FOR AN ACT ENTITLED, An Act to provide a definition of smoking and to permit smoking of hookah or shisha tobacco in certain licensed establishments.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
    Section 1. That § 34-46-13 be amended to read as follows:
    34-46-13. Terms used in this section and §§ 34-46-14 to 34-46-19, inclusive, mean:

            (1)    "Enclosed area," any space between a floor and a ceiling that is enclosed, exclusive of doorways, on all sides by permanent or temporary walls or windows;

            (2)    "Place of employment," any enclosed area under the control of a public or private employer;

            (3)    "Public place," any enclosed area to which the public is invited or in which the public is permitted;

            (4)    "Smoking" or "smoke," inhaling, exhaling, or tasting the fumes released through burning or heating tobacco.
    Section 2. That chapter 34-36 be amended by adding thereto a NEW SECTION to read as

follows:

    The provisions of §§  34-46-13 to 34-46-15, inclusive, do not apply to any establishment in actual operation prior to January 1, 2013, and where a license is issued pursuant to subdivision 35-4-2(4), (6), (12), or (16) at any time, and maintains compliance with the following requirements:

            (1)    Generates ten percent of more of its annual gross income from the sale of hookah or shisha tobacco; and

            (2)    Is enclosed by solid walls or windows, a ceiling, and a solid door and is equipped with a ventilation system by which exhausted air is not recirculated to nonsmoking areas and smoke is not backstreamed into nonsmoking areas.

    Any establishment meeting the requirements of this section may permit the smoking of hookah, shisha tobacco, and any premium tobacco product purchased on the premises. However, no establishment may permit the smoking of any other tobacco product on the premises. The establishment shall post a notice of the prohibition.

    Any establishment meeting the requirements of this section shall annually report to the Department of Revenue, on a form prescribed by the department, the revenue generated from the sale of hookah and shisha tobacco as a percentage of annual gross income.