Sec. 8815.006. ANNEXATION. (a) Except to the extent the authority agrees in writing, a municipality's annexation of territory within the authority does not affect:

(1) the authority's powers inside or outside the annexed territory;

(2) the authority's boundaries or contracts; or

(3) the authority's ability to assess fees, user fees, rates, charges, or special assessments inside or outside the territory annexed by the municipality.

(b) Territory within the authority annexed by a municipality may be excluded from the authority under a written agreement between the authority and the municipality.

(c) Territory may be annexed to the authority, regardless of whether the territory is contiguous to the authority, as provided by Chapter 49, Water Code.

(d) In addition to the authority granted by Subsection (c), regardless of whether the territory is contiguous to the authority, the authority may annex all of the territory located within a district if the district files with the authority a petition requesting the annexation signed by a majority of the members of the governing body of the district. The petition must include an accurate legal description of the boundaries of the district. If the authority has bonds, notes, or other obligations outstanding, the authority shall require the petitioning district to be obligated to pay its share of the principal of and interest on the outstanding bonds, notes, or other obligations, and related costs. The authority may also require the petitioning district to pay a portion of the expenses incurred by the member districts in connection with the organization, creation, and administration of the authority. The board may grant the petition and order the district annexed to the authority if:

(1) it is feasible, practicable, and to the advantage of the authority; and

(2) the authority's system and other improvements are sufficient or will be sufficient to supply surface water and groundwater to the added territory, if required under any groundwater reduction plan adopted and implemented by the authority, without harming the territory already included in the authority.

(e) Any territory that a member district annexes after the effective date of the Act creating this chapter becomes territory of the authority only on the adoption of an order or resolution by the board consenting to the inclusion of the additional territory within the authority. The authority by rule may require all member districts to send to the authority written notice of the effective date of an annexation and require the member districts to send to the authority copies of any necessary documents describing the annexed land and describing the member districts' boundaries and actual and projected water usage requirements as they exist after inclusion of the annexed land.

(f) The annexation to the authority of territory under this section does not affect the validity of the authority's bonds issued before or after the annexation.

(g) A municipality that annexes territory of the authority for limited purposes under Subchapter F, Chapter 43, Local Government Code, does not have the right to:

(1) receive notices from the authority under Section 8815.103(c);

(2) participate in the appointment of directors under Subchapter B; or

(3) receive information about or have the opportunity to fund its share of capital costs in the manner provided by the authority under Section 8815.104.

Added by Acts 2005, 79th Leg., Ch. 656 (H.B. 3181), Sec. 1, eff. June 17, 2005.