<section article="gsf" article_name="State Finance and Procurement" number="16-101" title_number="16" title_name="Suspension and Debarment of Contractors" subtitle_number="1"> <level label="a"> <text>In this title the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Business” means an individual or a corporation, partnership, sole proprietorship, joint venture, or other legal entity through which commercial activity is conducted.</text> </level> <level label="c"> <text>“Contract” means any agreement in any form.</text> </level> <level label="d"> <text>“Controlling stockholder” means a stockholder who:</text> <level label="1"> <text>owns more than 25% of the voting stock of a corporation; or</text> </level> <level label="2"> <text>notwithstanding the number of shares that the stockholder owns, has the power to direct or control the direction of the management or policies of a corporation.</text> </level> </level> <level label="e"> <text>“Convicted” includes an accepted plea of nolo contendere.</text> </level> <level label="f"> <text>“Public body” means:</text> <level label="1"> <text>the State;</text> </level> <level label="2"> <text>a unit; or</text> </level> <level label="3"> <text>a local governmental entity in the State, including a bicounty or multicounty governmental entity.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="16-102" title_number="16" title_name="Suspension and Debarment of Contractors" subtitle_number="1"> <text>For purposes of this title, the Board may treat the imposition of probation before judgment for an offense in the same manner as a conviction for the same offense.</text> </section> <section article="gsf" article_name="State Finance and Procurement" number="16-201" title_number="16" title_name="Suspension and Debarment of Contractors" subtitle_number="2"> <text>This subtitle is broadly applicable to all contracts with public bodies, except where a section refers only to the State.</text> </section> <section article="gsf" article_name="State Finance and Procurement" number="16-202" title_number="16" title_name="Suspension and Debarment of Contractors" subtitle_number="2"> <level label="a"> <text>A person is debarred by operation of law from entering into a contract with a public body if the person has been convicted under the laws of the State for bribery, attempted bribery, or conspiracy to bribe, committed in furtherance of obtaining a contract with a public body.</text> </level> <level label="b"> <text>A person may be debarred from entering into a contract with a public body, if the person:</text> <level label="1"> <text>has been convicted under the laws of the State for bribery, attempted bribery, or conspiracy to bribe, committed other than in furtherance of obtaining a contract with any public body;</text> </level> <level label="2"> <text>has been convicted under the laws of another state or of the United States of bribery, attempted bribery, or conspiracy to bribe; or</text> </level> <level label="3"> <text>during the course of an official investigation or other proceeding has admitted, in writing or under oath, acts or omissions that would constitute bribery, attempted bribery, or conspiracy to bribe, under the laws of the State, another state or the United States.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="16-203" title_number="16" title_name="Suspension and Debarment of Contractors" subtitle_number="2"> <level label="a"> <text>A person may be debarred from entering into a contract with the State if the person, an officer, partner, controlling stockholder or principal of that person, or any other person substantially involved in that person’s contracting activities has:</text> <level label="1"> <text>been convicted under the laws of the State, another state or the United States of:</text> <level label="i"> <text>a criminal offense incident to obtaining, attempting to obtain, or performing a public or private contract, except as provided in § 16–202 of this subtitle; or</text> </level> <level label="ii"> <text>fraud, embezzlement, theft, forgery, falsification or destruction of records, or receiving stolen property;</text> </level> </level> <level label="2"> <text>been convicted of a criminal violation of an antitrust statute of the State, another state, or the United States;</text> </level> <level label="3"> <text>been convicted of a violation of the Racketeer Influenced and Corrupt Organization Act, or the Mail Fraud Act, for acts in connection with the submission of bids or proposals for a public or private contract;</text> </level> <level label="4"> <text>been convicted of a violation of § 14–308 of this article;</text> </level> <level label="5"> <text>been convicted of conspiracy to commit any act or omission that would constitute grounds for conviction under any of the laws or statutes described in items (1), (2), (3), or (4) of this subsection;</text> </level> <level label="6"> <text>been convicted