The bill SB318 Engrossed amends several sections of the Code of Alabama 1975 concerning service contracts, introducing new exemptions for mobile telecommunications service providers alongside existing exemptions for warranties and maintenance agreements. It clarifies the disclosure requirements for service contracts, particularly those sold at the point of sale for tangible property priced at $250 or less, and specifies that service contracts offered by Alabama electric cooperatives will have limited compliance requirements. The bill also updates the language of the existing code, replacing "shall" with "may" in certain definitions and introducing new terms such as “refund”, “repair”, and “replace”. Additionally, the bill mandates that service contract providers provide both a receipt and a copy of the service contract to the contract holder promptly after purchase and allows holders to return contracts for a full refund within specified periods if no claims have been made. It establishes financial stability requirements for providers and modifies regulations surrounding the Service Contract Revolving Fund, stating that funds may not be expended without proper allotment and budgeting. The bill also enhances transparency by requiring clear disclosures in advertisements and on service contracts, including limitations and exclusions in boldface print. It will take effect on January 1, 2026, aiming to improve consumer protection and ensure the financial integrity of service contract providers.