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<subtitle num="08" heading="Suspension and Debarment" title_num="21" title_heading="State Procurement Regulations">
  <chapter num="01" heading="General">
    <regulation prefix="Regulation" num=".01" heading="Purpose.">
      <text>The purpose of this subtitle is to:</text>
      <paragraph num="A.">
        <text>Promote the best interests of the public and the State by protecting the integrity of the procurement process; and</text>
      </paragraph>
      <paragraph num="B.">
        <text>Ensure open competition for public contracts and impartial selection of qualified and responsible participants in the procurement process.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".02" heading="Definitions.">
      <paragraph num="A.">
        <text>In this subtitle, the following words have the meanings indicated.</text>
      </paragraph>
      <paragraph num="B.">
        <text>Terms Defined.</text>
        <paragraph num="(1)">
          <text>“Business” means an individual, or a corporation, partnership, sole proprietorship, joint venture, or any other legal entity through which commercial activity is conducted.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>“Contract” means any agreement in any form.</text>
        </paragraph>
        <paragraph num="(3)">
          <text>“Controlling stockholder” means a stockholder who:</text>
          <paragraph num="(a)">
            <text>Owns more than 25 percent of the voting shares of a corporation; or</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Has the power to direct or control the direction of the management or policies of a corporation, regardless of the number of shares the stockholder owns.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(4)">
          <text>“Conviction” means a judgment or conviction of a criminal offense by any court of competent jurisdiction, whether entered upon a verdict or a plea, and includes:</text>
          <paragraph num="(a)">
            <text>A conviction entered upon an accepted plea of nolo contendere; or</text>
          </paragraph>
          <paragraph num="(b)">
            <text>The imposition of probation before judgment.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(5)">
          <text>“Person” means an individual, or a corporation, partnership, sole proprietorship, joint stock company, joint venture, unincorporated association, union, committee, club, or other organization or legal entity.</text>
        </paragraph>
        <paragraph num="(6)">
          <text>“Principal” means a person with actual or apparent authority to enter into a contract on behalf of a business.</text>
        </paragraph>
        <paragraph num="(7)">
          <text>“Public body” means:</text>
          <paragraph num="(a)">
            <text>The State;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>A unit; or</text>
          </paragraph>
          <paragraph num="(c)">
            <text>A local governmental entity in the State, including a bicounty or multicounty governmental entity.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(8)">
          <text>Unit.</text>
          <paragraph num="(a)">
            <text>“Unit” means an officer or other entity that is in the Executive Branch of the State government and is authorized by law to enter into a procurement contract.</text>
          </paragraph>
          <paragraph num="(b)">
            <text>“Unit” does not include:</text>
            <paragraph num="(i)">
              <text>A bistate, multistate, bicounty, or multicounty governmental agency; or</text>
            </paragraph>
            <paragraph num="(ii)">
              <text>A special tax district, sanitary district, drainage district, soil conservation district, water supply district, or other political subdivision of the State.</text>
            </paragraph>
          </paragraph>
        </paragraph>
        <paragraph num="(9)">
          <text>Unsatisfactory Performance.</text>
          <paragraph num="(a)">
            <text>“Unsatisfactory performance” means deficient performance or default, within the preceding 5 years, on one or more contracts.</text>
          </paragraph>
          <paragraph num="(b)">
            <text>“Deficient performance” includes but is not limited to:</text>
            <paragraph num="(i)">
              <text>Failure to perform in accordance with contract specifications or terms and conditions;</text>
            </paragraph>
            <paragraph num="(ii)">
              <text>Untimely performance;</text>
            </paragraph>
            <paragraph num="(iii)">
              <text>Performance that violates an applicable statute, regulation, ordinance, code, or standard of performance in the relevant industry.</text>
            </paragraph>
          </paragraph>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".03" heading="Public Notice of Suspension and Debarment Actions.">
      <paragraph num="A.">
        <text>The Board shall maintain a list of persons that it has suspended or debarred.</text>
      </paragraph>
      <paragraph num="B.">
        <text>A list of persons suspended or debarred for all or any portion of the fiscal year, including a summary of the scope of the suspension or debarment, shall be published in eMaryland Marketplace annually and shall be maintained in an electronic media accessible to the public.</text>
      </paragraph>
    </regulation>
    <annotations>
      <annotation type="Authority">State Finance and Procurement Article, §§11-205.1, 12-101, and 16-201—16-312, Annotated Code of Maryland</annotation>
      <annotation type="History" subtype="Administrative History">Effective date: July 1, 1981 (8:13 Md. R. II-5)</annotation>
      <annotation type="History" subtype="Administrative History">Regulations .01—.03 amended effective January 9, 1989 (15:27 Md. R. 3138)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .04A amended as an emergency provision effective July 1, 1982 (9:15 Md. R. 1508); emergency status extended at 9:16 Md. R. 1601, 9:17 Md. R. 1698, 9:20 Md. R. 1979; adopted permanently effective October 12, 1982 (9:20 Md. R. 1982)</annotation>
