Headquarters CMD Regulation 735-5

California Military Department (CMD)

Sacramento, CA
15 January 2019
Effective 15 January 2019
Supersedes previous versions which are obsolete

State Property Management and Accountability Policy

FOR THE GOVERNOR:

FOR THE GOVERNOR:

DAVID S. BALDWIN
MAJOR GENERAL
The Adjutant General

OFFICIAL:
Jeffery C. Kerns
COL, IN, CAARNG
J-1, Director of Manpower and Personnel

History. This regulation supersedes previously obsolete CA
ARNG Regulation 735-5, dated 6 August 2013.
Summary. This regulation establishes basic policies and
procedures for accounting for State of California property. It
sets the requirements for formal property accounting within
the California Military Department. It also defines
accountability and responsibility, identifies categories of
property and accounting procedures to be used and provides
disposition instructions for lost, damaged and destroyed State
property.
Applicability. This regulation applies to the California
Military Department (CMD), Office of the Adjutant General,
all CMD personal maintaining property including, Training
Sites (Los Alamitos, Camp Roberts and Camp San Luis
Obispo), Readiness Centers (Armories), Air National Guard
Wings/Groups, Youth Programs, California Military Museum
and the State Military Reserve (SMR).
Proponent and exception authority. The proponent and
exception authority for this regulation is the Office of the
Adjutant General (JFHQ), Director of Joint Logistics.
Supplements to this regulation are prohibited without prior
written approval from the Director of Joint Logistics.
Interim changes. Interim changes to this regulation are
not effective unless authenticated by the Director of Joint
Logistics. Authenticated changes shall be published,
distributed and posted on the Logistics website by the Joint
Logistics Directorate at JFHQ.
Suggested improvements. Users are invited to send
comments and suggestions to this regulation in
memorandum format, directly to Director of Joint
Logistics, ATTN: CAAD-J4.

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 Table of Contents

Chapter 1
General Introduction
References
1-1 Purpose and Objective of Property Accounting
1-2 Responsibilities
1-3 Requests for Clarification

Chapter 2
State Command Supply Discipline Program
2-1 Importance of Supply Discipline
2-2 Management Emphasis on Accountability
2-3 Implementing the SCSDP
2-4 SCSDP Responsibilities and Guidance
2-5 Responsibilities for SCSDP Monitors
2-6 SCSDP Inspector Responsibilities

Chapter 3
Property Accountability Requirements
3-1 Property Definition
3-2 Unaccountable Property
3-3 General Requirements
3-4 Accounting for State Property
3-5 Responsibility
3-6 Primary Hand Receipt Holders
3-7 Weapons Custodian
3-8 Sub-Hand Receipt Holders

Chapter 4
Types of Property
4-1 Non-Expendable
4-2 Durable/Installed
4-3 Sensitive
4-4 Intangible Assets
4-5 Expendable
4-6 Hazardous Materials

Chapter 5
5-1 Property Valuation

Chapter 6
Property Accountability
6-1 Hand Receipt
6-2 CMD Reporting Property Acquisitions
6-3 Property Received
6-4 Replacement in Kind
6-5 Donated Property to the State

Chapter 7
Identification and Tagging
7-1 Tagging Property
7-2 Vehicle Decals
7-3 Methods of Tagging

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Chapter 8
Property Inventory and Internal Controls
8-1 Inventory Procedures

Chapter 9
Property Transfer, Turn-In and Disposal
9-1 Transfer between Camps/Areas/Unit PHRHs
9-2 Transfer between State Agencies
9-3 Processing STD 152 Report of Survey
9-4 Lost, Stolen or Destroyed Property

Chapter 10
10-1 Delegation of Authority

Chapter 11
Managing and Reporting of Sensitive Items
11-1 Sensitive Item Inventory
11-2 Discrepancies
11-3 Weapons Issue, Transfer and Turn-In

Chapter 12
State Vehicles
12-1 Monthly Mileage
12-2 SMOG Check Requirements
12-3 FasTrak

Chapter 13
Fleet Fuel Card Program
13-1 Voyager Fuel Cards
13-2 Authorized Purchases
13-3 Prohibited Purchases

Chapter 14
Vehicle Accidents, Reporting and Investigation
14-1 Accidents
14-2 Reporting
14-3 Investigation

Chapter 15
California Air National Guard (CA ANG)
15-1 State Reports of Survey (ROS)

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Chapter 1
General Introduction

References

a. State Administrative Manual (SAM) Chapter 8600 – 8671, Property Accountability

b. SAM Chapter 3500 – 3522.1, Surplus Property

c. SAM Chapter 2455, Reporting and Investigating Accidents / Incidents Involving State Employees
or State Property

d. Government Code 14674

e. Public Contract Code Section 10389.1

f. SAM Management Memo MM 11-01,Cost-Effective Reuse of Surplus Furniture

g. Department of General Services (DGS) State of California Fleet Handbook

h. Vehicle Code 27900(a), 34507.5(b)

1-1 Purpose and Objective of Property Accounting (SAM Chapter 8600)

a. All property accounting procedures are designed to comply with the State Administrative Manual (SAM) Chapter
8600 under the auspices of the Department of General Services (DGS).
b. The CMD is subject to the property audit provisions of DGS.
c. Property accounting procedures are designed to maintain uniform accountability for the State of California
property. These standard procedures are used to provide accurate records for the acquisition, maintenance, control,
and disposition of property. The combination of accurate accounting records and strong internal controls must be in
place to protect against and detect the unauthorized use of State property.
d. All personnel will enforce logistical discipline throughout the CMD; emphasized by education, training,
supervision and prompt initiation of adjustment documentation, as needed.
e. Provides basic policies and procedures in accounting for State of California property.
f. Sets the requirement for formal property accounting within the State of California.
g. Implements specific property accountability procedures.
h. Defines accountability and responsibility, identifies categories of property and accounting procedures to be used
with each, and also identifies basic procedures for operating a property account.
i. Prescribes the accounting procedures to be used when State of California property is discovered lost, damaged or
destroyed due to negligence. It provides authorized methods to obtain relief from property responsibility and
accountability; and prescribes State policy on such losses and financial liability.

