<br />ORGANIZATION OF MUNICIPAL GOVERNMENT
<br />
<br />§ 43.203
<br />
<br />"(e) The changes in law made by this Act in Sections 43.002, 43.054,
<br />43.0545, 43.0546, 43.056(b), (c), (e), (0, (g), (l), (m), (n), and (0),
<br />43.0565, 43.0712, 43.121(a), 43.141(c), 43.148, 43.905, and 43.906, Local
<br />Government Code, as added or amended by this Act, apply to the
<br />annexation of an area that is not required to be included in a
<br />municipal annexation plan under Section 43.052, Local Government
<br />Code as amended by this Act, ü the fll'St hearing notice required by
<br />secti~n 43.063, Local Government Code, as added by this Act, is
<br />published on or after September 1, 1999."
<br />
<br />[Sections 43.149 to 43.200 reserved for expansion]
<br />
<br />SUBCHAPTER H. ALTERATION
<br />OF ANNEXATION STATUS
<br />
<br />§ 43.201. Definitions
<br />
<br />In this subchapter:
<br />
<br />(1) "Consent agreement" means an agreement
<br />between a district and a municipality under Section
<br />42.042.
<br />
<br />(2) "Limited-purpose annexation" means annex-
<br />ation authorized under Section 43.121.
<br />
<br />Added by Acts 1995, 74th Leg., ch. 787, § 2, err. Sept. 1,
<br />1995.
<br />
<br />§ 43.202. Applicability
<br />
<br />This subchapter applies to:
<br />
<br />(1) a municipal utility district operating under
<br />Chapter 54, Water Code, that:
<br />
<br />(A) was annexed for full purposes by a municipal-
<br />ity as a condition of the municipality granting con-
<br />sent to the creation of the district;
<br />
<br />(B) was annexed by the municipality on the san1e
<br />date as at least five other districts; and
<br />
<br />(C) has not had on the eighth anniversary of the
<br />district's annexation by the municipality more than
<br />10 percent of the housing units or commercial
<br />square footage authorized in its consent agreement
<br />constructed; and
<br />
<br />(2) a municipality that has:
<br />
<br />(A) annexed territory for limited purposes;
<br />
<br />(B) disannexed territory that previously was an-
<br />nexed for limited purposes; and
<br />
<br />(C) previously disannexed territory in a munici-
<br />pal utility district originally annexed for full pur-
<br />poses on the same date as a district to which this
<br />section applies.
<br />
<br />Added by Acts 1995, 74th Leg., ch. 787, § 2, err. Sept. 1,
<br />1995.
<br />
<br />§ 43.203. Alteration of Annexation Status
<br />
<br />(a) The governing body of a district by resolution
<br />may petition a municipality to alter the annexation
<br />status of land in the district from full-purpose annex-
<br />ation to limited-purpose annexation.
<br />
<br />(b) On receipt of the district's petition, the govern-
<br />ing body of the municipality shall enter into negotia-
<br />tions with the district for an agreement to alter the
<br />status of annexation that must:
<br />
<br />(1) specify the period, which may not be less than
<br />10 years beginning on January 1 of the year follow-
<br />ing the date of the agreement, in which limitecl-
<br />purpose annexation is in effect;
<br />(2) provide that, at the expiration of the period,
<br />the district's annexation status will automatically
<br />revert to full-purpose annexation without follo\\ing
<br />procedures provided by Sections 43.051 through
<br />43.055 or any other procedural requirement for
<br />annexation not in effect on January 1, 1995; and
<br />(3) specify the financial obligations of the district
<br />during and after the period of limited-purpose an-
<br />nexation for:
<br />(A) facilities constructed by the municipality that
<br />are in or that serve the district;
<br />(B) debt incurred by the district for water and
<br />sewer infrastructure that will be assumed by the
<br />municipality at the end of the peliod of limited-
<br />purpose annexation; and
<br />(C) use of the municipal sales taxes collected by
<br />the numicipality for facilities or services in the
<br />district.
<br />(c) If an agreement is not reached \\ithin 90 days
<br />after the date the municipality receives a petition
<br />submitted by a district:
<br />
<br />(1) the district's status is automatically altered
<br />from full-purpose annexation to limited-purpose an-
<br />nexation for a period of not less than 10 years,
<br />beginning January 1 of the year following the date
<br />of the submission of a petition, unless the voters of
<br />the district have approved the dissolution of the
<br />distlict through an election authorized by this sec-
<br />tion; and
<br />(2) on the expiration of the 10-year peliod of
<br />Subdivision (1), notwithstanding any other provision
<br />of law, the district may be restored to full-purpose
<br />annexation at the option of the municipality, provid-
<br />ed that the municipality assumes all obligations
<br />otherwise assigned by law to a municipality that
<br />annexes a disbict; and
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