Tex.
Local Gov't Code Section 43.072
Authority to Annex Municipal Utility District by Home-rule Municipality
(a)
This section applies to a municipal utility district that is located entirely in the extraterritorial jurisdiction of a single general-law municipality and that has a common boundary with at least one home-rule municipality.(b)
A home-rule municipality having a common boundary with a district subject to this section may annex the area of the district if:(1)
the annexation is approved by a majority of the qualified voters who vote on the question at an election held under this section;(2)
the annexation is completed before the date that is one year after the date of the election; and(3)
all the area of the district is annexed.(c)
Area annexed under Subsection (b) is included in computing the amount of area that a municipality may annex under Section 43.055 (Maximum Amount of Annexation Each Year) in a calendar year. If the area to be annexed exceeds the amount of area the municipality would otherwise be able to annex, the municipality may annex the area but may not annex additional area during the remainder of that calendar year, except area subject to Subsection (b) and area that is excluded from the computation under Section 43.055 (Maximum Amount of Annexation Each Year).(d)
Annexation of area under this section is exempt from the provisions of this chapter that prohibit:(1)
a municipality from annexing area outside its extraterritorial jurisdiction;(2)
annexation of area narrower than the minimum width prescribed by Section 43.054 (Width Requirements); or(3)
reduction of the extraterritorial jurisdiction of a municipality without the written consent of the municipality’s governing body.(e)
If the district is composed of two or more tracts, at least one of which is not contiguous to the home-rule municipality, the fact that the annexation will result in one or more parts of the home-rule municipality being not contiguous to the rest of the municipality does not affect the municipality’s authority to annex the district.(f)
The extraterritorial jurisdiction of a home-rule municipality is not expanded by the annexation of area under this section.(g)
The board of directors of the district may order an election under this section. The board shall conduct the election in the area composed of the district and the general-law municipality. A person who is qualified to vote in the general-law municipality or the district is eligible to vote in the election.(h)
The board of directors shall set the date of the election for the first uniform election date that falls on or after the 30th day after the date of the order. If a state law prescribing uniform election dates is not in effect on the date of the order, the board shall set the election for a date that falls on or after the 30th day but before the 60th day after the date of the order.(i)
The board of directors shall give notice of the election in the manner provided for an election of the members of the board. The ballot for the election shall be printed to provide for voting for or against the proposition: “Authorizing the municipality of (name of the home-rule municipality) to annex the unincorporated area of the (name of the district).”(j)
Promptly after the board of directors declares the result of the election:(1)
the board shall mail or deliver a certified copy of the resolution declaring the result of the election to the mayor and the secretary of each of the two affected municipalities; and(2)
if the election authorizes annexation of the district by the home-rule municipality, the board shall file a certified copy of the resolution in the deed records of each county in which the district is located.(k)
During the time that an election under this section is pending, the general-law municipality may not annex area in the district. For the purposes of this requirement, an election is pending during the period that begins on the date the board of directors adopts the election order and ends on the date the board declares the result of the election. If, on the date the election order is adopted, the general-law municipality has instituted but not completed proceedings to annex area in the district, the general-law municipality may complete the annexation while the election is pending. If proceedings are completed while the election is pending, the annexation, to the extent that it includes area in the district, takes effect only if the election results in the defeat of the question and, in that case, it takes effect on the date the result of the election is officially declared.(l)
If the question is approved, the period during which the general-law municipality is prohibited from annexing area in the district is extended to the date that is one year after the date of the election.(m)
If a district holds an election under this section, the district may not hold another election under this section before the date that is one year after the date of the earlier election, except that if an election is held on a uniform election date prescribed by law, the subsequent election may be held on the corresponding uniform election date of the following year.(b)
If the municipality annexes all the area in the district, the municipality:(1)
shall take over the property and other assets of the district;(2)
assumes all the debts, liabilities, and obligations of the district; and(3)
shall perform all the functions of the district, including the provision of services.(c)
The district is abolished on the annexation of all of its area by the municipality. The abolition of the district does not impair or otherwise affect a contract between the district and a flood control district or other governmental agency for the operation or maintenance of levees or other flood control works, but the municipality assumes the rights and obligations of the district under the contract. On the annexation of all of the area of the district, the municipality may refund, in whole or in part, any outstanding bonded indebtedness and may provide for a sufficient sinking fund to meet any refunding bonds issued.(d)
If the municipality annexes only part of the area in the district, the governing bodies of the municipality and the district may make contracts relating to the division and allocation between themselves of their duplicate and overlapping powers, duties, and other functions and relating to the use, management, control, purchase, conveyance, assumption, and disposition of the property and other assets, debts, liabilities, and obligations of the district. The amount of taxes levied by the district against a parcel of real estate subsequently annexed by the municipality shall be credited against any property taxes levied against the parcel by the municipality.(e)
If the municipality annexes only part of the area in the district, the district may contract with the municipality for the municipal operation of the district’s utility systems and other property and for the transfer, conveyance, or sale of those systems and that property, regardless of kind or location inside or outside municipal boundaries, to the municipality on terms to which the governing bodies of the district and municipality agree. That operating contract may extend for a period, not to exceed 30 years, stipulated in the contract and is subject to amendment, renewal, or termination by the mutual consent of the governing bodies. The contract may not impair the obligation of another contract of the municipality or district. In the absence of such a contract, the district may continue to exercise, unaffected by the annexation, the powers, duties, and other functions granted or imposed on the district by law. The municipality may not be required to perform any drainage functions in the district. The municipality may, with the consent of the district, construct and maintain drainage facilities in the district that are consistent with the reclamation plan of the district. The municipality may perform all other municipal functions that the municipality is authorized to perform and that the district is not engaged in performing nor authorized to perform.
Source:
Section 43.072 — Authority to Annex Municipal Utility District by Home-rule Municipality, https://statutes.capitol.texas.gov/Docs/LG/htm/LG.43.htm#43.072 (accessed Jun. 5, 2024).
