The bill amends and reenacts subdivision d of subsection 3 of section 23-12-10 of the North Dakota Century Code, specifically addressing the regulations surrounding cigar lounges. It removes previous requirements for a cigar lounge to have a valid certificate issued by the tax commissioner, a humidor, solid walls or windows, a ceiling, and a solid door, as well as a ventilation system that prevents smoke from entering nonsmoking areas. Instead, it establishes that a cigar lounge must permit the smoking of cigars and pipe tobacco purchased on the premises while prohibiting any other products.

Additionally, the bill introduces new requirements for applicants seeking a certificate to operate a cigar lounge, including reporting compliance with specific operational standards to the tax commissioner. It mandates that cigar lounges report their revenue from the sale of cigars and pipe tobacco as a percentage of their annual gross income, with the requirement that they generate at least fifteen percent of their income from these sales to renew their certificate. The bill also clarifies definitions for "cigar," "cigar lounge," and "pipe tobacco," ensuring that the regulations are clear and enforceable.

Statutes affected:
INTRODUCED: 23-12-10
Adopted by the House Finance and Taxation Committee: 23-12-10
FIRST ENGROSSMENT: 23-12-10
Adopted by the Senate Finance and Taxation Committee: 23-12-10
Prepared by the Legislative Council staff for Representative Dockter: 23-12-10
Enrollment: 23-12-10