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Amend HB 1644 by adding the following appropriately numbered 
sections to read as follows and by renumbering the subsequent 
sections of the bill accordingly:
	SECTION ____.  Subchapter L, Chapter 51, Water Code, is 
amended by adding Section 51.537 to read as follows:
	Sec. 51.537.  MUNICIPALITY'S AUTHORITY REGARDING DEFINED 
AREA.  (a)  A municipality may not annex a part of a defined area in 
a district that has adopted a plan for the defined area under this 
subchapter unless:
		(1)  90 percent or more of all facilities and 
infrastructure described by the plan has been installed and 
completed; and
		(2)  the municipality:                                                 
			(A)  annexes all of the defined area that is 
within the municipality's extraterritorial jurisdiction; and
			(B)  assumes the pro rata share of the bonded 
indebtedness of the annexed area.
	(b)  After the annexation occurs:                                       
		(1)  the annexed area is not eligible to be a defined 
area under this subchapter; and
		(2)  the district may not impose in the annexed area a 
tax authorized for a defined area under this subchapter.
	SECTION ____.  Subchapter J, Chapter 54, Water Code, is 
amended by adding Section 54.813 to read as follows:
	Sec. 54.813.  MUNICIPALITY'S AUTHORITY REGARDING DEFINED 
AREA.  (a)  A municipality may not annex a part of a defined area in 
a district that has adopted a plan for the defined area under this 
subchapter unless:
		(1)  90 percent or more of all facilities and 
infrastructure described by the plan has been installed and 
completed; and
		(2)  the municipality:                                                 
			(A)  annexes all of the defined area that is 
within the municipality's extraterritorial jurisdiction; and
			(B)  assumes the pro rata share of the bonded 
indebtedness of the annexed area.
	(b)  After the annexation occurs:                                       
		(1)  the annexed area is not eligible to be a defined 
area under this subchapter; and
		(2)  the district may not impose in the annexed area a 
tax authorized for a defined area under this subchapter.
	SECTION ____.  Sections 51.537 and 54.813, Water Code, as 
added by this Act, apply only to the annexation of an area:
		(1)  that is not included in a municipal annexation 
plan under Section 43.052, Local Government Code, before the 
effective date of this Act; and
		(2)  for which the first statutorily required hearing 
on the annexation is held on or after the effective date of this 
Act.
	SECTION ____.  Sections 51.537(b) and 54.813(b), Water Code, 
as added by this Act, apply only to taxes imposed for a tax year 
beginning on or after January 1, 2006.