(a) No person may take or divert any state water from a river basin in this state and transfer such water to any other river basin without first applying for and receiving a water right or an amendment to a permit, certified filing, or certificate of adjudication from the commission authorizing the transfer.
(b) The application must include:
(1) the contract price of the water to be transferred;
(2) a statement of each general category of proposed use of the water to be transferred and a detailed description of the proposed uses and users under each category; and
(3) the cost of diverting, conveying, distributing, and supplying the water to, and treating the water for, the proposed users.

(c) The applicant shall provide the information described by Subsection (b) of this section to any person on request and without cost.
(d) Prior to taking action on an application for an interbasin transfer, the commission shall conduct at least one public meeting to receive comments in both the basin of origin of the water proposed for transfer and the basin receiving water from the proposed transfer. Notice shall be provided pursuant to Subsection (g) of this section. Any person may present relevant information and data at the meeting on the criteria which the commission is to consider related to the interbasin transfer.
(e) In addition to the public meetings required by Subsection (d), if the application is contested in a manner requiring an evidentiary hearing under the rules of the commission, the commission shall give notice and hold an evidentiary hearing, in accordance with commission rules and applicable state law. An evidentiary hearing on an application to transfer water authorized under an existing water right is limited to considering issues related to the requirements of this section.
(f) Notice of an application for an interbasin transfer shall be mailed to the following:
(1) all holders of permits, certified filings, or certificates of adjudication located in whole or in part in the basin of origin;
(2) each county judge of a county located in whole or in part in the basin of origin;
(3) each mayor of a city with a population of 1,000 or more located in whole or in part in the basin of origin; and
(4) all groundwater conservation districts located in whole or in part in the basin of origin; and
(5) each state legislator in both basins.
(g) The applicant shall cause the notice of application for an interbasin transfer to be published in two different weeks within a 30-day period in one or more newspapers having general circulation in each county located in whole or in part in the basin of origin or the receiving basin. The published notice may not be smaller than 96.8 square centimeters or 15 square inches with the shortest dimension at least 7.6 centimeters or three inches. The notice of application and public meetings shall be combined in the mailed and published notices.
(h) The notice of application must state how a person may obtain the information described by Subsection (b) of this section.
(i) The applicant shall pay the cost of notice required to be provided under this section. The commission by rule may establish procedures for payment of those costs.
(j) In addition to other requirements of this code relating to the review of and action on an application for a new water right or amended permit, certified filing, or certificate of adjudication, the commission shall:
(1) request review and comment on an application for an interbasin transfer from each county judge of a county located in whole or in part in the basin of origin. A county judge should make comment only after seeking advice from the county commissioners court; and
(2) give consideration to the comments of each county judge of a county located in whole or in part in the basin of origin prior to taking action on an application for an interbasin transfer.
(k) In addition to other requirements of this code relating to the review of and action on an application for a new water right or amended permit, certified filing, or certificate of adjudication, the commission shall weigh the effects of the proposed transfer by considering:
(1) the need for the water in the basin of origin and in the proposed receiving basin based on the period for which the water supply is requested, but not to exceed 50 years;
(2) factors identified in the applicable approved regional water plans which address the following:
(A) the availability of feasible and practicable alternative supplies in the receiving basin to the water proposed for transfer;
(B) the amount and purposes of use in the receiving basin for which water is needed;
(C) proposed methods and efforts by the receiving basin to avoid waste and implement water conservation and drought contingency measures;
(D) proposed methods and efforts by the receiving basin to put the water proposed for transfer to beneficial use;
(E) the projected economic impact that is reasonably expected to occur in each basin as a result of the transfer; and
(F) the projected impacts of the proposed transfer that are reasonably expected to occur on existing water rights, instream uses, water quality, aquatic and riparian habitat, and bays and estuaries that must be assessed under Sections 11.147, 11.150, and 11.152 of this code in each basin. If the water sought to be transferred is currently authorized to be used under an existing permit, certified filing, or certificate of adjudication, such impacts shall only be considered in relation to that portion of the permit, certified filing, or certificate of adjudication proposed for transfer and shall be based on historical uses of the permit, certified filing, or certificate of adjudication for which amendment is sought;
(3) proposed mitigation or compensation, if any, to the basin of origin by the applicant;
(4) the continued need to use the water for the purposes authorized under the existing permit, certified filing, or certificate of adjudication, if an amendment to an existing water right is sought; and
(5) the information required to be submitted by the applicant.
(l) The commission may grant, in whole or in part, an application for an interbasin transfer only to the extent that:
(1) the detriments to the basin of origin during the proposed transfer period are less than the benefits to the receiving basin during the proposed transfer period, as determined by the commission based on consideration of the factors described by Subsection (k); and
(2) the applicant for the interbasin transfer has prepared a drought contingency plan and has developed and implemented a water conservation plan that will result in the highest practicable levels of water conservation and efficiency achievable within the jurisdiction of the applicant.
(m) The commission may grant new or amended water rights under this section with or without specific terms or periods of use and with specific conditions under which a transfer of water may occur.
(n) If the transfer of water is based on a contractual sale of water, the new water right or amended permit, certified filing, or certificate of adjudication authorizing the transfer shall contain a condition for a term or period not greater than the term of the contract, including any extension or renewal of the contract.
(o) The parties to a contract for an interbasin transfer may include provisions for compensation and mitigation. If the party from the basin of origin is a government entity, each county judge of a county located in whole or in part in the basin of origin may provide input on the appropriate compensation and mitigation for the interbasin transfer.
(p) A river basin may not be redesignated in order to allow a transfer or diversion of water otherwise in violation of this section.
(q) A person who takes or diverts water in violation of this section is guilty of a misdemeanor and upon conviction is punishable by a fine of not more than $1,000 or by confinement in the county jail for not more than six months.
(r) A person commits a separate offense each day he continues to take or divert water in violation of this section.
(s) Any proposed transfer of all or a portion of a water right under this section is junior in priority to water rights granted before the time application for transfer is accepted for filing.
(t) Any proposed transfer of all or a portion of a water right under this section from a river basin in which two or more river authorities or water districts created under § 59, Article XVI, Texas Constitution, have written agreements or permits that provide for the coordinated operation of their respective reservoirs to maximize the amount of water for beneficial use within their respective water services areas shall be junior in priority to water rights granted before the time application for transfer is accepted for filing.
(u) An appropriator of water for municipal purposes in the basin of origin may, at the appropriator’s option, be a party in any hearings under this section.
(v) The provisions of this section, except Subsection (a), do not apply to:
(1) a proposed transfer which in combination with any existing transfers totals less than 3,000 acre-feet of water per annum from the same permit, certified filing, or certificate of adjudication;
(2) a request for an emergency transfer of water;
(3) a proposed transfer from a basin to its adjoining coastal basin;
(4) a proposed transfer from the part of the geographic area of a county or municipality, or the part of the retail service area of a retail public utility as defined by § 13.002, that is within the basin of origin for use in that part of the geographic area of the county or municipality, or that contiguous part of the retail service area of the utility, not within the basin of origin; or
(5) a proposed transfer of water that is:
(A) imported from a source located wholly outside the boundaries of this state, except water that is imported from a source located in the United Mexican States;
(B) for use in this state; and
(C) transported by using the bed and banks of any flowing natural stream located in this state.