Counties and cities may license eligible cigar bars

County and city governing bodies may approve cigar bar licenses. The license covers an establishment in the county or city jurisdiction that meets the listed premises and sales requirements. Counties may approve licenses only outside a municipality and within the county's jurisdiction; cities may approve licenses within their jurisdictions. The establishment must share premises with a business holding one of the listed liquor licenses. It must have a humidor, enclosed walls, ceiling, and door, and ventilation that keeps smoke out of nonsmoking areas. The establishment must earn, or expect to earn, at least 10% of its yearly gross income from cigar sales. The governing body must hold a public hearing and decide the application as it does an on-sale license application. The governing body must hold a public hearing before making its final decision on an application.

A licensed cigar bar may allow customers to smoke cigars bought there, but may not allow other tobacco products. These rules apply to premises licensed to operate as a cigar bar. A cigar means an individual roll of tobacco wrapped only in tobacco. The establishment must post a notice that smoking other tobacco products is prohibited. The establishment must keep records of its cigar-sales share for the previous three years; the government that issued the license may inspect them. The records must cover the previous three years.

A county or city may suspend or revoke a cigar bar license after proof of specified violations. These rules apply to cigar bar license holders and the county or city body with authority over the license. A license may be suspended or revoked if the establishment no longer meets the eligibility rules, the licensee or someone acting for it violates this state law chapter, or the licensee or someone acting for it violates local rules on tobacco sales or distribution. Before acting, the governing body must hold a hearing, send the licensee notice at least 30 days beforehand, and publish notice in the official newspaper at least seven days beforehand. A license holder may not sell or transfer the license. The licensee must receive notice at least 30 days before the hearing, and the hearing notice must appear in the official newspaper at least seven days before it.