REVISED RULES AND REGULATIONS
BY THE
COLORADO DEPARTMENT OF TRANSPORTATION
FOR THE
COLORADO STATE INFRASTRUCTURE BANK
2 CCR 605-1

RULE I – General Provisions

SECTION 1.Authority – These rules are adopted pursuant to the authority contained in sections 43-1-113.5 (3) CRS.

SECTION 2.Purpose – The purpose of these rules is to define eligibility requirements, prescribe the application and selection processes, and to detail certain terms for securing financial assistance, for public transportation projects within the state, from the CO SIB.

SECTION 3.Applicability – These rules shall be applicable to any public or private project sponsor of public transportation projects within the state.

RULE II – Definitions

Definitions of terms – The following definitions shall apply to terms used in the Rules.
(1) “CO SIB” shall refer to the Colorado state infrastructure bank.
(2) “CFR” shall mean the code of federal regulations.
(3) “Commission” shall refer to the transportation commission of Colorado – the state’s transportation decision-making body.
(4) “CRS” shall mean the Colorado revised statutes, as amended.
(5)	“Default” shall refer to the condition of a loan where the recipient has failed to meet a contractual obligation, including but not limited to: failure to make the loan payment after ninety (90) days; failure to use loan proceeds for stated purpose; failure to submit progress reports.
(6)	“Delinquent” shall refer to a loan that is thirty (30) to ninety (90) days past due.
(7) “Department” shall refer to the Colorado department of transportation.
(8) “Federal-aid program” shall refer to any funds authorized by the United States congress to assist states in providing for transportation.
(9) “Financial assistance” shall mean a loan or any credit assistance that the
Colorado state infrastructure bank is authorized to offer.
(10) “Interest rate” shall refer to the semi-annual interest rate approved by the Commission.
(11) “OFMB” shall refer to the Colorado department of transportation’s office of financial management and budget.
(12) “Political subdivision” shall mean a county, municipality, service authority, or special district authorized to enter into intergovernmental agreements pursuant to 29-1-203 (2) CRS.
(13) “Project sponsor” shall refer to the entity or organization that is requesting financial assistance.
(14) “Public-private initiative” shall mean a nontraditional arrangement between the department and one or more private or public entities as defined in 43-1-1201 (3) CRS.
(15) “Review committee” shall refer to the SIB loan review committee.
(16) “State” shall refer to the state of Colorado.
(17) “State agency” shall mean every entity in the executive branch of the state’s government including boards, commissions, departments, divisions, and offices.
(18) “TIP/STIP” shall mean the metropolitan planning organization’s multiyear transportation improvement program/statewide transportation improvement program.
(19) “Transportation project” shall mean the planned undertaking of an endeavor for the purpose of conveying passengers or goods. 

RULE III – Eligibility Requirements for Financial Assistance

SECTION 1.Eligible project sponsors – Entities eligible to receive financial assistance from the CO SIB shall include public entities such as political subdivisions and state agencies. Also, private companies and non-profit organizations shall be eligible either with a local government partner, or under the authority of a public-private initiative.

SECTION 2.Eligible projects – (1) Only qualified projects shall be eligible for financial assistance. Qualified projects shall include any commission-authorized project, right-of-way acquisition, federal-aid project, maintenance project, or safety project.
(2) Commission authorized projects – Any public or private transportation project as authorized by the commission including, but not limited to planning, environmental impact studies, feasibility studies, engineering, construction, reconstruction, resurfacing, restoring, rehabilitation, or replacement of a public or private transportation facility within the state.
(3) Right-of-way acquisitions – The acquisition of real or personal property, or interests therein, for a public or private transportation facility within the state.
(4) Federal projects – Any highway, transit, aviation, rail, or other transportation project within the state that is eligible for financing or financial assistance under state or federal law.
(5) Maintenance projects – The maintenance, repair, improvement, or construction of any public or private highway, road, street, parkway, transit, aviation, or rail project within the state.
(6) Safety Projects – The acquisition, improvement, or construction of rights-of-way, bridges, tunnels, railroad-highway crossings, drainage structures, signs, guardrails, or protective structures within this state.

