Texas SB 140: What SMS Marketers Need to Know (and Who’s Exempt)

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Note: This content is provided for informational purposes only and should not be construed as legal advice. OneSignal strongly encourages all customers to seek independent legal counsel to ensure full compliance with Texas SB 140 and all other applicable regulations.

As mobile messaging regulations evolve, marketers and brands must stay aware of compliance requirements that could affect their communication strategies. While many businesses using SMS for customer engagement won’t be directly impacted by this new law, it’s important to understand the changes and whether your organization qualifies for an exemption.

Changes to Texas Business and Commerce Code

Texas has passed Senate Bill 140 (SB 140), fundamentally changing how businesses can send marketing texts to Texas residents. Starting September 1, 2025, SMS marketing will be regulated like traditional telemarketing, with penalties for non-compliance.

Key Changes:

  • The definition of “telephone solicitation” will include text messaging
  • Unless exempted, SMS/MMS marketing now requires state registration
  • $10,000 security deposit required
  • Penalties up to $5,000 per text message

You may be exempt if you:

The law exempts certain companies from the registration requirement. These exemptions include, but are not limited to:

  • Certain publicly traded companies and their subsidiaries
  • Certain financial institutions
  • Educational institutions
  • 501(c)(3) nonprofits
  • Businesses marketing the sale of food
  • Retail sellers with brick and mortar locations if it has operated under the same name for the last two years and a majority of sales occur at retail locations
  • Businesses contacting their current or former customers if that business has operated under the same business name for the last two years

What do I need to do if I’m not exempt?

If your company doesn't qualify for an exemption, you must register with the Texas Secretary of State before sending any marketing texts to Texas residents starting September 1, 2025.

This involves filing Form 3401 with a $200 annual fee, posting a $10,000 security deposit (via surety bond, letter of credit, or certificate of deposit), and providing additional documentation.

While this new legislation introduces stricter rules for SMS marketing in Texas, many brands are likely to fall under one of the exemptions, particularly if they’ve maintained the same business name for the last two years and are contacting current or former customers. Still, every business model is unique. We strongly encourage you to review the law carefully and consult independent legal counsel to confirm how it applies to your organization.

OneSignal will continue to monitor changes in messaging regulations and keep our customers informed. Our goal is to help you engage your users effectively while staying compliant with evolving legal standards.