(a) A political subdivision receiving a distribution under § 403.1041(f) may not use the distribution to pay:
(1) lobbying expenses incurred by the recipient of the distribution;
(2) a person or entity that is required to register with the Texas Ethics Commission under Chapter 305, Government Code;
(3) any partner, employee, employer, relative, contractor, consultant, or related entity of a person or entity described by Subdivision (2); or
(4) a person or entity who has been hired to represent associations or other entities for the purpose of affecting the outcome of legislation, agency rules, ordinances, or other government policies.
(b) The persons or entities described by Subsection (a) are not eligible to receive the money or participate either directly or indirectly in the distributions made under § 403.1041(f).