Indiana has enacted new legislation that expands opportunities for cigar retailers and restaurateurs, allowing for off-site cigar sales and the establishment of designated cigar-smoking rooms in restaurants.

House Bill 1458, signed into law by Governor Eric Holcomb, permits licensed tobacco retailers to obtain a supplemental cigar sales certificate for $1,000, valid for three years. The certificate enables retailers to sell cigars at events and functions outside their primary place of business.

Retailers must notify the Indiana Alcohol and Tobacco Commission of the date and location of each event. However, approval does not override existing smoking bans; smoking at these events remains subject to state and local regulations.

The law also allows restaurants holding an alcoholic beverage retailer’s permit to create separate, enclosed cigar-smoking rooms. These rooms must be well-ventilated, accessible only to patrons aged 21 and over, and connected to an outdoor patio area.

Importantly, the smoking areas must be entirely separate from dining spaces, ensuring that non-smoking patrons are not exposed to secondhand smoke.

The provisions are set to take effect on July 1, 2025. They represent a significant shift in Indiana’s approach to tobacco regulation, providing new avenues for cigar businesses to engage with customers while maintaining public health safeguards.

The legislation reflects a balance between supporting the cigar industry’s economic interests and upholding the state’s commitment to smoke-free environments in public spaces.