H-1B Lottery 2027 Registration Opens March 4

U.S. Citizenship and Immigration Services (USCIS) announced the initial registration period for the fiscal year 2027 H-1B cap will open at noon EST on March 4, 2026, and run through noon EST on March 19, 2026. The USCIS registration fee remains $215. 

USCIS will select 85,000 petitions through a lottery process: 20,000 for the U.S. advanced degree category and 65,000 for the general category. Applicants selected in the lottery should be notified by March 31, 2026, and will have until June 30, 2026, to submit the H-1B petition.

New this year: Selection will be wage-weighted, with beneficiaries receiving one to four entries based on the Department of Labor wage level offered. A $100,000 fee applies to all applicants outside the U.S.

Varnum’s immigration attorneys have begun collecting information to prepare for the March registration period and to complete the wage-level analysis. Employers with employees on F-1 Optional Practical Training (OPT) or candidates requiring cap-subject H-1Bs should contact us to prepare for registration.

Legal Planning for Minor Children During Parental Absence in Michigan

2 9 Advisory Guardianshipimmigration 1200x628

Parents may face situations that make it difficult or temporarily impossible to care for their minor children. These situations can arise unexpectedly and may last longer than anticipated. Having a clear plan in place helps ensure that children are cared for by trusted adults with the legal authority to act when parents cannot.

Michigan law offers several legal tools that allow parents to prepare for a temporary separation and designate who may step in and care for their children. Implementing these measures in advance can ensure continuity of care, reduce stress, and help avoid unnecessary court involvement.

Why Advance Planning for Minor Children Matters 

When a parent is unavailable, another adult’s ability to care for a child often depends on legal authority. Schools, medical providers, and other institutions typically require documentation before legally recognizing anyone other than a parent.

Without advance planning, caregivers may be forced to involve the court in an already difficult situation. Proactive legal planning gives trusted adults the authority they need to make medical, educational, and day-to-day decisions and helps ensure children experience as little disruption as possible.

Legal Tools Available Under Michigan Law 

Michigan law provides several options to address temporary parental absence. Each tool serves a different purpose, and in many cases, works best when used in combination. 

Temporary Delegation of Parental Authority in Michigan

One commonly used option is a temporary delegation of parental authority. This document authorizes a parent to designate another adult to make decisions regarding a child’s care, education, and medical treatment.

Under Michigan law, this delegation is time-limited and may not exceed 180 days, and can be revoked by the parent at any time. Because of its temporary nature, this tool is well-suited for addressing immediate or short-term needs when a parent expects to resume care and wishes to avoid court involvement.

Parental Nomination of a Guardian for a Minor Child

Parents may also nominate a guardian for a minor child in advance through a will or another written document signed by the parent and witnessed by at least two individuals.

A parental appointment of a guardian does not automatically grant authority. Under Michigan Law, it becomes effective only if specific statutory conditions are met, such as when both parents are deceased, legally incapacitated, or no longer have parental rights. When those conditions are met, the nominated guardian’s authority becomes effective upon the acceptance being filed with the appropriate probate court. 

Even when those conditions are not met, a guardian nomination remains an important planning tool. It clearly documents a parent’s wishes and must be given priority by the court if a guardianship proceeding becomes necessary.

Court-Appointed Guardianship in Michigan

If a parent’s absence exceeds the anticipated timeframe and they are unable to resume care, court involvement may be required to establish guardianship. Michigan courts may appoint a guardian when statutory circumstances exist, including when parental rights are terminated or suspended, when a child resides with someone who lacks authority, or when both parents are confined in a place of detention.

Courts may appoint either a full guardian or a limited guardian. A full guardian generally has the authority of a custodial parent but is not personally responsible for the child’s financial support. A limited guardianship, created with parental consent and a court-approved placement plan, is often used when the parent expects to resume care after a defined period.

Supporting Documents and Practical Preparation

In addition to formal legal instruments, parents should consider assembling practical documents to assist caregivers. These may include medical consent forms, releases of confidential or privacy information, HIPAA authorizations, school authorization documents, emergency contact information, and copies of identification, insurance cards, birth certificates, and passports.

