SF5252

Purpose

• Authorize the operation of cigar bars and allow on-sale liquor licenses for cigar bars.
• Amend existing Minnesota law to include cigar bars in the categories that can receive certain liquor licenses, and set specific requirements for cigar bars.

Key Definitions and Eligibility

• Cigar bar defined as a retail establishment where people 21 and older may smoke cigars alongside alcoholic beverages, with:
  • An entrance directly from the outside.
  • A policy that persons under 21 may not enter at any time.
  • At least 10% of total sales from cigars or from rental of on-site humidors.
  • Incidental sale of food/beverage items that do not require a food handlers license.
• Cigar bars must display signs stating that cigarettes, marijuana, and e-cigarettes are not permitted in the cigar bar.
• Cigar bars must have a ventilation system that prevents exhausted air from recirculating to non-smoking areas and prevents smoke from backstreaming into non-smoking areas.
• 1% of total gross revenue from cigar bars must be designated to youth smoking cessation programs.

Main Provisions

• Cigar bar status in liquor licensing (Section 4a addition to 144.4167)

  • The bill creates Subdivision 4a for “Cigar bar” with the requirements listed above.
  • These rules apply to cigar bars as a specific category within the state’s smoking and liquor laws.

• Expanded on-sale liquor licensing (Section 2, 340A.404 subdivision 1, amended)

  • Cities may issue onsale intoxicating liquor licenses to:
  • Hotels
  • Restaurants
  • Bowling centers
  • Clubs or congressionally chartered veterans organizations (with at least three years in existence; members and bona fide guests approved; clubs may allow wine tastings under another statute)
  • Sports facilities (including related restaurants, clubs, or bars on land owned or leased by state sports authorities)
  • Exclusive liquor stores
  • Resorts (as defined by statute)
  • A cigar bar under the new 4a subdivision
  • Cities may issue onsale liquor licenses to theaters within the city for events.
  • Cities may issue onsale liquor licenses to convention centers within the city for events, with the caveat that this does not apply to convention centers located in the seven-county Metropolitan Area.
  • Municipalities may issue onsale licenses for summer collegiate baseball league teams or baseball teams in related leagues, including sales at ballparks or stadiums for events, with licenses allowing sales on all days of the week to attendees.

• Additional licensing flexibility for venues

  • The bill adds flexibility for theaters, convention centers, sports facilities, resorts, and clubs to obtain on-sale licenses, broadening where alcohol can be sold for events or ongoing operations.

Significant Changes to Existing Law

• Adds a new cigar bar category with defined operating and health-related requirements, tying tobacco-use policy to liquor licensing.
• Expands the list of venues eligible for onsale liquor licenses to include cigar bars, theaters, and convention centers (with metro-area limitation for certain center types).
• Establishes mandatory revenue earmarking (1% of cigar bar gross revenue) for youth smoking cessation programs.
• Introduces specific ventilation and signage requirements for cigar bars to limit exposure and maintain smoke-free non-smoking areas nearby.

Practical Implications

• Local governments gain authority to issue alcohol licenses to cigar bars and other venues under specified conditions.
• Cigar bars must operate with a defined age restriction, dedicated ventilation, and revenue spending on youth cessation programs.
• Public health and safety considerations are addressed through ventilation standards and clear smoke/no-tobacco-policy signage.

Terminology and Synonyms to Note

• Cigar bar
• On-sale intoxicating liquor license (onsale liquor license)
• Humidors (on-site rental of humidors)
• Ventilation system; backstreaming prohibition
• Youth smoking cessation programs
• 21 years of age or older (age 21+)
• Signage prohibiting cigarettes, marijuana, and e-cigarettes
• Minnesota Statutes 2024; sections 144.4167 and 340A.404
• Theaters; convention centers; sports facilities; resorts; clubs; veterans organizations; summer collegiate baseball

Potential Impacts and Considerations

• Could increase opportunities for alcohol service at cigar bars and other venues.
• Requires adherence to health and safety standards (ventilation, age restrictions, signage).
• Redirects a portion of cigar bar revenue to public health efforts (youth cessation).
• Metro-area limitations apply to certain convention center provisions.

Relevant Terms - cigar bar - onsale intoxicating liquor license - Minnesota Statutes 2024 - section 144.4167; subdivision 4a - section 340A.404 - humidors - ventilation; backstreaming - youth smoking cessation programs - signs; smoking policy - 21 years of age or older - theaters; convention centers - seven-county metropolitan area - Minnesota Sports Facilities Authority (MSFA) - Metropolitan Sports Commission (MSC) - clubs; veterans organizations - resorts - hotels; restaurants; bowling centers - sports facilities - exclusive liquor stores