      <annotation type="History" subtype="Administrative History">Regulations .01—.04, Disqualification for Conviction of Bribery, Attempted Bribery or Conspiracy to Bribe, repealed and new Regulations .01—.03, General, adopted effective August 2, 1993 (20:15 Md. R. 1221)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .02B amended effective October 2, 2000 (27:19 Md. R. 1731)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .03B amended effective March 8, 1999 (26:5 Md. R. 394); November 7, 2005 (32:22 Md. R. 1759); April 7, 2008 (35:7 Md. R. 751)</annotation>
    </annotations>
  </chapter>
  <chapter num="02" heading="Suspension">
    <regulation prefix="Regulation" num=".01" heading="General.">
      <paragraph num="A.">
        <text>Upon the institution of debarment proceedings under COMAR 21.08.04, and before a final decision on debarment, the Board may suspend a person from:</text>
        <paragraph num="(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 State Finance and Procurement Article, §16-202, Annotated Code of Maryland, and COMAR 21.08.03.01 or .02; or</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Being considered for the award of, being awarded, or performing a contract with the State if the debarment proceedings are instituted under State Finance and Procurement Article, §16-203, Annotated Code of Maryland, and COMAR 21.08.03.03.</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>If the Board suspends a person pending a decision on debarment, the person may petition the Board to modify or terminate the suspension. The petition shall be:</text>
        <paragraph num="(1)">
          <text>In writing; and</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Received by the Board within 30 days after the person receives notice that it is suspended.</text>
        </paragraph>
      </paragraph>
      <paragraph num="C.">
        <text>If a suspended person's debarment would cause the debarment of a business under State Finance and Procurement Article, §16-307, Annotated Code of Maryland, and COMAR 21.08.03.04, the Board shall notify the business in writing within a reasonable time:</text>
        <paragraph num="(1)">
          <text>That the business is suspended to the same extent that the person is suspended;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Of the basis for the person's suspension; and</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Of the business' right to petition for modification or termination of the business' suspension.</text>
        </paragraph>
      </paragraph>
      <paragraph num="D.">
        <text>Hearings.</text>
        <paragraph num="(1)">
          <text>If a suspended person or business requests a hearing on its petition to terminate or modify its suspension, the Board, in its discretion, may grant or deny the request.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>If the Board grants the request for a hearing, the Board may delegate the hearing to a hearing officer and in such case shall refer the case to the Office of Administrative Hearings for assignment of a hearing officer.</text>
        </paragraph>
        <paragraph num="(3)">
          <text>A hearing on a petition to modify or terminate a suspension shall be held in accordance with COMAR 21.08.04.06.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".02" heading="Suspension of Businesses by Operation of Law.">
      <paragraph num="A.">
        <text>A business is suspended to the same extent that a person is suspended if the person is:</text>
        <paragraph num="(1)">
          <text>An officer, director, controlling shareholder, or partner of the business; or</text>
        </paragraph>
        <paragraph num="(2)">
          <text>An employee of the business directly involved in the process of obtaining contracts with the State or public bodies.</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>Suspension under this regulation shall terminate if the business establishes to the satisfaction of the Board that the person no longer is associated with the business in any of the capacities described in §A of this regulation.</text>
      </paragraph>
      <paragraph num="C.">
        <text>If the business has been suspended under this regulation and wishes to establish that the business is entitled to termination of its suspension, the business shall notify the Board by certified mail that the person is no longer associated with the business in any of the capacities described in §A of this regulation. The Board may request that the Attorney General investigate the person's status with the business pursuant to State Finance and Procurement Article, §16-303, Annotated Code of Maryland, and make a recommendation to the Board.</text>
      </paragraph>
      <paragraph num="D.">
        <text>If a business requests a hearing to establish the business' right to termination of its suspension, a hearing shall be held in accordance with COMAR 21.08.04.02 and a final decision issued in accordance with COMAR 21.08.04.03.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".03" heading="Scope of Sanctions.">
      <paragraph num="A.">
        <text>At the time of suspension the Board may:</text>
        <paragraph num="(1)">
          <text>Exercise or direct the exercise of the State's right to terminate any existing State contract with the person; or</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Prohibit any modification, extension, or renewal of any existing State contract with the person.</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>In determining the scope or period of a person's suspension, the Board may impose such conditions on the person's State contract related activities as the Board considers appropriate, including, for example, appropriate monitoring of the person's future contracting activities with the State.</text>
      </paragraph>
    </regulation>
    <annotations>
      <annotation type="Authority">State Finance and Procurement Article, §§12-101 and 16-101—16-312, Annotated Code of Maryland</annotation>
      <annotation type="History" subtype="Administrative History">Effective date: July 1, 1981 (8:13 Md. R. II-5)</annotation>
