As of September 1, 2025, Senate Bill 140 will add two key updates to the existing Texas Business and Commerce Code § 302.001.
- Include SMS text messages under the definition of telephone solicitations
- Expand ways consumers can file complaints when companies break telemarketing laws
Even if you’re not located in Texas, this law can apply to any company sending promotional texts in the United States.
Keep reading to learn all about the new registration and bond requirements.
SMS Messages Now Qualify as Telemarketing
The primary update to pre-existing laws is the new, expanded definition of “telephone solicitation” to include text-based or graphic SMS text messages.
Before September 2025, only phone calls were monitored under telephone solicitation laws. However, the growing prevalence of SMS sales outreach led Texas lawmakers to include texts under the telemarketing umbrella.
Who’s Affected By SB140?
The inclusion of SMS messages is a major shift because it applies to all businesses sending texts to any person located in Texas, not just Texas companies.
It also applies to businesses located in Texas that send SMS messages to any consumers outside of Texas.
These companies must now obtain a registration certificate from the Texas Secretary of State before sending qualifying promotional text messages or making sales calls.
Are There Exemptions?
While the definition above may seem to include about every medium-to-large business in America, there are several important exemptions.
For example, the following businesses are exempt from the registration requirements:
- Businesses contacting their customers if they have operated under the same name for the last 2 years
- Businesses that have operated under the same name for the last 2 years and do most sales at brick-and-mortar locations
- Educational and non-profit institutions
- Publicly-traded companies registered with the SEC or State Securities Office and their subsidiaries
- Supervised financial institutions, subsidiaries and affiliates
- Persons selling media subscriptions
- Businesses selling food
See Texas Code for a complete list of exempt entities.
If you might qualify as a telephone solicitor, we recommend verifying your requirements with legal counsel. SuretyBonds.com does not issue legal advice.
How to Stay Compliant With the New Texas Telemarketing Laws
While it’s still uncertain how this law will be monitored, all companies sending promotional texts, especially new (or newly renamed) businesses, should be verifying their registration requirements with the Texas Secretary of State to avoid legal damages.
If the SoS confirms you need to be registered as a telephone seller, follow these steps:
- File a registration statement for each business location
- Provide any supporting documentation
- Pay the $200 application fee
- File a $10,000 surety bond, irrevocable letter of credit, or certificate of deposit as financial security
The Secretary of State will mail your certificate of registration to the physical business address(es). Remember to post it in a visible location.
Once you’re registered, also verify that you are implementing proper opt-in and opt-out procedures for promotional text messages as well as respecting quiet hours.
Each registration certificate is valid for one year and must be renewed annually.
What Happens If I Don’t Register and Get Bonded?
Texas Senate Bill 740 also increases the avenues in which people can file complaints.
Now, consumers have much more power to seek recourse from inappropriate solicitations. Rather than having to file a complaint with a government agency, they can now go straight to court litigation.
Legal Implications
The Texas Secretary of State lists fines of $500–$5,000 per violation, and multiple violations can be filed as separate complaints by the same consumer.
Each violation will be considered a Class A misdemeanor.
Bond Claims
The financial security filed at registration, typically a surety bond, will be used to repay consumers.
Bond liability cannot exceed the $10,000 bond amount. If multiple claims surpass this limit, the surety company will send $10,000 to the SoS, and then it is free of any additional liability.
Where to Get Your Telephone Solicitation Bond
SuretyBonds.com is the nation’s leading surety agency and is licensed to issue telemarketing bonds in all 50 states.
We issue these bonds online in minutes with no credit check. You’ll just pay an annual premium of $100. Get your $10,000 Texas Telephone Solicitation Bond now.