I'm an Amateur Radio Operator, so your question is of interest to me, as I personally own one of those 20 buck radios. Did some research on the FCC website. My interpretation of their regulation is this: You are allowed to use your personal radio under the umbrella of your agencies license, so long as 1: You comply with all other FCC regulations (ie: the radio itself must comply will FCC requirements) and 2: the total number of transmitters (radios) does not exceed the authorized numbers of transmitters assigned to the license. If your agency is does not have the correct and current FCC license and they are operating on frequencies designated for Private Land Radio Services, then they are not in compliance with federal law. Again, this is my opinion. I'm not a lawyer, don't take my opinion as gospel.
Title 47: Telecommunication
PART 90—PRIVATE LAND MOBILE RADIO SERVICES
Subpart N—Operating Requirements
§90.421 Operation of mobile station units not under the control of the licensee.
Mobile stations, as defined in §90.7, include vehicular-mounted and hand-held units. Such units may be operated by persons other than the licensee, as provided for below, when necessary for the licensee to meet its requirements in connection with the activities for which it is licensed. If the number of such units, together with units operated by the licensee, exceeds the number of mobile units authorized to the licensee, license modification is required. The licensee is responsible for taking necessary precautions to prevent unauthorized operation of such units not under its control.
(a) Public Safety Pool. (1) Mobile units licensed in the Public Safety Pool may be installed in any vehicle which in an emergency would require cooperation and coordination with the licensee, and in any vehicle used in the performance, under contract, of official activities of the licensee. This provision does not permit the installation of radio units in non-emergency vehicles that are not performing governmental functions under contract but with which the licensee might wish to communicate.
(2) Mobile units licensed under §90.20(a)(2)(iii) may be installed in a vehicle or be hand-carried for use by any person with whom cooperation or coordinations is required for medical services activities.
(3) On the Interoperability Channels in the 700 MHz Public Safety Band (See §90.531(b)(1)), hand-held and vehicular transmitters may be operated by any licensee holding a license in the 700 MHz Public Safety Band or by any licensee holding a license for any other public safety frequency pursuant to part 90 of the Commission's rules. Therefore, individual licenses are not required for hand-held and vehicular transmitters in the 700 MHz Band.
(b) Industrial/Business Pool. Mobile units licensed in the Industrial/Business Pool may be installed in vehicles of persons furnishing under contract to the licensee and for the duration of the contract, a facility or service directly related to the activities of the licensee.
(c) In addition to the requirements in paragraphs (a) and (b) of this section, frequencies assigned to licensees in the Private Land Mobile Radio Services may be installed in the facilities of those who assist the licensee in emergencies and with whom the licensee must communicate in situations involving imminent safety to life or property.
[65 FR 60877, Oct. 13, 2000, as amended at 66 FR 10635, Feb. 16, 2001]