      <annotation type="History" subtype="Administrative History">Regulations .02A and .03A amended as an emergency provision effective July 1, 1982 (9:15 Md. R. 1508); emergency status extended at 9:16 Md. R. 1601,</annotation>
      <annotation type="History" subtype="Administrative History">9:17 Md. R. 1698, 9:20 Md. R. 1979; adopted permanently effective October 12, 1982 (9:20 Md. R. 1982)</annotation>
      <annotation type="History" subtype="Administrative History">Chapter repealed effective January 9, 1989 (15:27 Md. R. 3138)</annotation>
      <annotation type="History" subtype="Administrative History">Regulations .01—.03 adopted effective August 2, 1993 (20:15 Md. R. 1221)</annotation>
    </annotations>
  </chapter>
  <chapter num="03" heading="Debarment">
    <regulation prefix="Regulation" num=".01" heading="Debarment of Persons by Operation of Law from Contracts with Public Bodies.">
      <paragraph num="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 of any of the following offenses, committed in furtherance of obtaining a contract with a public body:</text>
        <paragraph num="(1)">
          <text>Bribery;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Attempted bribery; or</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Conspiracy to bribe.</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>Opportunity to be Heard.</text>
        <paragraph num="(1)">
          <text>The Board shall notify a person who is debarred by operation of law that the person is debarred and shall give a reasonable opportunity for that person to be heard on whether the stated basis for debarment exists and on the appropriate duration of the debarment.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Notice shall be given pursuant to COMAR 21.08.04.01.</text>
        </paragraph>
        <paragraph num="(3)">
          <text>A hearing shall be conducted pursuant to COMAR 21.08.04.02.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".02" heading="Debarment of Persons for Cause from Contracts with Public Bodies.">
      <paragraph num="A.">
        <text>A person may be debarred from entering into a contract with a public body if the person:</text>
        <paragraph num="(1)">
          <text>Has been convicted under the laws of the State of any of the following offenses, committed other than in furtherance of obtaining a contract with any public body:</text>
          <paragraph num="(a)">
            <text>Bribery,</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Attempted bribery, or</text>
          </paragraph>
          <paragraph num="(c)">
            <text>Conspiracy to bribe;</text>
          </paragraph>
        </paragraph>
        <paragraph num="(2)">
          <text>Has been convicted under the laws of another state or of the United States for:</text>
          <paragraph num="(a)">
            <text>Bribery,</text>
          </paragraph>
          <paragraph num="(b)">
            <text>Attempted bribery,</text>
          </paragraph>
          <paragraph num="(c)">
            <text>Conspiracy to bribe; or</text>
          </paragraph>
        </paragraph>
        <paragraph num="(3)">
          <text>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>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>Opportunity to be Heard.</text>
        <paragraph num="(1)">
          <text>The Board shall notify a person that debarment proceedings have started and shall give a reasonable opportunity for that person to be heard on whether the stated basis for debarment exists.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Notice shall be given pursuant to COMAR 21.08.04.01.</text>
        </paragraph>
        <paragraph num="(3)">
          <text>If a hearing is requested, any hearing on debarment shall be conducted pursuant to COMAR 21.08.04.02.</text>
        </paragraph>
      </paragraph>
      <paragraph num="C.">
        <text>The Board may suspend a person in accordance with COMAR 21.08.02 pending the Board's final debarment decision.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".03" heading="Debarment of Persons for Cause from State Contracts.">
      <paragraph num="A.">
        <text>A person may be debarred from entering into a contract with the State if that person or any of its officers, partners, controlling stockholders, principals, or other persons substantially involved in its contracting activities has been:</text>
        <paragraph num="(1)">
          <text>Convicted under any state or federal law of a criminal offense, other than bribery, incident to obtaining, attempting to obtain, or performing a public or private contract;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Convicted under any state or federal law of fraud, embezzlement, theft, forgery, falsification or destruction of records, or receiving stolen property;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>Convicted of a criminal violation of a state or federal antitrust statute;</text>
        </paragraph>
        <paragraph num="(4)">
          <text>Convicted of a violation of the Racketeer Influenced and Corrupt Organization Act, 18 U.S.C. §1961 et seq., or the Mail Fraud Act, 18 U.S.C. §1341 et seq., for acts in connection with the submission of bids or proposals for a public or private contract;</text>
        </paragraph>
        <paragraph num="(5)">
          <text>Convicted under State Finance and Procurement Article, §14-308, Annotated Code of Maryland;</text>
        </paragraph>
        <paragraph num="(6)">
          <text>Convicted under State Finance and Procurement Article, §11-205.1, Annotated Code of Maryland;</text>
        </paragraph>
        <paragraph num="(7)">
          <text>Convicted of a conspiracy to commit any act or omission that would constitute grounds for conviction or liability under any law described in §A(1)—(6) of this regulation;</text>
        </paragraph>
        <paragraph num="(8)">
          <text>Found civilly liable under state or federal antitrust statutes for acts or omissions in connection with the submission of bids or proposals for a public or private contract;</text>
        </paragraph>
        <paragraph num="(9)">
