1. Donation of Motor Vehicles Aircraft or Boats CAPR 173-4 As of 16 December 2014 Rafael A. Robles General Counsel BUILDING CAP’S TEAM... FOR TODAY AND TOMORROW

2. Donation of Motor Vehicles, Aircraft or Boats CAPR 173-4, paragraph 10 To comply with the requirements of the American Jobs Creation Act of 2004, effective 1Jan 05, in addition to the IRS form 8283 (if requested by the donor), the receiving unit must acknowledge the donation, either by paper copy to the donor or electronically, such as via an e-mail addressed to the donor. The acknowledgement must be sent no later than 30 days after the unit sells the motor vehicle, aircraft or boat (if it intends to sell the motor vehicle, aircraft or boat when it receives it) or 30 days from the date of the contribution. A copy of the acknowledgement will be sent or e-mailed to the Chief, Financial Accounting (NHQ/FMF) and the Director of Development (COD) NHQ/FMF will issue a form 1098-C, Contributions of Motor Vehicles, Boats and Airplanes to the donor not later than 31 January of the year following the year of donation, based on the information shown on the acknowledgement provided by the wing or region receiving the donation.

3. The acknowledgement must state the name and taxpayer identification of the donor, the motor vehicle, aircraft or boat identification number, and either: a. a statement certifying that the motor vehicle, airplane or boat was sold in an arm’s length transaction between unrelated parties, the gross proceeds received from the sale and a statement that the donor may not deduct more than the gross proceeds from the sale; or b. if the receiving unit intends to use the motor vehicle, airplane or boat for CAP business, a statement certifying the intended use, the minimum duration of that use, and that CAP will not sell the motor vehicle, airplane or boat before the completion of that use; or c. if the receiving unit intends to make a material improvement to the motor vehicle, airplane, or boat, a statement certifying the intended material improvement and that CAP will not sell the motor vehicle, airplane or boat before completion of the improvement. Donation of Motor Vehicles, Aircraft or Boats CAPR 173-4, paragraph 10

4. CAP officers who may accept property donations are: a. Wing commanders − for donations of property valued by donor up to $5,000. b. Region commanders − for donation of property valued by donor between $5,000 and $10,000. c. Chief Operating Officer − for donations of property valued by donor in excess of $10,000. For aircraft and vehicles, prior approval is required from the Chief Operating Officer (NHQ/CO). [Excerpt – CAPR 173-4, SECTION B, paragraph 7] Donation of Motor Vehicles, Aircraft or Boats CAPR 173-4, paragraph 10

5. POAs & POVs Do’s and Don’ts

6. Proper usage of privately owned aircraft  The approval authority that assigned Air Force mission status will approve routine use of a member owned or furnished aircraft in coordination with the authority’s legal staff.  Members are required to complete an Air Force hold harmless agreement.  Private owned aircraft used on corporate missions require approval by the Wing/Region Commander or Director of Operations/Director of Emergency Services.

7. POAs & POVs Do’s and Don’ts POA Regulation Requirements  AFI 10-2701 -- 3.6. Use of Member Owned or Furnished Aircraft. CAP Corporate aircraft will be the resource of choice for AFAMs. However, member-owned or furnished aircraft may be utilized with the consent of the owner when specific mission requirements preclude using CAP assets, when CAP assets are unavailable, or when it is fiscally responsible and otherwise legally permissible to do so. Procedures for requesting use and approval of member-owned or furnished aircraft will be prescribed in CAP-USAF Instructions and/or CAP Regulations. (T-2). Under emergency or imminently serious conditions, and only if required to accomplish the mission, use of member-owned or furnished aircraft with a current Hold Harmless Agreement (HHA) may be approved by the CAP-USAF Liaison Region Commander or higher headquarters as long as the owner provides a statement in writing that the aircraft meets 14 C.F.R. Part 23 airworthiness standards  CAPR 173-3 – Payment For Civil Air Patrol Support Attachment 1 – Aircraft Flying Hour Minor Maintenance Payment Rates 2. Use of single-engine member-owned or member-furnished aircraft must be approved in advance for all missions. a. Use in Air Force assigned missions requires approval by the appropriate Air Force approval authority. It also requires the member to complete an Air Force hold harmless agreement. b. Use in corporate missions requires approval by the wing/region commander or director of operations/director of emergency services. c. Single-engine member-owned or member-furnished aircraft models that have been approved in accordance with this note but are not listed in the table above will be reimbursed at the “Basic Hourly Rate.”

