INDIANA — Governor Mike Braun’s recent signing of HEA 1468 introduces significant changes for tobacco sales certificate holders and certain alcoholic beverage permittees in Indiana, creating new avenues for cigar sales and the establishment of dedicated cigar smoking rooms.
Most notably, tobacco sales certificate holders can now apply for a supplemental permit for cigar sales. This new permit allows them to distribute cigars as vendors at events held across the state. These permits carry a fee of $1,000 and are valid for a three-year term. Permit holders are required to notify the Alcohol & Tobacco Commission (ATC) of any events they plan to participate in at least five days prior. It’s important to note that HEA 1468 does not alter the state smoking ban, and local and state laws will continue to govern whether cigars can be consumed at catered events.
HEA 1468 also introduces a new opportunity for restaurant, club, and hotel permit holders to establish cigar smoking rooms within their licensed premises. To be compliant, these cigar rooms must be adequately ventilated and segregated from the rest of the establishment. They must also be connected to an outdoor patio and cannot be directly linked to a dining room. Permit holders must secure local permission for these cigar rooms or ensure that local laws already permit smoking in such areas. If the permit holder also possesses a tobacco sales certificate, cigars can be sold directly within these compliant cigar rooms.
While the primary impact of this new law affects alcoholic beverage permittees, it distinctly creates new business opportunities for tobacco sales certificate holders. They can now sell cigars to participating permit holders and, if they operate a permitted restaurant, hotel, or club, can sell cigars directly in their compliant cigar smoking rooms.
For more information regarding these tobacco-related legislative changes, inquiries can be directed to Chris Serak, Deputy Director for the Indiana Alcohol and Tobacco Commission, at CSerak@atc.in.gov. Questions concerning tobacco sales certificates should be directed to ATC tobacco specialist Loriann Shelton at lshelton2@atc.in.gov.
