SB 318 Alabama Senate · 2025 Regular Session

Service contracts; terms defined; certain disclosures in advertising required; disclosures of limitations of contracts further provided for

SB 318 amends Alabama law to create a regulatory framework for service contracts sold to consumers. The bill clarifies which entities and types of agreements are exempt from certain service contract regulations, such as standard warranties or contracts for items under $250. It also specifies limited compliance requirements for manufacturers' service contracts and those offered by Alabama electric cooperatives and their affiliates. This legislation aims to provide clearer guidelines for both consumers and providers of service contracts in the state.

Bill status passed 3 of 5 stages cleared

Introduction

Apr 2025

Committee Review

May 2025

Senate Passage

Apr 2025

House Passage

Governor

Introduced Apr 8, 2025 Last action May 1, 2025

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What changed between versions

Introduced → Engrossed · 5 edits · Apr 29, 2025

MODERATE

The bill was amended to add new exemptions for service contracts, including those offered by utilities and mobile telecommunications providers, and to expand the list of exempted contract types. The bill also updated the referenced Code of Alabama sections to include 8-32-1, which was previously omitted, and revised the definition of 'Manufacturer' to clarify ownership relationships.

Scope change

The bill now explicitly exempts service contracts sold by electric, gas, water, or telephone utilities and mobile telecommunications service providers, and added new categories of exempt contracts including commercial transactions and contracts sold to non-consumers.

SCOPE

Added exemptions for service contracts offered by electric, gas, water, telephone utilities, and mobile telecommunications providers on their transmission devices.

Added exemptions for service contracts sold in commercial transactions and to persons other than consumers.

Added exemption for service contracts sold at or within 60 days of purchase for property priced at $250 or less.

DEFINITION

Updated the list of amended Code sections to include 8-32-1, which was previously missing from the bill text.

Clarified the definition of 'Manufacturer' to include corporations that own at least 80 percent of the person who manufactures or produces the property.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

May 1, 2025

Lower · Passed

Pending Committee Action in Second House (Commerce and Small Business)

lower

Apr 29, 2025

Upper · Passed

Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 898

upper

Apr 29, 2025

Upper · Passed

Singleton motion to Adopt - Adopted Roll Call 897

upper

Apr 29, 2025

Introduced

Fiscal Responsibility and Economic Development 1st Amendment Offered (Fiscal Responsibility and Economic Development)

upper

Apr 16, 2025

Upper · Passed

Reported Out of Committee House of Origin

upper

Apr 16, 2025

Introduced

Fiscal Responsibility and Economic Development 1st Amendment (Fiscal Responsibility and Economic Development)

upper

Apr 8, 2025

Upper · Passed

Pending Committee Action in House of Origin (Fiscal Responsibility and Economic Development)

upper

1 primary · 0 co-sponsors