HB 5931 (Michigan, 2025-2026): Summary
Purpose and intent
- The bill amends section 12606a of the Public Health Code (1978 PA 368, MCL 333.12606a) to modify the current exemption process for cigar bars and tobacco specialty retail stores that allow smoking on their premises. It introduces a formal, Department-managed affidavit process and later shifts to an online affidavit submission system with procedural timelines and appeal rights.
Key provisions and changes
1) Cigar bars: eligibility for smoking exemption
- An existing cigar bar (as of May 1, 2010) may qualify for an exemption from the statewide smoking prohibition (section 12603) if it meets several conditions, including:
- Affidavit filing: Must file an affidavit with the Department of Health and Human Services (or the relevant department) by 30 days after May 1, 2010, and annually by January 31 thereafter.
- Economic criteria (based on on-site activities during defined periods):
- 30 days before May 1, 2010: 10%+ of gross annual income from on-site cigar sales and on-site humidors rental.
- Each subsequent calendar year: 10%+ of gross annual income from on-site cigar sales and on-site humidors rental.
- If the exemption is obtained under subsection (2) (see below), the 3-year look-back requirement is waived for the period immediately preceding the filing year.
- Physical separation: The cigar bar must be on premises physically separated from other areas where smoking is prohibited, with smoke not infiltrating nonsmoking areas.
- On-site humidor: Must have an on-site humidor.
- Age restriction: Entry prohibited to individuals under 21 while the bar is open.
- Product restrictions: Only cigars retailing for more than $1 each may be smoked on the premises.
- Tobacco restrictions: Other tobacco products cannot be smoked on the premises.
2) Temporary exemption (subsection (2) – 1-year eligibility)
- A cigar bar may qualify for a 1-year exemption if:
- Location criteria: City population between 32,000 and 34,000; county population between 100,000 and 105,000.
- Historical filing gap: Since 2023, the bar failed to file an affidavit for 1 to 3 years (not more than 3 years).
- No prior filing under this subsection.
3) Affidavit filing mechanics and department processes
- The department will maintain a publicly accessible webpage by a date specified in the bill to receive and approve/reject affidavits.
- The webpage requirements include:
- No-cost public access.
- Ability to submit and amend affidavits.
- Real-time status updates.
- Preferred communication options: webpage, email, phone, or mail.
4) Online affidavit requirement and timeline (phase-in)
- Starting January 1, 2028, cigar bars/tobacco specialty stores must submit affidavits via the department’s online webpage.
- The department must act within 30 days of submission to approve or reject the affidavit and notify accordingly through the chosen communication method.
- If rejected, the business has 30 days to correct or appeal.
- If a decision is appealed, the matter proceeds as a contested case under the Administrative Procedures Act.
5) Tobacco specialty retail stores
- A tobacco specialty retail store (as of May 1, 2010) may also qualify for a smoking exemption if it:
- Files annual affidavits by January 31 (similar to cigar bars) and demonstrates criteria tailored to tobacco shops:
- 75%+ of gross income from on-site tobacco products and smoking paraphernalia, both for the initial period (as of May 1, 2010) and for each subsequent year.
- Physical separation and age restrictions identical to cigar bars.
- Provisions mirror the physical and age-related requirements of cigar bars.
6) Compliance, enforcement, and remedies
- If a cigar bar or tobacco store fails to meet requirements, it loses its exemption and must prohibit smoking immediately.
- If in compliance, the exemption continues during the relevant affidavit period, subject to timely filing.
- Loss of exemption triggers immediate prohibition of smoking; requalification requires filing a new affidavit and meeting the applicable criteria.
- The department may request additional information or photographs; photographs, if needed, must be obtained by the department.
6) Appeals and contested proceedings
- If an affidavit is rejected, the business has 30 days to correct or appeal.
- Appeals proceed as contested cases under the Administrative Procedures Act.
Impact and scope
- Affects: Cigar bars and tobacco specialty retail stores that operate in Michigan and claim an exemption from smoking prohibitions under section 12606a.
- Geographic and demographic triggers: The 1-year exemption in subsection (2) relies on specific city/county population ranges.
- Administrative changes: Introduces an online affidavit submission system with real-time status updates and formal timelines; requires department-action within 30 days on submissions and allows for 30-day corrections or appeals.
- Public health and compliance: Maintains smoking exemptions for eligible retail venues while imposing structured verification and ongoing annual filing to ensure compliance.
Timeline notes
- Immediate relevance for entities meeting existing criteria and filing historically.
- Online portal: required by 180 days after the law’s effective date.
- Online affidavit submission becomes mandatory: January 1, 2028.
- Department action on online submissions within 30 days of submission.