(a) The public entities that created or re-created an agency may by concurrent ordinances:
(1) add a new public entity as a participating public entity in the agency; or
(2) remove a public entity from participation in the agency.
(b) Concurrent ordinances described by this section must, as adopted by each public entity:
(1) contain identical provisions;
(2) define the boundaries of the agency to include the territory within the boundaries of each participating public entity;
(3) designate the name of the agency; and
(4) designate the number, place, terms, and manner of appointment of directors, as provided by Section 163.078.
(c) The public entities may not add or remove a public entity if the addition or removal will impair an agency obligation.
Official text of the Texas Utilities Code as published by the Texas Legislative Council.