MISSISSIPPI LEGISLATURE

2003 Regular Session

To: Judiciary A

By: Representative Stevens

House Bill 1073

AN ACT TO DEFINE THE TERM "SERVICE CONTRACT"; TO PROVIDE THAT  SERVICE CONTRACTS ARE SUBJECT TO THE MISSISSIPPI CONSUMER PROTECTION ACT; AND FOR RELATED PURPOSES.

     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

     SECTION 1.  (1)  The term "service contract," as used in this section, means a contract or agreement for a separately stated consideration for a specific duration to perform the repair, replacement or maintenance of property or to reimburse, in whole or in part, the owner of such property for the repair, replacement or maintenance of property if such operational or structural failure is due to a defect in materials or manufacturing or to normal wear and tear.  A service contract may contain a provision for incidental payment under such contract where service, repair or replacement is not feasible or economical.

     (2)  Service contracts shall be subject to the provisions of the Mississippi Consumer Protection Act, Section 75-24-1 et seq.

     (3)  Nothing herein shall affect the authority of the Commissioner of Insurance to regulate service contracts or warranties as specified under Section 83-57-1 et seq., Section 83-65-101 et seq. or Section 83-58-1 et seq.

     SECTION 2.  This act shall take effect and be in force from and after its passage, and shall be applicable to all proceedings pending before the Department of Insurance or the courts of this state on the effective date of this act.