(a) A political subdivision or private entity that receives state funds may not use the funds to pay:
(1) lobbying expenses incurred by the recipient of the funds;
(2) a person or entity that is required to register with the Texas Ethics Commission under Chapter 305;
(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 that 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) A political subdivision or private entity that violates Subsection (a) is not eligible to receive additional state funds.