN1PROD with BILLS
‘‘(l) REPORTS TO CONGRESS.—Not later than 30 
days after the last day of a fiscal year, the Secretary shall 
submit to Congress a report on the following for the pre-
ceding fiscal year: 
‘‘(1) The percentage of equipment lost by re-
cipients of property transferred under this section, 
including specific information about the type of 
property lost, the monetary value of such property, 
and the recipient that lost the property. 
‘‘(2) The transfer of any new (condition code 
A) property transferred under this section, including 
specific information about the type of property, the 
recipient of the property, the monetary value of each 
item of the property, and the total monetary value 
of all such property transferred during the fiscal 
year.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply with respect to any transfer of 
property made after the date of the enactment of this Act. 
Æ 
VerDate Sep 11 2014 
01:45 Mar 21, 2017
Jkt 069200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6301
E:\BILLS\H1556.IH
H1556
lotter on DSK5VPTVN1PROD with BILLS