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North Dakota House Bill HB1440

North Dakota 2025-2026 Regular Session

North Dakota House Bill HB1440 Compare Versions

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1-Sixty-ninth Legislative Assembly of North Dakota
2-In Regular Session Commencing Tuesday, January 7, 2025
3-HOUSE BILL NO. 1440
4-(Representatives D. Ruby, Dockter, Headland, Kasper, Marschall, Porter, Rohr, M. Ruby, Wolff)
5-(Senators Paulson, Weston, Wobbema)
6-AN ACT to amend and reenact subdivision d of subsection 3 of section 23-12-10 of the North Dakota
7-Century Code, relating to cigar lounges.
1+25.0298.04000
2+Sixty-ninth
3+Legislative Assembly
4+of North Dakota
5+Introduced by
6+Representatives D. Ruby, Dockter, Headland, Kasper, Marschall, Porter, Rohr, M. Ruby, Wolff
7+Senators Paulson, Weston, Wobbema
8+A BILL for an Act to amend and reenact subdivision d of subsection 3 of section 23-12-10 of the
9+North Dakota Century Code, relating to cigar lounges.
810 BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
9-SECTION 1. AMENDMENT. Subdivision d of subsection 3 of section 23-12-10 of the North Dakota
10-Century Code is amended and reenacted as follows:
11-d.A cigar lounge, which has a valid certificate issued by the tax commissioner under this
12-subdivision; has a humidor on the premises; is enclosed by solid walls or windows, a
13-ceiling, and a solid door; and is equipped with a ventilation system by which exhausted
14-air is not recirculated to nonsmoking areas and smoke is not backstreamed into
15-nonsmoking areas. A cigar lounge meeting the requirements of this subdivision may
16-permitthat permits the smoking of cigars and pipe tobacco purchased on the premises,
17-but may not permit the smoking of any other product on the premises.
11+SECTION 1. AMENDMENT. Subdivision d of subsection 3 of section 23-12-10 of the North
12+Dakota Century Code is amended and reenacted as follows:
13+d.A cigar lounge, which has a valid certificate issued by the tax commissioner
14+under this subdivision; has a humidor on the premises; is enclosed by solid walls
15+or windows, a ceiling, and a solid door; and is equipped with a ventilation system
16+by which exhausted air is not recirculated to nonsmoking areas and smoke is not
17+backstreamed into nonsmoking areas. A cigar lounge meeting the requirements
18+of this subdivision may permitthat permits the smoking of cigars and pipe tobacco
19+purchased on the premises, but may not permit the smoking of any other product
20+on the premises.
1821 (1)An applicant for a certificate to operate a cigar lounge shall report to the tax
19-commissioner, on a form prescribed by the commissioner, that the premises in
20-which the cigar lounge will be operated has a humidor; is enclosed by solid walls or
21-windows, a ceiling, and a solid door; and is equipped with a ventilation system by
22-which exhausted air is not recirculated to nonsmoking areas and smoke is not
23-backstreamed into nonsmoking areas. The commissioner may not require an
24-applicant to report information regarding income from the sale of cigars and pipe
25-tobacco in an initial application. Upon receipt of a report asserting compliance with
26-this paragraph, the commissioner shall issue the applicant a certificate to operate a
27-cigar lounge.
22+commissioner, on a form prescribed by the commissioner, that the premises
23+in which the cigar lounge will be operated has a humidor; is enclosed by
24+solid walls or windows, a ceiling, and a solid door; and is equipped with a
25+ventilation system by which exhausted air is not recirculated to nonsmoking
26+areas and smoke is not backstreamed into nonsmoking areas. The
27+commissioner may not require an applicant to report information regarding
28+income from the sale of cigars and pipe tobacco in an initial application.
29+Upon receipt of a report asserting compliance with this paragraph, the
30+Page No. 1 25.0298.04000
31+ENGROSSED HOUSE BILL NO. 1440
32+FIRST ENGROSSMENT
33+with Conference Committee Amendments
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55+22 Sixty-ninth
56+Legislative Assembly
57+commissioner shall issue the applicant a certificate to operate a cigar
58+lounge.
2859 (2)A cigar lounge asserting the lounge meets the requirements of this
29-subdivisionparagraph 1 shall report to the tax commissioner before February first of
30-each year following a full calendar year of operation, on a form prescribed by the
31-commissioner, the revenue from the previous calendar year generated from the sale
