PURPOSE: This rule describes the various affidavits and other documents each currently certified DBE firm must file with MoDOT to remain certified; and the legal implications for a DBE firm which fails to timely file the required affidavit or other documents.

1. (1) Sworn Affidavit of a Material Change in the DBE’s Status or Circumstances.

   1. (A) As required by 49 CFR section 26.83(i), each certified Disadvantaged Business Enterprise (DBE) firm must inform the Missouri Department of Transportation (MoDOT) in writing of any change in circumstances which affects the firm’s legal ability to meet the size, disadvantaged status, ownership or control requirements of 49 CFR part 26; or of any material change in the information provided in the firm’s last DBE certification process with MoDOT. This includes, but is not limited to, changes in a firm’s management or management responsibilities; changes in operational or daily control of the firm’s business; changes in firm ownership; material changes in the firm’s annual gross receipts; or material changes in the personal net worth of any one owner who was represented or found to be socially and economically disadvantaged. This written notice to MoDOT should be sent to MoDOT’s DBE Program liaison officer, the external civil rights administrator.
   2. (B) The written notice must take the form of an affidavit by the firm’s socially and economically disadvantaged individual owners, sworn to before a notary public or other person who is authorized by state law to administer oaths; or else it may be an unsworn declaration which clearly contains a written affirmation that it is executed by each individual signing it under penalty of perjury as provided in the laws of the United States.
   3. (C) The DBE firm and its controlling owners must provide this written notification to MoDOT within thirty (30) days of the occurrence of the change in question, regardless of when the change in status or circumstances occurred. If the DBE firm or its owners fails to make a timely written notification to MoDOT of such a change in status or circumstances, the firm will be deemed to have failed to cooperate, and shall subject the firm to removal of eligibility as a DBE, and each of them to any one or more of the other sanctions provided in 49 CFR section 26.109(c), or elsewhere in state or federal law. An intentional failure to timely notify MoDOT of the change in status or circumstances may subject the DBE firm or its owners to federal or state criminal prosecution for fraud or other crimes, and may also result in contractual or other liability as well.

2. (2) Annual Sworn Affidavit.

   1. (A) Each year, on or before the annual anniversary date of its last certification, each DBE firm must submit a sworn and notarized affidavit from each of the firm’s controlling socially and economically disadvantaged owners, executed under penalty of perjury of the laws of the United States. If a notary is not available, then the affidavit must be executed before a person who is authorized by state law to administer oaths. This affidavit must truthfully, accurately and completely affirm that there have been no changes in the firm’s status or circumstances affecting its ability to meet the DBE firm size, ownership or control requirements of 49 CFR part 26, that there have been no changes in that individual owner’s status, personal net worth or other circumstances which may affect that individual’s status as socially and economically disadvantaged under 49 CFR part 26, that there have been no other material changes in any of the other information originally provided with the firm’s application for DBE certification, and that the firm is still eligible for MoDOT DBE certification status; except as the firm may have previously notified or be notifying MoDOT under 49 CFR section 26.83(i) and section (1) of this rule. These affidavits must be accompanied by the most recent personal state and federal income tax returns for each socially and economically disadvantaged individual who is on record with MoDOT as owning and controlling the firm; plus the DBE firm’s most recent state and federal income tax returns; and the DBE firm’s most recent financial statement. If any audited financial statement has been prepared for an individual disadvantaged owner (individually or jointly with his or her spouse) or for the DBE firm since the last certification date or its annual anniversary, then a complete photocopy of that document must also be provided, including but not limited to its asset and liability descriptions, balance sheets, and all its notes, footnotes, and accompanying statements and qualifications.
   2. (B) MoDOT will notify each DBE firm by regular U.S. mail in writing at least thirty

3. (30) days before the annual anniversary date of certification of this annual sworn affidavit and its accompanying document submission requirement. However, regardless of whether the firm receives that notification, it is the DBE firm’s responsibility to timely submit the required affidavit and other documentation.

   1. (C) If the DBE firm and its owners fail to make a timely submission to MoDOT of the required annual affidavits and documentation, or if the information contained therein is not accurate, complete and truthful, the firm will be deemed to have failed to cooperate, which shall subject the firm to removal of eligibility as a DBE, and to any one or more of the other sanctions provided in 49 CFR section 26.109(c), or elsewhere in state or federal law. An intentional failure to truthfully, accurately and completely notify MoDOT in the annual affidavit and its submissions of any change in status or circumstances may subject the DBE firm or its owners to federal or state criminal prosecution for fraud or other crimes, and may also result in contractual or other liability as well.

7 CSR 10-8 AUTHORITY: section 226.150, RSMo 1994*; Title 49 Code of Federal Regulations part 26; section 1101(b) of the Transportation Equity Act for the 21st Century (TEA-21), Public Law 105-178, 112 Stat. 107, 113; and MoDOT’s approved DBE Program submittals to the U.S. Department of Transportation. Emergency rule filed May 10, 2000, effective May 20, 2000, expired Nov. 6, 2000. Original rule filed May 10, 2000, effective Nov. 30, 2000. *Original authority: 226.150, RSMo 1939, amended 1977.