1-2 Responsibilities
a. The J4 is designated by TAG as the responsible entity to prescribe policy related to State property accountability
in accordance with State and local laws and regulations.
b. The J4, State Property Book Manager (PBM) shall ensure that all detailed property accounting policy and
procedures developed for specific materiel or situations comply with this regulation.
c. The PBM maintains the CMD’s centralized State Property Book system.
d. Commanders at all levels shall ensure compliance with all policies and procedures prescribed by this regulation
that apply to their commands.
e. Commander may designate persons to be the PHRH for signature, or may choose to have direct responsibility of
all property by signing the hand receipt.
f. HQ CA ANG/A4 will act as a liaison between Air Guard units and J4 PBM for property accounts.
g. The Directors/Commanders of the Joint Staff, Army Guard, Training Sites (Los Alamitos, Camp Roberts and
Camp San Luis Obispo), Readiness Centers (Armories), Air National Guard Wings/Groups, Youth Programs,

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California Military Museum and the State Military Reserve (SMR) are the Accountable Officials to TAG for this
program.

1-3 Requests for Clarification

Send requests for clarification through command channels to the PBM at 2814 B Street, Sacramento, CA 95816.

Chapter 2
State Command Supply Discipline Program (SCSDP)

2-1 Importance of Supply Discipline

Leaders at all levels must enforce supply discipline to have a successful SCSDP program. The following must be
considered:
a. The SCSDP is a supervisor’s responsibility. Commanders/Directors/Primary Hand Receipt Holders (PHRH) are
required by position to ensure all State property within their section is accounted for, secured, properly used, and
maintained.
b. Commanders, Directors and PHRHs must ensure that supervisory, direct, and custodial responsibilities are
carried out in accordance with this regulation, as well as State and local policies.
c. The SCSDP helps standardize supply accountability and ensures compliance with supply policy and procedures.
d. Enforcement of supply discipline is accomplished through a combination of command emphasis, supervision,
training, and administrative and disciplinary measures.

2-2 Management Emphasis on Accountability

a. Management emphasis on accountability directly influences unit readiness. Property accountability includes all
State property, i.e. expendable, non-expendable, durable/installed, sensitive, hazardous and intangible items.
b. Commanders, Directors and PHRHs must account for all property acquired by the State regardless of its source,
including material purchased with the State purchase cards, grant monies, or locally fabricated property.
c. Commanders, Directors and PHRHs must ensure accounting is complete and accurate by conducting
supervisory evaluations, audits, and inspections.
d. Accountability and responsibility carry specific duties. Financial liability can be assessed against any person
who fails, through negligence or misconduct, to perform those duties, and where such failure is the proximate cause
of a loss to the State.
e. Validation of internal management controls is required and are accomplished by utilizing the SCSDP.

2-3 Implementing the SCSDP

a. The J4 has overall responsibility for the SCSDP including:
(1) Managing the master calendar for SCSDP inspections.
(2) Assembling and training SCSDP inspectors within J4
(3) Ensuring the inspections are conducted IAW this regulation
(4) Reporting findings through command channels to TAG
b. The SCSDP will address the following areas:
(1) Responsibilities of Commanders, Directors and PHRHs
(2) Provides guidance for evaluating State property discipline
(3) Provides feedback measures for improving State property policy and for monitoring supply discipline
(4) Routine follow-up to ensure supply discipline is maintained.

2-4 SCSDP Responsibilities and Guidance

a. The J4 is responsible to ensure all Commanders, Directors and PHRHs within the CMD implement the SCSDP.
This function oversees the program, provides recommended changes, and accounts for any uniqueness within the
State.
b. Commanders, Directors and PHRHs must review the unit's SCSDP results, look for positive trends to maintain,
and create plans to improve negative trends.
c. Responsibilities and guidance for Commanders and Directors include the following:
(1) Appoint in writing, a SCSDP monitor to oversee the SCSDP program.

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 (2) Implement an efficient SCSDP using existing personnel and resources to avoid duplication or
fragmentation of efforts.
(3) Provide the necessary emphasis to ensure the success of the SCSDP to include annual training events,
open forums, and the development of a tracking calendar.
(4) Conduct prompt corrective action or commendatory comments as noted on evaluations and inspections.
(5) Retain the latest SCSDP evaluation for two years.

2-5 Responsibilities for SCSDP Monitors

a. Become familiar with regulatory requirements of this regulation and SCSDP checklist (See Appendix A).
b. Ensure compliance with the SCSDP. This includes but is not limited to the following:

(1) All property is accounted, cared for, and safeguarded.

(2) Required inventories are conducted within the prescribed periods.
(3) Hand receipts are updated with the PBM as directed.
(4) All property is inventoried prior to change of hand receipt holder. During inventories, all tag numbers
and/or serial numbers are verified.
(5) Proper documentation maintained for property turn-n.
(6) An STD 152 packet is submitted to PBM following the discovery of any loss, damage, or destruction of
any State property or asset.
(7) Sub-hand receipt all property not directly under immediate control.

2-6 SCSDP Inspector (State PBM and/or J4 Staff) Responsibilities

a. Keep the J4 Directorate informed about the status of the SCSDP.
b. Review the results of the SCSDP evaluations in order to identify strengths and weakness throughout the State.
c. Provide the evaluated organization a copy of the findings from the SCSDP evaluation.
d. Establish a suspense date for resolution of each discrepancy.
e. Notify chain of command regarding findings and the necessary steps to re-establish compliance.
f. Follow up to ensure corrective actions are implemented.

Chapter 3
Property Accountability Requirements

3-1 Property Definition (SAM Chapter 8601)

a. Generally, property refers to all assets used in governmental operations. Property includes machinery, furniture,
tools, IT equipment, fleet assets, intangible IT software/programs, expendable assets (i.e. boots, clothing, building
materials), sensitive items, (i.e. weapons, ammunition, body armor, night vision, etc.).

3-2 Unaccountable Property

Property not to be accounted for by the State of California on the State property book or other State registers:
a. Federal property (MTOE, & TDA property).
b. Personally owned property (i.e. radios, pictures and coats).
c. Expendables (paper, pens, ink cartridges etc).

