ANNEXATION.

(a) The authority may annex territory only as specified by this section.

(b) A municipality, by resolution or ordinance adopted by its governing body, may request that the territory then included in its corporate limits be annexed to the authority. On receipt of the request, the board shall proceed in the manner provided by Subsections (d) and (e).

(c) Territory that is annexed to a municipality after May 2, 1979, or after annexation of the municipality to the authority may be annexed to the authority if the board determines the annexation should be considered and proceeds in the manner provided by Subsections (d) and (e).

(d) Under the circumstances described by this section, the board shall call and hold a public hearing to determine if the territory should be annexed. Notice of the hearing must be published at least:

(1) once in a newspaper of general circulation in the area of the authority and the territory proposed to be annexed; and

(2) 10 days before the date set for the hearing.

(e) If at the conclusion of the hearing the board finds that the annexation would be in the best interest of the territory to be annexed, the area in the authority, and the inhabitants of both, it shall enter an order to that effect. The order finally annexes the territory to the authority.

(f) An action to review the annexation of territory to the authority may be brought in a district court in the county where the principal office of the authority is located. An annexation may be set aside for fraud or abuse of discretion.