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A BILL TO BE ENTITLED
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AN ACT
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relating to annexation by a municipality of area designated as a  | 
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public improvement district by a county. | 
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       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
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       SECTION 1.  The heading to Subchapter D, Chapter 43, Local  | 
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Government Code, is amended to read as follows: | 
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SUBCHAPTER D.  ANNEXATION PROVISIONS RELATING TO [SPECIAL]  | 
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DISTRICTS | 
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       SECTION 2.  Subchapter D, Chapter 43, Local Government Code,  | 
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is amended by adding Section 43.082 to read as follows: | 
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       Sec. 43.082.  CONDITIONS FOR ANNEXATION OF COUNTY PUBLIC  | 
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IMPROVEMENT DISTRICT.  (a)  A municipality may not annex a part of a  | 
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public improvement district established by a county under  | 
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Subchapter A, Chapter 372, unless the municipality annexes the  | 
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entire area of the district.  Before annexing the entire area of the  | 
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district, the municipality must pay all unpaid debt incurred under  | 
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Subchapter A, Chapter 372, by the county for the district. | 
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       (b)  After payment of the debt and completion of the  | 
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annexation, the county shall provide the municipality any remaining  | 
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assets allocated to the district, including: | 
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             (1)  amounts in a special improvement district fund  | 
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under Section 372.021; | 
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             (2)  amounts in a separate special improvement district  | 
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fund under Section 372.022; | 
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             (3)  assessments for the district, including the rights  | 
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to any unpaid assessments; and | 
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             (4)  proceeds of bonds issued on behalf of the  | 
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district. | 
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       (c)  On the first day of the year following completion of the  | 
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annexation, the district is dissolved.  Section 372.011 does not  | 
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apply to a district dissolved under this section. | 
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       (d)  This section does not grant a municipality the authority  | 
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to annex any area that is not located in the municipality's  | 
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extraterritorial jurisdiction. | 
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       SECTION 3.  Section 43.082, Local Government Code, as added  | 
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by this Act, applies only to the annexation of an area for which all  | 
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parts of the statutory annexation process are begun on or after the  | 
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effective date of this Act.  The annexation of an area for which any  | 
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part of the statutory annexation process was begun before the  | 
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effective date of this Act is governed by the law in effect  | 
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immediately before the effective date of this Act, and the former  | 
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law is continued in effect for that purpose. | 
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       SECTION 4.  This Act takes effect immediately if it receives  | 
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a vote of two-thirds of all the members elected to each house, as  | 
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provided by Section 39, Article III, Texas Constitution.  If this  | 
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Act does not receive the vote necessary for immediate effect, this  | 
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Act takes effect September 1, 2007. |