(a) This section applies only to a municipality whose local option status allows for the legal sale of malt beverages and wine for off-premise consumption only as a result of a local option election on the applicable ballot issue held on or after January 1, 1985.
(b) The governing body of a municipality described by Subsection (a) may adopt an ordinance authorizing the sale of malt beverages and wine for off-premise consumption in an area annexed by the municipality after that election if at the time the ordinance is adopted:
(1) the annexed area is not more than one percent of the total area covered by the municipality;
(2) all of the land in the annexed area is zoned for commercial use only; and
(3) the annexed area is not adjacent to residential, church, or school property.