S.F. 2444 Section 1. Section 142D.1, subsection 3, Code 2026, is 1 amended to read as follows: 2 3. The purpose of this chapter is to reduce the level of 3 exposure by the general public and employees to environmental 4 tobacco smoke in order to improve the public health of Iowans , 5 while allowing for limited exceptions . 6 Sec. 2. Section 142D.2, Code 2026, is amended by adding the 7 following new subsection: 8 NEW SUBSECTION . 2A. “Cigar bar” means the same as defined 9 in section 453F.1. 10 Sec. 3. Section 142D.4, Code 2026, is amended by adding the 11 following new subsection: 12 NEW SUBSECTION . 12. Cigar bars. 13 Sec. 4. NEW SECTION . 453F.1 Definitions. 14 As used in this chapter, unless the context otherwise 15 requires: 16 1. “Alcoholic beverage” means the same as defined in section 17 123.3. 18 2. “Cigar bar” means a retail establishment that meets all 19 of the following criteria: 20 a. Generates at least thirty-five percent of annual 21 gross revenues from the retail sale of premium cigars and 22 cigar-related products at the place of business, excluding 23 delivery sales, alcoholic beverages, and food. 24 b. Holds a class “C” or special class “C” retail alcohol 25 license pursuant to chapter 123. 26 c. Holds a retailer permit pursuant to section 453A.47A. 27 d. Prohibits the entry of persons under the age of 28 twenty-one years. 29 e. Maintains a walk-in humidor or a humidor with a capacity 30 of storing at least one hundred fifty cigars at the place of 31 business for the retail sale of cigars. 32 f. Clearly and conspicuously posts at every entrance a 33 declaration that smoking is permitted on the premises of the 34 place of business and persons under the age of twenty-one years 35 -1- LSB 6076SV (3) 91 jm/jh 1/ 5

S.F. 2444 are prohibited from entry. 1 g. Does not allow the smoking of any other product other 2 than premium cigars. 3 h. Sells only premium cigars and no other types of cigars. 4 3. “Delivery sale” means any sale of a premium cigar to 5 a purchaser in this state where the purchaser submits the 6 order for such sale by means of a telephonic or other method 7 of voice transmission, mail or any other delivery service, or 8 the internet or other online service and the premium cigar is 9 delivered by use of mail or a delivery service. “Delivery sale” 10 does not include a sale to a distributor or business. 11 4. “Department” means the department of revenue. 12 5. “Director” means the director of revenue. 13 6. “Place of business” means any place where premium cigars 14 or cigar-related products are sold, stored, or kept for the 15 purpose of sale or consumption; or for a business within the 16 state that conducts delivery sales, any place where premium 17 cigars and cigar-related products are sold or are kept for the 18 purpose of sale, including delivery sales within the state. 19 7. “Premium cigar” means a cigar that is all of the 20 following: 21 a. Wrapped in whole leaf tobacco. 22 b. Contains a one hundred percent leaf tobacco binder. 23 c. Made by manually combining the wrapper, filler, and 24 binder. 25 d. Contains no filter tip or nontobacco mouthpiece and is 26 capped by hand. 27 e. Weighs more than six pounds per one thousand units. 28 8. “Retail establishment” means a place of business where 29 premium cigars and other cigar-related products are sold 30 directly or through delivery sales to consumers. 31 Sec. 5. NEW SECTION . 453F.2 Cigar bars —— verification of 32 income —— exemption under smokefree air Act. 33 1. A cigar bar shall annually submit a certified financial 34 statement to the department verifying that at least thirty-five 35 -2- LSB 6076SV (3) 91 jm/jh 2/ 5

