Senate Bill No. 422–Committee on Commerce and Labor

 

CHAPTER..........

 

AN ACT relating to service stations; revising certain provisions relating to the operation of service stations by a refiner; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

    Section 1. NRS 597.440 is hereby amended to read as follows:

    597.440  [1.  Except as otherwise provided in this section and

NRS 597.443 and 597.446, on or after July 1, 1997, a refiner may

commence, with his own employees or through a subsidiary or

commissioned agent or a person on the basis of a fee, the direct

operation of the following number of additional service stations

during the calendar years so indicated:

    (a) By the end of calendar year 1997, a total of two service

stations in addition to the number of service stations directly

operated by the refiner on July 1, 1997.

    (b) By the end of calendar year 1998, a total of six additional

service stations in addition to the number of service stations directly

operated by the refiner on July 1, 1997.

    (c) By the end of calendar year 1999, a total of 10 additional

service stations in addition to the number of service stations directly

operated by the refiner on July 1, 1997.

    (d) After the end of calendar year 1999, a total of 15 additional

service stations in addition to the number of service stations directly

operated by the refiner on July 1, 1997.

    2.] On or after January 1, 2001, a refiner who engages in the

direct operation of:

    [(a)] 1.  Less than 30 service stations in this state, with his own

employees or through a subsidiary or commissioned agent or a

person on the basis of a fee, may commence the direct operation of

not more than [five] 5 additional service stations per calendar year,

but in no case may he commence the direct operation of more than

30 service stations without complying with the provisions of

[paragraph (b).

    (b)] subsection 2.

    2.  At least 30 service stations in this state, with his own

employees or through a subsidiary or commissioned agent or a

person on the basis of a fee, may commence the direct operation of

additional service stations per year, with his own employees or

through a subsidiary or commissioned agent or person on the basis

of a fee, only if, during the year in which the service stations are

added, he leases, in addition to the number of service stations leased

by the refiner to lessee dealers on July 1, 1997, at least [one] 1

additional service station to a lessee dealer for every [two] 2 directly

operated service stations added. For the purposes of this

[paragraph,] subsection, an additional service station leased by the

refiner to a lessee dealer before the refiner engages in the direct

operation of at least 30 service stations shall be deemed to be [one]

1 service station leased to a lessee dealer during any year following

the year in which the refiner engages in the direct operation of at

least 30 service stations.

    [3.  A refiner may operate a service station for not more than 90

days if the:

    (a) Retailer voluntarily terminates or agrees not to renew the

franchise; or

    (b) Franchise is terminated by the refiner pursuant to NRS

597.270 to 597.470, inclusive.]

    Sec. 2.  NRS 597.450 is hereby amended to read as follows:

    597.450  1.  If a refiner is unable to commence the direct

operation of a service station because of the restrictions set forth

in NRS 597.440, the refiner may operate the service station

temporarily for not more than 180 days if:

    (a) The retailer voluntarily terminates or agrees not to renew

the franchise for the service station; or

    (b) The franchise for the service station is terminated by the

refiner pursuant to NRS 597.270 to 597.470, inclusive.

    2.  During the temporary operation of a service station by a

refiner, the refiner may sell motor vehicle fuel to other retailers in

the marketing area of that service station at a price not less than 4

cents below the retail price of fuel at the service station he is

operating.

    Sec. 3.  NRS 597.443 and 597.446 are hereby repealed.

 

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