Texas SMS Compliance: What Businesses Need to Know About the New Law

August 19, 2025

As of September 1, 2025, Texas Senate Bill 140 (SB 140) is officially in effect, changing how businesses may send text messages to consumers in Texas. However, a recent legal dispute has reshaped how the law is being interpreted. The Ecommerce Innovation Alliance (EIA), together with Postscript and Flux Footwear, filed a Motion for Preliminary Injunction to halt enforcement, arguing that SB 140 unconstitutionally burdens legitimate, consent-based SMS marketing campaigns.

In response, on September 26, 2025, the Texas Attorney General’s Office (OAG) clarified that SB 140 does not apply to messages sent with consumer consent. This means that if your business sends opt-in, permission-based marketing texts, you may be exempt from registration and bonding requirements under the law. That said, compliance still matters. Penalties for violations can reach $5,000 per message, and enforcement could still apply to non-consensual or unverified outreach.

Required SMS Compliance Forms in Texas

If your marketing program involves non-consensual or unverified contacts, or if your legal counsel advises registration as a precaution, you must file specific forms to comply with Texas’s telemarketing regulations under SB 140.

• Form 3401 – Application for Registration (Notarization required)
• Form 3406 – Disclosure Statement (Notarization required)

Texas also requires a $10,000 security deposit, which can be satisfied through one of the following:

• Form 3403 – Telephone Solicitation Bond (if you choose a surety bond, e.g., via SuretyBonds.com for ~$250 / 3 years)
• Form 3404 – Assignment of Certificate of Deposit (if handled through your bank)
• Form 3405 – Security in the Form of a Cash Bond (if depositing $10,000 directly with the state)

👉 All official forms can be found here.

Surety Bond: The Cost-Effective Way to Meet SMS Compliance

The Texas law still requires businesses to maintain $10,000 in financial security before sending marketing texts, but most companies meet this through a surety bond, which is much more affordable than depositing cash. Providers such as SuretyBonds.com offer 3-year bonds for around $250. This remains the fastest, least disruptive compliance option.

However, following the Attorney General’s clarification, companies that send only consent-based text messages may not need to post a bond or register at all, since their conduct falls outside SB 140’s enforcement scope. Consult your legal counsel to confirm whether your messaging practices qualify for this exemption.

Quiet Hours Under the Texas Mini-TCPA

Even though SB 140’s reach has been clarified, Texas’s “mini-TCPA” Quiet Hours remain fully enforceable. These restrictions apply to all marketing text messages, regardless of whether they’re consent-based.

When Are Quiet Hours in Texas?

To protect customers from receiving unwanted texts, the Texas SMS compliance law enforces strict Quiet Hours for marketing messages. Businesses have to avoid sending SMS campaigns during the times listed below to remain compliant.

• Monday through Saturday: No texts between 9 p.m. and 9 a.m.
• Sunday: No texts before 12 p.m. (noon) or after 9 p.m.

Any marketing message that is sent outside of these hours may be considered a violation of Texas SMS compliance law.

Exceptions to Quiet Hours

The law does provide two important exceptions to the Quiet Hours restrictions. First, businesses may send messages at the express request of the consumer. Second, texts are permitted if they are sent to individuals with whom the business has a prior or existing relationship.

However, the challenge is that neither of these terms is clearly defined under the law. A broad interpretation could mean they apply to anyone who has opted in to receive messages, while a narrow interpretation could limit them to direct replies or recent customers. Until further clarification is issued, businesses should adopt a conservative approach to avoid potential penalties.

Best Practices for Managing Quiet Hours

Complying with Quiet Hours is not just about avoiding penalties, it’s also about building trust with your audience. Sending texts at the wrong time can feel intrusive and harm customer relationships, even if the message is otherwise relevant. By following best practices, businesses can stay compliant while maintaining positive engagement with their subscribers. To reduce risk and ensure compliance, businesses should:

1. Set Quiet Hours in your SMS platform to prevent triggered messages from going out during restricted times.
2. Follow conservative timing guidelines. A safe default is to avoid sending between 8 p.m. and 12 p.m. ET, as well as before 2 p.m. ET on Sundays.
3. Train your team to respect Quiet Hours when planning campaigns.
4. Consult legal counsel if you have questions about whether Quiet Hours apply to your messages.

