The bill SB318 Engrossed amends several sections of the Code of Alabama 1975 concerning service contracts, introducing new exemptions for mobile telecommunications service providers and clarifying that service contracts are not classified as insurance, except for claims against providers for noncompliance. Key insertions include the requirement for providers to provide both a receipt and a copy of the service contract to the contract holder after purchase, and the stipulation that funds from the Service Contract Revolving Fund not be expended unless properly allotted and budgeted. The bill also redefines "service contract" to exclude warranties and mechanical breakdown insurance, ensuring clarity in the legal language. Additionally, the bill enhances consumer protection by mandating that service contracts must be written in a minimum of eight-point type size and include specific statements regarding the provider's obligations. It requires clear disclosures in advertisements about refund rights and outlines the procedures for obtaining repairs, including any deductibles and cancellation terms. Importantly, it allows contract holders to return contracts for a full refund within specified timeframes if no claims have been made, while permitting providers to retain a small administrative fee upon cancellation, provided it is disclosed. The act is set to take effect on January 1, 2026.