Amend CSHB 2 (house committee report) by adding the following appropriately numbered SECTION to ARTICLE 1 of the bill and renumbering subsequent SECTIONS of the ARTICLE accordingly:

SECTION 1.____.  Subchapter D, Chapter 12, Education Code, is amended by adding Section 12.10561 to read as follows:

Sec. 12.10561.  USE OF STATE MONEY ON CERTAIN SETTLEMENT AND LAWSUIT EXPENDITURES PROHIBITED. The governing body of a charter holder or open-enrollment charter school may not use money provided under Section 12.106 to pay the amount of any settlement agreement reached by the parties or any fee or fine imposed by a court in an action or proceeding brought by or against the charter holder or school.