(a) This section applies only to a municipality that:
(1) operates a municipally owned water utility; and
(2) is a party to a strategic partnership agreement:
(A) with a municipal utility district; and
(B) under which the municipality contemplates annexing 400 or more water or wastewater connections that are not located in the district.
(b) A municipality authorized or required to annex a district for full purposes under a strategic partnership agreement under Section 43.0751:
(1) may not annex the district without also annexing all of the unincorporated area served by the district that is located in the municipality's extraterritorial jurisdiction; and
(2) must receive approval for the annexations under the agreement and Subdivision (1) as required by Subchapter C-3, C-4, or C-5, as applicable, before annexation.