SECTION 3.Ineligible Projects – Qualified projects shall not include transportation facilities and other transportation projects that are restricted to private use.

RULE IV – Disbursement of Moneys

SECTION 1.Application process – (1) All applications shall be submitted to the department.  The application shall be completed as described in the application package.  If the application received by the department is incomplete, at that time it shall be rejected and not considered for financial assistance until completed.
(2) Application package – The application package shall contain instructions and guidelines for completing the application and such package shall be available upon request. The project sponsor shall be responsible for requesting an application package from the department.

SECTION 2.Project evaluation – The overall objective of the project evaluation process is to provide a mechanism for the recommendation of potential transportation projects for financial assistance to the Commission. The evaluation shall identify how such project will benefit from financial assistance and the capability of the project sponsor to meet the terms for debt repayment. A review committee shall evaluate the projects, and provide documentation and recommendation regarding the projects.

SECTION 3. Evaluation criteria – (1) Project evaluations shall be accomplished by incorporating a rating scheme across specific criteria as described below: 
(2) Project Type – Project sponsors shall identify the type of project (road and highway, transit, aviation, and rail). This shall allow the commission to promote its objectives regarding types of transportation projects assisted by the CO SIB.
(3) Public/Private Partnerships – Project sponsors shall indicate whether it is a public or private entity. An evaluation on the basis of public/private partnerships shall allow the CO SIB to facilitate transportation projects that promote public purposes and feature some private financing.
(4) Financial Need – Project sponsors shall submit financial and technical information as requested in the application to help identify how sponsored transportation projects would benefit financially from financial assistance.
(5) Repayment Source – The project sponsor shall present a statement of revenue sources for the purpose of paying back loans, e.g., fees, HUTF revenues, local option sales taxes, and general fund property taxes. This criterion shall allow the sponsor to demonstrate its ability to repay the loan.
(6) Security Provisions – The project sponsor shall be required to identify security provisions, e.g., HUTF revenues, property, bank reserves. This criterion shall allow a measure of the project sponsor’s potential to secure the loan.
(7) Financial Ratios – Project sponsors shall provide the appropriate information regarding its current financial condition and substantiating documentation on the total cost of the project including additional sources that the sponsor may intend to uses to complete the project. This criterion shall demonstrate the project sponsor’s commitment to its project and validate the cost of the project.
(8) Term of Financial Obligation – The project sponsor shall indicate how long it needs to repay the loan up to ten years. This criterion shall illustrate the length of the CO SIB’s financial obligation to a project sponsor’s transportation project, which is important to replenishing the Colorado state infrastructure bank’s capital to accommodate future financial assistance to subsequent applicants.
(9) Project Viability – Project sponsors shall reveal any other options for funding the project. This criterion shall provide a measure of a project’s viability without financial assistance from the CO SIB.
(10) Project Benefits – Project sponsors shall be required to briefly describe the benefits of its transportation project.  As a counterpoint, project sponsors shall also be required to describe the likely negative effects of NOT receiving financial assistance from the CO SIB. This criterion shall identify benefits gained, from the transportation project receiving financial assistance, to transportation system.
(11) Project Planning – In order to demonstrate local commitment as part of a fiscally constrained plan, project sponsors shall indicate if their project is in the TIP/STIP, eligible to be amended into the TIP/STIP, in another approved transportation planning document, or not in any plan.

