Spotlight on Texas S.B. 140

Spotlight on Texas S.B. 140: Why Agents Should Tune In (Before It Hits Their Bottom Line)

As you gear up for a fall newsletter, here’s your deep dive into Texas Senate Bill 140 (S.B. 140)—a legislative shift that’s not just reshaping SMS and MMS marketing, but serving as a vivid example of how evolving telemarketing rules could impact real estate agents who lean on callers or texters. The good news? By staying proactive, you can turn this regulatory change from a risk into a renewed edge.

What S.B. 140 Does (Effective September 1, 2025)

1. Texts & images now count as “telephone solicitation.”

   S.B. 140 expands the definition under Texas’s Mini-TCPA to explicitly include text messages, graphic messages, or images when sending promotional content—previously only voice calls were covered.

2. Registration now required—or face real risks.

   If you're sending marketing calls or texts to or from Texas, and don’t fall under an exemption, you must register with the Texas Secretary of State. That means:

• Filing Form 3401, paying a $200 annual fee, and posting a $10,000 security bond (bond, letter of credit, or CD).

• Annually renewing and keeping your registration certificate visible at each business location.

3. Private consumer lawsuits just got easier and more costly.

   Violations of telemarketing rules (not honoring opt-outs, calling outside allowed hours, failing to register) are now automatically treated as deceptive trade practices under the Texas Deceptive Trade Practices Act (DTPA). Consumers can sue—without first filing a complaint with the state—and seek remedies including treble damages, mental-anguish damages, and attorney fees. Multiple actions from the same claimant are allowed—even if they've sued before.

4. Quiet hours still matter.

   The longstanding rules remain: no calls or texts before 9 a.m. or after 9 p.m. Monday–Saturday, and no earlier than 12 p.m. or after 9 p.m. on Sundays. It’s fair to assume the same limits apply to texts now that they’re clearly covered.

Why This Matters for Agents (Yes, It Could Hit Your Wallet)

Real estate pros increasingly rely on strategic outreach—calls or texts to set appointments, introduce listings, or check in with leads. If texters or callers act on your behalf in Texas, you may now be a “seller”—and be required to register. That means potentially shelling out fees, posting bonds, juggling forms, and keeping up with disclosures, quarterly reports, and “quiet-hour” protocols.

On top of that, a single compliance misstep can become a private lawsuit landing you with treble damages and legal fees. Not all agencies fall under exemptions—especially newer entities or those sending messages beyond past or current customers.

But It’s Not All Doom & Gloom

Exemptions may provide breathing room.

Exemptions exist for businesses contacting current or former customers if you've operated under the same business name for at least two years—or if you’re a brick-and-mortar retail seller, regulated financial institution, nonprofit, or educational entity.

A chance to lead with compliance—and conversion.

Use this shift to sharpen your business model. Clean opt-in consent, transparent opt-out instructions (“STOP” or “UNSUBSCRIBE”), strictly observe quiet hours, and keep records—not just for safety, but as trust signals to prospects and clients.

Call to Action: Stay Sharp, Stay Ready

1. Audit now: Identify who's making calls or sending texts on your behalf and whether the messages go to Texas residents.

2. Check for exemptions: Do you qualify based on customer status, business longevity, location, or type (e.g., nonprofit or financial)?

3. Prepare for registration if needed: File Form 3401, secure your $10,000 bond, and set up quarterly report routines.

3. Tighten compliance playbooks: Document opt-ins, enable real-time opt-out processing, respect quiet hours, and maintain visibility of your certificate.

4. Consult your advisor: A quick check with legal counsel or a compliance consultant ensures your business goals and values stay aligned with evolving regulations.

The Takeaway

S.B. 140 is a perfect example of why staying ahead of legal shifts matters—for your peace of mind and your bottom line. Yes, rules are tightening, especially around caller/text outreach. But with smart planning, clean practices, and proactive compliance, you turn regulation into resilience. And if in doubt—reach out.

For a consultation on best business practices or business building that matches your style and goals, reach out to StreamLine Marketing Pro. Let’s keep building your business, not legal headaches.