1. A. In this subtitle, the following words have the meanings indicated.

2. B. Terms Defined.

   1. (1) “Business” means an individual, or a corporation, partnership, sole proprietorship, joint venture, or any other legal entity through which commercial activity is conducted.
   2. (2) “Contract” means any agreement in any form.

   3. (3) “Controlling stockholder” means a stockholder who:

      1. (a) Owns more than 25 percent of the voting shares of a corporation; or
      2. (b) 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.

   4. (4) “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:

      1. (a) A conviction entered upon an accepted plea of nolo contendere; or
      2. (b) The imposition of probation before judgment.
   5. (5) “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.
   6. (6) “Principal” means a person with actual or apparent authority to enter into a contract on behalf of a business.

   7. (7) “Public body” means:

      1. (a) The State;
      2. (b) A unit; or
      3. (c) A local governmental entity in the State, including a bicounty or multicounty governmental entity.

   8. (8) Unit.

      1. (a) “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.

      2. (b) “Unit” does not include:

         1. (i) A bistate, multistate, bicounty, or multicounty governmental agency; or
         2. (ii) A special tax district, sanitary district, drainage district, soil conservation district, water supply district, or other political subdivision of the State.

   9. (9) Unsatisfactory Performance.

      1. (a) “Unsatisfactory performance” means deficient performance or default, within the preceding 5 years, on one or more contracts.

      2. (b) “Deficient performance” includes but is not limited to:

         1. (i) Failure to perform in accordance with contract specifications or terms and conditions;
         2. (ii) Untimely performance;
         3. (iii) Performance that violates an applicable statute, regulation, ordinance, code, or standard of performance in the relevant industry.

Authority: State Finance and Procurement Article, §§11-205.1, 12-101, and 16-201—16-312, Annotated Code of Maryland

Effective date: July 1, 1981 (8:13 Md. R. II-5)

Regulations .01—.03 amended effective January 9, 1989 (15:27 Md. R. 3138)

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)

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)

Regulation .02B amended effective October 2, 2000 (27:19 Md. R. 1731)

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)