Preliminary Note: The U.S. Department of Transportation recently released a long-awaited Notice of Proposed Rulemaking to modernize the Disadvantaged Business Enterprise (DBE) program regulations. This blog is part of a series looking at some of the significant proposed changes. A copy of all of the proposed changes can be found here. Comments are due October 31, 2022.

Comments have been open for several months after the release of proposed changes to the Federal DBE rules. As of the date of writing, there have been 131 comments submitted and published. These comments run the gamut from short one-liners to a 45-page detailed analysis. This blog post will discuss some of the themes that have become apparent throughout the comments.

Ability to Accumulate Substantial Wealth

The proposed changes to the Ability to Accumulate Substantial Wealth (my blog on those changes) were universally panned by both DBEs and DOTs alike. Commenters strongly disliked the proposed changes, which removed six objective factors and left it up to a subjective standard. Numerous commenters pointed out that these changes would be applied unequally, leading to significantly increased appeals to the USDOT. Many commenters favored a change to more objective factors.

Strong Support for Personal Net Worth Limit Increase

The proposed changes in the Personal Net Worth limits (my blog on those changes) from $1.32 million to $1.6 million with an exclusion of retirement accounts received strong support. Many commenters advocated for an even higher limit, with $5 million being a popular number. A few commenters advocated against an increase, seemingly wanting the focus to be on very small businesses.

Need to Define “Transportation-Related”

Another frequent comment from individuals and DOTs alike was the need to define the term “transportation-related.” The proposed changes (summarized in my blog post here) seek to limit DBE certification only to businesses in “transportation-related” industries but does not provide a definition of that term.

Need to Consider Regional Differences

Frequently, with regards to the Personal Net Worth and Ability to Accumulate Substantial Wealth analysis, commenters pointed out the need to adjust for regional differences. What is considered wealthy in a small town in the rural south can be vastly different than what is considered wealthy in an expensive city such as New York City.

Simplification of Interstate Certification Favored

Proposed changes to simplify and streamline the interstate certification process (summarized in my blog here) were met with applause. The comments contained numerous calls for a national certification. A few state departments of transportation did not favor the changes and they wanted to maintain control over the businesses certified in their states.

Have your own thoughts or suggestions on the proposed rules? You can make your voice heard by offering your comment here (deadline is October 31, 2022).