⏱ 6 min read
Published August 30, 2025
If you’re running SMS marketing campaigns, Texas just dropped a bombshell that could fundamentally change how you operate. Governor Greg Abbott signed Senate Bill 140 into law on June 20, 2025, and it goes into effect September 1st – giving businesses less than three months to get compliant.
Text messages have a 98% open rate vs. 20% for email. (Gartner)
This isn’t just another regulatory tweak. Texas essentially created their own version of the federal TCPA with significantly harsher penalties and way fewer procedural protections for businesses. Here’s what you need to know.
What Texas SB 140 Actually Does
Texas had existing telemarketing laws (often called a “mini-TCPA”), but they were mostly focused on voice calls. SB 140 changes the game by explicitly bringing SMS and MMS marketing under the same regulatory umbrella.
The key changes:
- SMS is now explicitly covered under Texas telemarketing registration requirements
- Direct private lawsuits – Texas residents can sue immediately without filing complaints with state agencies first
- Serial litigation allowed – consumers can sue multiple times for the same violations
- Massive penalties – $500 to $5,000 per violation, plus potential treble damages and attorney fees under the Deceptive Trade Practices Act
This creates a litigation environment that’s potentially more aggressive than California’s consumer protection laws.
Who Needs to Register (Spoiler: Probably You)
If you’re sending promotional SMS messages to Texas residents or operating from Texas, you likely need to register with the Texas Secretary of State. The exemptions are pretty narrow:
You might be exempt if you’re:
- A publicly traded company
- A retail business with physical locations where the majority of sales occur, operating under the same name for 2+ years
- Only contacting current or former customers AND you’ve operated under the same name for 2+ years
- Exclusively selling food for human consumption (non-alcoholic, non-supplement food/beverages only)
Notice the key word “might” – these exemptions haven’t been tested in court yet, and the safest approach is to register even if you think you qualify.
The Registration Process
Here’s what registration involves:
- File Form 3401 with the Texas Secretary of State (download here)
- Pay $200 annual fee
- Post $10,000 security deposit (but you can use a surety bond for around $100/year instead of tying up the cash)
- Provide detailed business information including officer details, addresses, and business operations
- Appoint Texas Secretary of State as your service agent
The paperwork is extensive and takes about 2 hours to complete properly. More importantly, your registration is only valid when Texas issues the certificate – not when you submit the application.
The Litigation Risk Is Real
This is where SB 140 gets particularly nasty. Under the old law, consumers had to jump through procedural hoops before suing – like notifying the business and filing complaints with state agencies.
Now? They can go straight to court.
Even worse, the law explicitly allows serial litigation. A single Texas resident could sue you multiple times for ongoing violations, with no cap on recoveries. Each lawsuit carries the potential for:
- Statutory damages ($500-$5,000 per violation)
- Treble damages for intentional violations
- Attorney fees
- Damages for “mental anguish”
Plaintiff attorneys are already gearing up for this new opportunity.
Your Compliance Options
Option 1: Register and Stay Compliant
- Total annual cost: ~$300 ($200 fee + ~$100 bond)
- Time investment: ~2 hours for initial registration
- Risk level: Minimal if you maintain proper compliance
Option 2: Exclude Texas from SMS Campaigns
- You can use marketing automation tools to exclude Texas contacts
- But Texas represents about 10% of the US population – that’s significant revenue to walk away from
Option 3: Roll the Dice
- Some legal experts think the exemptions might be broader than they appear
- But this hasn’t been tested, and the downside is massive
- Not recommended given the litigation environment
What This Means for Your Business
The smartest move is to get registered now. The cost is minimal compared to the potential liability, and more states are likely to follow Texas’s lead.
Beyond registration, you’ll need to ensure your SMS practices comply with all the existing requirements:
- Proper consent documentation
- Immediate opt-out processing
- Respect for quiet hours (9 AM – 9 PM Monday-Saturday, 12 PM – 9 PM Sunday in Texas)
- Accurate sender identification
- Complete record keeping
Technical Implementation
If you’re using marketing automation platforms like nurtureBEAST, you can implement compliance measures through:
- Workflow automation to exclude Texas contacts if needed
- Consent tracking and documentation
- Automated opt-out management
- DNC list scrubbing
- Quiet hour enforcement
These tools can help manage compliance automatically, but remember – the legal responsibility still falls on you as the business owner, not your technology provider.
Important Legal Notice
nurtureBEAST and other marketing service providers are not liable for penalties or legal action resulting from non-compliance with SMS marketing regulations. As the business owner sending these messages, you’re responsible for ensuring compliance with all applicable laws.
We strongly recommend consulting with qualified legal counsel to review your specific situation and ensure full compliance before September 1st.
Next Steps
- Assess your current SMS practices and determine if registration is required
- Consult with legal counsel about your specific business situation
- Begin the registration process immediately if required – don’t wait until August
- Update your compliance procedures to handle the new requirements
- Document everything – consent records, opt-outs, message logs
The Bottom Line
Texas SB 140 represents a significant shift in how states regulate business communications. While the requirements might seem overwhelming, they’re manageable with proper planning and the right tools.
The key is acting now. September 1st will be here before you know it, and the penalties for non-compliance are severe enough that it’s not worth the risk.
Useful Resources:
This information is for educational purposes only and does not constitute legal advice. Consult with qualified legal counsel about your specific situation.
Further reading: How to Automate Your Real Estate Follow-Up | Real Estate Email Marketing: What Actually Works for Agents | What’s Killing Your Real Estate Business? (Free Assessment)
Further reading: ChatGPT Prompts for Real Estate Follow-Up | Real Estate Nurture Texts That Get Responses | CRM Reminders for Realtors: Never Miss a Follow-Up
Further reading: Real Estate Text Message Scripts | Real Estate Marketing Automation
Email marketing returns $36 for every $1 spent. (Litmus, 2023)
87% of real estate sales come from referrals or repeat clients. (NAR, 2023)
