Prepare for Texas SB-140 Compliance by September 1

⚠️ Important: Note that we/OneText are not lawyers and cannot offer legal advice.

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Hi OneTexters,

Sharing an urgent compliance update.

On June 20, 2025, Texas passed SB-140, which will likely require you to take two immediate and important actions by September 1, 2025. Any brand operating in the US will inevitably be texting Texas residents, so we urge you to treat registration and compliance as mandatory.

Specifically, by September 1, you need to:

1. Register with the State of Texas as an SMS sender.
2. Establish and document a $10,000 “deposit” (really, this more of a pledge, see below) to offset potential compliance violations.

The registration form is lengthy and onerous and requires a $200 fee. We recommend starting ASAP.

Requirement 2 is less bad than it seems. You do NOT need to actually tie up the $10K. We’ve partnered with **SuretyBonds.com** for an easy path with instant approval for $100 / year.

To receive your bond, email texassuretybond@onetext.com and include:

• Email and phone number (this is personal or business phone, not your SMS sending number)
• Business Legal Name
• Business address
• Business Owner’s first and last name

You’ll then receive a payment link and rapid issuance for your bond.

OneText is NOT compensated if you use our bond partner. We’ve partnered with SuretyBonds.com simply to give brands an easy onboarding experience.

Alternatively, if you prefer to not take out a bond, you can use a Letter of Credit or Certificate of Deposit to attest that you have the funds. OneText does not provide a partner for this route, so we advise working with your bank and financial institution to peruse these options.

What to Do Right Now

Sign Our Petition to Amend and Delay This Law

Sign Here

We assume that you will need to comply by September 1. But the law is problematic, and we are not taking this lying down. Please sign our petition asking Texas to delay and modify this regulation. And reshare our social media posts encouraging brands to join: Twitter/X, LinkedIn.

Reach Out if You Want To Use Our Surety Bond Partnership

Please email texassuretybond@onetext.com with your business name, address, owner name, owner phone and owner address to receive rapid approval and a $100 payment link for your Surety Bond.

Start the Registration

Register with the State of Texas as an SMS sender. The form is frustratingly time consuming.

For the section that asks for phone numbers, please list:

1. Your primary OneText Phone Number or short code.
2. The phrase “[Your Brand Name] RCS Sender” → This future proofs you for our RCS rollout.
3. If you’re in the process of a short code application, please ask your OneText Success manager for the expected short code number.
4. If you use OneText alongside another SMS vendor, list whatever number or numbers you use with that vendor.

You’ll also need to complete this accompanying form appointing the Texas Secretary of State as Agent of Service.

You’ll then need to sign the form and have it notarized. We recommend doing this online and using a service like Notarize.

Exemptions

SB-140 includes several exemptions. Exempt brands do not need to register or provide a deposit. Unfortunately, the exemptions are quite narrow and many brands will NOT be exempt.

If you think an exemption might apply, we urge you to contact a lawyer to confirm. We expect that the majority of brands using OneText will need to register.

Exemption Options:

1. Brands that exclusively sell food for human consumption. Brands that sell non-alcoholic, non-supplement food or beverages and who don’t sell non food products should contact a lawyer about obtaining this exemption. See the table below for more on what does and does not qualify as food.
2. Certain publicly traded companies and their subsidiaries.
3. Brands that exclusively message current or former customers and have operated under the same business name for two years. “Customer” means someone who as actually purchased from your brand. This exemption does not apply to brands that use SMS to message potential, future customers.
4. Certain financial institutions
5. Educational institutions
6. 501(c)(3) nonprofit organizations
7. Brick‑and‑mortar retail sellers that have operated under the same name for at least two years, and conduct majority of sales at physical retail locations

