((a)) ** State proceedings** The Secretary of the Treasury may discontinue forfeiture proceedings under this chapter in favor of forfeiture under State law. If a complaint for forfeiture is filed under this chapter, the Attorney General may seek dismissal of the complaint in favor of forfeiture under State law.

((b)) ** Transfer of seized property; notice** If forfeiture proceedings are discontinued or dismissed under this section—

((1)) the United States may transfer the seized property to the appropriate State or local official; and

((2)) notice of the discontinuance or dismissal shall be provided to all known interested parties.

((c)) ** Retention or transfer of forfeited property**

((1)) The Secretary of the Treasury may apply property forfeited under this chapter in accordance with subparagraph (A) or (B), or both:

((A)) Retain any of the property for official use.

((B)) Transfer any of the property to—

((i)) any other Federal agency;

((ii)) any State or local law enforcement agency that participated directly or indirectly in the seizure or forfeiture of the property; or

((iii)) the Civil Air Patrol.

((2)) The Secretary may transfer any forfeited personal property or the proceeds of the sale of any forfeited personal or real property to any foreign country which participated directly or indirectly in the seizure or forfeiture of the property, if such a transfer—

((A)) has been agreed to by the Secretary of State;

((B)) is authorized in an international agreement between the United States and the foreign country; and

((C)) is made to a country which, if applicable, has been certified under .

((3)) Aircraft may be transferred to the Civil Air Patrol under paragraph (1)(B)(iii) in support of air search and rescue and other emergency services and, pursuant to a memorandum of understanding entered into with a Federal agency, illegal drug traffic surveillance. Jet-powered aircraft may not be transferred to the Civil Air Patrol under the authority of paragraph (1)(B)(iii).

((d)) ** Liability of United States after transfer** The United States shall not be liable in any action relating to property transferred under this section if such action is based on an act or omission occurring after the transfer.