Md. Code Regs. 04.03.02.02

Current through Register Vol. 51, No. 24, December 2, 2024

Section 04.03.02.02 - MSASP Enterprise Activity

A. Scope and Purpose.

(1) MSASP is an unfunded, self-supporting agency that may engage in enterprise activity in order to:

(a) Cover its operating expenses;

(b) Generate revenue for the State's General Fund;

(c) Employ and train qualified inmates in vocational skills; and

(d) Provide quality, finished products to qualified donees at attractive prices.

(2) MSASP may market refurbished surplus property to qualified donees, together with incidental design, planning, installation, and delivery services on a project-by-project basis, including the marketing of complete modular office furniture systems.

B. Disposition of Funds. Money received from the sale of surplus property shall be handled in accordance with State Finance and Procurement Article, § 4-505, Annotated Code of Maryland.

C. Accounting.

(1) MSASP shall keep accurate accounts of all enterprise activity in a standardized form that is complete and subject to audit.

(2) Accounts are to be kept on a project-by-project basis and include detailed entries for:

(a) Surplus property as well as purchased property;

(b) Services incidental to each enterprise agency project; and

(c) Payments received from a qualified donee customer.

D. Prerequisites to MSASP Enterprise Activity. After the initial consultation, planning, and estimating stages of an enterprise activity project, MSASP shall proceed with the project only if in good faith it can ensure that the materials to be used in the project will consist primarily of surplus or refurbished property.

E. Procedure.

(1) Materials. Whenever a good-faith estimate in §D of this regulation is made, MSASP may buy additional used or refurbished materials, or both, as well as a minimal amount of new material, as needed to complete the project, and shall obtain the best price in accordance with good business practices.

(2) Labor.

(a) Except as otherwise provided, all enterprise activity labor, including marketing and customer service such as design, planning, estimating, installation, and delivery, shall be performed by MSASP employees and MSASP inmate labor.

(b) If, after the initial consultation, planning, and estimating stages, MSASP is unable to meet a project's labor requirements through its own employees and inmate labor, then MSASP may subcontract the remaining labor to State Use Industries.

(c) If State Use Industries cannot perform the labor or cannot enter subcontracts because of time constraints, then MSASP may subcontract for labor with private organizations, subject to good business practices in obtaining the best competitive price.

Md. Code Regs. 04.03.02.02