Important Note: At Salesmsg, we make it our job to stay on top of new texting regulations like this. That said, we’re not lawyers (and can't give legal advice). For specifics on how Texas SB 140 affects your business, check with your own counsel.

Quick Summary: 

Texas SB 140 goes into effect on September 1, 2025. If you’re sending marketing texts to Texas residents, this new law likely applies to you.

To summarize this law: 

• Texas SB 140 now defines SMS and MMS messages as “telephone solicitation.” Put simply, Texas now treats marketing texts like telemarketing calls.
  
• Before sending marketing texts to Texas residents, you need to register with the state as a telemarketer, unless your business is exempt. (See exemptions below.)
• Violations of SB 140 are deceptive trade practices in Texas, which means residents can take legal action if you don’t follow the rules.

Why this will likely apply to you: 

Texas makes up 9% of the entire U.S. population. That’s 30 million people.

If you text across state lines, there’s a good chance you already have Texas residents on your SMS list. That’s why it’s smart to take the steps now to stay compliant before sending your next campaign.

Necessary Action Steps: 

Starting on September 1st, businesses sending marketing texts to Texas residents will need to:

• Register by filing Form 3401 annually with the Texas Secretary of State
• Pay a $200 fee with your registration (a certificate is required for each business location)
• Post a $10,000 security deposit with your registration (in the form of a $100-a-year surety bond, letter of credit, or certificate of deposit)
• File a form to appoint the Secretary of State as the Agent of Service
• Fill out the additional documentation 

Once you fill out the forms, you have to wait to hear back from the Texas Secretary of State to make sure you’re officially registered.

At first glance, that list of requirements might look daunting—especially the $10,000 security deposit. But in practice, it’s simpler (and cheaper) than it sounds.

“$10,000 Deposit” = $100 a Year

Yes, Texas requires a $10,000 security deposit. But here’s the good news: you don’t actually have to tie up $10,000 of your company’s cash.

Instead, you can meet the requirement with a surety bond. A surety bond works like an insurance policy. It guarantees to the state that you’ll follow the rules, but you only pay a small annual premium. 

For most businesses, that premium is about $100 per year. SuretyBonds.com makes the process fast, with instant approval and digital certificates you can keep on file.

In other words, while the law says “$10,000 bond,” what it really means for your business is a quick online form and a manageable $100 yearly cost.

Who’s Exempt from SB 140?

SB 140 borrows its exemptions from Chapter 302 of the Texas Business & Commerce Code. These exemptions only apply to sellers. Also, the burden is on you to prove you have an exemption.

You may be exempt if you are:

• Heavily regulated already by other laws: banks, credit unions, insurers, SEC-registered public companies, securities or commodities firms to name a few.
  
• Media & subscriptions: newspapers, magazines, cable TV subscriptions, recurring shipment programs, or large national catalogs.
  
• Nonprofits & schools: 501(c)(3) organizations and educational institutions.
  
• B2B & commercial sales: selling to another business for resale, recycling, or manufacturing.
  
• Food sales: food solicitations.
  
• Established relationships: marketing to former/current customers if you’ve operated under the same name for 2+ years.
  
• Retail & one-offs: established brick-and-mortar retailers (2+ years under the same name), or truly isolated one-time solicitations.

Unless you clearly fit one of these categories, plan to register, pay the $200 fee, and post the $10,000 bond before sending marketing texts to Texas residents.

How We’re Taking Action (and You Should Too)

At Salesmsg, we’re not just talking about compliance—we’re doing it ourselves. We’ve already registered with the State of Texas so we can continue texting our own Texas leads.

If you’re sending marketing texts, we recommend you take the same steps now. Getting registered, paying the $200 fee, and securing the $10,000 bond (via a ~$100/year surety bond) ensures you can keep reaching your Texas audience without interruption.

The sooner you take action, the smoother your compliance will be. And while the paperwork is on you, Salesmsg is here to support you with the tools and guardrails to keep your texting program safe and effective.

Frequently Asked Questions

Do I need to comply if I’m not located in Texas?

Yes. The law applies to any business texting Texas residents. Since nearly 1 in 10 Americans lives in Texas, odds are your list already includes Texas numbers—even if you only have a few dozen subscribers.

Can I just exclude Texas residents from my list?

Not reliably. There’s no foolproof way to filter out Texas residents. Area codes, IP tracking, or past addresses aren’t enough—and subscribers may move to Texas after they’ve joined your list. That’s why compliance is the only safe option.

This feels unfair. Should I stop texting altogether?

We get it—the law feels frustrating. But here’s the reality:

• Registration takes about 2 hours and costs $200 per year (+the cost of the bond).
  
• Texas accounts for 1 in 10 potential customers in the U.S. Excluding them altogether cuts into your bottom line.
  
• SMS is still one of the highest-ROI marketing channels, so it’s worth it.

Our advice: register, stay compliant, and keep texting. That’s exactly what we’re doing ourselves—and we’ll help you through it.

What happens if I don’t comply?

Non-compliance comes with risks. If you don’t register, post the bond, or you violate SB 140 (like ignoring opt-outs or sending after-hours texts), you could face:

• Customer lawsuits under the Texas Deceptive Trade Practices Act.
  
• Statutory damages, possible treble (triple) damages, attorney’s fees, and even emotional distress claims.
  
• Repeat lawsuits for repeat violations.

Our recommendation: register. It’s paperwork-heavy, but it protects your brand.

Do I actually have to pay $10,000?

No. Texas requires a $10,000 deposit, but you don’t have to tie up your cash. Most businesses use a surety bond instead:

• Costs around $100 per year.
  
• Meets the deposit requirement.
  
• Leaves your $10,000 available for your business.

Is the $10,000 bond because I’m likely to get fined?

Not at all. If you’re following Salesmsg best practices, violations are unlikely. The bond is simply a state requirement “just in case.” It doesn’t mean fines are expected.

Does the law change what kinds of texts I can send?

No. The rules around content don’t change. You’ll still need to:

• Get clear, explicit opt-ins.
• Follow standard quiet hours.
• Honor opt-outs immediately.

If you're already a Salesmsg customer, you're set up to follow these SMS compliance guidelines. You’ll stay compliant once you register and secure the bond.

What’s involved in the registration process?

The paperwork usually takes about 2 hours. You’ll also need a notary (we recommend Notarize.com).

And for the bond: contact us—we can connect you with a fast-track surety bond option so you don’t have to lock up $10,000.

Where can I learn more about this?

You can read the full Texas SB 140 bill text and the Texas Business & Commerce Code sections that outline telemarketing requirements.