3-3 General Requirements

a. Accountability is the obligation of a person to maintain appropriate property documentation such as: identification
data, gains, losses, temporarily hand-receipted, and balance on hand or in use.
b. All persons entrusted with State property are responsible for its proper use, care, custody, and safekeeping.
c. When a person assumes accountability for property, records must be maintained to show the location of the
property and persons charged with its care and safekeeping.
d. State property shall not be utilized for federal missions or by non-CMD employees, contractors or personal use.
e. State property shall not be sold, given as a gift, loaned, exchanged, or otherwise disposed of. Recovery of lost
damaged or destroyed State property does not constitute a sale of State property; title to such property remains with
the State of California.
f. Giving or accepting an issue document, hand receipt, or other form of receipt to cover articles that are missing,
or appear to be missing, is prohibited.

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 g. All excess property shall be reported to the PBM, by means of a CA Form 3161 or STD Form 152. The PBM
will respond with the authorized turn in process or method of disposition. (See Chapter 9)

3-4 Accounting for State Property (SAM Chapter 8630)

a. There are four ways to acquire property:
(1) Purchase
(2) Lease (Fleet)
(3) Installment Purchase
(4) Transfer
(5) Gift
b. All property that is acquired by the State, from any source in one of the four methods listed above becomes the
sole property of the CMD and must be accounted for as prescribed by this regulation and entered into the State Property
Book. The PBM will issue the property to the user by method of a hand receipt. The accounting shall be continuous
from the time of acquisition until the ultimate consumption or disposal of the property. Documentation for audit
purposes will be maintained by the custodian of the property as well as by the PBM.
c. The PBM will manage accountability for all CMD property including Training Sites (Los Alamitos, Camp
Roberts and Camp San Luis Obispo), Readiness Centers (Armories), Air National Guard Wings/Groups, Youth
Programs, California Military Museum and the State Military Reserve (SMR), and will maintain a property
register/spreadsheet. The data provided to the PBM will track the life cycle of all property acquired by/for CMD.
d. IAW SAM 8650, at minimum the following information shall be recorded for each property item acquired:
(1) Date of acquisition
(2) Property description
(3) Property identification serial number
(4) Quantity
(5) PHRH or alternate holder of the property
(6) Location of property
(7) Cost or other basis of valuation
(8) CMD’s sequentially numbered tag
e. The CMD Comptroller’s Office will supply the PBM with copies of all purchase order (STD Form 65). The PBM
will enter this data into the State Property Book.
f. When property is received and verified, the PHRH/signing individual will tag and annotate the numbers on either
the OTAG Form 37-3-4 or State Property Reporting Document (CAAD Form 179), and forward the documents to the
PBM within three (3) business days of receiving the property. Air Guard will notify HQ CA ANG/A4 when requesting
to add property. The PBM will enter this data into the State Property Book. The new equipment will then be added to
the Primary Hand Receipt Holder’s hand receipt.
g. The PBM enters data from the receiving OTAG Form 37-3-4 or CAAD Form 179 and issues tags if needed to be
adhered to each property item. A copy of the new hand receipt with the new property items and corresponding tag
numbers will be sent to the PHRH within 30 days from the date the PBM received the supporting document. The
PHRH signs the new hand receipt in blue ink, keeps a copy for their file, and returns the original to the PBM.
h. During the useful life cycle of the property, the PHRH may turn in the property to the State Property Warehouse
by submitting a CA Form 3161 for turn-in or transfer to another hand receipt holder by using a CAAD 179. (See
Chapter 9)
i. Monthly 10% cyclic inventories will be conducted. (See Chapter 8)
j. Annual 100% inventories will be conducted as directed by the PBM. (See Chapter 8)

3-5 Responsibility
Responsibility is the obligation of an individual to ensure that State property entrusted to his/her possession, command,
or supervision is properly used and cared for, and that proper custody and safekeeping are provided.
a. Command responsibility is the obligation of the commander to ensure that all State property within the command
is properly used and cared for, and that proper custody and safekeeping are provided. Command responsibility is an
inherent aspect of command and cannot be delegated. It is evidenced by assignment to a command position at any
level. Commanders will be held financially liable for value of losses of property attributable to negligence or
misconduct.
b. Commander may designate a property book officer to be the PHRH for signature, or may choose to have direct
responsibility of all property by directly signing the hand receipt.

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 b. Supervisory responsibility is the obligation of a supervisor to ensure that all State property issued to or used by
subordinates, is properly used and care for, and that proper custody and safekeeping are provided. Supervisory
responsibility is inherent in all supervisory positions. It is not contingent upon signed receipts or responsibility
statements and cannot be delegated. It arises because of assignment to a specific position. This person will be held
financially liable for the full value of losses of such property attributable to negligence or misconduct.
c. Direct responsibility is the obligation of a person to ensure that all State property, for which he or she has received,
is properly used and cared for, and that proper custody, and safekeeping are provided. Direct responsibility results
from appointment as an Accountable Officer or receipt of formal written delegation or acceptance of the property on
hand receipt from another Accountable Officer. Commanders or Directors shall determine and assign the individual(s)
who shall have direct responsibility for property on a Delegation of Authority CA FORM 1687. This person will be
held financially liable for the full value of losses of such property attributable to negligence or misconduct.
d. Personal responsibility is the obligation of a person to ensure that all State property, for which he or she has
received, is properly used and cared for, and that proper custody and safekeeping are provided. Personal responsibility
results from assignment as an individual working for the person directly responsible for the property. This person will
be held financially liable for the value of losses of such property attributable to personal negligence or misconduct.
e. Property Book Holder Responsibility (PHRH)-The obligation of a PHRH is to ensure the responsibility of
custody, care, and safekeeping of State property entrusted to his or her possession, Command, or supervision. The
person having this responsibility may or may not have actual possession of the property. This person may or may not
have possession of the property, but will be held financially liable for the value of losses of such property attributable
to personal negligence or misconduct.

