This bill authorizes counties and municipalities in South Dakota to issue licenses for cigar bars, allowing one cigar bar to operate outside municipal boundaries and additional licenses based on population within municipalities. The bill outlines specific requirements for establishments seeking to operate as cigar bars, including the necessity of having a humidor, solid enclosures, a proper ventilation system, and generating a minimum percentage of income from cigar sales. It also clarifies that only cigars may be smoked on the premises, with a prohibition on other tobacco products.

Furthermore, the bill establishes a process for the revocation or suspension of a cigar bar license, requiring a hearing and notice to the licensee before any action is taken. It mandates that licensed establishments report their cigar sales income annually to the Department of Revenue. Additionally, the bill specifies that licenses cannot be sold or transferred to another person, ensuring that the licensing remains with the original applicant.