Evers vetoes bill to allow new cigar bars

Gov. Tony Evers has vetoed a bill that would have allowed new cigar and pipe-smoking lounges to open in Wisconsin for the first time since the state’s indoor smoking ban took effect almost 17 years ago.

In his veto message, Evers said the bill, which cleared the Senate 18-15 and the Assembly 57-37, would “reverse course” on long-standing public-health protections by restoring indoor smoking in certain public spaces.

“I object to the negative impact this legislation will have on the public health of the people of Wisconsin,” Evers said in his veto message. “Secondhand smoke, a known carcinogen, causes serious health problems and is responsible for thousands of deaths on an annual basis.”

Evers said the veto had been a critically important step forward for keeping kids, families, and communities healthier and safer, improving public health, and saving thousands of lives. 

“As a former smoker and esophageal cancer survivor, I cannot in good conscience reverse course on that important step for public health, safety, and well-being by restoring indoor smoking in certain public spaces,” he wrote.

The Republican-led legislation sought to create a new exemption to the indoor smoking ban for tobacco bars established after June 3, 2009. Current law exempts cigar bars and lounges that were already operating on or before that date, effectively freezing in place the number of such establishments.

Under the proposal, newly created cigar bars would have been permitted to allow indoor smoking if they met certain requirements. Qualifying establishments could allow only cigar and pipe smoking — no cigarettes or vaping — and would have been prohibited from operating as retail food establishments. 

They would also have been required to bar individuals under 21 from entering and post clear notices informing patrons that cigar and pipe smoking was allowed on the premises.

The final legislation included requiring employees to sign an acknowledgment that they would be exposed to secondhand smoke and requiring applicants for Class B liquor or beer licenses to submit building plans demonstrating “sufficient air filtration and exhaust.”

Fixing an inequity

At a June 17 hearing on the legislation, supporters told members of the Assembly Committee on State Affairs that the bill was a narrowly tailored fix to the inequity created in 2009, when only the cigar lounges already open were allowed to keep operating, while new entrepreneurs were blocked from entering the market.

Rep. Nate Gustafson (R-Omro) said the original grandfather clause created an arbitrary distinction that has prevented new businesses from obtaining licenses for more than 15 years.

“As a result, no new licenses for these businesses, often known as cigar lounges, have been issued since June 3, 2009,” Gustafson testified. “[This bill] corrects this inequity. This legislation seeks to allow more of these businesses to open by issuing additional licenses to meet the increasing demand across the state. It levels the playing field and ensures new business owners have the same opportunity to succeed as those who came before them.”

The bill supports small businesses and economic growth, Gustafson said. 

“These adult-only venues will create jobs, support local suppliers, and generate tax revenue for their communities,” he testified. “It is pro-business legislation, allowing for growth while preserving public health standards.”

Crucially, Gustafson said, the bill in no way weakened the statewide smoking ban.

“It is a narrow, targeted reform that strikes a balance between protecting public health and respecting the autonomy of businesses and individual freedoms,” he testified. “It supports consumer choice by allowing adults to choose to enjoy a legal product in a designated, regulated environment. Cigar lounges, by their nature, are designated spaces for smoking, and customers know exactly what to expect: a dedicated space for adults choosing to enjoy a legal product.”

Under state law, such establishments must already derive at least 15 percent of their gross annual revenue from cigar and pipe tobacco sales, not including vending machine sales, a requirement designed to prevent ordinary taverns from permitting smoking. Existing cigar bars are also prohibited from selling food.

Businesses and manufacturers also argue that the lounges have evolved since 2009 and operate today with advanced filtration and exhaust technology. Randolph Bush, CEO of RK Ventures, a Wisconsin-based air-purification manufacturer, said his company has seen substantial growth in cigar-lounge installations nationwide.

“In past years, especially pre-Covid, the goal of a cigar lounge owner (in regards to air purification) was to remove enough smoke from the air so you could see the other side of the room,” Bush said. “A lot has changed, and I see this in almost every inquiry I get about smoking establishment air purification. The goal of smoke shop and lounge owners today is to create an atmosphere where visitors can enjoy smoking and leave without smelling like an ashtray.”

Other supporters argued Wisconsin is behind the curve nationally. Glynn Loope, director of state advocacy for the Premium Cigar Association, said Connecticut and North Dakota both recently approved new cigar-bar permits and that more than half of states either allow cigar bars outright or grandfathered them when adopting smoking restrictions. 

He said similar legislation is pending in Ohio and New York, with discussions underway in Michigan.

Some residents argued that maintaining the 2009 cutoff has created a state-mandated monopoly that favors the handful of grandfathered cigar bars, most of which are clustered in Milwaukee and Madison.

Supporters also noted other inconsistencies. 

“For example, you can go to nearly any vape shop and purchase and smoke vapes as Wisconsin’s Smoke Free Air Law doesn’t explicitly mention e-cigarettes,” Chad Karl, a Wisconsin resident, testified. “….. Cigars are not cigarettes or vapes as they don’t have toxic additives, just pure natural tobacco, which you don’t inhale. It doesn’t make sense to lobby for freedom of choices in more toxic industries and then restrict choices elsewhere.”

Opponents: Bill undermines smoke-free workplaces

Opposition came from medical organizations, public health groups, and health advocacy associations, which warned the bill would weaken a widely supported public health law.

Sara Sahli, the government relations director for the American Cancer Society Cancer Action Network (ACS CAN), told lawmakers the legislation would create a significant loophole in the state’s smoke-free air law.

“[The bill] is substantially more comprehensive and more harmful than it looks,” Sahli said. “We believe this bill goes further than intended. It would weaken Wisconsin’s smokefree air law by allowing cigar, brown cigarette, and pipe tobacco smoking in so-called ‘tobacco bars.’ Current law defines a tobacco bar as a tavern in existence as of June 3, 2009, that generates 15 percent or more of its annual gross income from the sale of cigars and pipe tobacco. This bill would allow cigar, brown cigarette, and pipe smoking in any bar that meets the 15 percent gross annual income threshold.”

Sahli also raised enforcement concerns.

“Wisconsin would need to create new procedures to track the location and revenue of tobacco bars,” she said. “This bill does not put any of those procedures in place. Furthermore, communities do not have the authority to decide whether these establishments can or cannot operate locally as there is not a separate tobacco bar license and this bill does not create them.”

Medical groups emphasized the health risks associated with secondhand smoke. The Wisconsin Chapter of the American College of Physicians argued that allowing smoking in any enclosed workplace would endanger workers who may have limited ability to avoid hazardous environments.

“There is no safe level of exposure to secondhand smoke,” the organization testified. “The U.S. Surgeon General and countless medical studies have shown that secondhand smoke — whether from cigarettes, cigars, or pipes — causes heart disease, stroke, lung cancer, and worsens chronic conditions like asthma and COPD. Permitting smoking in enclosed, public spaces — regardless of the product — puts workers and visitors at risk, including those who may not have the privilege of avoiding such environments due to their jobs.”

More than a dozen public-health organizations opposed the bill, including the American Lung Association, American Heart Association, Wisconsin Medical Society, UW Health, Children’s Hospital of Wisconsin, and multiple public-health and aging-advocacy groups.

Opponents noted the state’s smoking ban has been in place for 15 years and continues to enjoy broad bipartisan public support, with polling cited by ACS CAN showing 77 percent of Wisconsin residents favor keeping the law intact.

With the governor’s veto, the bill returns to the Legislature, where supporters would need a two-thirds vote in both chambers to override.

Richard Moore is the author of “Dark State” and may be reached at richardd3d.substack.com.