8. POAs & POVs Do’s and Don’ts POA Regulation Requirements  CAPR 900-5 – SECTION B—CAP's NATIONAL INSURANCE PROGRAM—LIABILITY 1 1. CAP's Aviation Liability Insurance. a. CAP "Corporate Aircraft." CAP's aviation liability policy provides liability protection for CAP and CAP members arising out of CAP aviation "corporate missions" as defined in CAPR 60-1, authorized by proper CAP authority, and licensed and certificated as required by Federal Aviation Regulations. Gliders and hot air balloons are covered for liability under this policy. b. Member Owned/Furnished Aircraft. CAP members flying their own or furnished aircraft are also covered by CAP's aviation liability policy while being operated on "corporate missions" as defined in CAPR 60-1. Liability protection for CAP and CAP members arising out of Air Force-assigned missions is provided under the Federal Tort Claims Act. c. Damage to Member Owned/Furnished Aircraft. CAP assumes no responsibility for loss or damage to member owned or member furnished aircraft. d. Those Protected by CAP's Aviation Liability Insurance. All CAP members involved in CAP aviation "corporate missions" and acting under the scope of CAP regulations are protected under this policy. That includes CAP aircrew members, pilots, check pilots, instructor pilots, CAP maintenance personnel and CAP flight release officials. e. Flight Instructors/ Instruction. CAP’s liability insurance covers damage to third party property, injuries and death during flight instruction and claims against authorized flight instructors while operating CAP owned aircraft on properly authorized corporate missions when performed in accordance with CAPR 60-1 and the Federal Aviation Regulations.

9. POAs & POVs Do’s and Don’ts Proper usage of privately owned vehicles  Unit commanders must approve, in writing, justification for use of a POV as official CAP transportation, when adequate COVs are not available for such purposes. Approval is limited to unusual circumstances where lack of transportation or capability for CAP members adversely impacts important activities.  Prior to granting such permission, the member must produce evidence of insurance coverage, state inspection (if required) and registration.  Written approval for use of a POV will be maintained on file in accordance with CAPR 10-2, Files Maintenance and Records Disposition.  Complete a CAPF 73 Vehicle Inspection Guide and Usage Data

10. POAs & POVs Do’s and Don’ts POV Regulation Requirements  CAPR 900-5 –SECTION B—CAP's NATIONAL INSURANCE PROGRAM— LIABILITY 8. The National Headquarters Liability Insurance Program. b. Liability Insurance Excludes Property Coverage. Liability insurance protects against claims for negligence, but will not pay for the repair or replacement of member’s property damaged or destroyed on CAP activities. CAP and the Air Force both disclaim responsibility for member owned or furnished equipment on CAP activities or Air Force-assigned missions. Members are encouraged to provide their own property insurance in the form of hull insurance for aircraft, and collision and comprehensive coverage for vehicles and other personal property. 10. CAP's Vehicle Liability Insurance. b. Member Owned Vehicles. The general rule is that travel to and from CAP meetings, conferences, encampments, and other CAP activities in CAP member owned/furnished vehicles is not considered a part of CAP official travel and, therefore, is performed at the risk of the member—not CAP. CAP assumes absolutely no liability for such travel, which is known as the "home-to-work rule." CAP unit commanders may, on a case-by-case basis, specifically authorize the use of a member's vehicle, which will make that use the responsibility of CAP and be covered by CAP's vehicle liability policy, but that prerogative should be exercised only in unusual situations. See CAPR 77-1. c. Damage to Member Owned Vehicles. CAP assumes no responsibility for loss or damage to member owned or furnished vehicles used on CAP activities. Members are responsible for protecting their own vehicles by carrying collision insurance.

11. POAs & POVs Do’s and Don’ts POV Regulation Requirements  CAPR 77-1 – OPERATION AND MAINTENANCE OF CAP VEHICLES CHAPTER 1 - GENERAL -- 1-8. Use of COVs, TUVs, and POVs. b. Use of POVs for transportation to and from CAP meetings, encampments and other activities is solely at the risk of the individual CAP members and their passengers. CAP assumes no right of control, liability or responsibility for such transportation. Unit commanders must approve, in writing, justification for use of a POV as official CAP transportation, when adequate COVs are not available for such purposes. Approval is limited to unusual circumstances where lack of transportation or capability for CAP members adversely impacts important activities. Prior to granting such permission, the member must produce evidence of insurance coverage, state inspection (if required) and registration. Written approval for use of a POV will be maintained on file in accordance with CAPR 10-2, Files Maintenance and Records Disposition. CHAPTER 2 – VEHICLE OPERATION -- 2-1. Vehicle Inspections. a. Prior to first use of the day, vehicle operators will perform a safety check on COVs or TUVs using CAPF 73, CAP Vehicle Inspection Guide and Usage Data. During the inspection, all items found not to be in safe working order must be corrected before placing the vehicle in service. When a POV is used for official CAP transportation it will have a safety check performed using CAPF 73, prior to use. A POV will not be used if not in safe working order.

