Starting September 1, 2025, Texas Senate Bill 140 (SB 140) introduces new regulations for businesses that send SMS, MMS, or RCS messages to Texas residents. Whether you're based in Texas or simply marketing to customers there, this law will impact your operations. This guide breaks down the benefits and drawbacks of registering under the new law, helping you decide what’s best for your business.
What’s Changing
SB 140 expands the definition of 'telephone solicitation' to include text messages (SMS), multimedia messages (MMS), and Rich Communication Services (RCS). If your business sends promotional messages to Texas residents, you may now be required to:
Register with the Texas Secretary of State
Pay a $200 annual fee
Post a $10,000 security bond (or equivalent security)
Pros of Registering
Legal Compliance and Risk Mitigation:
Avoid fines of up to $5,000 per violation and potential lawsuits under the Texas Deceptive Trade Practices Act (DTPA). Since consumers can sue businesses directly for violations, registration is the most direct way to mitigate litigation risk.Expanded Marketing Reach:
Registration is the only way to legally send marketing messages to your full list of opted-in Texas contacts, including prospects and leads who have not yet made a purchase.Operational Simplicity:
Registering allows you to avoid the complex and technically challenging task of identifying and suppressing all Texas residents from your marketing lists, which goes far beyond simply filtering by area code.
Cons of Registering
Cost:
The registration process includes a $200 annual fee and a $10,000 security bond, plus time and resources to manage filings and renewals.Administrative Burden:
You’ll need to file quarterly updates, maintain compliance logs, and monitor quiet hours (no texts before 9am or after 9pm local time).
Understanding Key Exemptions: Is Registration Necessary for You?
Registration may be unnecessary if your business and messaging practices fall under a specific exemption. The most common exemption businesses consider is for messaging “current or former customers”.
The law does not clearly define a “current customer”. However, the safest and most recommended interpretation is that a “current customer” has a transactional relationship with your business (i.e., they have recently purchased a good or service). An opt-in for a newsletter or marketing alerts does not by itself establish a “current customer” relationship under this law. Relying on a marketing opt-in alone to claim this exemption carries significant legal risk.
Other exemptions include:
Your business has operated under the same name for at least two years and meet certain additional criteria.
You are a publicly traded company, a nonprofit, or a state-regulated financial institution or utility.
Choosing Your Compliance Strategy: Two Paths Forward
Given the requirements and exemptions, your business must choose one of two paths for messaging Texas residents.
Path 1: Register with the State of Texas
Who should do this:
Businesses that want to text marketing messages to leads, prospects, and other non-transacting contacts in Texas.Why:
This is the most compliant path for prospecting and lead-nurturing via SMS/MMS. It removes the ambiguity of who qualifies as a “customer” and eliminates the need to perform difficult geolocation analysis.Action Required:
Complete the state registration, pay the fee, and secure the $10,000 bond.
Path 2: Do Not Register and Rely on an Exemption
Who should do this:
Businesses that only text contacts with a recent purchase history or that qualify for another exemption (e.g., in business for 2+ years).Why:
This path avoids the cost and administrative burden of registration.Action Required:
You MUST identify and suppress all Texas residents from your marketing campaigns who do not meet the narrow, transaction-based definition of a “current customer”. This is not as simple as filtering by area code. You must make a good-faith effort to identify residents regardless of their phone number (e.g., using shipping addresses or other data). This can be operationally very challenging.
Final Tips
Consult legal counsel first. This article is for educational and informational purposes only and is not and should not be considered legal advice. Before making a decision, consult with a qualified attorney to assess your specific situation and risk tolerance.
Audit your Texas contacts. If you choose not to register, you must be able to confidently prove that every Texas resident you message qualifies for an exemption.
Track consent and honor opt-outs to stay compliant, even if exempt.
Resources
Texas Secretary of State Forms: https://www.sos.state.tx.us/other/forms.shtml#TSF
SB 140 Full Text: https://capitol.texas.gov/tlodocs/89R/billtext/html/SB00140F.htm