Ames hookah bar the Chicha Shack, 114 Welch Ave., could expand its operation, and owners are considering opening a location in Des Moines.

Assistant manager Rami Ali said business is booming despite recently passed legislation to close the legal loophole allowing hookah bars to operate without a tobacco license.

The bill, signed into law by Gov. Tom Vilsack and slated to go into effect July 1, forces all tobacco retailers to obtain a license — previously only cigarette retailers needed to sign up for a license and compliance checks.

Ali said plans are being discussed to open a larger location in Des Moines that would have an attached restaurant. He said the new location might also serve alcoholic beverages.

“We are still in the process of thinking about it,” Ali said. “It’s going to be a bigger place; it’s going to cost more money.”

He said plans to expand the Campustown location do not include a liquor license or food service, although customers can bring beer and wine if they show identification proving they are 21. Ali said current expansion plans include providing more seating and privacy for customers.

“For a new business, it’s going real well,” he said. “People try it and like it. We do have a lot of regular customers.”

Ali and Sakshi Handa, owner of the Iowa City hookah bar Red Poppy, said the bill will not affect business because they already check identification to ensure minors are not smoking.

“People under 18 do not smoke; we do not let them,” Ali said.

He said he rarely sees minors because his business is located in Campustown and the clientele is primarily college-aged.

Handa agreed.

“We basically have a college-age crowd or above,” she said.

Handa said she thought she would need a license when she opened her business last year.

“I thought there was a general license for all tobacco. I was surprised to find out that there wasn’t,” she said.

“I don’t have a problem with [this legislation] at all. I don’t want to be serving minors, so this protects me from having to do so.”

Iowa Rep. Kevin McCarthy, D-Des Moines, said the new tobacco license will be easy for businesses to obtain and must be purchased by any business selling any tobacco product.

He said the permits will be handled by city governments and should cost between $50 and $100 annually, depending on city size.

McCarthy, a former tobacco regulator, said the compliance checks, which typically involve a sting operation, are unlikely to cause anyone but the worst offenders to lose their licenses.

“You need to have, I think, five violations within a period of a couple of years to lose your tobacco license,” he said. “It’s only happened once or twice.”