of a violation of § 7201, § 7203, § 7205, § 7206, or § 7207 of the Internal Revenue Code;</text> </level> <level label="7"> <text>been convicted of a violation of 18 U.S.C. § 286, § 287, or § 371;</text> </level> <level label="8"> <text>been convicted of a violation of Title 13, Subtitle 7 or Subtitle 10 of the Tax – General Article;</text> </level> <level label="9"> <text>been found to have willfully or knowingly violated Title 17, Subtitle 2 or Title 18 of this article if:</text> <level label="i"> <level label="1"> <text>the finding was made by a court; and</text> </level> <level label="2"> <text>the decision of the court became final; or</text> </level> </level> <level label="ii"> <level label="1"> <text>the finding was made in a contested case under the Administrative Procedure Act; and</text> </level> <level label="2"> <text>the finding was not overturned on judicial review;</text> </level> </level> </level> <level label="10"> <text>been found to have willfully or knowingly violated Title 3, Subtitle 3, Subtitle 4, or Subtitle 5 or Title 5 of the Labor and Employment Article if:</text> <level label="i"> <level label="1"> <text>the finding was made by a court; and</text> </level> <level label="2"> <text>the decision of the court became final; or</text> </level> </level> <level label="ii"> <level label="1"> <text>the finding was made in a contested case under the Administrative Procedure Act; and</text> </level> <level label="2"> <text>the finding was not overturned on judicial review;</text> </level> </level> </level> <level label="11"> <text>been found civilly liable under an antitrust statute of the State, another state, or the United States for acts or omissions in connection with the submission of bids or proposals for a public or private contract;</text> </level> <level label="12"> <text>been found to have willfully or knowingly violated Title 20, Subtitle 6 of the State Government Article if:</text> <level label="i"> <level label="1"> <text>the finding was made by a court; and</text> </level> <level label="2"> <text>the decision of the court became final; or</text> </level> </level> <level label="ii"> <level label="1"> <text>the finding was made in a contested case under the Administrative Procedure Act; and</text> </level> <level label="2"> <text>the finding was not overturned on judicial review; or</text> </level> </level> </level> <level label="13"> <text>been found in a final adjudicated decision to have violated the Commercial Nondiscrimination Policy under Title 19 of this article with regard to a public or private contract.</text> </level> </level> <level label="b"> <text>A person may be debarred from entering into a contract with the State if, during the course of an official investigation or other proceedings, the person, an officer, partner, controlling stockholder or principal of that person, or any other person substantially involved in that person’s contracting activities has admitted, in writing or under oath, an act or omission that constitutes grounds for conviction or liability under any law or statute described in subsection (a) of this section.</text> </level> <level label="c"> <text>A person may be debarred from entering into a contract with the State if the person, an officer, partner, controlling stockholder or principal of that person, or any other person substantially involved in that person’s contracting activities has been debarred from federal contracts under:</text> <level label="1"> <text>the Federal Acquisition Regulations, as provided in 48 C.F.R. Chapter 1; or</text> </level> <level label="2"> <text>federal Executive Order 11246, as amended due to discriminatory hiring practices in the State.</text> </level> </level> <level label="d"> <text>A person may be debarred from entering into a contract with the State:</text> <level label="1"> <text>if the Board finds that the person was established or operates in a manner designed to evade the application of this title or to defeat the purpose of this title;</text> </level> <level label="2"> <text>if the person is a successor, assignee, subsidiary, or affiliate of a person who is debarred or suspended;</text> </level> <level label="3"> <text>except as provided under item (4) of this subsection, for one of the following violations of a contract provision if the Board believes it to be serious enough to justify debarment:</text> <level label="i"> <text>the deliberate failure, without good cause, to perform in accordance with the specifications, or within the time limit, provided in a contract; or</text> </level> <level label="ii"> <text>within the preceding 5 years, the failure to perform or unsatisfactory performance in accordance with the terms of one or more contracts, unless the failure to perform or unsatisfactory performance was caused by acts beyond the control of the person;</text> </level> </level> <level label="4"> <text>for a period not exceeding 3 years if the person persistently fails to meet contract goals in the absence of mitigating factors under the criteria established under § 14–305(c)(2) of this article;</text> </level> <level label="5"> <text>if the person is a competing contractor, or any officer, employee, representative, agent, or consultant of any competing contractor who violates § 13–211 of this article; or</text> </level> <level label="6"> <text>for any other cause that the Board determines to be so serious as to affect the integrity of the procurement process.