Guide for Texas dance studios to comply with new SMS law SB 140 effective Sept 1, 2025
Overview
Starting September 1, 2025, Texas Senate Bill 140 expands telemarketing laws—formerly limited to phone calls—to include text messages (SMS/MMS) intended for marketing. If you're sending promotional texts to Texas residents, or sending them from Texas, you're in scope.
Who's Covered?
To Texas recipients, regardless of where your business operates.
From Texas, regardless of where your recipients live.
(JD Supra, Listrak)
Key Requirements if You Aren’t Exempt
1. Register with the Texas Secretary of State
File Form 3401 (Registration) and Form 3406 (Disclosure), both notarized.
Pay a $200 annual fee.
Post a $10,000 security deposit, which can be met via surety bond (commonly costs around $100–$150/year), letter of credit, or CD.
Update quarterly and renew annually.
(Lowenstein Sandler, OneSignal, JD Supra)
2. Respect Quiet-Hours Rules
Mon–Sat: Only contact between 9 a.m.–9 p.m. (recipient’s local time)
3. Scrub Against the Texas “Do Not Call” List & Honor Opt-Outs
Remove numbers on the Texas DNC list and process opt-outs promptly.
Include opt-out instructions (e.g. “Text STOP to unsubscribe”) in every marketing message.
(Nelson Mullins Riley & Scarborough LLP)
4. Maintain Detailed Records
Track consent (who opted in, when, how) and document all opt-outs, scrubs, and message logs.
Retain records ideally for at least 4 years to support compliance.
(Bloomreach)
5. Understand Legal Risks
Consumers can now sue under the Texas Deceptive Trade Practices Act (DTPA), with damages ranging from $500–$5,000 per violation, potentially trebled for intentional violations, plus legal costs.
Repeat lawsuits are allowed, even for the same violation.
(JD Supra)
Who Might Be Exempt?
Some programs may qualify for narrow exemptions under Chapter 302 of the Business & Commerce Code, including:
Current or former customers—if the studio has used the same business name for 2+ years.
Brick‑and‑mortar retail sellers—if operating under the same name for 2+ years and the majority of sales occur in-person.
501(c)(3) nonprofits and educational institutions.
Businesses selling food.
(Lowenstein Sandler, OneSignal)
But these exemptions are fact-specific—consult your legal counsel to confirm if your studio qualifies.
Quick Compliance Checklist
Determine if you need to comply (texting Texas leads or from Texas).
Check for exemptions—former student outreach? Physical studio? 501(c)(3)?
If not exempt, register now (Forms 3401, 3406 + bond + fee).
Set up opt-out & scrubbing systems, ensure DNC compliance.
Train your team on quiet hours and messaging rules.
Log everything (opt-ins, messages sent, opt-outs).
Monitor campaigns regularly to ensure ongoing compliance.
Helpful Resources for Your Team
Texas Secretary of State Registration Forms (3401, 3406, 3403/04/05) – required for filing.
Texas Business & Commerce Code (Ch. 301–305) – see specific statutory provisions.
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Legal Summaries & Alerts:
JDSupra “Texas ‘Mini‑TCPA’ Now Covers Marketing Text Messages” (JD Supra, OneSignal, Nelson Mullins Riley & Scarborough LLP, Bloomreach, Lowenstein Sandler)
Listrak “Changes to Texas Telemarketing Law” (Listrak)
OneSignal overview “Texas SB 140: What SMS Marketers Need to Know” (OneSignal)
Lowenstein Sandler summary “Texas ‘Mini‑TCPA’ Goes Into Effect September 1, 2025” (Lowenstein Sandler)
Bottom Line
If your dance studio or after-school program sends promotional texts to Texas families—or sends them from Texas—you likely fall under SB 140 starting September 1, 2025. Staying proactive with compliance now will protect your studio from costly penalties and lawsuits.