Parents of U.S. citizen children may wish to proactively apply for passports. Parents of non-U.S. citizen children should ensure travel and immigration documents remain valid. Written guidance on medical needs, educational services, daily routines, and trusted contacts can further support continuity of care.

Parents may also consider storing copies of key documents and account information with a trusted contact and/or in secure, encrypted digital storage accessible without relying on the parent’s phone. This may include shared cloud storage or a password manager that stores login credentials and recovery information. Parents should also be mindful of two-factor authentication requirements and take steps to ensure continued access to important accounts, such as maintaining backup authentication codes or authorizing a secondary device. Some parents may also find it helpful to use tools such as multilingual apps that help create emergency plans and send alerts to designated contacts, including loved ones or attorneys. Having these materials readily available can help caregivers act promptly and reduce disruption for the child.

Final Considerations for Parents 

Advanced planning cannot eliminate every risk, but having a valid delegation of authority and a written guardian nomination in place can help promote continuity of care, reduce delays, and provide the court with clear guidance regarding the parent’s intent. These tools are temporary and revocable and do not permanently transfer parental rights.

Parents should also be aware that children aged 14 or older may have certain rights under Michigan law regarding guardianship decisions. 

Legal planning for minor children often involves overlapping considerations related to family law, estate planning, and, in some cases, immigration law. Attorneys in Varnum’s Family, Estate Planning, and Immigration Practice Teams regularly assist parents with these issues and provide tailored advice to individual circumstances.

How to Title Your Home: Trusts, Lady Bird Deeds, and Creditor Protection

Choosing how to title your real estate is more than paperwork, it’s about aligning ownership with your goals for creditor protection, probate avoidance, taxes, and family stewardship. Here is a practical framework under Michigan law to help you think through your options before speaking with an estate planning attorney.

Married Homeowners: Choosing the Right Title

  • Tenants by the Entireties (Creditor Protection)
    If one or both spouses faces higher creditor risk, such as professional liability, business exposure, or personal guarantees, holding the property as tenants by the entireties offers a strong protection against the creditors of just one spouse. This is particularly sensible if the property will likely be sold after the second spouse dies, rather than retained in the family, unless the family retains it and the property taxes “uncapping”.
  • Revocable Trusts (Probate Avoidance and Legacy Planning)
    If creditor risk is low, and your priority is avoiding probate while keeping the home in the family, transferring the property into a revocable trust can be the better option. Trust ownership enables continuity of management on incapacity, custom distribution terms with contingency plans, and smoother succession. Using a solid umbrella liability policy can further mitigate creditor concerns.
  • Lady Bird Deeds (Avoiding Probate and Preserving Control)
    If avoiding probate is the main goal, creditor risk is low, and the property is likely to be sold after death, a Lady Bird deed can efficiently transfer title outside probate while preserving lifetime control. Lady Bird deeds can also work well if the property will be retained by the family after death provided that the transfer will not result in the property taxes “uncapping.” This cost-effective option pairs well with an umbrella policy for added protection.

Single Homeowners: Revocable Trust Ownership

For unmarried clients, titling your home in your revocable living trust is often the cleanest path. It avoids the delays and public nature of probate and simplifies incapacity planning. If the trust beneficiaries named to receive the property upon death would result in an uncapping, transferring the property to the trust while the owner is living eliminates the risk that a Lady Bird deed could trigger higher property taxes at death. Trust ownership also allows tailored distribution provisions with contingency planning.

Choosing the Right Home Titling Strategy

Ultimately, title strategy should reflect your creditor profile, plans for the property after death, and priorities around privacy and administration.

Before changing the title of your home, consult with Varnum’s estate planning attorneys to ensure your plan protects your assets, your family, and your long-term goals.

Florida Community Association Law Update: Video Conference Meetings and Proposed Court Reforms

Florida Community Association Law Update: Video Meetings & Reforms

Recent changes to Florida condominium law and proposed legislation affecting homeowners’ associations introduce new compliance requirements and potential legal risks for community associations. House Bill 913, which amended Chapter 718, is now in effect, and House Bill 657 proposes additional structural reforms that associations should monitor closely.