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="16-301" title_number="16" title_name="Suspension and Debarment of Contractors" subtitle_number="3"> <text>This subtitle is broadly applicable to all debarment proceedings.</text> </section> <section article="gsf" article_name="State Finance and Procurement" number="16-302" title_number="16" title_name="Suspension and Debarment of Contractors" subtitle_number="3"> <level label="a"> <text>The clerk of each circuit court shall send to the Board a certified copy of:</text> <level label="1"> <text>each judgment of conviction of bribery, attempted bribery, or conspiracy to bribe; and</text> </level> <level label="2"> <text>each docket entry showing an acceptance of a plea of nolo contendere for bribery, attempted bribery, or conspiracy to bribe, or imposition of probation before judgment for any such offense.</text> </level> </level> <level label="b"> <text>During an investigation or other proceeding, if a person admits an act or omission that would subject that person to debarment under § 16-202(b)(3) or § 16-203(b) of this title, the prosecuting officer of the public body who has responsibility for the proceeding shall send to the Board a copy or summary of the written statement or transcript reflecting the admission as soon as the officer determines that the transmission will not prejudice a pending or anticipated investigation or other proceeding.</text> </level> <level label="c"> <text>Each unit shall report to the Board information showing a cause for debarment under § 16-203(d) of this title.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="16-303" title_number="16" title_name="Suspension and Debarment of Contractors" subtitle_number="3"> <level label="a"> <text>The Attorney General may institute proceedings to debar a person under § 16-202(b) or § 16-203 of this title from:</text> <level label="1"> <text>being considered for the award of, being awarded, or performing a contract with a public body if the Attorney General believes that the person is subject to debarment under § 16-202(b) of this title; or</text> </level> <level label="2"> <text>being considered for the award of, being awarded, or performing a contract with the State if the Attorney General believes that the person is subject to debarment under § 16-203 of this title.</text> </level> </level> <level label="b"> <text>The Attorney General may recommend whether the Board should suspend a person under § 16-305 of this subtitle.</text> </level> <level label="c"> <text>The Attorney General:</text> <level label="1"> <text>shall investigate the matters to be determined by the Board in a hearing under this title;</text> </level> <level label="2"> <text>as a party to any proceeding brought under this title, shall present to the Board the evidence that the Attorney General considers appropriate; and</text> </level> <level label="3"> <text>may recommend:</text> <level label="i"> <text>whether the Board should debar the person; and</text> </level> <level label="ii"> <text>the appropriate time period of the debarment.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>If the Attorney General reasonably believes that a person may have information or may be in possession, custody, or control of any original or copy of any book, record, report, memorandum, paper communication, tabulation, map, chart, photograph, mechanical transcription, or other tangible document or recording, wherever situated, which the Attorney General believes is relevant to, or may lead to the discovery of, evidence relevant to the subject matter of an investigation of a possible basis for debarment under this title, the Attorney General, before initiating debarment proceedings or recommending suspension as provided for in this title, may serve on the person a written investigative demand which requires the person to perform any one or more of the following:</text> <level label="i"> <text>to be examined under oath;</text> </level> <level label="ii"> <text>to answer written interrogatories; or</text> </level> <level label="iii"> <text>to produce documentary material and permit inspection and copying of such material.