Texas SB 140: What Sales Teams Need to Know About the New Telemarketing Law

Effective September 1, 2025, Texas Senate Bill 140 (SB 140) significantly expands telemarketing rules. If your sales team makes outbound calls, sends texts, or runs digital outreach to Texas prospects, this law applies to you.

At AlwaysHired, we help tech companies hire SDRs with confidence by sourcing, placing, and supporting talent until they prove they can deliver results. That's why we created this guide: to help you understand what SB 140 means for SDRs, account executives, and revenue leaders.

Why Does SB 140 Matter?

For years, Texas telemarketing laws focused mainly on consumer robocalls. SB 140 closes loopholes and brings sales calls, SMS outreach, and even digital messages into a much stricter compliance framework.

This means that even if your SDRs are only booking meetings (not closing deals), their calls to Texas numbers now fall under state law. Failing to comply could lead to fines, lawsuits, or reputational damage.

Executive Summary of SB 140

Here are the five biggest changes every sales leader needs to know:

1. Disclosures Required: Reps must provide the street address of their calling location and the seller's principal address before a transaction (or meeting) is confirmed.
   Note: While the statute literally says "the location from which the salesperson is calling" — which could include a home office — best practice is to standardize on the company's headquarters or registered office address to protect SDR privacy. We recommend reviewing this policy with company counsel.
2. Quiet Hours: Calls and texts restricted to 9 a.m.–9 p.m. Mon–Sat and 12 p.m.–9 p.m. Sunday (recipient's local time).
3. Do-Not-Call Compliance: The Texas DNC list must be scrubbed every 60 days.
4. Registration: "Sellers" must register with the Texas Secretary of State, submit Form 3401, post a $10,000 bond, pay a $200 fee, and submit scripts.
5. Litigation Risk: Violations can be enforced under the Texas Deceptive Trade Practices Act (DTPA), opening the door to costly lawsuits.
6. Exemptions: Only publicly traded companies (listed on a U.S. exchange) are exempt. Everyone else selling into or out of Texas must comply.

📌 Want to skip straight to practical next steps? Download our Texas SB 140 Compliance Checklist to review with your team.

Key Changes to Be Aware Of

• Broader Definition of "Solicitation": SB 140 covers live calls, texts, MMS, and digital sales outreach.
• Disclosures: Under § 302.202 of the Texas Business & Commerce Code, sellers must disclose the address of the calling location and principal business address before a transaction. For SDRs, that means before confirming a meeting.
• Registration Requirements: Outbound sales companies ("sellers") must be registered, bonded, and submit their sales scripts to the state.
• Private Right of Action: Texans can now sue under the DTPA for telemarketing violations, adding significant risk for noncompliant teams.

For deeper context, here are two excellent legal analyses:

• Nelson Mullins – "Texts Are Telemarketing in Texas: SB 140 Set to Place New Requirements"
• Sills Cummis – "Texas SB 140: Expanded Regulation of Marketing Texts"

Statutory Requirements vs. Best Practices

Sample SDR Script Update

To stay compliant without sounding robotic, SDRs can use language like this:

Before confirming the meeting:
"Just so you have it, I'm calling today from [Street Address], and our company's headquarters is at [Principal Address]. My name is [Name], and my title is [X]."

This phrasing moves the disclosures to the closing portion of the call, which satisfies § 302.202 while keeping the conversation natural.

Action Items for Tech Sales Teams

1. Review and update all SDR scripts to include required disclosures.
2. Register with the Texas Secretary of State if your company qualifies as the "seller."
3. Post a $10,000 bond and file Form 3401 along with all sales scripts.
4. Implement quiet hour restrictions into dialer settings.
5. Scrub your call lists against the Texas Do-Not-Call list every 60 days.
6. Train SDRs to incorporate disclosures naturally into conversations.
7. Review SMS and digital outreach policies with counsel to ensure consent is properly managed.

📌 Not sure where to start? Book a call with AlwaysHired and we'll walk you through script compliance step by step.

What Happens If You Don't Comply?

Failure to comply with SB 140 could expose your company to:

• Civil penalties from the Texas Attorney General
• Private lawsuits from consumers under the DTPA
• Damaged reputation in an era where compliance is a competitive differentiator

Simply put: compliance isn't optional.

Final Thoughts

Outbound sales remains one of the most powerful ways to generate pipeline. But with Texas tightening its laws, compliance needs to be built into your playbook.

At AlwaysHired, we help tech companies hire SDRs with confidence by sourcing, placing, and supporting talent until they prove they can deliver results. Our model reduces hiring risk and ensures your team is focused on growth, not guesswork.

Author

Written by Gabe Moncayo, CEO of AlwaysHired
Helping tech companies build SDR teams with confidence and scale sales while reducing hiring risk.

FAQ

Do public companies have to comply with SB 140?
Only publicly traded companies listed on a U.S. stock exchange are exempt from registration and bonding. All other companies must comply.

Do SDRs have to disclose their home address if working remote?
The statute says "location of the salesperson," but best practice is to disclose the company's headquarters or registered office address to protect privacy. Confirm this policy with company counsel.

What are the Texas cold call quiet hours?
Calls and texts are only allowed between 9 a.m.–9 p.m. Monday–Saturday, and 12 p.m.–9 p.m. on Sunday, in the recipient's local time.

📌 Have more questions? Book a call with AlwaysHired and set up your team for success.