House Bill 913: Video Conference Meetings Under Chapter 718

Authorization of Video Conference Meetings

House Bill 913 took effect July 1, 2025, amending Chapter 718 to expressly authorize condominium associations to be conducted by video conference. The law applies to board, committee, and unit-owner meetings and imposes new procedural and recordkeeping agreements.

The statute introduces a new defined term, “video conference,” meaning a real-time audio and video meeting conducted through commonly used platforms. Board and committee members participating by video conference count toward a quorum and may vote as if physically present. Associations must require the use of a speaker so that in-person attendees can hear remote participants.

Notice and In-Person Attendance Requirements

If a board meeting is conducted by video conference, the meeting notice must state that a video conference will be used and must include a hyperlink and a conference telephone number for unit owners who wish to attend remotely.

Despite the expanded use of video conferencing, an in-person location is still required for all meetings, including those with a video conference component.

Recording and Recordkeeping Obligations

Meetings conducted by video conference must be recorded and maintained as official records of the association. Unit-owner meetings, including annual meetings, may also be conducted by video conference. If an annual meeting is held by video conference, a quorum of the board of directors must be physically present at the noticed location, and the meeting must be recorded.

Associations required to maintain a website or mobile application must post the video recording or a hyperlink to the recording for all association, board, committee, and unit-owner meetings conducted by video conference during the preceding twelve months, in addition to approved minutes.

Practical and Legal Concerns

These requirements have raised privacy and participation concerns for many associations. Unit owners may be reluctant to speak or appear on camera when recordings are preserved as official records and made accessible online. Associations also face the risk that video clips may be taken out of context and shared on social media, potentially fueling disputes or misinformation.

Although Chapter 718 permits closed meetings with legal counsel for proposed or pending litigation, the statute does not expressly exempt those meetings from the recording requirement if conducted by video conference. As written, such meetings appear to be subject to mandatory recording, which creates tension with the attorney-client privilege and prompts concern among boards and counsel. Many associations are reevaluating meeting formats, notice language, and technological controls to manage compliance and legal risk.

House Bill 657: Proposed Reforms to Florida Community Association Dispute Resolution

Creation of Community Association Court Program

House Bill 657 proposes significant changes to Florida’s community-association framework, including the creation of a community association court program within the circuit courts. The program would have jurisdiction over homeowners associations, condominiums, and cooperatives and would be authorized to conduct trials, enforce arbitration awards, compel compliance with statutes, appoint receivers, impose civil penalties, and award attorneys’ fees and costs.

The proposed program would operate under statewide administrative standards and include annual reporting requirements.

Mandatory Governing Document Language

The bill would require associations formed on or after July 1, 2026, to include a statutory statement in their governing documents. Existing associations would be required to hold a member meeting by January 1, 2027, to vote on adding the statement, which would require approval by a majority of voting interests at a duly noticed meeting.

This provision would effectively mandate the inclusion of “Kaufman language,” subjecting governing documents to statutory changes, as amended from time to time.”

Termination of Homeowners Associations

House Bill 657 also establishes a detailed, court-supervised process for terminating homeowners associations. The process includes minimum voting thresholds, trustee and recording requirements, judicial oversight through the community association court program, and penalties for noncompliance and directors.

If enacted, the legislation would take effect July 1, 2026.

Key Concerns for Associations

House Bill 657 raises concerns about contractual autonomy and dispute-resolution costs. Requiring associations to incorporate “Kaufman language” limits the ability to preserve governing documents against future statutory amendments. In addition, curtailing the pursuit of mediation, historically an efficient and cost-effective alternative to litigation, in favor of court-based resolution may increase costs and extend the time needed to resolve disputes.

Varnum’s Condominium and Homeowners Association attorneys continue to closely monitor these developments as the Florida Legislature enters the 2026 legislative season. For questions, contact your Varnum attorney.