3-6 Primary Hand Receipt Holders (PHRH)

a. Commander may designate a property book officer to be the PHRH for signature, or may choose to have direct
responsibility of all property by signing the hand receipt. The PHRH or a duly authorized alternate is the custodian
for State Property.
b. Only by means of the “Notice of Delegation of Authority” (CA Form1687) and a memorandum signed by the
Commander can he/she delegate signing and receiving authority to an appointed PHRH or alternate. The PHRH
signing the hand receipt can be any CMD personnel in any status. This notice is to be updated annually or upon the
addition or removal of an appointed individual. (NOTE: All names are to be printed legibly.) (See Chapter 10)
c. Commanding officers can choose to self maintain the PHRH title and responsibility of signing the hand receipts.
d. PHRHs shall maintain documented and/or computerized control measures for all property by:
(1) logging and tracking property being signed in and out by personnel
(2) ensuring that sub-hand receipt holders properly sign and account for all property, and are provided a
duplicate copy of the hand receipt.
(3) turning in all excess material and equipment
(4) ensuring that nomenclature, quantity, and serial number(s) are correct
(5) posting transactions as they occur to the working copy of the master hand receipt
e. The following items shall be recorded for each property:
(1) Date acquired
(2) Property description
(3) Property identification serial number
(4) Quantity
(5) PHRH or alternate holder of the property
(6) Location of the property
(7) Cost or other basis of valuation
(8) CMD’s sequentially numbered tag
f. The PHRH will inventory and reconcile all property as directed by the PBM. All sites are required to conduct
monthly 10% cyclic inventories. Upon completion of all 10% cyclic inventories, the sites will conduct a 100%
inventory with the PBM. (See Chapter 8)
g. The PHRH will reconcile their property book for acquisitions and losses on a continuous basis.
h. The PHRH will also perform the duties and responsibilities of an SCSDP Monitor (See Chapter 2)

3-7 Weapons Custodian

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Shall maintain documentation and/or have control measures for all tagged property deemed sensitive.
(See Chapters 4 and 11)
a. Accounts for all weapons and sensitive items.
b. Issues and receives all sensitive items
c. Conducts 100% monthly inventory on all sensitive items (and immediately reports deficiencies to the PBM)

3-8 Sub-Hand Receipt Holders

Shall maintain documentation and/or have control measures for all tagged property for which they have signed for.
a. Conduct a complete physical inventory before responsibility is assumed.
b. Turn in excess property to the PHRH when property is no longer authorized, required or is unserviceable.
c. Ensures safeguarding of State property against fraud, waste and abuse.
d. Coordinate with PHRH to execute property transactions.
e. Sub-hand receipts can be signed by any CMD personnel in any status.

Chapter 4
Types of Property

4-1 Non-Expendable
Non-Expendable assets are items that keep their original identity during the period of use requiring property book
accountability. The State of California does not have a threshold value for items that must be accounted for.

4-2 Durable / Installed

Durable/Installed items (i.e. water heaters, air conditioners, vents, etc.) are not listed on the property book. However,
they must be tracked and accounted for in IMaint and hand receipted when issued to the user. While these items are
durable, they must meet State disposition requirements. Disposition must be completed and submitted to the PBM
using the STD Form 152.

4-3 Sensitive
Sensitive items are defined as those items that when placed in the wrong hands can be used to conduct unlawful acts
against the State, law enforcement and/or citizens (i.e. weapons, ammunition, body armor, night vision items, high
frequency radios, etc. 100% monthly sensitive items inventories will be conducted. NOTE: Computers are classified
as sensitive property if lost or stolen.

4-4 Intangible Assets

Intangible assets are considered internally generated if they are created or produced by a department or an entity
contracted by the department; or if they are acquired from a third party but require more than minimal incremental
effort on the part of the department to achieve their expected level of service capacity (i.e. databases, spreadsheets
and/or forms).

4-5 Expendable
Expendable assets are items which are consumed or lose their identity through normal usage, or are merged into
another entity when used for their intended purpose (clothing/boots etc.)

4-6 Hazardous Materials

Hazardous materials are defined as any substance or material that could adversely affect the safety of the public or
handlers (i.e. propane tanks, fuel cans etc.)

NOTE: Flammable materials will NOT be stored in the unit supply room at any time. All paints and other flammable
material will be stored in fireproof containers IAW fire and safety regulations. The supply room will have an operable
fire extinguisher on hand with current inspection date within the supply room at all times.

Chapter 5
5-1 Property Valuation
a. IAW SAM 8631 asset price is recorded in the State Property Book as the cost (to include taxes) of the property
at the time of purchase.

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 b. The recorded value is never reduced for depreciation.
c. Freight and installation costs for property in use shall not be added to the cost.

Chapter 6
Property Accountability
The PBM will assign each location a hand receipt number, which will appear on all transactions and documentation.

6-1 Hand Receipt (CA Form 2062)

a. The Commander or the appointed Director having command responsibility or is the PHRH.
b. Hand receipt is required when property is issued. The signature of a person on a hand receipt establishes direct
responsibility. The PHRH signing the hand receipt can be signed by any CMD personnel in any status.
c. Property is recorded in the State Property Book as having been received by an individual. This is validated by
the receiving individual sending the OTAG Form 37-3-4 or State Property Reporting Document CAAD Form 179 to
the PBM.
d. For transfer of property CAAD Form 179 will be used as a lateral transfer. All changes will be posted to the
PHRH’s hand receipt and forwarded to the PHRH for signature in blue ink. Original document will then be returned
to the PBM.
e. When a PHRH changes duty position, there will be a100% inventory of all property. The new PHRH will then
sign the hand receipt in blue ink and return the original to the PBM. Any lost or damaged property will require the
original PHRH to submit a Property Report of Survey STD Form 152 Packet. (See Chapter 9)

6-2 CMD Reporting Property Acquisitions

The CMD Comptroller’s office will furnish a copy of all state purchase orders and credit card purchases to the PBM.
Purchase order copies will be provided by means of a STD Form 65 or credit card purchases by means of Cal-Card
Monthly Record.

6-3 Property Received

Upon delivery of newly purchased property, the individual receiving the property will use the Purchase Order OTAG
Form 37-3-4 or a CAAD Form 179 to validate receipt and annotate serial numbers and property tag numbers. All
property received must be reported to the PBM within 3 business days from the time of receipt.

6-4 Replacement in Kind

Property that is given to the State in exchange for property that has been lost, stolen, or abused, becomes the property
of the CMD. The PBM must be notified, and the new property must be immediately tagged, accounted for and
recorded. The individual replacing the property must be relieved from financial liability of the property being replaced.

