REPLY: It doesn't. What the FCC Rules do say is that a group of Radio Amateurs can only function as a RACES unit under the control of a properly constituted Civil Defense agency. (Reference: FCC 97.163a, 97.169b, 97.175, and 197.177.) The RACES unit remains an Amateur Radio group performing a unique communications service for a particular civil defense agency. By its nature as a service to local government under local government supervision, activation, and authority it becomes, in effect, a quasi-governmental function.
1992-1994 RACES Bulletins