Exclusive vs. Protected Franchise Territories

Exclusive vs. Protected Franchise Territories

Varnum Viewpoints

  • Protected territories are now the industry norm. Franchisors increasingly favor protected territories because they balance franchisee protection with flexibility for brand growth and market adaptation.

  • “Protected” does not mean exclusive. While protected territories prevent same-brand units from opening nearby, franchisors often retain rights to sell online, operate alternative brands, serve national accounts, and use non-traditional locations.

  • Territory rights require careful review and negotiation. The scope of territorial protections varies by system and is detailed in Item 12 of the FDD and the franchise agreement, making due diligence critical before signing.

In franchising, territorial rights play a central role in shaping the relationship between franchisors and franchisees. These rights determine where franchisees can operate, the level of competition they face, and how a brand can grow. While territorial structures vary widely, most systems rely on exclusive or protected territories, with a trend toward less exclusive ones. Understanding the differences between these two models is essential for evaluating franchise opportunities and negotiating territory rights.

Overview: Exclusive vs. Protected Territories

Franchisors throughout the industry offer both exclusive and protected areas. While each aims to minimize competition and provide a viable market for the franchisee, exclusive territories offer the greatest protection. Exclusive territories can limit a franchisor’s ability to expand the brand’s presence and adapt to changing market conditions. For this reason, franchisors have grown to prefer granting protected territories over exclusive territories.

Under a protected franchise territory, the franchisor agrees not to establish any additional franchised or company-owned units of the same brand in that territory. This shields the franchisee from direct intra-brand competition, but does not guarantee full exclusivity. Franchisors or other franchisees may still engage in certain competitive activities within the protected area. Common examples include:

  • Online and e-commerce sales;
  • Wholesale distribution to third-party retailers (e.g., supermarkets or convenience stores);
  • Operation of alternative brands or private labels within the same industry;
  • Non-traditional outlets or locations (e.g., airports, grocery stores, bookstores, universities, or hospitals), even when located within a franchisee’s territory, and
  • National accounts (e. g., certain customers that are big enough to merit the franchisor’s attention and reserve the right for the franchisor to manage the relationship).

Protected territories provide a competitive middle ground, offering franchisees some protection while giving franchisors greater flexibility to expand the brand and adapt to market changes. As a result, protected territories have become more common than exclusive territories. 

Territory rights, including whether a franchisee receives an exclusive or protected territory, are outlined in Item 12 of the legally required Franchise Disclosure Document (FDD) and further detailed in the franchise agreement.

Key Differences Between Exclusive and Protected Territories

Exclusive Territories

An exclusive territory provides franchisees the sole right to operate within a defined geographic area. Typically, neither the franchisor nor other franchisees may establish a competing business in that territory, providing the franchisee with the highest level of protection against intra-brand competition.
Exclusive territories have become less common because they limit a franchisor’s ability to expand and respond to market demands. Franchisees may have more success negotiating exclusivity when committing to significant monetary investments or substantial multi-unit development within a given territory. In the absence of these circumstances, franchisees may negotiate options or rights of first refusal to expand into adjacent territories.

Protected Territories

Protected territories ensure that no other same-brand franchised or company-owned unit will be placed within the defined area. However, they do not prohibit competitive activity. For example, Franchisors often reserve the right to:

    • Sell products or services online;
    • Distribute products wholesale to retailers;
    • Operate alternate brands;
    • Open units in non-traditional venues, such as airports or universities; and
    • Manage larger national accounts directly.

    Not all protected territories are structured the same. Franchise systems may vary significantly in the protections offered, making a careful review essential for prospective franchisees.

    Franchisor’s Competitive Activities Within Territories

    Regardless of whether a territory is exclusive or protected, franchisors may retain certain competitive rights. Common examples include:

    • Online sales: Direct-to-consumer e-commerce operations;
    • Wholesale distribution: Sales through supermarkets, convenience stores, or other retailers;
    • Alternative brands and private labels: Multiple brands under the same franchisor operating in overlapping areas;
    • Non-traditional outlets: Locations, such as airports, grocery stores, bookstores, universities, or hospitals; and
    • National accounts: Large clients handled at the franchisor level, with certain work assigned to franchisees as needed.

