This chapter applies only to a municipality that:
(1) is located in a county that has a population of 500,000 or less; or
(2) has a population of less than 50,000 and:
(A) is located in two or more counties, one of which has a population of 500,000 or more;
(B) is located within the territorial limits of, but has not elected to become a part of, a metropolitan rapid transit authority:
(i) the principal municipality of which has a population of less than 1.9 million; and
(ii) that was created before January 1, 1980, under Chapter 141, Acts of the 63rd Legislature, Regular Session, 1973, and is operating under Chapter 451, Transportation Code; or
(C) is located within the territorial limits of, but has not elected to become a part of, a regional transportation authority:
(i) the principal municipality of which has a population of more than 1.3 million; and
(ii) that was created under Chapter 683, Acts of the 66th Legislature, Regular Session, 1979, or Chapter 452, Transportation Code, and is operating under Chapter 452, Transportation Code.