25.0298.02000
Sixty-ninth
Legislative Assembly
of North Dakota
Introduced by
Representatives D. Ruby, Dockter, Headland, Kasper, Marschall, Porter, Rohr, M. Ruby, Wolff
Senators Paulson, Weston, Wobbema
A BILL for an Act to amend and reenact subdivision d of subsection 3 of section 23-12-10 of the
North Dakota Century Code, relating to cigar lounges.
BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
SECTION 1. AMENDMENT. Subdivision d of subsection 3 of section 23-12-10 of the North
Dakota Century Code is amended and reenacted as follows:
d.A cigar lounge, which has a valid certificate issued by the tax commissioner
under this subdivision; has a humidor on the premises; is enclosed by solid walls
or windows, a ceiling, and a solid door; and is equipped with a ventilation system
by which exhausted air is not recirculated to nonsmoking areas and smoke is not
backstreamed into nonsmoking areas. A cigar lounge meeting the requirements
of this subdivision may permitthat permits the smoking of cigars and pipe tobacco
purchased on the premises, but maydoes not permit the smoking of any other
product on the premises.
(1)An applicant for a certificate to operate a cigar lounge shall report to the tax
commissioner, on a form prescribed by the commissioner, that the premises
in which the cigar lounge will be operated has a humidor; is enclosed by
solid walls or windows, a ceiling, and a solid door; and is equipped with a
ventilation system by which exhausted air is not recirculated to nonsmoking
areas and smoke is not backstreamed into nonsmoking areas. The
commissioner may not require an applicant to report information regarding
income from the sale of cigars in an initial application. Upon receipt of a
Page No. 1 25.0298.02000
ENGROSSED HOUSE BILL NO. 1440
FIRST ENGROSSMENT
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21 Sixty-ninth
Legislative Assembly
report asserting compliance with this paragraph, the commissioner shall
issue the applicant a certificate to operate a cigar lounge.
(2)A cigar lounge asserting the lounge meets the requirements of this
subdivisionparagraph 1 shall report to the tax commissioner before
February first of each year following a full calendar year of operation, on a
form prescribed by the commissioner, the revenue from the previous
calendar year generated from the sale of cigars as a percentage of annual
gross income from receipts or sales. Upon receipt of a report asserting
compliance with the annual gross income requirements of this
subdivisionthe cigar lounge generates fifteen percent or more of the
business's annual gross income from receipts or sales from the sale of
cigars and pipe tobacco, the commissioner shall issue anrenew the annual
certificate. The commissioner is not required to confirm the accuracy of
information reported but may not issuerenew a certificate absent supporting
documentation from the lounge.
(3)Information reported to the commissioner under this subdivision is subject to
the confidentiality provisions of section 57-39.2-23.
(2)(4)For purposes of this subdivision:
(a)"Cigar" means an individual roll of tobacco which has a wrapper or
cover of whole leaf tobacco; does not contain filler other than tobacco
filler; does not contain binder other than tobacco binder; does not
contain additives other than water; does not contain a filter, tip, or
nontobacco mouthpiece; weighs at least six pounds per thousand
count; and is made by hand, except to allow for the use of a manually
operated machine to assist in bunching, rolling, and binding.
(b)"Cigar lounge" means a business dedicated, in whole or in part, to the
smoking of cigars which generates fifteen percent or more of the
business's annual gross income from the sale of cigarsand pipe
tobacco , which has a valid certificate issued by the tax commissioner .
(c)"Pipe tobacco" has the meaning provided in section 57 - 36 - 01.
Page No. 2 25.0298.02000
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