6-5 Donated Property to the State

IAW SAM 8634, property acquired by gift from any entity other than State departments must be recorded at the fair
market value on the date the gift is received. Retain receipts, letters, stock received reports, or other documents as
evidences of gifts (to include fleet assets).
a. Acceptance of property donated to the State must first be approved by DGS; thus administrative action will be
processed through the PBM. All property accountability requirements mentioned in this regulation will apply to
donated property.
b. The State will not accept property that will cause the State an unacceptable amount of expense to operate,
maintain, repair or dispose of.
c. Personnel accepting property without the authorization of the PBM and DGS will be held financially liable for
the disposition of said property.
d. A gift of property must be approved by DGS.
e. PHRH must prepare and submit the following documents as appropriate:
1 Memorandum for Request
2 STD Form 152 (Fleet Replacement)
3 STD Form 158
4 OFA6 Certificate of Inspection (Fleet)

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 f. Property cannot be accepted until DGS has reviewed documents submitted by the department. Based on this
review, DGS will issue an approval or denial.

Chapter 7
Identification and Tagging (SAM Chapter 8651)

7-1 Tagging Property

IAW SAM 8651, all state property will be tagged after acquisition.
a. The purpose of tagging is to identify property belonging to the State of California. These tags must be placed in
plain sight and easily read. To the extent possible, all property will be tagged on the assets' front left-hand corner. The
identification number will never be changed.
b. It is the responsibility of the PHRH to ensure proper tagging and accountability of all new State property listed
on the CA Form 2062. Any discrepancies between items listed on the CA Form 2062 and items on hand require
notifying the PBM.
c. For inventory purposes, all tags must match the asset description that is listed on the CA Form 2062. The
identification CA tags must not be changed or removed without specific authorization and/or direction from the PBM.

7-2 Vehicle Decals

Fleet vehicles decals are used to identify trucks that have a Gross Vehicle Weight Rating (GVWR) above 10,000 lbs.
Decals reflect the State seal, CMD acronym and the carrier identification number.
a. Fleet Coordinators are required to place the decals on both the driver and passenger doors, IAW with CA
Vehicle Code section 27900(a) and 34507.5(b).
b. If a vehicle receives a violation for failing to comply, the offending Fleet Coordinator will be held liable for the
cost of any violation related to non compliance.

7-3 Methods of Tagging

Adhesive Tags
Adhesive tags are for general purpose use and will be used when practical. Tags are numbered sequentially IAW the
State Logistical database.

State of California
CA Military Department
CMD # # # #

Paint Tagging
When an asset cannot be tagged using the approved adhesive tags, the PHRH must use paint markers to annotate the
tag number on the asset,

Engraving
When adhesive or paint tagging is impractical, engraving the tag number directly on the item will be required (i.e.
hand tools).

Chapter 8
Property Inventory and Internal Controls
At the time of the PBM’s visit, the PHRH must ensure that a command in/out brief is scheduled.

8-1 Inventory Procedures

The timely completion of property/equipment inventories is critical to comply with state logistical requirements.
Inventories will include all State property/assets and fleet.
a. 0% inventory will be conducted within 90 days upon assumption of command. Thereafter, 10% monthly cyclic
inventories will be implemented resulting in 100% accountability.

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 b. The PBM will provide all PHRHs with the monthly CAAD Form 2062 on the 1st business day of each month.
Completed cyclic reports must be submitted back to the PBM by the 25 th of each month.
c. 100% annual inventory of all property will be conducted by the PBM. If all cyclic inventories have been
completed a 10% inventory will be conducted. However, a 100% inventory will be conducted every three years
regardless of the 10% cyclic being completed. The PBM reserves the right to conduct a 100% inventory at any given
time during any calendar year.

Cyclic inventories will be based on calendar year.

January = 10%
February = 20%
March = 30% through October = 100%

d. 100% sensitive items monthly inventory will be conducted through a physical count by serial number.
e. Discrepancies found during the course of the cyclic inventories will be reported immediately to the PBM. Such
discrepancies will be noted on a “Missing Property” CAAD 2062 which the PBM will generate. PHRH will be given
7 calendar days to attempt to recover the property. If the property is not recovered, the PHRH will have 30 calendar
days to complete a STD Form 152 ROS packet and submit it to the PBM.
f. Adjustments will not be made until the STD Form 152 Lost Property Survey Report Packet has been completed,
submitted and approved by DGS.
g. All documents used to take inventory will be retained for audit and will show the date of inventory and the name
of the inventory taker. Inventory records will be retained for a minimum of 5 calendar years or longer as deemed
necessary.

Chapter 9
Property Transfer, Turn In and Disposal

The PHRH will prepare Property Survey Report STD Form 152 for disposal of property. The PHRH will prepare
Property Transfer Reports STD Form 158 when property is set for transfer to another State department. Property being
transferred to another PHRH’s hand receipt within CMD will be reported using CAAD Form 179.

Any personnel who dispose of, moves, and/or transfers property without prior authorization from the PBM will be
held financially responsible for any lost or damaged State property.

9-1 Transfer between Training Sites/Areas/Unit PHRHs

a. Transferring property from one PHRH to another must first be approved by the PBM.
b. Upon the PBM authorizing the transfer of property, a CAAD Form 179 must be completed. Once completed and
the issuing and receiving PHRH’s have signed the form in blue ink, it is to be forwarded to the PBM within 3 business
days.
c. When the property transfer is completed, an updated CA Form 2062 will be generated by the PBM and forwarded
to the receiving PHRH for signature.

9-2 Transfer between State Agencies

Transfer of property to another state agency can only be done with the approval of the PBM and DGS.

Transfer to any organization other than State is prohibited. When property is being transferred, an STD Form 158
must be completed and submitted to the PBM who will process the request through DGS for approval.

9-3 Property Dispositions

a. All PHRH submitting the Property Survey Report STD Form 152 must ensure that the form is completely filled
out. Required information must include the full address at the top of the form; identify what unit/directorate is currently
holding the property and the unit’s/directorate’s county.
b. PHRH must ensure that funding is available for disposition
c. PHRH must ensure that disposition of property occurs within 30 calendar days from date of approved STD Form
152.

