(a) The board may establish regional water banks, as necessary, to fulfill the requirements of the Texas Water Code, Chapter 15, Subchapter K. The board, by contract or agreement, may designate state agencies, political subdivisions, or other entities or persons it may deem appropriate to act as regional banks. Regional banks shall utilize the same procedures and meet the same requirements that are specified by this chapter, unless otherwise specifically authorized by the board. Regional banks shall report all activities to the administrator in a manner and frequency specified by the administrator. Fees specified in §359.14 of this title (relating to Fees) shall be collected by the regional bank, in accordance with the contract or agreement executed with the board. In evaluating the designation of and necessity for regional banks, the board may consider the regional bank's proposed rules and procedures for the following:      
        (1) determining themethod of allocation among competing buyers to lease or purchase water rights;        
          (2) determining the method of allocation among the depositors for reimbursement; determining the fees and their allotment under the Texas Water Code, §15.705;          
            (3) method of notification of the board, commission, and department of regional bank activities; and            
              (4) such other factors as are deemed appropriate by the board.              
                (b) Deposits into a duly authorized regional bank shall enjoy the same protection and limitations as deposits made into the bank established by these rules. The administrator may periodically review a regional bank for its performance and continuing necessity. The board may dissolve any regional bank which it has established under this section.               
     Source Note:        The provisions of this §359.13 adopted to be effective May 13, 1994, 19 TexReg 3257.