Amend CSSB 2 on second reading by adding article 10 as
follows:
      SECTION 1.  Chapter 11, Water Code, is amended by adding
Subchapter K to read as follows:
         SUBCHAPTER K.  RESTRICTIONS ON TRANSFER OF GROUNDWATER
      Sec. 11.551.  NONAPPLICABILITY OF SUBCHAPTER.  This
subchapter does not apply to a transfer of groundwater from:
            (1) a groundwater conservation district; or
            (2) a county with a population of more the 50,000.
      Sec. 11.552.  PERMIT REQUIRED. (a)  A person must obtain a
permit from the commission before:
            (1)  Increasing, on or after September 1, 2001, the
amount of groundwater to be transferred from a county in this state
to another county under a continuing arrangement in effect before
that date; or
            (2)  transferring groundwater from a county in this
state to another county on or after September 1, 2001, under a new
arrangement.
      (b)  An application for a permit under this section must
include information regarding the number and types of users of
groundwater from the aquifer from which the groundwater is proposed
to be transferred.
      (c)  The commission may impose a reasonable fee for
processing an application for a permit under this section.
      Sec. 11.553.  NOTICE AND HEARING. (a) Before determining
whether to issue a permit under this section, the commission must
mail notice of the application to:
            (1)  each water supply system that uses groundwater
from the aquifer from which the groundwater is proposed to be
transferred;
            (2)  the commissioners court of the county from which
the groundwater is proposed to be transferred;
            (3)  each mayor of a municipality with a population of
1,000 or more located in the county from which the groundwater is
proposed to be transferred;
            (4)  each groundwater conservation district whose
jurisdiction includes any part of the aquifer from which the ground
water is proposed to be transferred; and
            (5)  each state legislator whose district is located in
whole or in part in:
                  (A)  the county from which the groundwater is
proposed to be transferred; or
                  (B) the county to which the groundwater is
proposed to be transferred.
      (b)  The applicant must publish notice of the application
once a week for two consecutive weeks in a newspaper of general
circulation in the county from which the groundwater is proposed to
be transferred and in the county to which the groundwater is
proposed to be transferred. The published notice may not be smaller
the 96.8 square centimeters or 15 square inches, with the shortest
dimension being at least 7.6 centimeters or three inches.
      (c) The applicant shall pay the cost of mailing the notice .
The commission by rule may  establish procedures for payment of the
cost.
      (d)  If the application is contested in a manner requiring an
evidentiary hearing under the rules of the commission, the
commission must give notice and hold an evidentiary hearing, in
accordance with commission rules and applicable state law.
      Sec. 11.554. CONSIDERATIONS IN DETERMINING WHETHER TO ISSUE
PERMIT.  In determining whether to issue a permit under this
section, the commission shall consider:
            (1)  the availability of water in the county from which
the groundwater is proposed to be transferred and in the proposed
receiving area during the period for which the water supply is
requested;
            (2)  the availability of feasible and practicable
alternative supplies to the applicant;
            (3)  the purposes for which the proposed receiving area
will use the water and the amount of water that will be used for
each purpose;
            (4)  the projected effect of the proposed transfer on:
                  (A)  aquifer conditions;
                  (B)  groundwater depletion;
                  (C)  subsidence; and
                  (D) groundwater users within the county from
which the groundwater is proposed to be transferred; and
            (5)  the approved regional water plan for the regional
water planning area that includes the county from which the
groundwater is proposed to be transferred.
      Sec. 11.555. LOCAL APPROVAL OF PERMIT ISSUANCE. (a)  If the
commission decides to issue a permit, the commission must mail, by
certified mail in the manner provided by commission rules, written
notice of its intent to issue the permit to:
            (1)  the water supply system that uses groundwater from
the aquifer from which the groundwater is proposed to be
transformed if the system is the only user of that groundwater; or
            (2)  if Subdivision (1) does not apply, the
commissioners court of the county from which the groundwater is
proposed to be transferred .
      (b)  The governing body of the water supply system or the
commissioners court of the county, as applicable, may notify the
commission in writing whether the governing body or the water
supply system or the commissioners court of the county, as
applicable, approves the issuance of the permit; or
      Sec. 11.556.  ISSUANCE OF PERMIT. (a)  The commission may
issue a permit only if:
            (1)  the commission receives notice under Section
11.555(b) that the governing body of the water supply system or the
commissioners court of the county, as applicable, approves the
issuance of the permit; or
            (2)  the commission does not receive  notice under
Section 11.555(b) within 30 days after the date the commission
mails notice of its intent to issue the permit under Section
11.555(a).
      (b)  The permit shall specify:
            (1)  the amount of groundwater that may be transferred
from the county; and
            (2)  the period for which the groundwater may be
transferred.
      Sec. 11.557.  RULES. The commission shall adopt rules as
necessary to implement this section.
      SECTION 2. This Act takes effect September 1, 2001.