          <text>Debarred from federal contracts under the Federal Acquisition Regulation, as provided in 48 CFR Chapter 1, or Federal Executive Order 11246, as amended, due to discriminatory hiring practices in the State;</text>
        </paragraph>
        <paragraph num="(10)">
          <text>Been found in a final adjudicated decision to have violated the Commercial Nondiscrimination Policy under State Finance and Procurement Article, Title 19, Annotated Code of Maryland, with regard to a public or private contract; or</text>
        </paragraph>
        <paragraph num="(11)">
          <text>Been found to have willfully or knowingly violated State Government Article, Title 20, Subtitle 6, Annotated Code of Maryland, if the finding was made by a court and the decision of the court became final, or the finding was made in a contested case under the Administrative Procedure Act and the finding was not overturned on judicial review.</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>A person may be debarred from entering into a contract with the State if that person or any of its officers, partners, controlling stockholders, principals, or any other persons substantially involved in its contracting activities has admitted, in writing or under oath, acts or omissions that would constitute grounds for conviction or liability under any law described in §A of this regulation.</text>
      </paragraph>
      <paragraph num="C.">
        <text>A person may be debarred from entering into a contract with the State if the Board finds:</text>
        <paragraph num="(1)">
          <text>That the person was established or operates in a manner designed to evade the application of, or to defeat the purpose of, this subtitle;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>That the person is a successor, assignee, subsidiary, or affiliate of a suspended or debarred person;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>One of the following violations of a contract provision that is sufficiently serious to justify debarment:</text>
          <paragraph num="(a)">
            <text>The deliberate failure without good cause to perform in accordance with the specifications or within the time provided in a contract; or</text>
          </paragraph>
          <paragraph num="(b)">
            <text>The failure to perform or unsatisfactory performance in accordance with the terms of one or more contracts within the preceding 5 years unless the failure to perform or the unsatisfactory performance was caused by acts beyond the control of the person; or</text>
          </paragraph>
        </paragraph>
        <paragraph num="(4)">
          <text>That the person persistently fails to meet contract goals in the absence of mitigating factors under the criteria established under State Finance and Procurement Article, §14-305(c)(2), Annotated Code of Maryland; debarment under this subsection shall be for a period not exceeding 3 years.</text>
        </paragraph>
      </paragraph>
      <paragraph num="D.">
        <text>A person may be debarred for any other cause the Board determines to be so serious as to affect the integrity of the State procurement process, including, for example and not by limitation, the failure to file the debarment affidavit required by State Finance and Procurement Article, §16-311, Annotated Code of Maryland, and COMAR 21.05.08.07 and 21.07.01.25, or the filing of an untruthful affidavit.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".04" heading="Debarment of Businesses by Operation of Law.">
      <paragraph num="A.">
        <text>A business is debarred to the same extent that a person is debarred if the person is:</text>
        <paragraph num="(1)">
          <text>An officer, director, controlling shareholder, or partner of the business; or</text>
        </paragraph>
        <paragraph num="(2)">
          <text>An employee of the business directly involved in the process of obtaining contracts with public bodies.</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>If a business is subject to debarment under this regulation, the Board shall notify the business that it is subject to debarment. Notice shall:</text>
        <paragraph num="(1)">
          <text>Include a copy of the Board's final decision on debarment of the person associated with the business as an officer, director, controlling shareholder, partner, or employee directly involved in the process of obtaining contracts with public bodies; and</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Indicate that the business will be debarred to the same extent as the person as of 30 days from the business' receipt of the notice unless, before that date, the business establishes to the satisfaction of the Board that the debarred person no longer is associated with the business in any of the capacities described in §A of this regulation.</text>
        </paragraph>
      </paragraph>
      <paragraph num="C.">
        <text>The business has a right to request a hearing upon receipt of the notice of debarment. If a hearing is requested:</text>
        <paragraph num="(1)">
          <text>The hearing shall be held in accordance with COMAR 21.08.04.02; and</text>
        </paragraph>
        <paragraph num="(2)">
          <text>The Board may stay debarment of the business until a final decision is made by the Board pursuant to COMAR 21.08.04.03.</text>
        </paragraph>
      </paragraph>
      <paragraph num="D.">
        <text>Debarment under this regulation shall terminate if the business establishes to the satisfaction of the Board that the person no longer is associated with the business in any of the capacities described in §A of this regulation.</text>
      </paragraph>
      <paragraph num="E.">
        <text>If the business has been debarred under this regulation and wishes to establish that the business is entitled to termination of its debarment, the business shall notify the Board by certified mail that the person is no longer associated with the business in the capacities described in §A of this regulation. The Board may request that the Attorney General investigate the person's status with the business pursuant to State Finance and Procurement Article, §16-303, Annotated Code of Maryland, and make a recommendation to the Board.</text>
