Yukon legislators have passed the Smoke-Free Places Act, making it the last Canadian province and territory to bring in anti-smoking legislation but only the second to ban smoking in vehicles with minors inside.

MLAs hailed the act, which also bans smoking in public places, as being one of the most progressive anti-smoking laws in the country. It will become law on May 15.

"We have been able to rise above party politics, partisan rhetoric, and find a common ground that is going to be a benefit for the people of this territory," NDP leader Todd Hardy, who introduced the act as a private member's bill last spring, said after the 16-1 vote Tuesday afternoon.

The act makes it illegal for Yukoners to light up in all public places, including restaurants, bars, correctional centres, schools, community centres, and tents used for special events.

It also outlaws smoking in company vehicles with two or more people inside, as well as banning smoking in "a vehicle in which any occupant is under the age of 18 years."

In December, Nova Scotia became the first province to ban smoking in cars when children and teenagers are present. Other provinces, including Ontario and P.E.I., have indicated their plans to bring in similar legislation.

The territorial capital of Whitehorse already has banned smoking in public places, while Dawson City bans smoking in restaurants and other businesses serving underage customers. As well, businesses in Mayo have banned smoking on their own.

The Yukon's act also prohibits retailers from displaying tobacco products or advertising in their stores.

Businesses that fail to comply with the act can be fined, the act says.

The only MLA to vote against the bill Tuesday was Liberal MLA Gary McRobb (Kluane), who said smokers and rural communities will be hurt by the ban.

"It didn't demonstrate enough compassion towards those who do smoke," McRobb told CBC News.

"Certainly, most smokers would like to quit at the snap of the fingers, but unfortunately that's not possible. And it will bring a lot of resentment towards government for being in the face of individuals."

He added that local economies in smaller communities will be hurt by a smoking ban, as "it will affect socializing in those communities," he said.

Canada's other two territories, Nunavut and the Northwest Territories, passed workplace smoking bans in 2004.