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 d. PHRH must not turn in or dispose of any property prior to submitting the STD Form152. The STD Form 152 is
submitted to the PBM, who will review and submit the request to DGS.
e. The approval from DGS will direct the method of disposition. The PBM and alternate are the only individuals
authorized to submit the request to DGS.
f. PHRH must remove all identifying State/CMD tags and markings from property.
g. Disposition must be made at an approved salvage yard, recycler or E-waste facility as directed by DGS.
h. The signed approved original STD Form 152 must be returned to the PBM, along with the receipt certification
from the receiving vendor.

9-4 Lost, Stolen, or Destroyed Property STD 152 Report of Surveys (ROS) (SAM Chapter 8643)
IAW SAM 8643, when property is lost, stolen, or destroyed, PHRH will prepare a Property Survey Report form STD
152 ROS packet. When losses are discovered the individual responsible for the care, safekeeping, and proper use of
State property has the obligation to report promptly all known circumstances in connection with the loss or damage to
the property.
a. PHRH will be given 7 calendar days to attempt to recover the property. If the property is not recovered, the
PHRH will have 30 calendar days to complete a STD Form 152 packet and submit it to the PBM.
b. Losses of state property due to fraud or embezzlement will be reported by the PBM to the Department of Finance,
Office of State Audits and Evaluations and the Bureau of State Audits. Employees will be charged with any loss and
damages to state property due to their negligence or unauthorized use.
c. PHRH shall immediately notify the PBM, JOC, and the California Highway Patrol (CHP) upon discovery of all
Information Technology security incidents and computer related crimes. Each PHRH having ownership and
responsibility must complete a Security Incident Report (SIR CAL 190-40).
d. Thereafter, the PHRH and Commander will have 30 calendar days to prepare and submit a STD Form 152 Loss
Property Survey packet and conduct an internal investigation. (NOTE: State STD Form 152 ROS procedures do not
require Federal Judge Advocate General’s oversight or counsel.)
e. When completing the STD Form 152 ROS packet, the explanation box must have a statement that reads, “I
became aware of the loss on (date).” Supporting statements from employees/Soldiers/Airmen must be included when
applicable.

The STD Form 152 submission packet must include the following:
(1) Property Survey Report, (STD Form 152)
(2) Serious Incident Report , SIR, CAL 190-40
(3) A thorough investigation with report outlining the description of the events
(4) A California Highway Patrol (CHP) Report of Crime/Incident of State Property, Missing/Lost Property STD
Form 99
(5) Sworn statements if applicable
(6) A summation report/memo outlining the precautions to be taken to prevent repeat situations
Submit packet to: PBM, 2814 B Street, Sacramento, CA 95816-3214
f. The PHRH must check the packet for accuracy prior to submission. The STD Form 152 ROS packet will not be
processed unless all documents and information is accurate and submitted.
g. The PBM will adjust the property accounting records once the STD Form 152 ROS has been processed, approved
and returned from DGS. This adjustment will generate an updated CA 2062 for signature.

Chapter 10
10-1 Delegation of Authority CA 1687 and PHRH Delegation Memorandum
The commander in delegating the authority authorizes identified personnel to request, receive and sign for property.
a. A PHRH Delegation Memorandum will appoint an individual to request or receive State property, and assume
full responsibility as the assigned PHRH regardless of CMD status. (See Chapter 3)
b. CA Form 1687 will delegate one or more individuals the authority to request or receive State property with the
PHRH or commanders authority.
c. Commanders will prepare and submit a PHRH Delegation Memorandum and CA Form 1687 annually by July
1st, or within 30 days when a change in personnel or command occurs.
d. Individuals not listed on CA Form 1687 or PHRH Delegation Memorandum will not be authorized to request or
pick up property.

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Chapter 11
Managing and Reporting of Sensitive Items

11-1 Sensitive Items Inventory

100% sensitive items (i.e. weapons, ammunition, body armor, night vision items, high frequency radios etc.)
inventories will be conducted on a monthly basis.
a. A sensitive items monthly inventory will be conducted through a physical count by serial number.
b. The PBM will provide all PHRHs with a monthly sensitive item CAAD Form 2062 report on the 1st business day
of each month. Completed inventories must be submitted back to the PBM by the 25th of each month. When corrections
are made, updated CAAD Form 2062s will be generated and provided to the PHRH.
c. The inventory will be conducted by the PHRH or a neutral delegate appointed by the Commander and submitted
back to the PBM by 25th of each month.
d. The same appointed neutral delegate must not conduct consecutive monthly inventories.
e. The inventory will be recorded on the PBM’s Monthly Sensitive Item Report CAAD Form 2062.
f. The report will be signed in blue ink and returned to the PBM.
g. The PHRH will retain copies of all documents for two years; four years if any discrepancies are noted.
h. The weapons custodian will not conduct monthly physical inventories.
i. Signatures of all concerned parties is required. (Some reports may require different structural signatures.)
j. The PBM reserves the right to conduct a 100% inventory at any given time during any calendar year.

11-2 Discrepancies
a. During the monthly sensitive items inventory, the PHRH or designated appointee identifies discrepancies in the
count, identifying tag number or serial numbers, the discrepancies must be notated on the CA Form 2062 and
submitted to the PBM.
b. If the PHRH finds a discrepancy in the serial or tag number during a routine sensitive item review, a memorandum
signed by the commander must be submitted listing the corrected information.
c. Upon discovery of a missing sensitive item, the PHRH or commander having appointed the appointee will
immediately contact the PBM, JOC and the California Highway Patrol (CHP) to report the loss.
d. Thereafter, a 152 ROS packet must be completed and submitted to the PBM within 3 calendar days. (See Chapter
9)

11-3 Weapons Issue, Transfer and Turn-in

a. Ammunition leaving the PHRH’s control for any reason other than normal issue must be approved by the PBM.
b. The mission approved transfer of ammunition must be completed on a CAAD Form 179 from the originating
PHRH to the receiving PHRH.
c. Request for turn-in to the PBM due to excess must be completed on CA Form 3161.
d. Request for turn-in due to the end of life cycle must be completed on a STD Form 152.
e. All signed documents must be forwarded to the PBM for updating into the State Property Book.
f. The PHRH will maintain and secure a copy of all documents and have them readily available to reconcile during
inventories.
g. When weapons are transferred and leave the unit area, an armed guard with an assigned weapon will be supplied
for all weapons being transported off military installations. The armed guard will be qualified with the weapon and
trained in the use of force.