      </paragraph>
      <paragraph num="F.">
        <text>If the business requests a hearing to establish its right to termination of its debarment, the hearing shall be held in accordance with COMAR 21.08.04.02 and a final decision issued in accordance with COMAR 21.08.04.03.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".05" heading="Initiation of Debarment.">
      <paragraph num="A.">
        <text>If the Board receives information pursuant to State Finance and Procurement Article, §16-302, Annotated Code of Maryland, or otherwise is advised of information reasonably believed to constitute possible grounds for debarment of a person, the Board shall refer that information to the Attorney General.</text>
      </paragraph>
      <paragraph num="B.">
        <text>If the Attorney General receives information from the Board or otherwise that the Attorney General believes constitutes possible grounds for debarment of a person, the Attorney General shall investigate the information. If the Attorney General determines that a reasonable basis for the initiation of debarment proceedings exists, the Attorney General may institute debarment proceedings by filing an administrative complaint with the Board setting out:</text>
        <paragraph num="(1)">
          <text>The name of the person or persons to be debarred;</text>
        </paragraph>
        <paragraph num="(2)">
          <text>The conduct for which the person or persons should be debarred;</text>
        </paragraph>
        <paragraph num="(3)">
          <text>The grounds for debarment.</text>
        </paragraph>
      </paragraph>
      <paragraph num="C.">
        <text>The Attorney General shall send copies of the administrative complaint by certified mail to each person who is the subject of the complaint. The Attorney General shall also send copies to the Secretaries of Budget and Management, General Services, Public Safety and Correctional Services, Transportation, and the Chancellor of the University System of Maryland, each of whom may provide written comments to the Board including but not limited to whether the initiation of debarment or suspension of the person, or both, would preserve the integrity of the procurement process and be in the best interest of the State.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".06" heading="Suspension Pending Disbarment.">
      <paragraph num="A.">
        <text>At any time before a final decision on debarment is made, the Attorney General may recommend that the Board immediately suspend the person pending possible debarment.</text>
      </paragraph>
      <paragraph num="B.">
        <text>After considering the recommendation of the Attorney General, and any other pertinent information, the Board shall determine whether immediate suspension of the person is warranted pending the outcome of the debarment proceedings.</text>
      </paragraph>
      <paragraph num="C.">
        <text>If the Board determines that the Attorney General has a reasonable basis for beginning debarment proceedings, the Board may suspend the person pending the outcome of the proceedings.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".07" heading="Agreements Relating to Debarment.">
      <paragraph num="A.">
        <text>At any time before a debarment, a person may enter into an agreement with the Attorney General relating to debarment of the person.</text>
      </paragraph>
      <paragraph num="B.">
        <text>If an agreement is reached between the Attorney General and the person, the Attorney General shall present the agreement to the Board, together with any written comments of affected Department heads or their designees concerning the agreement.</text>
      </paragraph>
      <paragraph num="C.">
        <text>The Board may accept or reject the agreement between the Attorney General and the person or may defer decision until after the receipt of such additional information as may be requested by the Board or its designee.</text>
      </paragraph>
      <paragraph num="D.">
        <text>Acceptance of Debarment Agreement.</text>
        <paragraph num="(1)">
          <text>Any agreement between the Attorney General and a person relating to debarment is not binding upon the State unless the Board accepts the agreement.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>If the Board accepts the agreement, the Board's acceptance shall constitute the Board's decision on debarment in the same manner and having the same effect as if there had been debarment proceedings pursuant to State Finance and Procurement Article, Title 16, Annotated Code of Maryland, and COMAR 21.08.04.</text>
        </paragraph>
        <paragraph num="(3)">
          <text>If the Board rejects the agreement, the agreement may not be considered as an admission by the person in any subsequent debarment proceedings.</text>
        </paragraph>
      </paragraph>
      <paragraph num="E.">
        <text>The Board shall accept or reject the agreement within a reasonable time after receipt of the agreement from the Attorney General.</text>
      </paragraph>
    </regulation>
    <annotations>
      <annotation type="Authority">State Finance and Procurement Article, §§11-205.1, 12-101, and 16-101—16-312; State Government Article, §§10-201—10-217; Annotated Code of Maryland</annotation>
      <annotation type="History" subtype="Administrative History">Effective date: July 1, 1981 (8:13 Md. R. II-5)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .01 amended effective January 9, 1989 (15:27 Md. R. 3138)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .01 repealed and new Regulations .01—.07 adopted under a new chapter, COMAR 21.08.03 Debarment, effective August 2, 1993 (20:15 Md. R. 1221)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .03A amended effective October 2, 2000 (27:19 Md. R. 1731); March 13, 2006 (33:5 Md. R. 523); March 12, 2007 (34:5 Md. R. 562)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .03C amended effective September 18, 2023 (50:18 Md. R. 800)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .05B, C amended effective October 2, 2000 (27:19 Md. R. 1731)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .06 amended effective October 2, 2000 (27:19 Md. R. 1731)</annotation>