Why SMS Compliance Matters

Identifying exactly where SMS recipients live is challenging, especially when phone numbers do not always match a consumer’s actual residence. That makes it easy to unknowingly send messages to Texas residents. Here’s why compliance matters:

• Penalties are steep: $5,000 per non-compliant message
• Texas is strict: The state enforces consumer protection rules aggressively
• Regulations are expanding: More states are introducing SMS compliance laws

Taking the right steps now protects your brand’s revenue and ensures your campaigns continue without interruption.

How to Stay Compliant: Next Steps for Businesses

Following the new Texas SMS compliance law requires more than just somebody filling out forms. Businesses have to complete specific registration steps, meet financial security requirements, and adjust their SMS marketing practices. Below, you will find a step-by-step breakdown of what your brand needs to do to stay compliant.

Select Your $10,000 Security Option

Texas requires businesses to set aside $10,000 in financial security. You can meet this requirement through one of three methods: a surety bond (the most common), a certificate of deposit through your bank, or a cash bond paid directly to the state.

Complete Form 3401 (Application for Registration)

This form is the foundation of your compliance filing. It registers your business with the Texas authorities and provides basic information about your company and its marketing practices.

Complete Form 3406 (Disclosure Statement)

Alongside your registration, you must submit a disclosure statement. This form requires additional details about your business operations and must also be notarized to be valid.

Submit the Correct Security Form (3403, 3404, or 3405)

Depending on your chosen financial security option, you’ll also need to file one of these:

• Form 3403 for a surety bond
• Form 3404 for a certificate of deposit (processed by your bank)
• Form 3405 for a cash bond

Ensure All Forms Are Notarized

Texas requires notarization for your compliance forms. This extra step verifies the authenticity of your paperwork and helps prevent fraud.

Submit Paperwork to Texas Authorities

Once it is completed and notarized, your forms must be filed with the Texas state authorities. If you are using a certificate of deposit, your bank will need to process Form 3404 before submission.

Update Your SMS Platform to Account for Quiet Hours

Compliance isn’t just about paperwork; it also involves adjusting your SMS platform settings. Make sure your campaigns are automatically shut off during the Texas Quiet Hours (9 p.m.–9 a.m., and Sunday before noon or after 9 p.m.).

Train Your Team on SMS Compliance Best Practices

Finally, make sure to let your marketing team know about these new regulations. They should understand the Texas SMS compliance law, Quiet Hours restrictions, and the risks of non-compliance. Proper training reduces errors and helps keep your brand safe.

How Klaviyo, Postscript, & Attentive Support SMS Compliance

Klaviyo, Postscript, and Attentive help businesses adapt to the new Texas SMS compliance law by offering tools that simplify compliance. Attentive, KLaviyo, and Postscript have built-in features like Quiet Hours settings, clear opt-in flows, and guidance on registration requirements, ensuring that brands stay in line with the updated mini-TCPA rules.

They all complement this by providing segmentation, automation, and consent management tools that make it easier to control message timing and maintain proper records. Together, these platforms give businesses the structure they need to meet Texas SMS compliance standards while continuing to run effective SMS campaigns.

Staying Ahead With SMS Compliance

The new Texas SMS compliance law highlights how quickly regulations around text message marketing are changing. With penalties of up to $5,000 per violation, businesses cannot afford to take compliance lightly. Even if your company is not based in Texas, your SMS campaigns could still reach Texas residents, making these rules relevant nationwide. Preparing now helps protect your brand, your reputation, and your revenue.

To stay compliant, make sure your team understands the registration process, financial security requirements, and Quiet Hours restrictions. Beyond avoiding fines, following these rules demonstrates respect for your audience and builds long-term trust. If your business needs help adapting, working with an experienced SMS marketing service can simplify compliance and ensure your campaigns continue to deliver results safely and effectively.

Disclaimer: This article is for educartional purposes only and should not be considered legal advice. Every business situation is unique, and compliance requirements may vary. You should always consult with your legal counsel to confirm how the Texas SMS Compliance law applies to your specific circumstances.

FAQs on Texas SMS Compliance