    Territory structures are a critical element of any franchise relationship and can significantly affect both the franchisee’s competitive environment and the franchisor’s ability to grow and expand. Exclusive territories offer strong protection but limit brand expansion, while protected territories strike a balance between franchisee security and franchisor flexibility. With the industry’s continued shift toward protected territories, prospective franchisees should carefully review Item 12 of the FDD and understand the rights and limitations of their territory before entering into any agreement.

    For more information on how this affects your business, contact your Varnum franchise attorney.

    Frequently Asked Questions About Franchise Territories

    What is the main difference between exclusive and protected territories?

    Exclusive territories prevent both the franchisor and other franchisees from operating within the territory. Protected territories prevent same-brand units but allow other forms of competition.

    Often, yes. Many franchisors reserve the right to conduct online sales, even within a protected territory.

    Sometimes, but such is generally limited. Franchisees making significant investments or pursuing multi-unit development may have more negotiating leverage.

    Territory rights appear in Item 12 of the FDD and are further detailed in the franchise agreement.

    The Hidden Risks of Adding Children as Joint Owners on Your Home

    A common estate planning question is whether adding adult children as co-owners of a home is a simple way to avoid probate. Many families are familiar with instances in which this approach worked seamlessly, with property transferring from parents to children without court involvement.

    While joint ownership may be appropriate in limited circumstances, it often creates legal, tax, and financial risks that undermine broader estate-planning goals.

    Exposure to Creditors, Lawsuits, and Divorce

    When a child becomes a co-owner, that ownership interest is generally exposed to the child’s creditors. If the child is sued, files for bankruptcy, or goes through a divorce, their interest in the property may be subject to liens, judgments, or division in a divorce proceeding.

    Even if you have paid the mortgage, taxes, and insurance, the home can become entangled in your child’s financial issues. This exposure can force negotiations with third parties or complicate future sales and refinancing.

    Gift Tax and Reporting Obligations

    Adding a child as a co-owner is treated as a present gift for federal tax purposes. Depending on the value of the interest transferred and the property’s fair market value, you may be required to file a federal gift tax return (Form 709).

    In 2026, gifts exceeding $19,000 per individual or $38,000 per married couple must be reported. While gift tax is rarely owed at the time of transfer due to the high lifetime exemption ($15 million for individuals or $30 million for married couples in 2026), the gift in excess of the annual exclusion amount reduces that lifetime exemption and can affect long-term estate and transfer tax planning.

    Reduced Step-Up in Basis and Higher Capital Gains Taxes

    One of the most significant tax consequences involves the loss of a full step-up in basis. If full ownership is retained until death, beneficiaries typically receive a step-up in basis to fair market value, reducing capital gains taxes if the property is later sold.

    When a child is added as a co-owner during your lifetime, the child generally receives a carryover basis on the transferred portion. At death, only the portion you still own receives a step-up. This partial step-up can significantly increase the family’s capital gains taxes.

    Unintended Outcomes If a Child Dies First

    Joint ownership can also produce unintended results if a child predeceases you. If the child holds a tenancy-in-common interest, that share becomes part of the child’s estate, potentially triggering probate and introducing new co-owners, such as a surviving spouse or minor children.

    If the child holds joint tenancy with rights of survivorship, the child’s interest passes back to the other owner(s), which may unintentionally exclude that child’s own children from inheriting a share of the home. Either scenario can disrupt family expectations and, in some cases, require court involvement to resolve.

    Consider Safer Estate Planning Alternatives

    For many families, alternatives such as a revocable living trust or an enhanced life estate deed, commonly called a “Lady Bird” deed, can avoid probate while preserving control, minimizing tax exposure, and reducing risk. These tools are often more flexible and better aligned with comprehensive estate planning objectives.

    Before adding a child to your deed, consulting with Varnum’s estate planning attorneys can help ensure your plan protects your assets, your family, and your long-term goals.

