An Update On Current Legislation Targeting The Cigar Industry
It’s been a busy start to the year in terms of legislative initiatives that directly target the cigar industry. We put together a roundup last month, tracking proposals across the country, and some of those bills have been modified or are set to pass into law. Even more proposed bills have surfaced since then. Here is our report on the current state of affairs, including some updates on previously reported legislation.
Connecticut
The state of Connecticut has been trending in a more cigar-friendly direction. In 2024, it passed a bill allowing for new cigar bars for the first time in 20 years. The state also still has considerable cigar tobacco-growing operations and serves as the home base for Foundation Cigar Co. and Topper Cigars. But a new proposal might shift the entire dynamic for the Constitution State.
HB 5228, if passed, would drastically change the way cigar retailers run their business, and like many government actions that impact cigars, its intended targets are cigarettes and vape products. The proposed law aims to modify the state’s cigarette dealer’s license, which is necessary to sell tobacco products in Connecticut. Under this bill, retailers would not be allowed to use more than 25 percent of the total floor area in their stores for retail sales of cigarettes and taxed tobacco products. Plus, no more than 50 percent of the retailer’s annual revenue could come from the sale of cigarettes and taxed tobacco products. If a retailer doesn’t comply, when their annual license expires, they won’t be able to renew.
Despite the name of the bill, “An Act Concerning Cigarette Dealers and Electronic Nicotine Delivery System and Vapor Product Dealers,” it appears cigars will not be spared, as they fall under the classification of “taxed tobacco products.” The bill may also put restrictions on the number of licenses issued each year.
Oregon
In our last update, we covered SB 1571, which originally aimed to prohibit Oregon residents from purchasing cigars (or virtually any nicotine product) via the Internet or mail order. That bill has passed, but without a stipulation that will affect the cigar industry in any way. The bill essentially recategorizes vaping products to lump them in with other tobacco products, allowing the same legislation to be applied to them. The element that threatened to ban purchasing cigars online was ultimately removed from the bill.
Utah
In Utah, a new bill aims to do the opposite of what the above legislation from Oregon originally intended, and could free up consumers in that state to buy cigars more easily. Currently, Utah and Hawaii are the only two states that ban the shipment of cigars to consumers in the state. Cigar sales are limited to brick-and-mortar only. HB0447, if passed, would change that, as it “authorizes telephone, mail, Internet and other remote retail sales of a cigar or pipe tobacco.” The bill was introduced at the end of January, passing 66-1 in the House, with eight abstaining, it then passed 27-0 in the Senate, with 2 abstaining. It has been signed by the speaker, and now awaits the governor's signature and approval.
South Dakota
South Dakota was another state we were keeping our eye on in our previous update. More good news has come to light. South Dakota introduced a proposal earlier this year that would allow for the creation of new cigar bars. That bill, HB 1215, has passed in both chambers of the state legislature and has been signed by the speaker; it now awaits the governor’s approval or veto. HB 1215 would allow for counties and municipalities to issue licenses for new cigar bars, so long as the businesses meet certain requirements: have a humidor on the premises; operate within a fully-enclosed space; have proper ventilation installed and generate at least 10 percent of annual gross income from the sale of cigars. There are some restrictions on how many licenses municipalities can issue, which are directly tied to population size. The bill was introduced in January and passed quite easily in both the state House and Senate.
Iowa
Lastly, we circle back to Iowa, another state that already had our attention. SF2444 would allow for the creation of cigar bars in Iowa, so long as the following parameters are met: generate at least 35 percent of revenue from the sale of premium cigars and accessories; hold a class C or special class C retail alcohol license; hold a retailer permit; prohibit entry to anyone under the age of 21; maintain a walk-in humidor that stores at least 150 cigars; post a sign at every entrance stating that smoking is allowed and no one under the age of 21 is permitted; no smoking of any other product other than premium cigars; don’t sell any other type of cigars besides premium cigars; don’t serve food.
The bill passed in the Senate, 27-18, on March 9. It’s now with the House.
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