SECTION 4. Evaluation procedures – (1) A review committee shall evaluate all loans based upon the responses to the criteria described in section 3 of Rule IV herein, and submit its recommendation and final evaluation to the OFMB.
(1) Highway and road related projects – The review committee shall coordinate with the appropriate engineering region regarding technical approval of highway or road related projects and then shall arrive at a final evaluation of the projects.
(2) Aviation projects – The review committee shall coordinate with the Colorado aeronautical board in conjunction with the division of aeronautics regarding technical approval of aviation projects and then shall arrive at a final evaluation of the projects.
(3) Transit and rail projects – The review committee shall coordinate with the transit and rail division regarding technical approval of transit or rail projects and then shall arrive at a final evaluation of the projects.

SECTION 5.Funding procedure – (1) The OFMB shall present the review committee’s recommendation and evaluation to the commission for action, and the commission shall set the maximum level of financial assistance for the project.

SECTION 6.Loan agreement – (1) The OFMB shall negotiate the terms of a loan agreement with the approved project sponsor.

RULE V – Interest Rates and Fees

SECTION 1.Interest Rates and Fees – (1) Interest earnings and/or origination fees are required to re-capitalize the CO SIB and to offset a portion of the cost of its administration. There shall be no interest free loans. However, interest payments may be delayed for up to two years, and all accrued interest can be capitalized into the principal outstanding balance. In addition, an origination fee to partially offset the cost of administering the CO SIB may be assessed.  If such fee is assessed, the calculated amount can be added to principal to be repaid according to the agreed upon amortization schedule.
(2) Interest Rate – The interest rate for loans from the CO SIB shall be established and by resolution, adopted by the commission not later than June 30, of each year for loans applied for during the ensuing months of July; August; September; October; November; December. An interest rate shall be established and by resolution, adopted by the commission not later than December 31, of each year for loans originating during the ensuing months of January; February; March; April; May; June.
(3) Origination Fee – Pursuant to 43-1-113.5 (7) CRS a fee may be charged to reimburse the department for reasonable expenses incurred while administering the CO SIB. Not later than June 30, of each year the commission shall determine whether or not to assess an origination fee for the ensuing fiscal year.  If assessed the origination fee schedule shall be as follows: a maximum of one percent for loan proceeds up to $1 million, three-quarters of a percent for loan proceeds over $1 million and up to $2.5 million, one-half percent on the amount of loan proceeds over $2.5 million and up to $5 million, and one-quarter percent on the amount of loan proceeds over $5 million.

RULE VI – Repayment of Loans

SECTION 1.Loan amortization – Financial assistance in the form of a loan shall be amortized and simple interest shall be applied to the outstanding principal of each loan. An amortization schedule shall be attached to the loan agreement between the department and the project sponsor.
SECTION 2.Payback Period – The payback period for financial assistance shall be not more than ten years. The term of a loan requested by a project sponsor shall be one of the criteria used for evaluation.  
SECTION 3 Remedies in case of default – (1) If a recipient of financial assistance from the CO SIB fails to meet any of the terms or conditions of the loan agreement, such recipient shall be deemed in default, as defined in Rule II (5). The department shall notify the recipient of the condition. If the recipient fails to cure within thirty (30) days thereof, the department may declare the entire principal amount of the loan then outstanding immediately due and payable, and bring a right of action against such recipient in district court to seek any applicable legal or equitable remedy, including reasonable attorney fees.
(2) Delinquent payments – If the recipient is delinquent, as defined in Rule II (6), on its scheduled payment to the CO SIB, the delinquent payment is subject to a LATE CHARGE penalty that can be noted on the recipients credit report as a past due payment.  
(3) Default on loan repayment – If the recipient’s loan payment is more than 90 days past due, the recipient shall be deemed in default.    In addition to the provisions set forth in paragraph (1) hereof, the department may initiate debt collection efforts to recover the amounts due.  If the recipient is a political subdivision receiving other funding from the department and such recipient is in default on repayment of the loan, the department may withhold funds that it would otherwise disburse to the recipient, in an amount that does not exceed what a recipient owes to the fund. Such funds shall be deposited in the CO SIB account from which the recipient received the loan and credited towards the amount due from the recipient.