12. POAs & POVs Do’s and Don’ts POV Regulation Requirements CAPF 73 – Vehicle Inspection Guide & Usage Data

13. POAs & POVs Do’s and Don’ts Corporate Insurance CAPR 900-5 –SECTION B—CAP's NATIONAL INSURANCE PROGRAM—LIABILITY 8. The National Headquarters Liability Insurance Program. b. Liability Insurance Excludes Property Coverage. Liability insurance protects against claims for negligence, but will not pay for the repair or replacement of member’s property damaged or destroyed on CAP activities. CAP and the Air Force both disclaim responsibility for member owned or furnished equipment on CAP activities or Air Force-assigned missions. Members are encouraged to provide their own property insurance in the form of hull insurance for aircraft, and collision and comprehensive coverage for vehicles and other personal property. 10. CAP's Vehicle Liability Insurance. b. Member Owned Vehicles. The general rule is that travel to and from CAP meetings, conferences, encampments, and other CAP activities in CAP member owned/furnished vehicles is not considered a part of CAP official travel and, therefore, is performed at the risk of the member—not CAP. CAP assumes absolutely no liability for such travel, which is known as the "home-to-work rule." CAP unit commanders may, on a case-by-case basis, specifically authorize the use of a member's vehicle, which will make that use the responsibility of CAP and be covered by CAP's vehicle liability policy, but that prerogative should be exercised only in unusual situations. See CAPR 77-1. c. Damage to Member Owned Vehicles. CAP assumes no responsibility for loss or damage to member owned or furnished vehicles used on CAP activities. Members are responsible for protecting their own vehicles by carrying collision insurance.

14. POAs & POVs Do’s and Don’ts Federal Torts Claim Act Liability Protection CAPR 900-5 -- SECTION C— AIR FORCE-ASSIGNED MISSIONS—FTCA (FEDERAL TORT CLAIMS ACT) COVERAGE FOR CAP MEMBERS 12. FTCA Coverage for CAP Members. The federal government (U.S. Air Force) may be held liable for the negligent or wrongful acts or omissions of CAP or its members when performing Air Force-assigned missions causing personal injury, death, or property damage. This liability protection applies to CAP and its members while performing "Air Force-assigned missions" within the United States, its territories and possessions as defined and outlined in the Air Force/CAP SOW and various CAP directives including CAPR 60-1. The FTCA does not apply to claims that arise in foreign countries (including Canada and Mexico) nor does it apply to claims for which a remedy is provided under federal admiralty statutes. a. Proper Claims. Proper claims include those for property damage, personal injury, or death proximately caused by a CAP member that arises from an AFAM performed by CAP or a mission for which the USAF otherwise grants FTCA coverage. b. Improper Claims. (1)Claims arising out of CAP corporate activities. (2)Claims for personal injury or death of CAP members, 18 years of age or older, subject to FECA. (3)Claims for use of privately owned property CAP or its members use on Air Force-assigned missions. (4)Claims for expenses CAP or its members incur while engaged in Air Force-assigned missions. c. CAP Aircraft Liability. The FTCA provides protection to CAP or the CAP member arising out of CAP aircraft operations providing such use is on an Air Force-assigned mission under CAPR 60-1. d. CAP Vehicle Liability. The FTCA will provide liability protection to CAP and CAP members for proper and payable claims arising out of the use of CAP owned and authorized POV vehicles. Proper and payable claims that arise from travel to and from Air Force assigned missions are also covered by both FTCA and FECA. See CAPRs 60-3, paragraph 1-24 and CAPR 77-1, paragraph 4-1 for further guidance. e. Damage to CAP Owned or Member Owned/Furnished Aircraft or Vehicles. The Air Force assumes no responsibility for damage or loss to CAP owned or member owned/furnished aircraft or vehicles used on Air Force-assigned missions. Members are encouraged to furnish their own hull coverage or collision insurance for protection.

15. POAs & POVs Do’s and Don’ts Risk Management Issues/Bottom Line!  Damage to Member Owned Aircraft and Vehicles. CAP assumes no responsibility for loss or damage to member owned or furnished aircraft or vehicles used on CAP activities. Members are responsible for protecting their own aircraft and vehicles by carrying hull or collision insurance.

17. Civil Air Patrol …Citizens Serving Communities!