(a) The governing body of a municipality, by ordinance or resolution, may create a transit department if:
(1) the municipality operates a mass transportation system;
(2) the municipality has a population of 50,000 or more; and
(3) the governing body determines that the creation of a transit department and operation of a transit department system would be in the public interest and of benefit to persons residing in the municipality.
(b) The jurisdiction of a transit department is coextensive with the territory of the municipality that creates the transit department.
(c) The jurisdiction of a transit department created by a municipality with a population of more than 500,000 that borders the United Mexican States does not include any territory within the boundaries of a federal military installation that is located in that municipality's extraterritorial jurisdiction.