11-4 Ammunition
a. Weapons leaving the PHRH’s control for any reason other than normal issue must be approved by the PBM.
b. The mission approved transfer of weapons must be completed on a CAAD Form 179 from the originating PHRH
to the receiving PHRH.
c. Request for turn-in to the PBM due to excess must be completed on CA Form 3161.
d. Request for turn-in due to the end of life cycle must be completed on a STD Form 152.
e. Accountability of all ammunition rounds must be completed monthly.

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 f. Ammunition that has been expended due to training, must be reported via a memorandum signed by the
commander to the PBM, giving a count of ammunition used, date it was used, how it was used and by whom.
e. The signed ammunition memorandum must be forwarded to the PBM for updating into the State Property Book
f. The PHRH will maintain and secure a copy of all documents and have them readily available to reconcile during
inventories.

Chapter 12
State Vehicles

The operation of a state vehicle is a highly visible activity that deserves the attention of each employee of the CMD.
CMD and all state employees are responsible for knowing and following state fleet rules, including, but not limited to
the following:

(1) State vehicles shall only be used to conduct official State business.
(2) Only State Civil Service (SCS) employees and State Active Duty (SAD) personnel are authorized to drive the
State Fleet
(3) A Home Storage Permit is required if a state vehicle is frequently kept overnight at or in the vicinity of an
employee’s home.
(4) Non-State CMD employees are prohibited from being a passenger within the state fleet.
(5) Personal use of State vehicles is prohibited
(6) Smoking in State vehicles is prohibited.
(7) State vehicles are not subject to the standard federal guidelines.

12-1 Monthly Mileage

a. The State Vehicle Monthly Mileage and Fuel Consumption Report (CAAD Form 178) is a mandatory monthly
report that is sent to the PBM on or before the 3rd of each month.
b. PHRH or the Fleet Coordinator is responsible for ensuring that the CAAD Form 178 is completed for all state
fleet assets. The report will cover all state vehicles, trailers, self-propelled assets, scissor lifts, forklifts, tractors,
operator-ridden lawn mowers over 20 horsepower, golf carts and boats, whether it is registered or not with the
Department of Motor Vehicles (DMV). Additional information is provided in the DGS State of California Fleet
Handbook
c. PHRHs and Fleet Coordinators are responsible for ensuring that the Monthly Travel Log (STD Form 273) is
completed for all state fleet assets.

(1) Drivers shall complete the STD Form 273 on a daily basis.
(2) Drivers shall provide beginning and ending mileage along with driver’s signature.
(3) The retention period for the STD Form 273 is one year.

d. The CMD will track the fuel type and amount of fuel consumed for all State owned vehicles. All vehicles listed
on the CAAD Form 178 must have the type of fuel used (unleaded, diesel or alternative). Fuel must be reported by
logging the amount of gallons consumed during the month.

12-2 SMOG CHECK REQUIREMENTS

An annual listing of all State vehicles which the Bureau of Automotive Repairs (BAR) has identified as requiring
smog checks will be generated by the PBM in January of each year. (NOTE: DO NOT SMOG CHECK VEHICLES
UNTIL AFTER JANUARY 1ST)

This report lists the smog suspense date for each vehicle. For your convenience, you may choose to smog all vehicles
before the suspense date (starting January 1st), but NOT after the suspense date. However, if you will not be able to
meet the suspense date listed, the Commander may submit a memorandum requesting an extension. If an extension is
granted, it will only be for an additional 30 calendar days.

a. GVWR Vehicle Requirements

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The report listing will be comprised of all even or odd year Vehicle Identification Number (VIN #s) required to be
smogged within that calendar year. However, when a vehicle does not meet the requirement for SMOG due to the
Gross Vehicle Weight Rating (GVWR), please provide the PBM with the corrected information for updating.
(1) Gasoline Vehicles
Per BAR, all vehicle years 1976-2008 must have SMOG completed.
(2) Diesel Vehicles
Per BAR all 1998-2013 "Diesel" vehicles that have a VIN that has a GVWR less than 14,000 lbs must
have SMOG completed.
(3) CMD Owned Vehicles
At the time of the SMOG inspection, please provide the vendor with BAR account number GB910099.
Failure to provide the vendor with the proper GB910099 account number may result in an improper
certification and a non compliance report.
(4) Leased Vehicles
Those having DGS leased vehicles must use DGS’ BAR number provided by DGS at the time of lease
when obtaining SMOG inspections. NOTE: DGS leased vehicles may be taken to the state garage for
SMOG inspections.
b. SMOG Failures
If a vehicle receives a SMOG "FAIL" on any of the "Result Categories", you are required to take corrective action
and have the vehicle repaired, so that it passes SMOG. However, you MUST receive DGS Inspector approval for the
repairs. DO NOT REPAIR THE VEHICLE WITHOUT AUTHORIZATION!
c. SMOG Reporting
Once the vehicle has passed SMOG, you must provide the PBM with the certification and invoice, so that the reports
can be submitted to BAR and DGS.
d. CMD’s failure to comply with the SMOG check program will result in penalties being assessed by the various
State and/or Federal agencies. Any fines assessed to the CMD will be paid for by the specific unit failing to meet
compliance.

12-3 FasTrak

a. FasTrak is an electronic toll collection system that allows the user to prepay bridge and road tolls which
eliminates the need to stop at the toll plaza. The system has a toll tag, which is placed inside the vehicle, and
electronic equipment, which reads the toll tab at the toll plaza. The JFHQ-J4 will coordinate with the J8 for new
FasTrak accounts for state vehicle ONLY on an as-needed basis. Units requiring FasTrak devices for federal
vehicles will need to coordinate through USP&FO.

b. The California Military Department (CMD) has entered into an agreement with FasTrak to acquire the
“FasTrak electronic pass” to be utilized at all seven State-owned bridges and various toll roads and highways
throughout the state (for more information on where FasTrak is accepted go to
https://www.thetollroads.com/customerservice/signup/fastrak.php )

c. The FasTrak Toll Tag may NOT be used to pay parking fees at eligible parking facilities. The intended use of
the FasTrak Toll Tag is to expedite travel, not for parking. For more information on FasTrak contact the J4 at: NG
CA CAARNG mailbox J4-JLOC, or https://ngcaportal.ng.army.mil/sites/j4 and look for the FasTrak tab.

