This bill authorizes counties and municipalities in South Dakota to issue licenses for the operation of cigar bars. It establishes that a board of county commissioners can approve a license for a cigar bar outside municipal boundaries, while municipal governing bodies can approve licenses within their jurisdictions. Applicants must meet specific criteria, including having a humidor, solid walls and ceilings, a proper ventilation system, and generating at least ten percent of their annual gross income from cigar sales. The bill also stipulates that cigar bars may only allow the smoking of cigars purchased on the premises and must maintain records of their cigar sales.

Additionally, the bill outlines the process for revoking or suspending a cigar bar license, requiring a public hearing and notice to the licensee before any action is taken. It prohibits the sale or transfer of the license to another person. The legislation aims to regulate the operation of cigar bars while ensuring compliance with health and safety standards.