Senate File 2444 - IntroducedA Bill ForAn Act 1creating regulations for cigar bars, modifying the
2smokefree air Act, and including effective date provisions.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 142D.1, subsection 3, Code 2026, is
2amended to read as follows:
   33.  The purpose of this chapter is to reduce the level of
4exposure by the general public and employees to environmental
5tobacco smoke in order to improve the public health of Iowans,
6while allowing for limited exceptions.
7   Sec. 2.  Section 142D.2, Code 2026, is amended by adding the
8following new subsection:
9   NEW SUBSECTION.  2A.  “Cigar bar” means the same as defined
10in section 453F.1.
11   Sec. 3.  Section 142D.4, Code 2026, is amended by adding the
12following new subsection:
13   NEW SUBSECTION.  12.  Cigar bars.
14   Sec. 4.  NEW SECTION.  453F.1  Definitions.
   15As used in this chapter, unless the context otherwise
16requires:
   171.  “Alcoholic beverage” means the same as defined in section
18123.3.
   192.  “Cigar bar” means a retail establishment that meets all
20of the following criteria:
   21a.  Generates at least thirty-five percent of annual
22gross revenues from the retail sale of premium cigars and
23cigar-related products at the place of business, excluding
24delivery sales, alcoholic beverages, and food.
   25b.  Holds a class “C” or special class “C” retail alcohol
26license pursuant to chapter 123.
   27c.  Holds a retailer permit pursuant to section 453A.47A.
   28d.  Prohibits the entry of persons under the age of
29twenty-one years.
   30e.  Maintains a walk-in humidor or a humidor with a capacity
31of storing at least one hundred fifty cigars at the place of
32business for the retail sale of cigars.
   33f.  Clearly and conspicuously posts at every entrance a
34declaration that smoking is permitted on the premises of the
35place of business and persons under the age of twenty-one years
-1-1are prohibited from entry.
   2g.  Does not allow the smoking of any other product other
3than premium cigars.
   4h.  Sells only premium cigars and no other types of cigars.
   53.  “Delivery sale” means any sale of a premium cigar to
6a purchaser in this state where the purchaser submits the
7order for such sale by means of a telephonic or other method
8of voice transmission, mail or any other delivery service, or
9the internet or other online service and the premium cigar is
10delivered by use of mail or a delivery service. “Delivery sale”
11does not include a sale to a distributor or business.
   124.  “Department” means the department of revenue.
   135.  “Director” means the director of revenue.
   146.  “Place of business” means any place where premium cigars
15or cigar-related products are sold, stored, or kept for the
16purpose of sale or consumption; or for a business within the
17state that conducts delivery sales, any place where premium
18cigars and cigar-related products are sold or are kept for the
19purpose of sale, including delivery sales within the state.
   207.  “Premium cigar” means a cigar that is all of the
21following:
   22a.  Wrapped in whole leaf tobacco.
   23b.  Contains a one hundred percent leaf tobacco binder.
   24c.  Made by manually combining the wrapper, filler, and
25binder.
   26d.  Contains no filter tip or nontobacco mouthpiece and is
27capped by hand.
   28e.  Weighs more than six pounds per one thousand units.
   298.  “Retail establishment” means a place of business where
30premium cigars and other cigar-related products are sold
31directly or through delivery sales to consumers.
32   Sec. 5.  NEW SECTION.  453F.2  Cigar bars — verification of
33income — exemption under smokefree air Act.
   341.  A cigar bar shall annually submit a certified financial
35statement to the department verifying that at least thirty-five
-2-1percent of the annual gross revenues are generated from the
2retail sale of premium cigars and cigar-related products at the
3place of business.
   42.  When the qualification as a cigar bar under this chapter
5is not met, the department shall mail a notice stating the
6qualification as an exempt area under chapter 142D ceases seven
7days after the date of the notice.
