P.R. Laws tit. 23, § 1102
(a) New stations. — After January 1, 1978, no producer, refiner and/or wholesaler-distributor shall acquire or establish, open, operate, or repossess to operate, any gasoline retail sales service station to be operated by personnel from his/her own company or subsidiary enterprise, agent, commission agent, or under contract with any natural or juridical person that operates or manages said retail sales service station, through an agreement or remunerated arrangement with said producer, refiner or wholesaler-distributor. The gasoline retail sales service station shall only be operated by a retailer.
(b) Existing stations. — Twenty (20) months from the date of approval of this act, no oil producer, refiner or wholesaler-distributor shall operate any gasoline retail sales service station, with personnel from his/her own company or subsidiary enterprise, agent, commission agent, or any natural or juridical person that operates or manages said service station through a contract, arrangement or remunerated agreement with said producer, refiner or wholesaler-distributor. The gasoline retail sales service station shall only be operated by a retailer. The existing stations shall be made available within the twenty months stated above, to be operated by those retailers interested in doing so. Provided that, the right to operate a service station shall be acquired at a fair and reasonable market value. For this purpose, retailers may be legally constituted in any available legal form. In the event it is not possible for the wholesaler to comply with the provisions of this subsection, he/she may request a duly-justified extension of ninety (90) days in writing, from the Department of Justice. Provided, further, That the new operator shall continue to use the services of the employees that are working with the wholesale sector at the time of the transaction. In the event the new operator decides not to continue with the services of all or some employees, and, therefore, does not become their employer, the wholesaler shall be liable for the compensation provided under §§ 185a et seq. of Title 29, known as the “Unjustified Dismissal Act”, and the new operator shall retain the corresponding amount from the price of the operation’s transaction regarding the station. In case the unjustified dismissals arise after the transfer of the operation, the new operator shall be liable for any benefit the dismissed employee may have.
(c) Provisional direct operation permitted. — Notwithstanding the prohibition established in this section, if a retailer who was operating a retail sales station ceases to do so for reasons that cannot be attributed to the will or actions of an oil producer, refiner, or wholesaler-distributor, or as a result of termination or [nonrenewal], in accordance with the laws in effect in the Commonwealth of Puerto Rico, or of any existing relationship between said producer, refiner or wholesaler-distributor and that retailer, to operate said retail sales service station, said producer, refiner or wholesaler-distributor shall then proceed to operate said station in a direct manner, from the moment that the retailer ceases to operate the same, without being subject to the provisions of the preceding subsection (a) of this section, for a period of time which shall never exceed ninety (90) days, after which term, if he/she wishes to keep said station in operation, he/she shall have to do so through a bona fide retailer, as provided above, or immediately cease to operate said station, until it is again opened and operated by a bona fide retailer.
As provided in this section and as a prerequisite for the operation of a service station by a wholesaler-distributor, every wholesaler-distributor shall be bound to notify the date the operation by said wholesaler-distributor commences, as well as the final date of said operation in writing, to the Monopolistic Affairs Office.
History —Mar. 21, 1978, No. 3, p. 15, § 2; July 5, 1982, No. 4, p. 156, § 1; Aug. 21, 1996, No. 157, § 2, eff. Jan. 1, 1997.