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<chapter num="02" heading="Surplus Personal Property—Enterprise Activity" title_num="04" subtitle_num="03">
  <regulation prefix="Regulation" num=".01" heading="Definitions.">
    <paragraph num="A.">
      <text>In this chapter, the following terms have the meanings indicated.</text>
    </paragraph>
    <paragraph num="B.">
      <text>Terms Defined.</text>
      <paragraph num="(1)">
        <text>“Enterprise activity” means a State governmental operation that markets goods and related services intended to result in revenue after payment of all costs, overhead, and expenses.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>“Inmate labor” means labor by individuals on work release from the Maryland Correctional System.</text>
      </paragraph>
      <paragraph num="(3)">
        <text>“MSASP” means the Maryland State Agency for Surplus Property, a self-supporting division of the Department of General Services.</text>
      </paragraph>
      <paragraph num="(4)">
        <text>“Qualified donee” means a unit of State government, a local governmental jurisdiction, or a nonprofit, tax-exempt organization, eligible to purchase surplus property from MSASP.</text>
      </paragraph>
      <paragraph num="(5)">
        <text>“Refurbish” means the process of enhancing the marketability of property through operations including, but not limited to, cleaning, painting, assembling, repairing, reupholstering, adding, or replacing component parts, etc.</text>
      </paragraph>
      <paragraph num="(6)">
        <text>Surplus Property.</text>
        <paragraph num="(a)">
          <text>“Surplus property” means federal surplus personal property as well as items of excess personal property, located at the MSASP Warehouse, that the Department of General Services declares as not needed by any unit of State government.</text>
        </paragraph>
        <paragraph num="(b)">
          <text>“Surplus property” includes motor vehicles, machinery, office furniture, clothing, office machines, etc.</text>
        </paragraph>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".02" heading="MSASP Enterprise Activity.">
    <paragraph num="A.">
      <text>Scope and Purpose.</text>
      <paragraph num="(1)">
        <text>MSASP is an unfunded, self-supporting agency that may engage in enterprise activity in order to:</text>
        <paragraph num="(a)">
          <text>Cover its operating expenses;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Generate revenue for the State's General Fund;</text>
        </paragraph>
        <paragraph num="(c)">
          <text>Employ and train qualified inmates in vocational skills; and</text>
        </paragraph>
        <paragraph num="(d)">
          <text>Provide quality, finished products to qualified donees at attractive prices.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(2)">
        <text>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.</text>
      </paragraph>
    </paragraph>
    <paragraph num="B.">
      <text>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.</text>
    </paragraph>
    <paragraph num="C.">
      <text>Accounting.</text>
      <paragraph num="(1)">
        <text>MSASP shall keep accurate accounts of all enterprise activity in a standardized form that is complete and subject to audit.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Accounts are to be kept on a project-by-project basis and include detailed entries for:</text>
        <paragraph num="(a)">
          <text>Surplus property as well as purchased property;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Services incidental to each enterprise agency project; and</text>
        </paragraph>
        <paragraph num="(c)">
          <text>Payments received from a qualified donee customer.</text>
        </paragraph>
      </paragraph>
    </paragraph>
    <paragraph num="D.">
      <text>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.</text>
    </paragraph>
    <paragraph num="E.">
      <text>Procedure.</text>
      <paragraph num="(1)">
        <text>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.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Labor.</text>
        <paragraph num="(a)">
          <text>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.</text>
        </paragraph>
        <paragraph num="(b)">
          <text>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.</text>
        </paragraph>
        <paragraph num="(c)">
          <text>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.</text>
        </paragraph>
      </paragraph>
    </paragraph>
  </regulation>
  <annotations>
    <annotation type="Authority">State Finance and Procurement Article, §§4-501—4-508, Annotated Code of Maryland</annotation>
    <annotation type="History" subtype="Administrative History">Effective date: November 20, 1995 (22:23 Md. R. 1799)</annotation>
  </annotations>
</chapter>