8   Sec. 6.  NEW SECTION.  453F.3  Administration — rules —
9intent.
   101.  The director shall administer this chapter. The director
11shall collect, supervise, and enforce the collection of all
12civil penalties imposed under this chapter.
   132.  The director may adopt rules pursuant to chapter 17A that
14are necessary to enforce this chapter.
   153.  The director may designate employees to administer and
16enforce the provisions of this chapter. In the enforcement,
17the director may request aid from the attorney general, the
18special agents of the state, any county attorney, or any peace
19officer. The director may appoint clerks and additional help
20as may be needed to administer this chapter.
   214.  This chapter shall not be construed to limit the
22application of other state laws and regulations governing
23cigars.
   245.  The director shall prescribe the forms necessary for
25the efficient administration of this chapter and may require
26uniform books and records to be used and kept by each cigar bar
27or other person as deemed necessary.
28   Sec. 7.  NEW SECTION.  453F.4  Permits — suspension —
29revocation — penalties.
   301.  The provisions of chapter 453A, including the permit
31suspension and revocation provisions and the civil penalties
32established in section 453A.22, shall apply to tobacco
33retailers who are also cigar bars. The provisions of chapter
34453A applicable to persons who violate chapter 453A shall also
35apply to persons who violate this chapter.
-3-   12.  In addition to any other applicable penalties, a cigar
2bar who violates this chapter shall be subject to the following
3penalties if incurred within a twelve-month rolling period:
   4a.  For a first violation, a civil penalty not to exceed one
5thousand dollars.
   6b.  For a second violation, a civil penalty not to exceed two
7thousand dollars.
   8c.  For a third violation, a civil penalty not to exceed five
9thousand dollars.
10   Sec. 8.  EFFECTIVE DATE.  This Act, being deemed of immediate
11importance, takes effect upon enactment.
12EXPLANATION
13The inclusion of this explanation does not constitute agreement with
14the explanation’s substance by the members of the general assembly.
   15This bill relates to cigar bars and modifies the smokefree
16air Act.
   17The bill modifies Code chapter 142D (smokefree air Act) by
18exempting cigar bars from the smokefree air Act if the cigar
19bar meets the definition of a cigar bar created in the bill.
   20The bill defines “cigar bar” to mean a retail establishment
21that meets all of the following criteria: (1) generates at
22least 35 percent of annual gross revenues from the retail
23sale of premium cigars and cigar-related products, excluding
24alcohol and food, (2) prohibits the entry of persons under 21
25years of age, (3) holds a class “C” or special class “C” retail
26alcohol license, (4) holds a tobacco retailer permit under
27Code section 453A.47A, (5) maintains a walk-in humidor or a
28humidor with a capacity of storing at least 150 cigars, (6)
29posts at every entrance a declaration that smoking is permitted
30on the premises and persons under the age of 21 years of age
31are prohibited from entry, (7) does not allow the smoking of
32any other product other than premium cigars, and (8) sells only
33premium cigars.
   34The bill defines “premium cigar” to mean a cigar that (1)
35is wrapped in whole leaf tobacco, (2) is 100 percent leaf
-4-1tobacco binder, (3) is made manually, (4) contains no filter or
2nontobacco mouthpiece, and (5) weighs more than six pounds per
31,000 units.
   4The bill specifies a cigar bar shall annually submit a
5certified financial statement to the department of revenue
6(department) verifying that at least 35 percent of the annual
7gross revenues are generated from the retail sale of premium
8cigars and cigar-related products. If the annual gross
9revenues fall below 35 percent, the cigar bar loses the
10exemption from the smokefree air Act.
   11The department is required to administer the bill and may
12adopt rules necessary to enforce the bill.
   13The procedures for the suspension of tobacco retailer
14permits under Code chapter 453A remain the same for a cigar
15bar.
   16The bill provides for increasing civil penalties for
17violations of the bill.
   18The bill takes effect upon enactment.
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