Tex. Water Code Section 54.0162
Option of Selection by District Composed of Noncontiguous Areas Located in the Extraterritorial Jurisdiction of Two Municipalities

(a)

A municipal utility district composed of noncontiguous areas that on January 1, 1995, are contained in the extraterritorial jurisdiction of two municipalities may choose, by a resolution of the governing body of the district, to be wholly contained in the extraterritorial jurisdiction of one municipality selected by the governing body of the district if:

(1)

both the municipality selected by the district and all parts of the district are located in the same county;

(2)

a majority of the area of the municipality not selected by the district is in a county other than the county in which the district is located, and neither county has a population greater than 3.3 million;

(3)

the boundary of the municipality selected by the district is located not more than two miles from any part of the district;

(4)

the noncontiguous areas of the district are not, at their closest point, more than two miles apart;

(5)

the district is within a water control and improvement district; and

(6)

a certified copy of the resolution of the governing body of the district is filed with both municipalities before the effective date specified in the resolution.

(b)

If a municipal utility district selects a municipality under Subsection (a), another municipal utility district that has a boundary contiguous to the district that has selected a municipality under Subsection (a) and has a boundary contiguous to the selected municipality may choose by resolution of the governing body of the municipal utility district to be contained wholly in the extraterritorial jurisdiction of the selected municipality. A copy of the resolution must be filed in the same manner as required by Subsection (a)(6).

(c)

The governing body of a municipality not selected under the provisions of Subsection (a) or (b) shall release the area of the municipal utility district from the municipality’s extraterritorial jurisdiction on the effective date of the resolution presented to the governing body of the municipality under Subsection (a) or (b). The released area becomes part of the extraterritorial jurisdiction of the selected municipality. The released area is not subject to any ordinance of the municipality not selected by the district.

(d)

This section controls over any other law relating to the creation, application, or operation of the extraterritorial jurisdiction of a municipality.

(e)

The provisions of this section also apply to a municipal utility district that:

(1)

was created before 1980;

(2)

has an area of 700 acres or less; and

(3)

is located, in part, within the extraterritorial jurisdiction of two or more municipalities and, in part, outside municipal extraterritorial jurisdiction in the unincorporated area of a county.

(f)

A municipal utility district acting under Subsection (e) shall comply with the notification and selection requirements of this section. A municipality affected by the decision of a municipal utility district acting under Subsection (e) shall comply with the requirements of Subsections (b) and (c).

(g)

A municipal utility district described by Subsection (e) shall notify the affected municipality within 30 calendar days of notice of intent to annex by that municipality.
Added by Acts 1995, 74th Leg., ch. 784, Sec. 1, eff. June 16, 1995.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 1163 (H.B. 2702), Sec. 184, eff. September 1, 2011.

Source: Section 54.0162 — Option of Selection by District Composed of Noncontiguous Areas Located in the Extraterritorial Jurisdiction of Two Municipalities, https://statutes.­capitol.­texas.­gov/Docs/WA/htm/WA.­54.­htm#54.­0162 (accessed May 26, 2025).

54.001
Definitions 54.011
Creation of District 54.012
Purposes of a District 54.013
Composition of District 54.014
Petition 54.015
Contents of Petition 54.016
Consent of City 54.018
Notice and Hearing on District Creation 54.020
Hearing 54.021
Granting or Refusing Petition 54.022
Temporary Directors 54.023
Appeal from the Order of the Commission 54.024
Supervision by Commission 54.025
Qualification of Temporary Directors 54.030
Conversion of Certain Districts into Districts Operating Under This Chapter 54.032
Conversion of District: Notice 54.033
Conversion of District 54.034
Effect of Conversion 54.035
Reservation of Certain Powers for Converted Districts 54.036
Directors to Continue Serving 54.037
Regional Plan Implementation Agencies 54.101
Board of Directors 54.102
Qualifications for Directors 54.0161
Review of Creation by County 54.0162
Option of Selection by District Composed of Noncontiguous Areas Located in the Extraterritorial Jurisdiction of Two Municipalities 54.0163
Option of Selection of Extraterritorial Jurisdiction for Certain Districts 54.0165
Addition to District of Land in Extraterritorial Jurisdiction of Municipality 54.201
Powers 54.203
Municipal Solid Waste 54.205
Adopting Rules and Regulations 54.206
Effect of Rules 54.207
Publication of Rules 54.208
Effective Date of Rules 54.209
Limitation on Use of Eminent Domain 54.234
Acquiring Road Powers 54.235
Authority to Contract 54.236
Street or Security Lighting 54.237
Enforcement of Real Property Restrictions 54.238
Definitions 54.239
Appeal to the Commission of Decision of Board Regarding Facilities 54.240
Notice 54.241
Action on the Petition 54.242
Street Repair or Maintenance 54.243
Disposition of Impact Fees 54.501
Issuance of Bonds 54.502
Form of Bonds 54.503
Manner of Repayment of Bonds 54.504
Additional Security for Bonds 54.505
Election on Tax Bonds 54.507
Notice of Bond Election 54.510
Provisions of Bonds 54.512
Sale or Exchange of Bonds 54.514
Refunding Bonds 54.518
Mandamus by Bondholders 54.520
Cancellation of Unsold Bonds 54.521
Use of Bond Proceeds to Pay Certain Interest 54.522
Bonds for Street Repair or Maintenance 54.601
Tax Levy for Bonds 54.602
Establishment of Tax Rate in Each Year 54.603
Mandamus by Bondholders 54.604
Assessment and Collection of District Taxes 54.728
Consolidation of Districts 54.729
Elections to Approve Consolidation 54.730
Governing Consolidated Districts 54.731
Debts of Original Districts 54.732
Assessment and Collection of Taxes 54.733
Voted but Unissued Bonds 54.734
Dissolution of District Prior to Issuance of Bonds 54.735
Notice of Hearing 54.736
Hearing 54.737
Board’s Order to Dissolve District 54.738
Judicial Review of Board’s Order 54.739
Substituting Land of Equal Value 54.740
Requisites for Application for Exclusion 54.741
Inclusion of Substitute Land Required 54.742
Application for Inclusion 54.743
Notice of Hearing and Hearing Procedures 54.744
Impairment of Security 54.745
Board’s Resolution to Substitute 54.746
Liability of Excluded and Included Land 54.747
Service to Included Land 54.748
Exclusion of Land for Failure to Provide Sufficient Services 54.749
Tax Liability of Excluded Land 54.801
Authority to Establish Defined Areas or Designated Property 54.802
Defining Area and Designating Property to Be Benefited by Improvements 54.804
Order Adopting Plans for Defined Area or Designated Property 54.805
Obtaining Funds to Construct, Administer, Maintain, and Operate Improvements and Facilities in Defined Areas or Designated Property 54.806
Procedure for Election 54.809
Issuance of Bonds and Imposition of Tax for Defined Area or Designated Property 54.810
Limitation on Other Bond Authorizations 54.811
Pledge of Faith and Credit 54.812
Notice to Purchasers 54.813
Municipality’s Authority Regarding Defined Area 54.2051
Service Connections to Certain Dwelling Units 54.2052
Plumbing Code 54.2351
Contracts with Other Districts, Water Supply Corporations, or Other Retail Public Utilities 54.5161
Review of Bond Projects by Counties
Green check means up to date. Up to date

Verified:
May 26, 2025

§ 54.0162. Option of Selection by Dist. Composed of Noncontiguous Areas Located in the Extraterritorial Jurisdiction of Two Municipalities's source at texas​.gov