</text> </level> </level> <level label="2"> <text>The demand of the Attorney General shall:</text> <level label="i"> <text>state the grounds for debarment under investigation;</text> </level> <level label="ii"> <text>describe the class of documentary material to be produced under the demand with sufficient specificity to indicate fairly the material demanded;</text> </level> <level label="iii"> <text>contain a copy of the written interrogatories;</text> </level> <level label="iv"> <text>prescribe a reasonable time of not less than 3 days after the demand is served at which time the person must appear to testify, within which time the person must answer the written interrogatories, and within which time the documentary materials must be produced;</text> </level> <level label="v"> <text>specify the place for the taking of testimony and for the production of documentary materials; and</text> </level> <level label="vi"> <text>identify the member of the Office of the Attorney General who will:</text> <level label="1"> <text>take testimony;</text> </level> <level label="2"> <text>receive the answers to the written interrogatories; and</text> </level> <level label="3"> <text>review the documentary material to be made available for inspection and copying.</text> </level> </level> </level> <level label="3"> <text>A petition to extend the time for compliance or to modify or set aside a demand issued under this subsection may be filed at any time before the date specified in the demand in the circuit court of the county of the petitioner’s residence or principal place of business.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="16-304" title_number="16" title_name="Suspension and Debarment of Contractors" subtitle_number="3"> <level label="a"> <text>The Board shall notify a person that the person is debarred under § 16-202(a) of this title, and shall give reasonable opportunity for that person to be heard on whether the stated basis for debarment exists.</text> </level> <level label="b"> <level label="1"> <text>The Attorney General may institute proceedings to debar a person under § 16-202(b) or § 16-203 of this title by filing an administrative complaint with the Board.</text> </level> <level label="2"> <text>The Board shall notify the person that debarment proceedings have been initiated and that the person has a right to a hearing.</text> </level> </level> <level label="c"> <text>Before being debarred, a person subject to debarment under § 16-202(b) or § 16-203 of this title is entitled to a hearing before the Board. The Board shall conduct the hearing in accordance with Title 10, Subtitle 2 of the State Government Article.</text> </level> <level label="d"> <text>When a unit contracting for a public body is notified that a person who has applied for a contract is subject to debarment under this title, the unit shall notify the person in writing that:</text> <level label="1"> <text>the application may be disqualified; and</text> </level> <level label="2"> <text>the person has a right to a hearing before the Board.</text> </level> </level> <level label="e"> <text>Unless a person notified by the Board pursuant to this section submits a request to the Board for a hearing within 30 days after receiving such notice, the person:</text> <level label="1"> <text>waives the right to a hearing; and</text> </level> <level label="2"> <text>is debarred.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="16-305" title_number="16" title_name="Suspension and Debarment of Contractors" subtitle_number="3"> <level label="a"> <text>While a final decision on a debarment is pending, the Board may suspend a person from:</text> <level label="1"> <text>being considered for the award of, being awarded, or performing a contract with a public body, if the debarment proceedings are instituted under § 16-202(b) of this title; or</text> </level> <level label="2"> <text>being considered for the award of, being awarded, or performing a contract with the State, if the debarment proceedings are instituted under § 16-203 of this title.</text> </level> </level> <level label="b"> <text>A business is suspended to the same extent that a person is suspended under this section if:</text> <level label="1"> <text>the suspended person’s debarment would cause the debarment of the business under § 16-307 of this subtitle; and</text> </level> <level label="2"> <text>the Board notifies the business in writing of its suspension under this subsection.</text> </level> </level> <level label="c"> <level label="1"> <text>A person or business suspended under this section may petition the Board to modify or terminate the suspension.</text> </level> <level label="2"> <text>In its discretion, the Board may conduct, in accordance with Title 10, Subtitle 2 of the State Government Article, a hearing concerning a petition received under paragraph (1) of this subsection.</text> </level> <level label="3"> <text>In considering a petition received under paragraph (1) of this subsection, the Board shall conclude whether the integrity of the contracting process and the best interests of the State would be served by continuing, modifying, or terminating the suspension.