(b) Except as provided in subsection (c) of this section, a law enforcement agency seeking to dispose of a handgun owned by the agency shall:

(1) destroy the handgun;

(2) sell, exchange, or transfer the handgun to another law enforcement agency for official use by that agency;

(3) sell the handgun to a retired police employee in accordance with § 2-415(c) of this article;

(4) sell the handgun to the law enforcement officer to whom the handgun was assigned; or

(5) sell, exchange, or transfer the handgun to a manufacturer.

(c) If a law enforcement officer is killed or dies in the performance of duty, a law enforcement agency may transfer the handgun of the deceased officer to the next of kin of the deceased officer, if the requirements of Title 5, Subtitle 1 of this article relating to firearms applications are met.