32-of cigars and pipe tobacco as a percentage of annual gross income from receipts or
33-sales. Upon receipt of a report asserting compliance with the annual gross income
34-requirements of this subdivisionthe cigar lounge generates fifteen percent or more
35-of the business's annual gross income from receipts or sales from the sale of cigars
36-and pipe tobacco, the commissioner shall issue anrenew the annual certificate. The
37-commissioner is not required to confirm the accuracy of information reported but
38-may not issuerenew a certificate absent supporting documentation from the lounge.
39-(3)Information reported to the commissioner under this subdivision is subject to the
40-confidentiality provisions of section 57-39.2-23.
60+subdivisionparagraph 1 shall report to the tax commissioner before
61+February first of each year following a full calendar year of operation, on a
62+form prescribed by the commissioner, the revenue from the previous
63+calendar year generated from the sale of cigars and pipe tobacco as a
64+percentage of annual gross income from receipts or sales. Upon receipt of a
65+report asserting compliance with the annual gross income requirements of
66+this subdivisionthe cigar lounge generates fifteen percent or more of the
67+business's annual gross income from receipts or sales from the sale of
68+cigars and pipe tobacco, the commissioner shall issue anrenew the annual
69+certificate. The commissioner is not required to confirm the accuracy of
70+information reported but may not issuerenew a certificate absent supporting
71+documentation from the lounge.
72+(3)Information reported to the commissioner under this subdivision is subject to
73+the confidentiality provisions of section 57-39.2-23.
4174 (2)(4)For purposes of this subdivision:
42-(a)"Cigar" means an individual roll of tobacco which has a wrapper or cover of
43-whole leaf tobacco; does not contain filler other than tobacco filler; does not
44-contain binder other than tobacco binder; does not contain additives other
45-than water; does not contain a filter, tip, or nontobacco mouthpiece; weighs at
46-least six pounds per thousand count; and is made by hand, except to allow for H. B. NO. 1440 - PAGE 2
47-the use of a manually operated machine to assist in bunching, rolling, and
48-binding.
75+(a)"Cigar" means an individual roll of tobacco which has a wrapper or
76+cover of whole leaf tobacco; does not contain filler other than tobacco
77+filler; does not contain binder other than tobacco binder; does not
78+contain additives other than water; does not contain a filter, tip, or
79+nontobacco mouthpiece; weighs at least six pounds per thousand
80+count; and is made by hand, except to allow for the use of a manually
81+operated machine to assist in bunching, rolling, and binding.
4982 (b)"Cigar lounge" means a business dedicated, in whole or in part, to the
50-smoking of cigars which generates fifteen percent or more of the business's
51-annual gross income from the sale of cigarsand pipe tobacco , which has a
52-valid certificate issued by the tax commissioner.
53-(c)"Pipe tobacco" has the meaning provided in section 57 - 36 - 01. H. B. NO. 1440 - PAGE 3
54-____________________________ ____________________________
55-Speaker of the House President of the Senate
56-____________________________ ____________________________
57-Chief Clerk of the House Secretary of the Senate
58-This certifies that the within bill originated in the House of Representatives of the Sixty-ninth Legislative
59-Assembly of North Dakota and is known on the records of that body as House Bill No. 1440.
60-House Vote: Yeas 75 Nays 17 Absent 2
61-Senate Vote:Yeas 39 Nays 8 Absent 0
62-____________________________
63-Chief Clerk of the House
64-Received by the Governor at ________M. on _____________________________________, 2025.
65-Approved at ________M. on __________________________________________________, 2025.
66-____________________________
67-Governor
68-Filed in this office this ___________day of _______________________________________, 2025,
69-at ________ o’clock ________M.
70-____________________________
71-Secretary of State
83+smoking of cigars which generates fifteen percent or more of the
84+business's annual gross income from the sale of cigarsand pipe
85+tobacco , which has a valid certificate issued by the tax commissioner .
86+(c)"Pipe tobacco" has the meaning provided in section 57 - 36 - 01.
87+Page No. 2 25.0298.04000
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