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  1. (a) To become a member of an existing property assessed energy improvement district, the governing body of a governmental entity shall:

    1. (1) Adopt an ordinance that provides for the participation of the governmental entity in the district; and

    2. (2) Enter into an agreement with the other participating members of the district.

  2. (b) The agreement between members of a district shall establish the terms and conditions of the operation of the district with the limitations provided in this chapter.