Do I qualify for the food exemption if I sell…

• Supplements → ⛔ Sadly no‍
• Bars, beverages, candy, chocolate, gummies that contain supplements → ⛔ Sadly no‍
• Alcohol → ⛔ Sadly no‍
• Dog, Cat or other Pet Food →⛔ Sadly no
• ‍Food or beverage AND I prominently sell drinkware. flatware or other physical products that complement my food or beverage products → ⛔ Sadly no based on our research. You should ask a lawyer to see if you have options.
• “Functional” food or beverages that don’t contain supplements but contain probiotics or other health claims / positioning → 🤔 UNCLEAR, this is a gray area — contact a lawyer
• Mostly sell food but I have a very small merchandise section on my store → 🤔 MAYBE, this is a gray area — contact a lawyer
• Exclusively food for human consumption → 🎉 Probably YES but check with your lawyer
• Exclusively coffee beans for human consumption → 🎉 Probably YES but check with your lawyer
• Exclusively beverages for human consumption → 🎉 Probably YES but check with your lawyer

What happens if I’m exempt?

Check with your lawyer on how to best document your exemption. If you qualify for an exemption you will not need to register or provide a deposit.

FAQs

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

Yes. The law applies to any brand that texts Texas residents. About 10% of the US Population lives in Texas. If you have as few as 50 SMS subscribers, there’s a >99% chance you have Texas residents on your list.

Can I simply exclude Texas Residents?

Likely no. There’s no foolproof way to know whether or not a subscriber is a Texas resident. Area codes, IP Address tracking, or historical addresses on file will not be sufficient for detecting and blocking Texas-based subscribers, especially those who move to Texas after subscribing. We see compliance as the only path forward.

Do I need to pay $10,000?

No. Texas requires a deposit but the funds remain under your control, albeit pledged to Texas. For most brands, we suggest a Surety Bond which entails a small annual fee, but allows you to avoid sequestering funds.

$10,000 is a lot. Do I need to be worried about compliance violations?

If you’re following OneText best practices, we do NOT anticipate compliance violations. Unfortunately, the law requires the $10,000 deposit “just in case”.

Does the law change the type of texts allowed?

No. The Texas law effectively reiterates standing and national texting rules, such as the need for clear and explicit opt in and standard quiet hours. The law increases penalties for violations, but a perviously compliant program will be compliant under the new law, once you register and handle the deposit.

What do I need to do to register?

Please start working on the Texas registration, it will take some time. As you do so, contact us regarding a fast process for a $100 / year Surety Bond that fulfills the $10,000 deposit requirement and does NOT require you to sequester funds.

You will need a notary to submit your form. We recommend notarize.com.

Define Surety Bond, Letter of Credit and Certificate of Deposit

• Surety Bond: A 3rd party service posts the $10,000 deposit on your behalf and charges you an annual fee. We’re working with SuretyBonds.com to get you fast approval.
• Letter of Credit: A credit instrument where a Texas-authorized bank vouches that you can afford the $10,000 if compelled.
• Certificate of Deposit: Sequestered funds reserved for compliance violations.

What happens if I do not comply

If a business fails to register as an SMS sender, post the required $10,000 bond or equivalent, or violates other SB-140 rules like sending out-of-hours messages or ignoring opt-out requests, it faces serious financial risk. Customers could file lawsuits directly under the DTPA, recover statutory and treble damages, obtain attorney costs and emotional distress awards—and even sue multiple times for repeat violations. Non-compliance isn’t just costly—it could become a full-blown legal liability.

Our strong recommendation is that all brands register by September 1. The paperwork is onerous, but prevents risk. The total annual cost with a bond is $300.

What if I use multiple texting providers?

If you’re using OneText alongside another texting provider, you only need to register once and submit one deposit. We’re happy to assist any brand in our network with the registration and bond process.

I know a brand that’s not using OneText (yet) that needs help with registration and bonding.

Introduce us by email (sales@onetext.com) or Slack. We’ll help them register and secure a bond. And if they sign up for any OneText services in the process, we’ll send you a reward.

What else can I do?

Please sign and circulate the petition. We want to make as much noise as possible.

Happy Texting,

Your OneText Team

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