</text> </level> <level label="4"> <text>The Board shall give the person or business petitioning for modification or termination of a suspension written notice of the Board’s decision.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="16-306" title_number="16" title_name="Suspension and Debarment of Contractors" subtitle_number="3"> <level label="a"> <text>In making a determination whether a person should be debarred under § 16-202(b) or § 16-203 of this title, the Board shall conclude whether the integrity of the contracting process and the best interests of the State would be served by debarring the person from entering into contracts with the applicable public bodies. In making its determination, the Board shall consider relevant factors, including:</text> <level label="1"> <text>the nature and seriousness of the act that caused the person to be subject to debarment;</text> </level> <level label="2"> <text>the time the act occurred;</text> </level> <level label="3"> <text>whether and to what extent the person cooperated with authorities in their investigation of the matters;</text> </level> <level label="4"> <text>the conditions under which the person cooperated; and</text> </level> <level label="5"> <text>the conduct of the person since the act occurred.</text> </level> </level> <level label="b"> <text>Upon making its determination under subsection (a) of this section, the Board shall notify the person subject to debarment in writing either that:</text> <level label="1"> <text>the person is debarred and the period of debarment; or</text> </level> <level label="2"> <text>the person is no longer subject to debarment for the act which was the subject of the hearing and determination.</text> </level> </level> <level label="c"> <text>Except as provided in § 16-310 of this subtitle, this section does not apply to a person debarred under § 16-202(a) of this title.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="16-307" title_number="16" title_name="Suspension and Debarment of Contractors" subtitle_number="3"> <level label="a"> <text>A business is debarred from entering into a contract with a public body if the Board debars:</text> <level label="1"> <text>an officer, director, controlling shareholder, or partner; or</text> </level> <level label="2"> <text>an employee directly involved in the process of obtaining contracts with public bodies.</text> </level> </level> <level label="b"> <text>The business is debarred under subsection (a) of this section to the same extent as the person debarred by the Board.</text> </level> <level label="c"> <text>A business shall remain debarred under this section:</text> <level label="1"> <text>as long as the debarred person remains with the business in any capacity described in subsection (a) of this section; or</text> </level> <level label="2"> <text>until the debarment is removed under § 16-310 of this subtitle.</text> </level> </level> <level label="d"> <text>The Board shall notify in writing any business that it is debarred under this section.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="16-308" title_number="16" title_name="Suspension and Debarment of Contractors" subtitle_number="3"> <level label="a"> <text>The Board shall keep a roster of all persons and businesses suspended or debarred under this title.</text> </level> <level label="b"> <text>The roster is a public record.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="16-309" title_number="16" title_name="Suspension and Debarment of Contractors" subtitle_number="3"> <level label="a"> <text>If a person or business is debarred or suspended based on an offense listed in § 16-202 of this title, the person or business may not be considered for the award of, be awarded, or perform, directly or indirectly, a contract with a public body during the time period of debarment or suspension.</text> </level> <level label="b"> <text>If a person or business is debarred or suspended based on an offense listed in § 16-203 of this title, the person or business may not be considered for the award of, be awarded, or perform, directly or indirectly, a contract with the State during the time period of debarment or suspension.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="16-310" title_number="16" title_name="Suspension and Debarment of Contractors" subtitle_number="3"> <level label="a"> <level label="1"> <text>If the conviction that is the basis for a debarment or suspension is reversed or otherwise rendered void, the debarment or suspension terminates automatically.</text> </level> <level label="2"> <text>If the federal debarment that is the basis for a State debarment is reversed or otherwise rendered void, the debarment terminates automatically if the person debarred provides to the Board sufficient legal documentation that the federal debarment has been reversed or otherwise rendered void.