Chapter 13
Fleet Fuel Card Program

13-1 Voyager Fuel Cards

a. The Voyager Fleet Card can be used to purchase unleaded gasoline, alternative fuels (i.e. biodegradable diesel,
E-85, CNG, propane, etc.), fluids and lubricants. When purchasing gasoline, drivers are only authorized to purchase
E-85 (as applicable) or regular grade unleaded gasoline unless a different fuel grade is specifically required by the
vehicle manufacturer. The Voyager Fleet Card is accepted at all major fuel vendors throughout California (except for
ARCO fueling stations). The Voyager Fleet Card can only be used by state employees conducting official state
business.
b. The following are 2 required prompts for the Fleet Card during point of sales:

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 (1) Personal Identification Number (PIN)
(2) Odometer reading
c. CMD maintains purchase limits for all Fleet Cards. Some of these limits are daily transactional limits, daily
dollar amount and monthly dollar amount. The CMD limits are as follows:
(1) 3 transactions per day
(2) $250 daily limit
(3) $350 Emergency Maintenance limit
(4) $2,000 monthly limit

13-2 Authorized Purchases

The Fleet Card may be used for the following:
(1) Regular unleaded gasoline
(2) Alternative fuels (e.g., biodegradable diesel, E-85, CNG, propane, etc.)
(3) Fluid and lubricants (i.e. oil, anti-freeze, washer fluid, etc.)
(4) 24-hour emergency roadside service (800) 600-6065
(5) Emergency purchases such as wiper blades, fan belts and tires

13-3 Prohibited Purchases

a. The following items are prohibited and must not be purchased using the fleet card:
(1) Mid-grade or premium (supreme) gasoline unless specifically required by the vehicle manufacturer
(2) Fuel for personal vehicles
(3) Miscellaneous items such as food or personal items
b. Further information concerning State Fleet can be found in the CMD’s State Fleet Card Program Procedure
Manual.

Chapter 14
Vehicle Accidents, Reporting and Investigation

14-1 Accident
An accident is defined as one that involves a state-owned vehicle (or a non-state-owned vehicle operated by a state
employee on official state business) where there is damage caused to another person or property. Accidents must be
reported to DGS’ Office of Risk and Insurance Management (ORIM).
An incident involves only a state-owned vehicle where the damage, regardless of the amount, is limited just to the
state vehicle which was stationary at the time the damage occurred. Incidents should not be reported to ORIM.

IAW SAM 2455 and 2460, if involved in a motor vehicle accident while on state business, state employee drivers
must report the accident within 48 hours (regardless of the ownership of the vehicle) on a Vehicle Accident Report
form, STD. 270, which is submitted to the PBM and ORIM.

In the event of an accident, drivers shall:

(1) Call the California Highway Patrol (CHP)

(2) Obtain other party information, (i.e.: name, address and insurance carrier) and notify the PBM and ORIM
within 48 hrs or within 24 hrs if there is bodily injury.
(3) Complete the Accident Identification, STD Form 269,
(4) Complete an Accident Report STD Form 268
(5) Complete a Report of Vehicle Accident, STD Form 270, and distribute as noted on the STD Form 270.
(6) Contact the PBM or ORIM (after hours, at 1-800-900-3634) with questions
(7) Accident repairs that exceed $500 require 3 price quotes or a Non-Competitive Bid (NCB) justification. The
bids or justification shall be submitted to the local DGS Inspector of Automotive Equipment with a copy of
the Report of Vehicle Accident, STD Form 270.
(8) State Driver Accident Review STD Form 274
(9) State Active Duty (SAD) employees must provide a copy of their orders.

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Should the accident result in bodily injury to anyone other than the state employee, the accident must be
reported immediately to the ORIM.

If the accident involves serious injury, death, extensive personal or state property damage or a significant potential for
state/public liability, the Attorney General’s Office will be notified within 24 hours by faxing the report.

An Accident Identification card, STD Form 269, must be carried in the glove compartment of all state vehicles. This
card must be completed and the tear-off portion given to the other party. The card provides a convenient place to write
down pertinent information while still at the accident scene. This information should be transferred to the STD Form
270 submission to ORIM.

14-2 Reporting
State employees should not discuss the accident with anyone other than the police, their supervisors, ORIM Claims
Unit, or the independent adjusting company under contract with ORIM. If contacted by the other party, their attorney
or insurance company, the state employee must refer the party or correspondence to the PBM who will contact ORIM’s
Claims Unit. Under no circumstances should the CMD employee driver give either a written or recorded statement to
the other party or their representatives.
If served with any post-accident legal papers, contact the PBM, who will contact ORIM Claims Unit immediately
thereafter.

14-3 Investigation
(1) Complete STD Form 268
(2) Obtain all witness information
(3) Obtain accurate measurements or relevant dimensions
(4) When possible and appropriate, photographs, video recordings, and diagrams will be taken/generated
immediately
(5) Provide the names, titles and telephone numbers of the individual preparing the report and their immediate
supervisor
(6) Opinions and conclusions, if provided, are to be prepared on a separate attached page

Chapter 15
California Air National Guard (CA ANG)

15-1 State Reports of Survey (ROS)

Wings/Groups will follow the State Reports of Survey procedures as outlined within the CMD 735-5 for State
Property. Additionally, Wings/Groups will follow and adhere to guidelines established and directed by Headquarters
(HQ) CA ANG.

APPENDIX:
A. State Property Checklist
B. State Property Hand Receipt CA Form 2062
C. STD Form 65, State Purchase Order Form
D. CAAD Form 179, State Property Reporting Document
E. DA Form 3161 Lateral Transfer
F. DA Form 1687 Notice of Delegation of Authority
G. STD Form 152 / Property Survey Report
H. Sub Hand Receipt DA Form 2062
I. OTAG Form 37-3-4 Purchase Contract Request Form
J. STD Form 99 – CHP Stolen/Missing/Lost Property report
K. SIR CAL 190-40- Serious Incident Report

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