    To Amend or to Amend and Restate – Which Do You Need?

    Community association attorneys are often asked whether an association should pursue a targeted amendment to its governing documents or undertake a full amended and restated project. The answer depends.

    Before weighing those options, it helps to understand which documents are typically involved.

    • For condominiums, these typically include the Declaration of Condominium, the Articles of Incorporation, and the Bylaws.
    • For homeowner’s associations, the governing documents are generally the Declaration of Covenants, the Articles of Incorporation, and the Bylaws.
    • For cooperative associations, these documents are the Proprietary Lease or Owner’s Agreement, the Articles of Incorporation, and the Bylaws.

    In most cases, amending or amending and restating these documents requires a vote of membership. The approval threshold varies and is set forth in the document being amended.

    Individual Amendments

    An individual amendment revises a specific provision within a recorded document and is the most common type of amendment. This option is often appropriate when an association needs to make only a few changes while keeping the remainder of the document intact.

    Amended and Restated Projects

    An amended and restated project revises and republishes the entire document. This approach is typically recommended when an association plans to make several changes or where broader updates are needed. Common scenarios include:

    • Incorporating changes required or permitted by the newly enacted Florida Statutes
    • Removing outdated developer-related provisions following turnover to member control
    • Consolidating multiple prior amendments into a single, streamlined document for clarity and ease of use

    How Amendments Are Prepared

    Amendments and amended and restated documents are generally prepared in one of two ways:

    1. Redlined Format: When changes are limited or when transparency is especially important, associations may request a redlined version showing additions and deletions. Florida law requires additions to be underlined and deletions struck through. The format is most commonly used for individual amendments.
    2. Clean rewrite with statutory notice: When a provision, or entire document, is substantially rewritten, Florida Statutes allow for a clean version without redlining, provided it includes a notice stating: “Substantial rewording of Declaration/Articles/Bylaws. See provision ____ for present text.” This method is often best suited for amended and restated projects.

    How the Process Works

    Ideally, attorneys work with board members or a board-appointed committee to draft the proposed amendment or amended and restated document. Boards may then present the proposal directly to membership for a vote or hold a town hall meeting to review changes and gather feedback. Any input received can be evaluated and, if appropriate, incorporated before the final vote.

    Ultimately, approval depends on meeting the voting requirements set forth in the applicable governing document.

    Choosing the Right Approach

    The right approach depends on several factors, including:

    • The number of amendments being considered
    • The age of the current governing documents
    • Recent statutory changes
    • Whether developer-related language needs to be removed
    • The volume of prior amendments already in place

    For guidance in determining which choice works best for your community association, contact your Varnum community association attorney.

    Texas SB 140 After the November Settlement: Consent In, Cold Texting Out

    1 29 Advisory Texassb140 1200x628

    Texas Senate Bill 140 (SB 140), effective September 1, 2025, expands the Texas Business & Commerce Code by treating text messages as “telephone solicitations”. The law also links violations of Chapters 302, 304, Texas No‑Call and caller ID, and 305, certain mobile‑call limits, to the Texas Deceptive Trade Practices Act (TDTPA), opening the door to enhanced remedies and uncapped repeat recoveries.

    The takeaway for clients and marketers is clear: Unless an exemption applies, businesses conducting direct marketing must register with the Texas secretary of state, post a $10,000 security bond, and file quarterly reports before sending text messages to Texas consumers.

    What the November Settlement Changed

    In a November 2025 settlement resolving litigation over SB 140’s application to text messaging, Texas agreed that consent-based marketing texts that would otherwise trigger the law are exempt from Chapter 302’s telemarketing registration, bonding, and quarterly-reporting requirements.

    As a result, well-run opt-in SMS programs previously subject to the law no longer need to register or post the $10,000 bond solely because they send marketing texts, provided the programs are genuinely consent-based and not a pretext for cold outreach. This is a meaningful win for compliant programs, but it is not a free pass.