S.F. 2444 percent of the annual gross revenues are generated from the 1 retail sale of premium cigars and cigar-related products at the 2 place of business. 3 2. When the qualification as a cigar bar under this chapter 4 is not met, the department shall mail a notice stating the 5 qualification as an exempt area under chapter 142D ceases seven 6 days after the date of the notice. 7 Sec. 6. NEW SECTION . 453F.3 Administration —— rules —— 8 intent. 9 1. The director shall administer this chapter. The director 10 shall collect, supervise, and enforce the collection of all 11 civil penalties imposed under this chapter. 12 2. The director may adopt rules pursuant to chapter 17A that 13 are necessary to enforce this chapter. 14 3. The director may designate employees to administer and 15 enforce the provisions of this chapter. In the enforcement, 16 the director may request aid from the attorney general, the 17 special agents of the state, any county attorney, or any peace 18 officer. The director may appoint clerks and additional help 19 as may be needed to administer this chapter. 20 4. This chapter shall not be construed to limit the 21 application of other state laws and regulations governing 22 cigars. 23 5. The director shall prescribe the forms necessary for 24 the efficient administration of this chapter and may require 25 uniform books and records to be used and kept by each cigar bar 26 or other person as deemed necessary. 27 Sec. 7. NEW SECTION . 453F.4 Permits —— suspension —— 28 revocation —— penalties. 29 1. The provisions of chapter 453A, including the permit 30 suspension and revocation provisions and the civil penalties 31 established in section 453A.22, shall apply to tobacco 32 retailers who are also cigar bars. The provisions of chapter 33 453A applicable to persons who violate chapter 453A shall also 34 apply to persons who violate this chapter. 35 -3- LSB 6076SV (3) 91 jm/jh 3/ 5

S.F. 2444 2. In addition to any other applicable penalties, a cigar 1 bar who violates this chapter shall be subject to the following 2 penalties if incurred within a twelve-month rolling period: 3 a. For a first violation, a civil penalty not to exceed one 4 thousand dollars. 5 b. For a second violation, a civil penalty not to exceed two 6 thousand dollars. 7 c. For a third violation, a civil penalty not to exceed five 8 thousand dollars. 9 Sec. 8. EFFECTIVE DATE. This Act, being deemed of immediate 10 importance, takes effect upon enactment. 11 EXPLANATION 12 The inclusion of this explanation does not constitute agreement with 13 the explanation’s substance by the members of the general assembly. 14 This bill relates to cigar bars and modifies the smokefree 15 air Act. 16 The bill modifies Code chapter 142D (smokefree air Act) by 17 exempting cigar bars from the smokefree air Act if the cigar 18 bar meets the definition of a cigar bar created in the bill. 19 The bill defines “cigar bar” to mean a retail establishment 20 that meets all of the following criteria: (1) generates at 21 least 35 percent of annual gross revenues from the retail 22 sale of premium cigars and cigar-related products, excluding 23 alcohol and food, (2) prohibits the entry of persons under 21 24 years of age, (3) holds a class “C” or special class “C” retail 25 alcohol license, (4) holds a tobacco retailer permit under 26 Code section 453A.47A, (5) maintains a walk-in humidor or a 27 humidor with a capacity of storing at least 150 cigars, (6) 28 posts at every entrance a declaration that smoking is permitted 29 on the premises and persons under the age of 21 years of age 30 are prohibited from entry, (7) does not allow the smoking of 31 any other product other than premium cigars, and (8) sells only 32 premium cigars. 33 The bill defines “premium cigar” to mean a cigar that (1) 34 is wrapped in whole leaf tobacco, (2) is 100 percent leaf 35 -4- LSB 6076SV (3) 91 jm/jh 4/ 5

S.F. 2444 tobacco binder, (3) is made manually, (4) contains no filter or 1 nontobacco mouthpiece, and (5) weighs more than six pounds per 2 1,000 units. 3 The bill specifies a cigar bar shall annually submit a 4 certified financial statement to the department of revenue 5 (department) verifying that at least 35 percent of the annual 6 gross revenues are generated from the retail sale of premium 7 cigars and cigar-related products. If the annual gross 8 revenues fall below 35 percent, the cigar bar loses the 9 exemption from the smokefree air Act. 10 The department is required to administer the bill and may 11 adopt rules necessary to enforce the bill. 12 The procedures for the suspension of tobacco retailer 13 permits under Code chapter 453A remain the same for a cigar 14 bar. 15 The bill provides for increasing civil penalties for 16 violations of the bill. 17 The bill takes effect upon enactment. 18 -5- LSB 6076SV (3) 91 jm/jh 5/ 5