    </annotations>
  </chapter>
  <chapter num="04" heading="Proceedings">
    <regulation prefix="Regulation" num=".01" heading="Notice.">
      <text>Within a reasonable time after the receipt of the administrative complaint, the Board shall provide written notice by First Class mail to the person and by publication in eMaryland Marketplace indicating:</text>
      <paragraph num="A.">
        <text>The commencement of debarment proceedings pursuant to State Finance and Procurement Article, Title 16, Annotated Code of Maryland, and this chapter;</text>
      </paragraph>
      <paragraph num="B.">
        <text>The effective date of any suspension and that any suspension is for a temporary period pending the completion of debarment proceedings;</text>
      </paragraph>
      <paragraph num="C.">
        <text>The grounds for suspension and possible debarment;</text>
      </paragraph>
      <paragraph num="D.">
        <text>The effect of suspension and possible debarment;</text>
      </paragraph>
      <paragraph num="E.">
        <text>The person's right to request a hearing on suspension and possible debarment by written communication received by the Board within 30 days after the person receives the notice and that the request shall include response to the administrative complaint;</text>
      </paragraph>
      <paragraph num="F.">
        <text>The person's right to be represented by counsel at the hearing; and</text>
      </paragraph>
      <paragraph num="G.">
        <text>That the failure to request a hearing shall waive the person's right to a hearing and result in debarment.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".02" heading="Hearings.">
      <paragraph num="A.">
        <text>A person who fails to make a timely request for a hearing:</text>
        <paragraph num="(1)">
          <text>Waives the right to a hearing and to any subsequent appeal; and</text>
        </paragraph>
        <paragraph num="(2)">
          <text>Is debarred.</text>
        </paragraph>
      </paragraph>
      <paragraph num="B.">
        <text>If a person subject to debarment proceedings requests a hearing, the Board may refer the case and transmit the record to the Office of Administrative Hearings, which shall appoint an administrative law judge who shall conduct the hearing within a reasonable time after receipt of the record from the Board.</text>
      </paragraph>
      <paragraph num="C.">
        <text>If the person has been debarred by operation of law pursuant to State Finance and Procurement Article, §16-202(a), Annotated Code of Maryland, and COMAR 21.08.03.01, or has been suspended pending the outcome of debarment proceedings, the administrative law judge shall provide a hearing within 45 days from the date of the Board's referral of the matter and transmission of the record to the Office of Administrative Hearings unless the person consents to a longer time period.</text>
      </paragraph>
      <paragraph num="D.">
        <text>The administrative law judge assigned by the Office of Administrative Hearings shall give notice of the hearing to the person pursuant to State Government Article, §10-205, Annotated Code of Maryland, and COMAR 23.01.03.03.</text>
      </paragraph>
      <paragraph num="E.">
        <text>The administrative law judge shall conduct the hearing in accordance with State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland, and COMAR 23.01.03.</text>
      </paragraph>
      <paragraph num="F.">
        <text>Evidence.</text>
        <paragraph num="(1)">
          <text>The Attorney General shall present evidence concerning the basis for debarment and the appropriate duration of debarment and may make a recommendation as to the duration of the proposed debarment.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>If the person has been debarred by operation of law pursuant to COMAR 21.08.03.01, the person may present evidence in its defense limited solely to whether the stated bases for debarment exist and the appropriate duration of debarment.</text>
        </paragraph>
        <paragraph num="(3)">
          <text>If the proposed debarment is based upon the causes enumerated in COMAR 21.08.03.02 or .03, the person may present evidence on whether the stated bases for debarment exist and on the appropriate duration of debarment. The person may also present evidence in mitigation addressed to the following issues:</text>
          <paragraph num="(a)">
            <text>The nature and seriousness of the act that caused the person to be subject to debarment;</text>
          </paragraph>
          <paragraph num="(b)">
            <text>The time the act occurred;</text>
          </paragraph>
          <paragraph num="(c)">
            <text>Whether and to what extent the person cooperated with authorities in their investigation of the matter;</text>
          </paragraph>
          <paragraph num="(d)">
            <text>The conditions under which the person cooperated; and</text>
          </paragraph>
          <paragraph num="(e)">
            <text>The conduct of the person since the act occurred.</text>
          </paragraph>
        </paragraph>
        <paragraph num="(4)">
          <text>If a business has been debarred by operation of law pursuant to State Finance and Procurement Article, §16-307, Annotated Code of Maryland, and COMAR 21.08.03.04, the business may present evidence in its defense limited solely to whether the debarred person remains associated with the business as an officer, director, controlling shareholder, partner, or employee directly involved in the process of obtaining contracts with public bodies.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".03" heading="Decisions.">
      <paragraph num="A.">
        <text>The administrative law judge shall issue a proposed decision containing findings of fact and conclusions of law within 90 days after the hearing.</text>
      </paragraph>
      <paragraph num="B.">
