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SENATE
FILE
2444
BY
COMMITTEE
ON
COMMERCE
(SUCCESSOR
TO
SSB
3142)
(As
Amended
and
Passed
by
the
Senate
March
9,
2026
)
A
BILL
FOR
An
Act
creating
regulations
for
cigar
bars,
modifying
the
1
smokefree
air
Act,
and
including
effective
date
provisions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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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
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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
i.
Does
not
prepare
food
for
consumption
on
the
premises
of
5
the
place
of
business.
6
3.
“Delivery
sale”
means
any
sale
of
a
premium
cigar
to
7
a
purchaser
in
this
state
where
the
purchaser
submits
the
8
order
for
such
sale
by
means
of
a
telephonic
or
other
method
9
of
voice
transmission,
mail
or
any
other
delivery
service,
or
10
the
internet
or
other
online
service
and
the
premium
cigar
is
11
delivered
by
use
of
mail
or
a
delivery
service.
“Delivery
sale”
12
does
not
include
a
sale
to
a
distributor
or
business.
13
4.
“Department”
means
the
department
of
revenue.
14
5.
“Director”
means
the
director
of
revenue.
15
6.
“Place
of
business”
means
any
place
where
premium
cigars
16
or
cigar-related
products
are
sold,
stored,
or
kept
for
the
17
purpose
of
sale
or
consumption;
or
for
a
business
within
the
18
state
that
conducts
delivery
sales,
any
place
where
premium
19
cigars
and
cigar-related
products
are
sold
or
are
kept
for
the
20
purpose
of
sale,
including
delivery
sales
within
the
state.
21
7.
“Premium
cigar”
means
a
cigar
that
is
all
of
the
22
following:
23
a.
Wrapped
in
whole
leaf
tobacco.
24
b.
Contains
a
one
hundred
percent
leaf
tobacco
binder.
25
c.
Made
by
manually
combining
the
wrapper,
filler,
and
26
binder.
27
d.
Contains
no
filter
tip
or
nontobacco
mouthpiece
and
is
28
capped
by
hand.
29
e.
Weighs
more
than
six
pounds
per
one
thousand
units.
30
8.
“Retail
establishment”
means
a
place
of
business
where
31
premium
cigars
and
other
cigar-related
products
are
sold
32
directly
or
through
delivery
sales
to
consumers.
33
Sec.
5.
NEW
SECTION
.
453F.2
Cigar
bars
——
verification
of
34
income
——
exemption
under
smokefree
air
Act.
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1.
A
cigar
bar
shall
annually
submit
a
certified
financial
1
statement
to
the
department
verifying
that
at
least
thirty-five
2
percent
of
the
annual
gross
revenues
are
generated
from
the
3
retail
sale
of
premium
cigars
and
cigar-related
products
at
the
4
place
of
business.
5
2.
When
the
qualification
as
a
cigar
bar
under
this
chapter
6
is
not
met,
the
department
shall
mail
a
notice
stating
the
7
qualification
as
an
exempt
area
under
chapter
142D
ceases
seven
8
days
after
the
date
of
the
notice.
9
Sec.
6.
NEW
SECTION
.
453F.3
Administration
——
rules
——
10
intent.
11
1.
The
director
shall
administer
this
chapter.
The
director
12
shall
collect,
supervise,
and
enforce
the
collection
of
all
13
civil
penalties
imposed
under
this
chapter.
14
2.
The
director
may
adopt
rules
pursuant
to
chapter
17A
that
15
are
necessary
to
enforce
this
chapter.
16
3.
The
director
may
designate
employees
to
administer
and
17
enforce
the
provisions
of
this
chapter.
In
the
enforcement,
18
the
director
may
request
aid
from
the
attorney
general,
the
19
special
agents
of
the
state,
any
county
attorney,
or
any
peace
20
officer.
The
director
may
appoint
clerks
and
additional
help
21
as
may
be
needed
to
administer
this
chapter.
22
4.
This
chapter
shall
not
be
construed
to
limit
the
23
application
of
other
state
laws
and
regulations
governing
24
cigars.
25
5.
The
director
shall
prescribe
the
forms
necessary
for
26
the
efficient
administration
of
this
chapter
and
may
require
27
uniform
books
and
records
to
be
used
and
kept
by
each
cigar
bar
28
or
other
person
as
deemed
necessary.
29
Sec.
7.
NEW
SECTION
.
453F.4
Permits
——
suspension
——
30
revocation
——
penalties.
31
1.
The
provisions
of
chapter
453A,
including
the
permit
32
suspension
and
revocation
provisions
and
the
civil
penalties
33
established
in
section
453A.22,
shall
apply
to
tobacco
34
retailers
who
are
also
cigar
bars.
The
provisions
of
chapter
35
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453A
applicable
to
persons
who
violate
chapter
453A
shall
also
1
apply
to
persons
who
violate
this
chapter.
2
2.
In
addition
to
any
other
applicable
penalties,
a
cigar
3
bar
who
violates
this
chapter
shall
be
subject
to
the
following
4
penalties
if
incurred
within
a
twelve-month
rolling
period:
5
a.
For
a
first
violation,
a
civil
penalty
not
to
exceed
one
6
thousand
dollars.
7
b.
For
a
second
violation,
a
civil
penalty
not
to
exceed
two
8
thousand
dollars.
9
c.
For
a
third
violation,
a
civil
penalty
not
to
exceed
five
10
thousand
dollars.
11
Sec.
8.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
12
importance,
takes
effect
upon
enactment.
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