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Terms Used In Maryland Code, STATE FINANCE AND PROCUREMENT 14-308

  • Contract: A legal written agreement that becomes binding when signed.
  • Conviction: A judgement of guilt against a criminal defendant.
  • Fraud: Intentional deception resulting in injury to another.
  • Person: includes an individual, receiver, trustee, guardian, personal representative, fiduciary, representative of any kind, corporation, partnership, business trust, statutory trust, limited liability company, firm, association, or other nongovernmental entity. See
  • state: means :

    (1) a state, possession, territory, or commonwealth of the United States; or

    (2) the District of Columbia. See
(a) (1) A person may not:

(i) fraudulently obtain, hold, or attempt to obtain or hold certification;

(ii) aid another person in performing an act prohibited under item (i) of this paragraph;

(iii) willfully obstruct, impede, or attempt to obstruct or impede a State official or employee investigating the qualifications of a business entity that has requested certification;

(iv) fraudulently obtain, attempt to obtain, or aid another person in fraudulently obtaining or attempting to obtain, public money to which the person is not entitled under this subtitle; or

(v) in any minority business enterprise matter administered under this subtitle:

1. willfully falsify, conceal, or cover up a material fact by any scheme or device;

2. make a false or fraudulent statement or representation; or

3. use a false writing or document that the person knows to contain a false or fraudulent statement or entry.

(2) Except as otherwise provided by law, a contractor may not identify a certified minority business enterprise in a bid or proposal and:

(i) fail to request, receive, or otherwise obtain authorization from the certified minority business enterprise to identify the certified minority business enterprise in its bid or proposal;

(ii) fail to notify the certified minority business enterprise before execution of the contract of its inclusion of the bid or proposal;

(iii) fail to use the certified minority business enterprise in the performance of the contract; or

(iv) pay the certified minority business enterprise solely for the use of its name in the bid or proposal.

(3) A person who violates any provision of this subsection is guilty of a felony and on conviction is subject to a fine not exceeding $20,000 or imprisonment not exceeding 5 years or both.

(b) (1) A person may not make a false statement about whether an entity has certification.

(2) A person who violates this subsection is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $2,500 or imprisonment not exceeding 1 year or both.

(c) The Governor’s Office of Small, Minority, and Women Business Affairs shall make available a fraud hotline for reporting violations of this section.