By: Mallory Caraway (Senate Sponsor - Deuell) H.B. No. 1052 (In the Senate - Received from the House May 13, 2009; May 14, 2009, read first time and referred to Committee on Economic Development; May 22, 2009, reported favorably by the following vote: Yeas 5, Nays 0; May 22, 2009, sent to printer.) A BILL TO BE ENTITLED AN ACT relating to the creation, powers, and duties of film districts. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subtitle A, Title 10, Local Government Code, is amended by adding Chapter 310 to read as follows: CHAPTER 310. FILM DISTRICTS SUBCHAPTER A. GENERAL PROVISIONS Sec. 310.001. DEFINITIONS. In this chapter: (1) "Board" means a district's board of directors. (2) "District" means a film district created under this chapter. Sec. 310.002. NATURE OF DISTRICT. A district is a political subdivision of this state and a special district. [Sections 310.003-310.050 reserved for expansion] SUBCHAPTER B. CREATION Sec. 310.051. CREATION BY POPULOUS MUNICIPALITY. A municipality with a population of 250,000 or more may create a district as provided by this subchapter to promote the film industry in a designated area in the municipality. Sec. 310.052. HEARING. Before creating a district, the governing body of a municipality must hold a hearing on the purposes and advisability of creating the district. Any interested person may speak at the hearing. Sec. 310.053. ORDER CREATING DISTRICT; INITIAL DIRECTORS. (a) After a hearing under Section 310.052, if a governing body finds that the municipality and the designated area would benefit from the district's creation, the governing body by order may create the district. (b) The order must specify: (1) the district's boundaries, which must be wholly in the municipality; (2) the number and qualifications of directors to be appointed under Section 310.103; and (3) the initial directors and the terms of those initial directors. (c) The initial directors' terms must be staggered, with as near as possible to half of the directors' terms expiring in one year and the remainder expiring in two years. [Sections 310.054-310.100 reserved for expansion] SUBCHAPTER C. BOARD OF DIRECTORS Sec. 310.101. GOVERNING BODY. A district is governed by a board of at least seven directors. Sec. 310.102. TERMS. Directors serve staggered two-year terms. Sec. 310.103. APPOINTMENT BY MUNICIPALITY. The governing body of a municipality that creates a district shall appoint the directors as provided by the order creating the district. The directors must include: (1) two directors who represent the interests of the municipality and reside in the municipality; (2) one director who represents a local or regional film commission located in the municipality and is a member of the Association of Film Commissioners International or the Texas Association of Film Commissions; (3) one director who represents a school district that has the majority of its territory located in the municipality; (4) one director who represents an institution of higher education, as defined by Section 61.003, Education Code, located in the municipality; (5) one director who represents a public junior college, as defined by Section 61.003, Education Code, located in the municipality; and (6) any other directors as provided by the order creating the district. Sec. 310.104. COMPENSATION; EXPENSES. A director is not entitled to compensation but is entitled to reimbursement for actual and necessary expenses. Sec. 310.105. OFFICERS. A board shall elect a presiding officer, secretary, treasurer, and any other officers the board considers necessary. [Sections 310.106-310.150 reserved for expansion] SUBCHAPTER D. POWERS AND DUTIES Sec. 310.151. PROMOTION OF FILM INDUSTRY. A district shall promote the film industry in the district. Sec. 310.152. PARTNERSHIP WITH LOCAL COMMUNITIES. A district shall act jointly with the municipality, local businesses, the film industry, and other local communities to promote the film industry in the district. Sec. 310.153. INCENTIVES. A district may provide incentives to promote the film industry in the district. Sec. 310.154. DONATIONS; GRANTS. A district may accept a donation or grant from any person for any district purpose. Sec. 310.155. EXECUTIVE DIRECTOR; EMPLOYEES. A district may hire an executive director and other employees. [Sections 310.156-310.200 reserved for expansion] SUBCHAPTER E. FINANCIAL PROVISIONS Sec. 310.201. BORROWING. A district may borrow money from any person for any district purpose. Sec. 310.202. ELIGIBILITY FOR INCLUSION IN TAX INCREMENT REINVESTMENT ZONE. All or any part of the district is eligible to be included in a tax increment reinvestment zone created under Chapter 311, Tax Code. [Sections 310.203-310.250 reserved for expansion] SUBCHAPTER F. DISSOLUTION Sec. 310.251. DISSOLUTION. A board may dissolve a district that has no debt. SECTION 2. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2009. * * * * *