</text> </level> </level> <level label="b"> <level label="1"> <text>Any person debarred under § 16-202 of this title may, after a period of 5 years from the date of the debarment, petition the Board for removal of the debarment.</text> </level> <level label="2"> <text>Any person debarred under § 16-203(a), (b), or (d) of this title may petition the Board for removal of the debarment, after the expiration of:</text> <level label="i"> <text>one-half of the period of debarment; or</text> </level> <level label="ii"> <text>5 years.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>The Board shall consider all petitions received under subsection (b) of this section.</text> </level> <level label="2"> <text>Within 90 days after receiving a petition under subsection (b) of this section, the Board shall determine in its discretion whether to conduct a hearing regarding the petition. If the Board decides to conduct a hearing, it shall conduct the hearing in accordance with Title 10, Subtitle 2 of the State Government Article.</text> </level> <level label="3"> <text>The Board shall notify the person of its decision whether it will conduct a hearing regarding the petition.</text> </level> </level> <level label="d"> <text>In making its determination whether the debarment should be removed, the Board shall conclude whether the integrity of the contracting process and the best interests of the State would be served by continuing the debarment. In making its determination, the Board shall consider relevant factors including those listed in § 16-306(a) of this subtitle.</text> </level> <level label="e"> <text>Upon making its determination, the Board shall give written notice to the petitioner that the debarment is removed or continued.</text> </level> <level label="f"> <text>The time for any hearing or determination by the Board under this section may be extended by the Board upon a showing of good cause.</text> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="16-311" title_number="16" title_name="Suspension and Debarment of Contractors" subtitle_number="3"> <level label="a"> <text>Every person, upon submitting a bid proposal or other application for a contract with a public body, shall submit an affidavit stating to its best knowledge whether it or any of its officers, directors, or partners, or any of its employees who are directly involved in obtaining or performing contracts with any public bodies has:</text> <level label="1"> <text>been convicted of bribery, attempted bribery, or conspiracy to bribe, under the laws of any state or of the federal government;</text> </level> <level label="2"> <text>been convicted under a State or federal law or statute of any offense enumerated in § 16-203 of this title; or</text> </level> <level label="3"> <text>been found civilly liable under a State or federal antitrust statute as provided in § 16-203 of this title.</text> </level> </level> <level label="b"> <text>The affidavit required by subsection (a) of this section shall also contain the person’s affirmation that it shall not knowingly enter into a contract with a public body under which a person or business debarred or suspended under this subtitle will provide, directly or indirectly, supplies, services, architectural services, construction related services, leases of real property, or construction.</text> </level> <level label="c"> <text>The requirements of this section are satisfied if the affidavit:</text> <level label="1"> <text>incorporates by reference the statements contained in an affidavit filed with the same public body within the previous year pursuant to the requirements of this section; and</text> </level> <level label="2"> <text>states that those statements remain accurate.</text> </level> </level> </section> <section article="gsf" article_name="State Finance and Procurement" number="16-312" title_number="16" title_name="Suspension and Debarment of Contractors" subtitle_number="3"> <level label="a"> <text>Debarment proceedings under this subtitle against a person or business subject to debarment under this title may be instituted within 5 years after:</text> <level label="1"> <text>a final judgment in a civil or criminal action that constitutes a cause for debarment;</text> </level> <level label="2"> <text>an admission, in writing or under oath, of an act or omission that constitutes grounds for a criminal conviction or civil liability that may be a cause for debarment; or</text> </level> <level label="3"> <text>the occurrence of any other event that constitutes a cause for debarment.</text> </level> </level> <level label="b"> <text>Debarment proceedings under this subtitle against a person or business subject to debarment under this title may be instituted after the period set forth in subsection (a) of this section, only if such proceedings are brought within 1 year of the time when the State discovered, or by the exercise of ordinary diligence should have discovered, the grounds for debarment under this title.</text> </level> </section>