EXCLUSION OF CERTAIN TERRITORY.

(a) The governing body of a district or municipality or the owner of a large tract may petition for exclusion of all of the territory of the municipality, district, or large tract from the authority's boundaries if, on the effective date of the Act creating this chapter, all or any part of the municipality, district, or large tract is located in the territory described by Section 2 of the Act creating this chapter. The petition must be signed, as applicable, by a majority of the members of the governing body of the district or municipality or by the landowner of the large tract.

(b) The board shall:

(1) not later than the 180th day after the effective date of the Act creating this chapter, grant the petition and order the territory excluded if the petition:

(A) includes an accurate legal description of the boundaries of the territory to be excluded; and

(B) is filed with the authority not later than the 120th day after the effective date of the Act creating this chapter; and

(2) if the board grants the petition, file for recording in the office of the county clerk for the applicable county or counties a copy of the order and a description of the authority's boundaries as they exist after the exclusion of the territory.

(c) If a district, municipality, or large tract is excluded from the authority's boundaries under this section, the authority is not required to:

(1) provide water or any other service to the district, municipality, or large tract; or

(2) include the district, municipality, or large tract in any groundwater reduction plan adopted or implemented by the authority.

(d) If, not later than the 120th day after the effective date of this chapter, the governing body of a district or municipality or the owner of a large tract files a petition for exclusion under this section, the authority may not impose fees, user fees, rates, or charges on the district, municipality, or large tract after the petition is filed with the authority unless the district, municipality, or large tract is annexed by the authority under Section 8878.006.

(e) If a district or municipality excluded or the owner of a large tract excluded from the authority's boundaries under this section petitions the authority to be annexed under Section 8878.006, the authority may annex the district, municipality, or large tract. The authority may, as a condition of annexation, require terms and conditions the board considers appropriate. The authority may require the district, municipality, or owner of the large tract to pay the authority the fees, user fees, and charges, with interest, that, as determined by the authority, the district, municipality, or owner of the large tract would have been charged by the authority if the district, municipality, or large tract had not been excluded from the authority under this section.