Sec. 05.01.05.05. Grounds for Suspension and Debarment

A. A person may be suspended or debarred if that person has:

(1) Been rated unsatisfactory by the Department after participation in one or more programs of the Department as a result of failure to:

(a) Comply with the rules, regulations, or guidelines of the Department,

(b) 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,

(c) Maintain or make available for inspection full and complete records required or requested by the Department,

(d) 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,

(e) Remedy errors, defects, or related matters determined to exist by the Department, in the exercise of its reasonable judgment, in a timely manner, or

(f) 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;

(2) Been placed on any disapproved or debarred list maintained by any governmental entity;

(3) 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;

(4) 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:

(a) 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,

(b) 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,

(c) 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

(5) 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:

(a) 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

(b) 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.

B. A person that is a business entity also may be debarred or suspended if:

(1) The Secretary finds the business entity has been formed or established in a manner intended to evade the purpose of this chapter; or

(2) Any of the individuals related to the business entity as follows are debarred or suspended:

(a) An officer of the entity;

(b) A director of the entity;

(c) A stockholder of the entity;

(d) A stockholder of a corporate general or limited partner of the entity;

(e) A general partner of the entity;

(f) A limited partner of the entity;

(g) A principal of the entity; or

(h) An individual who controls the business activities of the entity.

C. 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.

D. 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.