        <text>The administrative law judge shall send the proposed decision, by certified mail, to the Attorney General and the persons subject to debarment and shall notify these parties that oral argument may be requested before the Board by any party adversely affected by the proposed decision.</text>
      </paragraph>
      <paragraph num="C.">
        <text>Within 15 days after receipt of the proposed decision, a party adversely affected by the proposed decision may file written exceptions to the proposed decision and may request oral argument before the Board as follows:</text>
        <paragraph num="(1)">
          <text>A party that files written exceptions to the proposed decision or requests oral argument before the Board shall include in the exceptions or request precise references to those sections of the record that the party wishes the Board to review.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>References to the record, other than any transcript of testimony, shall be indicated as “R . . . ”, and references to any transcript of testimony as contained in the record shall be indicated as “T . . . ”.</text>
        </paragraph>
        <paragraph num="(3)">
          <text>If a party fails to provide the references specified in §C(2) of this regulation, the Board may dismiss any request for oral argument and may base its review of the proposed decision on whatever portion of the record it considers appropriate.</text>
        </paragraph>
      </paragraph>
      <paragraph num="D.">
        <text>If oral argument is not requested, the Board shall issue its final decision within a reasonable time.</text>
      </paragraph>
      <paragraph num="E.">
        <text>If oral argument is requested, the Board shall notify the parties of the date, time, and place for the argument, which shall be held within a reasonable time of the receipt of a request for the oral argument.</text>
      </paragraph>
      <paragraph num="F.">
        <text>The Board shall issue a final decision, copies of which shall be mailed to all parties, by certified mail, within a reasonable time after the oral argument.</text>
      </paragraph>
      <paragraph num="G.">
        <text>In its final decision, the Board shall notify the person that the person is:</text>
        <paragraph num="(1)">
          <text>Debarred, specifying:</text>
          <paragraph num="(a)">
            <text>The reasons for debarment,</text>
          </paragraph>
          <paragraph num="(b)">
            <text>The nature of the debarment sanctions applied, and</text>
          </paragraph>
          <paragraph num="(c)">
            <text>The period of debarment; or</text>
          </paragraph>
        </paragraph>
        <paragraph num="(2)">
          <text>Not debarred and that any suspension has been terminated as of the date of the Board's decision.</text>
        </paragraph>
      </paragraph>
      <paragraph num="H.">
        <text>All final decisions issued by the Board shall include findings of fact and conclusions of law in accordance with State Government Article, §10-221, Annotated Code of Maryland, which may incorporate by reference or be adopted from the proposed decision of the administrative law judge.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".04" heading="Scope of Sanctions.">
      <paragraph num="A.">
        <text>If a person is debarred based on grounds set forth in State Finance and Procurement Article, §16-202, Annotated Code of Maryland, and COMAR 21.08.03.01 or .02, the person may not be considered for the award of, be awarded, or perform, directly or indirectly, a contract with a public body during the period of debarment. Units shall immediately terminate any existing contracts with debarred persons effective on the date of debarment.</text>
      </paragraph>
      <paragraph num="B.">
        <text>If a person is debarred based on grounds set forth in State Finance and Procurement Article, §16-203, Annotated Code of Maryland, and COMAR 21.08.03.03, the person may not be considered for the award of, be awarded, or perform, directly or indirectly, a contract with the State during the period of the debarment. Units shall immediately terminate any existing contracts with debarred persons effective on the date of debarment.</text>
      </paragraph>
      <paragraph num="C.">
        <text>If a business is debarred pursuant to State Finance and Procurement Article, §16-307, Annotated Code of Maryland, and COMAR 21.08.03.04, as a result of the debarment of an officer, director, controlling shareholder, partner, or employee directly involved in its contracting activities, the debarment of the business shall be coextensive with that of the officer, director, controlling shareholder, partner, or employee directly involved in its contracting activities.</text>
      </paragraph>
      <paragraph num="D.">
        <text>In determining the scope or period of a person's debarment, the Board may impose such conditions on the person's State contract related activities as the Board considers appropriate, including, for example, and not by limitation, a deferred debarment date to give agencies sufficient time to transition to new contractors and appropriate monitoring of the person's current or future contracting activities with the State. If the Board does not specify a period of debarment, the time period of a debarment is indefinite.</text>
      </paragraph>
    </regulation>
    <regulation prefix="Regulation" num=".05" heading="Appeal.">
      <text>A party adversely affected by a final decision of the Board may obtain judicial review of the Board's decision as provided by State Government Article, Title 10, Subtitle 2, Annotated Code of Maryland.</text>
    </regulation>
    <regulation prefix="Regulation" num=".06" heading="Termination of Suspension or Debarment.">
      <paragraph num="A.">
        <text>If a person's suspension or debarment is based upon a conviction that subsequently is reversed or otherwise is rendered void, the suspension or debarment shall terminate automatically.</text>
      </paragraph>
      <paragraph num="B.">
        <text>If a person is suspended pending debarment proceedings and the Board determines that an insufficient basis for commencing debarment proceedings exists, the suspension shall terminate automatically.</text>
      </paragraph>
