1. (a) A local government or a private entity may petition the board to add that local government or private entity as a sponsor.
2. (b) A petition under Subsection (a) must be submitted in the manner and form required by board rule.

3. (c) On receipt of a petition under Subsection (a), the board shall set a hearing on the petition and provide notice of the date, time, place, and purpose of the hearing to:

   1. (1) the sponsors of the alliance; and
   2. (2) the petitioning local government or private entity.

4. (d) At the hearing, the board shall determine whether:

   1. (1) the local government or private entity will benefit from being added to the alliance as a sponsor; and
   2. (2) it is in the best interest of the alliance to add the local government or private entity to the alliance as a sponsor.

5. (e) If, after a hearing on the petition, the board determines that the local government or private entity should be added to the alliance as a sponsor, the board shall issue an order:

   1. (1) adding the local government or private entity to the alliance;
   2. (2) adding the local government's or private entity's territory or service area to the territory of the alliance;
   3. (3) making the local government's or private entity's territory or service area subject to the privileges, duties, assets, and financial obligations of the alliance to the same degree as other sponsors already included in the alliance; and
   4. (4) stating the effective date of the order.
6. (f) If the subject of the order is a local government, the effective date of the order must allow enough time for the local government to comply with Subsection (g).

7. (g) A local government that is the subject of an order issued under Subsection (e) shall publish notice of the alliance's proposal to add the local government to the alliance as a sponsor. The notice must:

   1. (1) be published in a newspaper of general circulation in the county in which the local government is located;
   2. (2) be published at least once per week for two consecutive weeks and with the first publication appearing on or before the 14th day before the effective date of the order; and
   3. (3) state the effective date of the order.

Added by Acts 2025, 89th Leg., R.S., Ch. 29 (S.B. 1194), Sec. 1, eff. May 15, 2025.