Sixty-ninth Legislative Assembly of North Dakota
In Regular Session Commencing Tuesday, January 7, 2025
HOUSE BILL NO. 1440
(Representatives D. Ruby, Dockter, Headland, Kasper, Marschall, Porter, Rohr, M. Ruby, Wolff)
(Senators Paulson, Weston, Wobbema)
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 may 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 and pipe
tobacco in an initial application. Upon receipt of a 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 and pipe tobacco 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 H. B. NO. 1440 - PAGE 2
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. H. B. NO. 1440 - PAGE 3
____________________________ ____________________________
Speaker of the House President of the Senate
____________________________ ____________________________
Chief Clerk of the House Secretary of the Senate
This certifies that the within bill originated in the House of Representatives of the Sixty-ninth Legislative
Assembly of North Dakota and is known on the records of that body as House Bill No. 1440.
House Vote: Yeas 75 Nays 17 Absent 2
Senate Vote:Yeas 39 Nays 8 Absent 0
____________________________
Chief Clerk of the House
Received by the Governor at ________M. on _____________________________________, 2025.
Approved at ________M. on __________________________________________________, 2025.
____________________________
Governor
Filed in this office this ___________day of _______________________________________, 2025,
at ________ o’clock ________M.
____________________________
Secretary of State