DISTRICT PROPERTY SUBJECT TO MUNICIPAL JURISDICTION

(a) This section applies only to property: (1) owned or leased by the district; and (2) located in: (A) the district; and (B) the boundaries or extraterritorial jurisdiction of a municipality with a population of less than 20,000 that is wholly located in the district and whose corporate limits border the Gulf of Mexico. (b) Except as provided by Subsection (c), the district has exclusive land use jurisdiction over property to which this section applies. (c) This section does not apply to an ordinance, rule, or other measure adopted by a municipality that: (1) applies only to property within the boundaries of the municipality; (2) regulates only the safety of the operations of the municipality or reasonable aesthetics, including regulations governing fire and emergency response, traffic, light, or noise; (3) is commercially reasonable; and (4) does not effectively prohibit development and operation of industries and businesses on property owned or leased by the district that are built in accordance with building codes adopted by the district that meet or exceed the building codes adopted by the local municipality. (d) A municipality may conduct inspections to verify compliance with Subsection (c) if the inspections are conducted in a timely manner, and any differences in interpretation of applicable codes are determined in favor of the district. (e) Except as provided by Subsection (c), a municipality may not adopt or enforce an ordinance, rule, or other measure that prohibits or restricts: (1) the acquisition or leasing of property to which this section applies for a purpose described by Section 5002.152; or (2) the development of industries and businesses on property to which this section applies.