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Senate approves measure letting premium cigar bars serve alcohol with limits

Iowa Senate · March 9, 2026
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Summary

Senate File 24‑44, allowing premium cigar bars that meet a revenue threshold to serve alcohol and preventing restaurants from qualifying, was amended (no on‑site food prep) and passed on final reading (ayes 27, nays 18).

The Senate adopted Senate File 24‑44 to permit certain premium cigar bars to serve alcohol if establishments derive at least 35% of gross revenue from retail sales of premium cigars. Senator Webster offered and the chamber adopted Senate Amendment 50‑63 to prohibit on‑site food preparation so that full‑service restaurants cannot use the provision to qualify as cigar bars.

Senator Webster said the bill aligns Iowa with other states that allow cigar bars under specific conditions and clarified that the bill defines "premium cigars" narrowly to exclude non‑premium products. "This puts the state of Iowa in line with the availability of having these establishments with several other states," Webster said, adding that the amendment prevents restaurants from qualifying.

Following adoption of the amendment, the Senate read the bill for the last time and passed it on a roll call. The amendment and final passage were recorded on the Senate floor.