    Chapters 304 and 305 remain fully in force, and the TDTPA linkage remains intact. Marketers must continue to comply with the Texas No-Call law for text messages, including scrubbing the No-Call list and honoring the 60-day prohibition window after numbers are added. Caller ID spoofing or interference is prohibited.

    Any compliance failure, or any deceptive or misleading content, may trigger private litigation under the TDTPA. Federal law remains unchanged, so programs must continue to comply with the Telephone Consumer Protection Act (TCPA) consent standards and promptly honor opt-out requests.

    How to Operate Consent-Based Programs in Texas

    Statements by the attorney general in the settlement reflect enforcement intent but do not create binding precedent for courts or nonparties. Courts may interpret SB 140 differently, and private litigants may continue to bring TDTPA or other state-law claims.

    For opt-in programs, organizations may forgo Chapter 302 registration and bonding in Texas while strengthening the controls that most directly affect risk:

    • Explicit and informed consent capture
    • Clear disclosures at or before sign-up
    • Robust opt-out mechanics
    • Message content that avoids deception or harassment

    Because the settlement is nonbinding, organizations should memorialize their reliance in a short internal memorandum describing consent workflows, opt-out processing, and vendor governance, and maintain an auditable record of consent timestamps, disclosure screenshots, and suppression-list synchronization.

    Direct marketing that includes prospecting, third-party lead lists, or texts without prior consent remains subject to Chapter 302. Companies deploying such marketing on their own behalf should register with the secretary of state, post the $10,000 bond, and file quarterly reports unless a separate statutory exemption applies.

    Lingering Ambiguities and How to Manage Them

    Two issues remain unresolved. First, the “former or current customer” exemption in Section 302.058 is risky because the statute does not define “customer”. Organizations relying on this exemption should apply defensible criteria and document the basis for inclusion.

    Second, SB 140’s reference to outreach to “a purchaser located in this state” creates uncertainty, given real-time location challenges in SMS messaging. These risks are best managed conservatively by maintaining strong consent for Texas numbers, scrubbing against the No-Call list, and documenting compliance decisions.

    A Short Compliance Checklist

    • Texas No‑Call. Chapter 304 applies to text messages sent to mobile numbers. Do not send marketing texts to numbers on the list more than 60 days after they appear, and caller‑ID spoofing or interference is prohibited.
    • Marketing Alignment. Align on registration determinations or well‑documented exemptions, consent standards and proof, No‑Call scrubbing, opt‑out mechanics, disclosure placement (e.g., landing pages before purchase), and cadence controls. Vendor agreements should require compliance with Chapters 301–305 and the TCPA, mandate record retention, provide audit rights, and require prompt notice of complaints.
    • Quiet Hours. Although Chapter 301 applies to voice calls, adopting quiet hours outside of 9 a.m. to 9 p.m. Monday through Saturday and noon to 9 p.m. Sunday (Central Time) for text messaging is a conservative risk‑reduction measure.
    • Section 302.058 Exemptions. If you solicit only former or current customers and have operated under the same name for at least two years, you may be exempt from Chapter 302 registration. Because “customer” is undefined, you should document the factual basis for any exemption. For a comprehensive list of other exemptions, see: Business and Commerce Code Chapter 302.
    • Record‑keeping. Maintain auditable files covering consent capture and revocation, No‑Call subscriptions and 60‑day scrubs, internal do‑not‑contact lists, message content and links, landing‑page disclosures, quiet‑hour controls, registration status and bonds, and complaint logs. Strong records reduce TDTPA exposure and support defenses under state and federal law.

    While the settlement meaningfully lowers Chapter 302 risk for true opt-in SMS programs in Texas, the safest course is to maintain rigorous consent practices, No-Call discipline, and strong vendor governance. Until courts or regulators provide formal guidance, treat the settlement as a persuasive safe harbor and operate Texas texting programs with heightened care.

    Varnum’s Corporate and Data Privacy and Cybersecurity Practice Teams continue to monitor developments related to SB 140 and Texas telemarketing enforcement. If you have questions about how these changes affect your text messaging, marketing, or compliance programs, please contact a member of the Varnum team to discuss practical next steps.