The amendment significantly NARROWS the bill by removing the provision allowing municipalities to issue multiple cigar bar licenses based on population size (one per 25,000 residents), instead limiting each municipality to just one license. The amendment also relaxes the definition of "cigar" by removing specific technical requirements (ring gauge of 40+ and no filter), requiring only that it be an individual roll of tobacco with a tobacco wrapper, and shifts oversight from annual Department of Revenue reporting to local record-keeping subject to inspection by the issuing government body.
26.109.42 26.109.43 101st Legislative Session 1215 2026 South Dakota Legislature House Bill 1215 SENATE STATE AFFAIRS ENGROSSED Introduced by: Representative Mortenson Underscores indicate new language. Overstrikes indicate deleted language. An Act to authorize counties and municipalities to issue a license for a cigar bar. 1 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA: 2 Section 1. That a NEW SECTION be added to chapter 34-46: 3 A board of county commissioners may approve a license to operate one a cigar bar 4 outside of the boundary of a municipality, within its jurisdiction. 5 A governing body of a municipality may approve a license to operate one a cigar bar 6 within its jurisdiction, and may approve one additional license to operate a cigar bar within jurisdiction. 7 its jurisdiction for every twenty-five thousand legal residents of the municipality. 8 An establishment operating under the provisions of § 34-46-18 is not included in 9 the limitations provided in this section. 10 Section 2. That a NEW SECTION be added to chapter 34-46: 11 8 A person may apply to a county or municipality for a license to operate a cigar bar 12 9 on the same premises as an establishment licensed under subdivision 35-4-2(4), (6), 13 10 (12), or (16). 14 11 The governing body of the county or municipality shall hold a public hearing and 15 12 make a final decision on the application for a license to operate a cigar bar in the same 16 13 manner utilized for an on-sale license application pursuant to § 35-2-1.2. 17 14 Section 3. That a NEW SECTION be added to chapter 34-46: 18 15 To be eligible for a license issued pursuant to section 1 of this Act, the 19 16 establishment must: 20 17 (1) Have a humidor on the premises; 21 18 (2) Be enclosed by solid walls or windows, a solid ceiling, and a solid door; 22 26.109.42 2 1215 Underscores indicate new language. Overstrikes indicate deleted language. 19 (3) Be enclosed by solid walls or windows, a ceiling, and a solid door and be equipped 1 with a ventilation system so that exhausted air is not recirculated to 20 nonsmoking 2 areas and smoke is not backstreamed into nonsmoking areas; 3 21 (4) Be approved for a license classed under subdivision 35-4-2(4), (6), (12), or (16); 4 22 and 5 23 26.109.43 2 1215 Underscores indicate new language. Overstrikes indicate deleted language. (5) Generates, or is expected to generate, ten percent or more of its annual gross 6 1 income from the sale of cigars. 7 2 For purposes of this section, "cigar" means an individual roll of tobacco that has a 8 3 wrapper or cover consisting only of tobacco, has a measured ring gauge of forty or greater, 9 and is sold without a filter. 10 tobacco. 4 Section 4. That a NEW SECTION be added to chapter 34-46: 11 5 The provisions of §§ 34-46-13 to 34-46-15, inclusive, do not apply to the premises 12 6 of an establishment licensed pursuant to section 1 of this Act. 13 Act, except as provided in this 7 section. 8 An establishment licensed pursuant to section 1 of this Act to operate a cigar bar 14 9 may permit the smoking of cigars purchased on the premises. An establishment may not 15 10 permit the smoking of any other tobacco product on the premises. The establishment shall 16 11 post a notice of the prohibition. 17 12 An establishment licensed to operate a cigar bar under section 1 of this Act shall 18 annually report to the Department 13 maintain records of Revenue, on a form prescribed by the department, 19 the percent of its annual gross income from the sale of cigars. 20 cigars, over 14 the previous three years. The records are subject to inspection by the governing body that 15 issued the license. 16 For purposes of this section, "cigar" means an individual roll of tobacco that has a 21 17 wrapper or cover consisting only of tobacco, has a measured ring gauge of forty or greater, 22 and is sold without a filter. 23 tobacco. 18 Section 5. That a NEW SECTION be added to chapter 34-46: 24 19 The governing body of a county or municipality may revoke or suspend a license 25 20 to operate a cigar bar upon proof that: 26 21 (1) The licensee does not meet the requirements provided in section 3 of this Act; 27 22 (2) The licensee, or an agent or employee acting on behalf of the licensee, has violated 28 23 a provision of this chapter; or 29 24 (3) The licensee, or an agent or employee acting on behalf of the licensee, has violated 30 25 an ordinance or regulation regarding the sale and distribution of tobacco products 31 adopted by the political subdivision that issued the license. 32 26.109.42 3 1215 Underscores indicate new language. Overstrikes indicate deleted language. products. 26 Section 6. That a NEW SECTION be added to chapter 34-46: 1 27 Prior to taking action pursuant to section 5 of this Act, the governing body of the 2 28 county or municipality shall hold a hearing. 3 29 The governing body shall: 4 30 26.109.43 3 1215 Underscores indicate new language. Overstrikes indicate deleted language. (1) Provide notice of the hearing to the licensee, at the address given on the license, 5 1 at least thirty days prior to the date of the hearing; and 6 2 (2) Publish notice of the hearing in the official newspaper, at least seven days prior to 7 3 the hearing. 8 4 Section 7. That a NEW SECTION be added to chapter 34-46: 9 5 A person issued a license to operate a cigar bar pursuant to section 1 of this Act 10 6 may not sell or transfer the license to any other person. 11 7