BILL ANALYSIS

Senate Research Center	S.B. 140
	By: Hall
	Business & Commerce
	6/11/2025
	Enrolled

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

The Problem:

In 2001, the 77th Legislature passed H.B. 472 to create the Texas Telemarketing Disclosure and Privacy Act and required it to be "liberally construed and applied to protect the public against false, misleading, or deceptive practices." With H.B. 2278, the 80th Legislature updated the definition of a "telephone call" to include a call to a mobile phone number. S.B. 1969, from the 81st Legislature, further updated the definition to include text messaging.

Both Chapters 302 (Regulation of Telephone Solicitation) and 304 (Telemarketing) of the Business and Commerce Code concern telephone solicitation. The Chapter 304 definition of "telephone call" includes text messaging. However, Chapter 302 does not define "telephone call" and does not contemplate text messaging.

For example, in a 2022 court case, Powers v. One Technologies, the plaintiffs alleged they received unsolicited, unlawful text messages. The court ruled that a company that sent text messages did not qualify as a telemarketer under Texas law. The court reasoned that, since the telemarketing company sent text messages and did not make calls, the defendant did not violate the law because Business and Commerce Code Chapter 302 does not define "call" or include any statute contemplating text messages. Powers serves as an example of how the omission allows companies to send unauthorized text messages with little recourse for Texas citizens.

This Bill Would:

Amend Chapter 302 of the Business and Commerce Code to add the definition of "telephone call," as found in Chapter 304.

Additional Information:

S.B. 315 passed during the 88th Regular Session, but was vetoed by the governor. The justification for the veto was unclear.

S.B. 140 amends current law relating to certain definitions relating to the regulation of and private rights of action arising from certain solicitation-related communications.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 302.001, Business & Commerce Code, by adding Subdivision (6-a) to define "telephone call" and amending Subdivision (7) to redefine "telephone solicitation."

SECTION 2. Amends Section 302.003, Business & Commerce Code, as follows:

Sec. 302.003. LIBERAL CONSTRUCTION AND APPLICATION. (a) Creates this subsection from existing text. Requires that Chapter 302 (Regulation of Telephone Solicitation) be liberally construed and applied to promote its underlying purpose to protect persons and the public against false, misleading, or deceptive practices in the telephone solicitation business.

(b) Prohibits the fact that a claimant has recovered under a private action arising from a violation of this chapter more than once from limiting recovery in a future legal proceeding in any manner.

SECTION 3. Amends Section 304.005, Business & Commerce Code, as follows:

Sec. 304.005. LIBERAL CONSTRUCTION AND APPLICATION. (a) Creates this subsection from existing text. Requires that Chapter 304 (Telemarketing) be liberally construed and applied to promote its underlying purpose to protect persons and the public against false, misleading, abusive, or deceptive practices in the telemarketing business.

(b) Prohibits the fact that a claimant has recovered under a private action arising from a violation of this chapter more than once from limiting recovery in a future legal proceeding in any manner.

SECTION 4. Amends Subchapter F, Chapter 304, Business & Commerce Code, by adding Section 304.2581, as follows:

Sec. 304.2581. DECEPTIVE TRADE PRACTICES. (a) Provides that a violation of this chapter is a false, misleading, or deceptive act or practice under Subchapter E (Deceptive Trade Practices and Consumer Protection), Chapter 17 (Deceptive Trade Practices).

(b) Authorizes a public or private right or remedy prescribed by Subchapter E, Chapter 17, to be used to enforce this chapter.

SECTION 5. Amends Subchapter B, Chapter 305, Business & Commerce Code, by adding Sections 305.054 and 305.055, as follows:

Sec. 305.054. DECEPTIVE TRADE PRACTICES. (a) Provides that a violation of Chapter 305 (Telephonic Communications Made for Purpose of Solicitation) is a false, misleading, or deceptive act or practice under Subchapter E, Chapter 17.

(b) Authorizes a public or private right or remedy prescribed by Subchapter E, Chapter 17, to be used to enforce this chapter.

Sec. 305.055. CLAIMANT RECOVERY FOR VIOLATION. Prohibits the fact that a claimant has recovered under a private action arising from a violation of this chapter more than once from limiting recovery in a future legal proceeding in any manner.

SECTION 6. Makes application of this Act prospective.

SECTION 7. Effective date: September 1, 2025.