The purpose of this chapter is to promote the best interest of the State and the Department, and to protect the integrity of Departmental programs by establishing the Department's policy, as well as specifying grounds and setting forth procedures regarding suspensions and debarments. This chapter is in addition to other remedies which may be available to the Department by applicable laws and regulations. Therefore, the provisions of this chapter are intended to be cumulative to, and not exclusive of or as a substitute for, other provisions of applicable laws and regulations where any of the grounds for suspension and debarment may exist. Further, this chapter is in addition to, and does not supersede, any applicable federal or State laws and regulations. In the event of any conflict between the provisions of this chapter and applicable federal or State laws and regulations, the provisions of the federal or State laws and regulations shall control to the extent of that conflict. A proceeding under this chapter is not a contested case subject to those provisions of State Government Article, §10-201, et seq., Annotated Code of Maryland, for the adjudication of contested cases. In this chapter, the following terms have the meanings indicated. Terms Defined. “Attorney General” means the Attorney General of Maryland or the Attorney General's designee. “Conviction” includes an accepted plea of nolo contendere, or an accepted plea of guilty. “Debarment” means an administrative action taken by the Secretary disqualifying a person from participating in any program of the Department, including, but not limited to, acting as a developer, builder, contractor or subcontractor to a contractor, grantee, consultant, management company, borrower, owner, or acting as a supplier for work or services being performed for or by the Department, or in connection with a project or residence assisted, funded, financed, insured or otherwise sponsored in whole or in part by the Department, or any combination of these disqualifications. “Department” means the Department of Housing and Community Development, a principal department of the State, including the agencies, boards, commissions, councils, corporations, authorities, trusts, divisions, and all other entities declared by law to be part of the Department. “Governmental entity” means the United States, any state, any governmental agency created by interstate compact, county, bi-county or multi-county governmental agency located within a state, municipality, or any unit of government of the United States, or of any state including any subunit within any of these units. “Person” means an individual, corporation, partnership, or other legal or business entity. “Secretary” means the Secretary of Housing and Community Development. “Suspension” means an administrative action taken by the Secretary disqualifying a person, on a temporary or limited basis, or pending a decision on debarment, from participating in a program of the Department, including, but not limited to, bidding or submitting proposals or acting as a developer, builder, contractor or subcontractor, grantee, consultant, management company, borrower, owner, or acting as a supplier for work or services being performed for or by the Department, or in connection with a project assisted, funded, financed, insured or otherwise sponsored in whole or in part by the Department, or some combination of these disqualifications. It is the Department's policy that: If the grounds specified in Regulation .05 exist, a person may be debarred or suspended from participating in the Department's programs; The Department may not knowingly accept any person suspended or debarred under this chapter to perform work for the Department; Suspensions and debarments imposed under this chapter shall be accomplished in accordance with the procedures set forth in Regulation .06. A person may be suspended or debarred if that person has: Been rated unsatisfactory by the Department after participation in one or more programs of the Department as a result of failure to: Comply with the rules, regulations, or guidelines of the Department, Perform in accordance with the terms and provisions of any loan document, grant agreement, loan origination or servicing contract, contract for the provision of goods or services, or any other type of contract or agreement with the Department or other governmental entity, Maintain or make available for inspection full and complete records required or requested by the Department, Respond in a timely manner to reasonable requests or inquiries by the Department or other governmental entities or persons having jurisdiction, concerning any contract, loan, grant, subsidy, or other assistance, of the Department, Remedy errors, defects, or related matters determined to exist by the Department, in the exercise of its reasonable judgment, in a timely manner, or Comply with Executive Order 01.01.1989.18, dated November 28, 1989, which requires any recipient of State contracts, grants, loans or other funds to maintain a drug and alcohol free workplace, and any regulations issued in accordance with this, or any other State law, regulation, or program requirement concerning drug use or drug trafficking activities in the State; Been placed on any disapproved or debarred list maintained by any governmental entity; Been, or currently is, the subject of an investigation by any federal, state or local governmental entity for alleged criminal or civil violations of laws or regulations enforced by these entities; Been convicted under the provisions of or entered into a consent decree or cease and desist order, or has admitted, in writing or under oath during the course of an official investigation or other proceeding, to acts or omissions which would constitute a violation of any federal, state, or local law, including the: Maryland Antitrust Act, Commercial Law Article, §§11-201—11-213, Annotated Code of Maryland, for acts arising out of the submission of bids or proposals for a contract with a governmental entity, Antitrust laws of another state or of the federal government for acts arising out of the submission of bids or proposals for a contract with a governmental entity, Provisions of Title 18 of the United States Code for violation of the Racketeer Influence and Corrupt Organizations Act, 18 U.S.C. §1961 et seq., or the Mail Fraud Act, 18 U.S.C. §1341 et seq., for acts arising out of the submission of bids or proposals for a contract with a governmental entity; or Acted in a manner which indicates a lack of moral or ethical integrity in carrying out the person's responsibilities, including but not limited to the following acts or omissions which shall constitute prima facie evidence of a lack of moral or ethical integrity: Failure to disclose relevant and material information on an application, certification, opinion representation grant, loan, or other agreement with the Department or any other governmental