(a) The authority is composed of the territory:
(1) of the sponsors, including territory within the municipal boundaries of a sponsor that is a municipality;
(2) located in the service areas of the sponsors as provided by the sponsors' respective certificates of convenience and necessity; and
(3) added to and not excluded from the authority in accordance with applicable law.
(b) Territory added to the authority may be in a county other than a county listed in Section 11010.002.