Amend HB 3706 on third reading by adding the following 
appropriately numbered SECTION to the bill and renumbering the 
subsequent SECTIONS of the bill as appropriate:
	SECTION ____.  Subtitle A, Title 10, Local Government Code, 
is amended by adding Chapter 309 to read as follows:

CHAPTER 309. FILM DISTRICTS

SUBCHAPTER A. GENERAL PROVISIONS
	Sec. 309.001.  DEFINITIONS.  In this chapter:                           
		(1)  "Board" means a district's board of directors.                    
		(2)  "District" means a film district created under 
this chapter.    
	Sec. 309.002.  NATURE OF DISTRICT.  A district is a political 
subdivision of this state and a special district.

[Sections 309.003-309.050 reserved for expansion]

SUBCHAPTER B.  CREATION
	Sec. 309.051.  CREATION BY POPULOUS MUNICIPALITY.  A 
municipality with a population of one million or more may create a 
district as provided by this subchapter to promote the film 
industry in a designated area in the municipality.
	Sec. 309.052.  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. 309.053.  ORDER CREATING DISTRICT; INITIAL DIRECTORS.  
(a) After a hearing under Section 309.052, 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 309.103; and
		(3)  the initial directors and the terms of those 
initial directors, consistent with Subsection (c).
	(c)  The initial directors' terms must be staggered, with as 
near as possible to half of the directors' terms expiring on the 
same date in not more than one year and the remainder expiring on 
the same date in not more than two years.

[Sections 309.054-309.100 reserved for expansion]

SUBCHAPTER C.  BOARD OF DIRECTORS
	Sec. 309.101.  GOVERNING BODY.  A district is governed by a 
board of at least seven directors.
	Sec. 309.102.  TERMS.  Directors serve staggered two-year 
terms.      
	Sec. 309.103.  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 that:
			(A)  is part of an international professional and 
educational organization for film commissions; and
			(B)  has an office located in the municipality, if 
a film commission described by Paragraph (A) has an office located 
in the municipality;
		(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. 309.104.  COMPENSATION; EXPENSES. A director is not 
entitled to compensation but is entitled to reimbursement for 
actual and necessary expenses.
	Sec. 309.105.  OFFICERS.  A board shall elect a presiding 
officer, secretary, treasurer, and any other officers the board 
considers necessary.

[Sections 309.106-309.150 reserved for expansion]

SUBCHAPTER D.  POWERS AND DUTIES
	Sec. 309.151.  PROMOTION OF FILM INDUSTRY.  A district shall 
promote the film industry in the district.
	Sec. 309.152.  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. 309.153.  INCENTIVES.  A district may provide 
incentives to promote the film industry in the district.
	Sec. 309.154.  DONATIONS; GRANTS.  A district may accept a 
donation or grant from any person for any district purpose.
	Sec. 309.155.  EXECUTIVE DIRECTOR; EMPLOYEES.  A district 
may hire an executive director and other employees.

[Sections 309.156-309.200 reserved for expansion]

SUBCHAPTER E. FINANCIAL PROVISIONS
	Sec. 309.201.  BORROWING.  A district may borrow money from 
any person for any district purpose.

[Sections 309.202-309.250 reserved for expansion]

SUBCHAPTER F.  DISSOLUTION
	Sec. 309.251.  DISSOLUTION.  A board may dissolve a district 
that has no debt.