entity, or Knowingly or negligently causing or permitting false statements or misrepresentations of fact to be entered on an application provided by the Department, or any contract or certification, or agreement with the Department or any other governmental entity. A person that is a business entity also may be debarred or suspended if: The Secretary finds the business entity has been formed or established in a manner intended to evade the purpose of this chapter; or Any of the individuals related to the business entity as follows are debarred or suspended: An officer of the entity; A director of the entity; A stockholder of the entity; A stockholder of a corporate general or limited partner of the entity; A general partner of the entity; A limited partner of the entity; A principal of the entity; or An individual who controls the business activities of the entity. If a person has been debarred under this chapter, the person's successors, assigns, subsidiaries, or affiliates also are considered debarred unless exempted in writing by the Secretary. The debarment or suspension of the business entity identified in §B(2)(a)—(h) of this regulation shall continue for the period of the individual's debarment or suspension. When grounds for suspension or debarment as described in Regulation .05 exist, the Secretary shall notify the person by personal delivery or in writing by certified mail, return receipt requested, that suspension or debarment is under consideration and the basis for suspension or debarment. The person may be suspended pending the outcome of an administration review proceeding, in which case the notice shall so state, and suspension shall be effective upon mailing or personal delivery. The person may request an administrative review proceeding by notifying the Secretary in writing within 15 days from the date of receipt of the notice. If no administrative review proceeding is requested, the opportunity for review shall be considered to be waived and the Secretary shall determine whether to suspend or debar the person based on all information germane to the issue and available to the Secretary. The person shall be notified of the decision in writing by certified mail, return receipt requested. If an administrative review proceeding is requested, the Secretary shall conduct the proceeding within 30 days from the receipt of the person's request. The time for conducting the review may be extended up to 30 days upon written request to the Secretary or by the Secretary with notice to all parties. The person may be represented by counsel at the administrative review proceeding and may present any evidence or argument relevant to the proposed suspension or debarment. If counsel is to be present, the person shall notify the Secretary at least 5 days before the scheduled review proceeding date. The Secretary may request other persons to present evidence or argument as the Secretary may request. The Secretary may solicit information from any source which is relevant to the proposed suspension or debarment and shall consider all of the facts and circumstances upon which the request for suspension or debarment is based, including but not limited to: The nature of the acts involved; The duration of the person's involvement in the acts; The extent of the damage caused to the State by the person's acts; Whether and to what extent the person subsequently cooperated with the appropriate authorities; The conditions under which the person cooperated; The degree to which the person made restitution; and The time when the acts occurred and the conduct of the person since that time. The Secretary shall conclude whether the best interests of the Department or the State would be served by suspending or debarring the person and shall, within 30 days after the administrative review proceeding, or, if there is no review proceeding as provided in §D, notify the person in writing that the person either is: Suspended, and the period of suspension; Debarred, and the period of debarment; or Not subject to debarment or suspension for the acts which were the subject of the administrative review proceeding, and that the person's suspension pending the outcome of the review proceeding, if suspended, has been rescinded as of the date of the Secretary's decision. If the sole basis for a suspension or debarment under this chapter is a conviction described in Regulation .05A(4) and that conviction is subsequently overturned, then the suspension or debarment shall terminate automatically without any further proceedings being required under this chapter. A person debarred under this chapter may request the Secretary to shorten or terminate the person's debarment. This request may not be made until after 1 year from the date of debarment, and not more than one request for reconsideration may be made during the term of debarment. Within 30 days after receipt of a request for reconsideration of debarment, or at the initiation of the Secretary, the Secretary shall conduct a review to determine whether the debarment should be shortened or terminated. The time for the review and determination may be extended by the Secretary for good cause shown. In making a determination upon a request for reconsideration, the Secretary may solicit information from any source which is relevant to the reconsideration request and shall consider the facts set forth in §F and any change in circumstances which has occurred since the debarment. Upon making this determination, the Secretary shall notify the debarred party in writing either that the debarment has been shortened or terminated or shall continue for the original term. Debarment based on the grounds set forth in Regulation .05 may not exceed a period of 5 years. Suspension based on the grounds set forth in Regulation .05 may not exceed a period of 1 year. The Attorney General may conduct an investigation of the matters to be considered by the Secretary under this chapter and may present to the Secretary such evidence as the Attorney General considers appropriate. Actions designated to be undertaken by the Secretary may be undertaken by a designee of the Secretary under an express written delegation. Upon the final determination of any suspension or debarment proceeding under this chapter by the Secretary, the entire Departmental file concerning the suspension or debarment, including all records germane to the suspension or debarment, shall be delivered to the Office of the Attorney General for the Department and shall be maintained in a locked file marked “Confidential” under the custody and control of the Office of the Attorney General for a period of 3 years after the suspension or debarment, if any, is terminated. Housing and Community Development Article, §2-111, Annotated Code of Maryland Effective date: April 30, 1990 (17:8 Md. R. 975) Regulation .05B amended effective February 1, 1993 (20:2 Md. R. 110) Regulation .05D adopted effective February 1, 1993 (20:2 Md. R. 110)