By Christian                                          H.B. No. 2668
         77R3399 SMH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to restrictions on the transfer of groundwater from a
 1-3     rural county to another county.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Chapter 11, Water Code, is amended by adding
 1-6     Subchapter K to read as follows:
 1-7           SUBCHAPTER K.  RESTRICTIONS ON TRANSFER OF GROUNDWATER
 1-8           Sec. 11.551.  NONAPPLICABILITY OF SUBCHAPTER. This subchapter
 1-9     does not apply to a transfer of groundwater from:
1-10                 (1)  a groundwater conservation district; or
1-11                 (2)  a county with a population of more than 50,000.
1-12           Sec. 11.552.  PERMIT REQUIRED. (a)  A person must obtain a
1-13     permit from the commission before:
1-14                 (1)  increasing, on or after September 1, 2001, the
1-15     amount of groundwater to be transferred from a county in this state
1-16     to another county under a continuing arrangement in effect before
1-17     that date; or
1-18                 (2)  transferring groundwater from a county in this
1-19     state to another county on or after September 1, 2001, under a new
1-20     arrangement.
1-21           (b)  An application for a permit under this section must
1-22     include information regarding the number and types of users of
1-23     groundwater from the aquifer from which the groundwater is proposed
1-24     to be transferred.
 2-1           (c)  The commission may impose a reasonable fee for
 2-2     processing an application for a permit under this section.
 2-3           Sec. 11.553.  NOTICE AND HEARING. (a)  Before determining
 2-4     whether to issue a permit under this section, the commission must
 2-5     mail notice of the application to:
 2-6                 (1)  each water supply system that uses groundwater
 2-7     from the aquifer from which the groundwater is proposed to be
 2-8     transferred;
 2-9                 (2)  the commissioners court of the county from which
2-10     the groundwater is proposed to be transferred;
2-11                 (3)  each mayor of a municipality with a population of
2-12     1,000 or more located in the county from which the groundwater is
2-13     proposed to be transferred;
2-14                 (4)  each groundwater conservation district  whose
2-15     jurisdiction includes any part of the aquifer from which the
2-16     groundwater is proposed to be transferred; and
2-17                 (5)  each state legislator whose district is located in
2-18     whole or in part in:
2-19                       (A)  the county from which the groundwater is
2-20     proposed to be transferred; or
2-21                       (B)  the county to which the groundwater is
2-22     proposed to be transferred.
2-23           (b)  The applicant must publish notice of the application
2-24     once a week for two consecutive weeks in a newspaper of general
2-25     circulation in the county from which the groundwater is proposed to
2-26     be transferred and in the county to which the groundwater is
2-27     proposed to be transferred.  The published notice may not be
 3-1     smaller than 96.8 square centimeters or 15 square inches, with the
 3-2     shortest dimension being at least 7.6 centimeters or three inches.
 3-3           (c)  The applicant shall pay the cost of mailing the notice.
 3-4     The commission by rule may establish procedures for payment of the
 3-5     cost.
 3-6           (d)  If the application is contested in a manner requiring an
 3-7     evidentiary hearing under the rules of the commission, the
 3-8     commission must give notice and hold an evidentiary hearing, in
 3-9     accordance with commission rules and applicable state law.
3-10           Sec. 11.554.  CONSIDERATIONS IN DETERMINING WHETHER TO ISSUE
3-11     PERMIT. In determining whether to issue a permit under this
3-12     section, the commission shall consider:
3-13                 (1)  the availability of water in the county from which
3-14     the groundwater is proposed to be transferred and in the proposed
3-15     receiving area during the period for which the water supply is
3-16     requested;
3-17                 (2)  the availability of feasible and practicable
3-18     alternative supplies to the applicant;
3-19                 (3)  the purposes for which the proposed receiving area
3-20     will use the water and the amount of water that will be used for
3-21     each purpose;
3-22                 (4)  the projected effect of the proposed transfer on:
3-23                       (A)  aquifer conditions;
3-24                       (B)  groundwater depletion;
3-25                       (C)  subsidence; and
3-26                       (D)  groundwater users within the county from
3-27     which the groundwater is proposed to be transferred; and
 4-1                 (5)  the approved regional water plan for the regional
 4-2     water planning area that includes the county from which the
 4-3     groundwater is proposed to be transferred.
 4-4           Sec. 11.555.  LOCAL APPROVAL OF PERMIT ISSUANCE. (a)  If the
 4-5     commission decides to issue a permit, the commission must mail, by
 4-6     certified mail in the manner provided by commission rules, written
 4-7     notice of its intent to issue the permit to:
 4-8                 (1)  the water supply system that uses groundwater from
 4-9     the aquifer from which the groundwater is proposed to be
4-10     transferred if the system is the only user of that groundwater; or
4-11                 (2)  if Subdivision (1) does not apply, the
4-12     commissioners court of the county from which the groundwater is
4-13     proposed to be transferred.
4-14           (b)  The governing body of the water supply system or the
4-15     commissioners court of the county, as applicable, may notify the
4-16     commission in writing whether the governing body or commissioners
4-17     court approves the issuance of the permit.
4-18           Sec. 11.556.  ISSUANCE OF PERMIT. (a)  The commission may
4-19     issue a permit only if:
4-20                 (1)  the commission receives notice under Section
4-21     11.555(b) that the governing body of the water supply system or the
4-22     commissioners court of the county, as applicable, approves the
4-23     issuance of the permit; or
4-24                 (2)  the commission does not receive notice under
4-25     Section 11.555(b) within 30 days after the date the commission
4-26     mails notice of its intent to issue the permit under Section
4-27     11.555(a).
 5-1           (b)  The permit shall specify:
 5-2                 (1)  the amount of groundwater that may be transferred
 5-3     from the county; and
 5-4                 (2)  the period for which the groundwater may be
 5-5     transferred.
 5-6           Sec. 11.557.  RULES. The commission shall adopt rules as
 5-7     necessary to implement this section.
 5-8           SECTION 2. This Act takes effect September 1, 2001.