Texas Code § 42.026

LIMITATION ON EXTRATERRITORIAL JURISDICTION OF CERTAIN MUNICIPALITIES
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Sec. 42.026. LIMITATION ON EXTRATERRITORIAL JURISDICTION OF CERTAIN MUNICIPALITIES. (a) In this section, "navigable stream" has the meaning assigned by Section 21.001 , Natural Resources Code.
(b) This section applies only to an area that is:
(1) located in the extraterritorial jurisdiction of a home-rule municipality that has a population of 60,000 or less and is located in whole or in part in a county with a population of 240,000 or less;
(2) located outside the county in which a majority of the land area of the municipality is located; and
(3) separated from the municipality's corporate boundaries by a navigable stream.
(c) A municipality that, on August 31, 1999, includes that area in its extraterritorial jurisdiction shall, before January 1, 2000:
(1) adopt an ordinance removing that area from the municipality's extraterritorial jurisdiction; or
(2) enter into an agreement with a municipality located in the county in which that area is located to transfer that area to the extraterritorial jurisdiction of that municipality.
(d) If the municipality that is required to act under Subsection (c) does not do so as provided by that subsection, the area is automatically removed from the extraterritorial jurisdiction of that municipality on January 1, 2000.
(e) Section 42.021 does not apply to a transfer of extraterritorial jurisdiction under Subsection (c)(2).

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