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.