      <paragraph num="C.">
        <text>A State debarment based solely on a federal debarment shall terminate automatically if:</text>
        <paragraph num="(1)">
          <text>The federal debarment that is the basis for the State debarment is reversed or otherwise rendered void; and</text>
        </paragraph>
        <paragraph num="(2)">
          <text>The person debarred provides to the Board sufficient legal documentation that the federal debarment has been reversed or otherwise rendered void.</text>
        </paragraph>
      </paragraph>
      <paragraph num="D.">
        <text>A person who has been debarred under State Finance and Procurement Article, §16-202, Annotated Code of Maryland, and COMAR 21.08.03.01 or .02, may petition the Board for termination of the debarment at any time after 5 years from the date of debarment.</text>
      </paragraph>
      <paragraph num="E.">
        <text>A person who has been debarred under State Finance and Procurement Article, §16-203, Annotated Code of Maryland, and COMAR 21.08.03.03, may petition the Board for termination of the debarment after the expiration of the lesser of one-half the period of debarment or 5 years from the date of debarment.</text>
      </paragraph>
      <paragraph num="F.">
        <text>A petition for termination of debarment shall be served on the Board, the Attorney General, the Secretaries of Budget and Management, General Services, Public Safety and Correctional Services, and Transportation, and the Chancellor of the University System of Maryland, each of whom may comment to the Board on the petition.</text>
      </paragraph>
      <paragraph num="G.">
        <text>Petition for Termination of Debarment.</text>
        <paragraph num="(1)">
          <text>Within 90 days after receiving a petition for termination of a debarment, the Board, in its discretion, shall determine whether to conduct a hearing regarding the petition and shall notify the person of the Board's decision.</text>
        </paragraph>
        <paragraph num="(2)">
          <text>If the Board decides to conduct a hearing regarding a petition for termination of debarment, it may refer the matter to the Office of Administrative Hearings, which shall appoint a hearing officer to conduct a hearing in accordance with the procedures in Regulations .02 and .03 of this chapter.</text>
        </paragraph>
        <paragraph num="(3)">
          <text>If the Board determines not to conduct a hearing regarding a petition for termination of debarment, it shall give written notice by certified mail to the person that the debarment is terminated or is continued.</text>
        </paragraph>
      </paragraph>
    </regulation>
    <annotations>
      <annotation type="Authority">State Finance and Procurement Article, §§11-205.1, 12-101, and 16-101—16-312; State Government Article, §§10-201—10-217; Annotated Code of Maryland</annotation>
      <annotation type="History" subtype="Administrative History">Effective date:</annotation>
      <annotation type="History" subtype="Administrative History">Regulations .01—.07 adopted as an emergency provision effective July 28, 1982 (9:17 Md. R. 1701); emergency status extended at 9:20 Md. R. 1980; adopted permanently effective October 25, 1982 (9:21 Md. R. 2107)</annotation>
      <annotation type="History" subtype="Administrative History">Regulations .01, .05—.07 amended effective January 2, 1983 (9:26 Md. R. 2574)</annotation>
      <annotation type="History" subtype="Administrative History">Chapter revised as an emergency provision effective February 11, 1983 (10:4 Md. R. 314); emergency status extended at 10:8 Md. R. 723 (Emergency regulations are temporary and not printed in COMAR)</annotation>
      <annotation type="History" subtype="Administrative History">Chapter revised as an emergency provision effective April 30, 1983 (10:9 Md. R. 788); adopted permanently effective July 5, 1983 (10:13 Md. R. 1182)</annotation>
      <annotation type="History" subtype="Administrative History">Chapter revised effective January 9, 1989 (15:27 Md. R. 3138)</annotation>
      <annotation type="History" subtype="Administrative History">Regulations .01—.12, Debarment—Statutory Violations, repealed and new Regulations .01—.06, Proceedings, adopted effective August 2, 1993 (20:15 Md. R. 1221)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .01 amended effective October 2, 2000 (27:19 Md. R. 1731); March 15, 2004 (31:5 Md. R. 451); November 7, 2005 (32:22 Md. R. 1759); April 7, 2008 (35:7 Md. R. 751)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .03H amended effective April 7, 2008 (35:7 Md. R. 751)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .04 amended effective April 7, 2008 (35:7 Md. R. 751)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .04E amended effective March 15, 2004 (31:5 Md. R. 451)</annotation>
      <annotation type="History" subtype="Administrative History">Regulation .06 amended effective March 13, 2006 (33:5 Md. R. 523)</annotation>
    </annotations>
  </chapter>
  <chapter num="05" heading="Contested Cases" reason="Repealed">
    <annotations>
      <annotation type="History" subtype="Administrative History">Effective date: September 12, 1983 (10:18 Md. R. 1610)</annotation>
      <annotation type="History" subtype="Administrative History">Regulations .01, .02, .04, .06B, and .08B and C amended effective January 9, 1989 (15:27 Md. R. 3138)</annotation>
      <annotation type="History" subtype="Administrative History">Chapter repealed effective August 2, 1993 (20:15 Md. R. 1221)</annotation>
    </annotations>
  </chapter>
  <chapter num="06" heading="Conditional Suspension, Suspension and Debarment for Unsatisfactory Performance and Improper Conduct" reason="Repealed">
    <annotations>
      <annotation type="History" subtype="Administrative History">Effective date: August 11, 1986 (13:16 Md. R. 1828)</annotation>
      <annotation type="History" subtype="Administrative History">Chapter revised effective January 9, 1989 (15:27 Md. R. 3138)</annotation>
      <annotation type="History" subtype="Administrative History">Chapter repealed effective August 2, 1993 (20:15 Md. R. 1221)</annotation>
    </annotations>
  </chapter>
</subtitle>