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SF 5252

Cigar bars operation authorization

2025-2026 Regular Session Introduced by Julia Coleman

Authorizes cigar bars as a distinct venue and allows on-sale liquor licenses for them, with age, sales, sign, ventilation, and 1% revenue to youth cessation requirements.

Referred to Health and Human Services
#healthandhealthdepartment #liquor
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Bill Summary · SF 5252

Summary of SF 5252 (2025-2026) – Cigar Bar Operation Authorization

Overview

  • Jurisdiction: Minnesota
  • Bill number: SF 5252
  • Session: 2025-2026
  • Introduced: May 1, 2026
  • Purpose: Authorize the operation of cigar bars and allow on-sale intoxicating liquor licenses to cigar bars; amend related licensing statutes.

1) Main purpose and intent

  • To authorize the operation of cigar bars as a distinct category where adults (21+) may smoke cigars in conjunction with alcoholic beverages.
  • To permit on-sale liquor licenses to be issued to cigar bars, alongside existing categories of on-sale licenses.
  • To clarify regulatory requirements and duties for cigar bars (e.g., signage, ventilation) to address public health and operational considerations.

2) Key provisions and changes

A. Cigar Bar designation and operation (New Subdivision in §144.4167)

  • Establishes criteria for a “cigar bar” and states what is permitted:
    • The establishment must be a retail venue where 21+ may smoke cigars alongside alcoholic beverages.
    • The entrance must open directly to the outside.
    • It cannot be entered by anyone under 21 at any time.
    • At least 10% of sales must come from cigars or on-site humidors rental.
    • Sale of other products (e.g., food and non-licensed beverage items) must be incidental.
  • Additional requirements:
    • The premises must display signs explaining that cigarettes, marijuana, and e-cigarettes are not permitted in the cigar bar.
    • A minimum of 1% of total gross revenue from cigar bars must be allocated to youth smoking cessation programs.
    • The cigar bar must be equipped with a ventilation system that prevents exhausted air from recirculating to nonsmoking areas and prevents smoke back-streaming into nonsmoking areas.

B. On-sale liquor licensing expansion to cigar bars (Amendment to §340A.404, subdivision 1)

  • Adds a new eligible license recipient to cities:
    • A cigar bar (as defined in §144.4167, subdivision 4a) may receive an on-sale intoxicating liquor license.
  • Other current on-sale categories remain, including hotels, restaurants, bowling centers, clubs, veterans organizations, sports facilities, exclusive liquor stores, resorts, etc.
  • The bill clarifies that cigar bars can be licensed in the same framework as other on-sale establishments.

3) Who and what is affected

A. Cigar Bars

  • Affects cigar bar operators seeking to operate legally under Minnesota law.
  • Requires compliance with the new definition (physical layout, age restriction, revenue mix, signage, and ventilation).

B. License Administrators (Cities)

  • Cities would have authority to issue on-sale intoxicating liquor licenses to cigar bars under the same framework as other listed establishments.

C. Public Health and Youth Programs

  • Requires 1% of cigar bar gross revenue to be directed to youth smoking cessation programs.

4) Procedural and timeline aspects

  • Action history shows introduction and first reading occurred on May 4, 2026.
  • Referred to Health and Human Services for consideration.
  • Sponsor: Co-sponsor Julia Coleman.

5) Notable specifics

  • The bill does not alter the fundamental on-sale licensing framework for most establishments but adds cigar bars as an eligible recipient for on-sale liquor licenses.
  • The “cigar bar” designation includes strict age and access controls, business model constraints (minimum 10% cigar-related sales), and environmental controls (ventilation and non-recirculation).
  • The revenue-directed requirement (1% to youth smoking cessation) introduces a dedicated public health funding mechanism tied to cigar bar operations.

This summary captures the essential aims: legalizing and regulating cigar bars as a distinct venue type, enabling on-sale liquor licenses for them, and imposing specific operational and public-health requirements to mitigate impacts on the community.

Compiled from official sources — confirm details with the bill’s official record.

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