(a) When equipment is purchased with state funds, the title shall vest in the contractor only for such period of time as the contractor has a contract with the CDE.

(b) The Early Education Division may provide written authorization for the contractor to retain the equipment for the contractor's own use if a fair compensation is paid to the state for the state's share of the cost of the equipment. Fair compensation shall be determined by the state using the state's share of original acquisition cost, less depreciation, computed on a straight-line method over the estimated useful life expectancy of the equipment.

(c) When equipment is purchased in whole or in part with state funds, the contractor shall use the equipment exclusively in the program(s) from which funds were used to purchase the equipment. If the contractor wishes to share the use of the equipment between/among two or more programs, the cost of such equipment shall be prorated between/among the programs.

(d) If the contractor no longer has a contract with the CDE, the contractor shall dispose of the equipment in accordance with written directions from the Early Education Division.