CONCORD, N.H.—Cigar bars would be exempt from New Hampshire's smoking ban and cigarettes maquerading as little cigars would be taxed under bills making their way to the state Senate.
The House voted without debate Wednesday to exempt businesses that get at least 60 percent of their income from the sale of cigars or cigar-related products. The bill also would allow the business to have a liquor license, which under current law also requires the sale of food.
Employees would be required to sign a form acknowledging they understand the dangers of secondhand smoke and choose to work in the cigar bar. Entry would be prohibited to anyone under age 18.
The state banned smoking in bars and restaurants last year. During the debate over the bill, cigar shops tried unsuccessfully to carve out an exception like one approved Wednesday by the House. More than two dozen cigar and tobacco shop owners had worked together to oppose efforts to ban smoking in bars and restaurants.
Gov. John Lynch said Wednesday he has not seen the proposal and does not know if he would sign it.
Also Wednesday, the House voted 187-136 to change the definition of a cigarette to capture smokes being packaged as cigars. Cigars aren't subject to the state's $1.08 per pack cigarette tax.
The bill defines a cigarette by the materials used to make it and by its weight.
Ways and Means Chairwoman Susan Almy said the state is losing money from sales of the fake cigars. But Manchester Republican Steve Vaillancourt argued the smokes are cigars, not cigarettes. He said if the state wants to tax cigars, it should tax all cigars and not just mini-cigars or cigarillos.
Almy acknowledged some premium, small cigars could fall under the bill's new definition unless the state exempts them through rules.
The Senate next considers the bill.
