The decidedly-liberal City Council passed the measure (08-1544), which was originally requested by Council member Greig Smith to “prohibit smoking in outdoor dining areas” back in June of 2008. After complaints from cigar smokers, who engaged the anti-smoking lobby at committee hearings and lobbied furiously with funding assistance from Cigar Rights of America, the final version of the ordinance was written in a close-cropped manner:
These are important in that, as regards restaurants, some smoking-friendly establishments convert to bar status – with only age-18 or older admitted – during late-night hours, and smoking could be allowed at those times, and the exemption for private events held in outdoor dining areas of restaurants or other facilities preserves the ability to hold cigar dinners or other charitable events and have smoking permitted.
While the new ordinance is another unwelcome encroachment on the freedom to smoke outdoors – where there is no health risk from so-called “secondhand smoke” – the exemptions that were won demonstrated again how civic involvement and participation makes a difference. Council member Tom LaBonge, who personally refereed the arguments between the anti-smoking and cigar-smoking groups, said at the initial committee meeting on the Smith motion that the anti-smoking groups “would have success on this,” but recognized that the public’s tolerance for limits on smoking was reaching its limits.
Further, a long discussion about signage requirements under the new ordinance was resolved to no one’s complete satisfaction. There will be a one-year grace period, during which a sign must be “clearly visible and readable to a majority” of restaurant customers that a smoking ban in that area will take effect in January 2011 and then a permanent sign is required which must only be “clearly visible and readable to most diners in the outdoor dining area.” That’s quite a bit less onerous than other smoking-ban signage required in the Los Angeles Municipal Code and signals a very modest signage requirement that businesses must undertake.
In addition, the new ordinance specifies no enforcement mechanism or primary agency, which means that complaints will almost certainly be made to the Los Angeles Police Department, which will just as certainly place a low priority on such calls.
The fight by cigar smokers against the easy passage of this ordinance was successful in that the exemptions carved out of what could have been – and would have been – a blanket ban on outdoor dining areas of all types stand for the proposition that – at least outdoors – smoking is to be allowed in venues for which minors are not admitted. That’s important. (The City of Los Angeles does not control indoor smoking laws because of preemptive California-wide statutes.)
Just as crucial is that the enormous effort expended by cigar smokers against this proposal has left a much more dangerous motion by City Council member Bernard Parks essentially stillborn. His proposal, submitted on August 8, 2008 (08-2123), was to create ordinances which banned smoking in all places in which people might or could congregate, which would essentially ban smoking everywhere in the City except possibly in private homes. That proposal, likely submitted by Parks as an election-year idea in 2008 in his losing campaign to win an open seat as a Los Angeles County Supervisor, was cheered by anti-smoking advocates, but has gone nowhere in the 18 months since he submitted it. It could still be considered, but is most likely to simply expire on August 11 of this year. That’s good.
Smoking bans mean less business
It also notes, quite clearly, that it’s hardly wise to take anti-smoking advocate claims about this subject at face value. The authors note on page 2 that “Research on the effects of a smoking ban on casino revenue has to date focused on the state of Delaware, which implemented a smoke-free law in December 2002. In the first study on the subject, Mandel, Alamar and Glantz (2005) found that the smoking ban in Delaware had a negative but statistically insignificant effect on gaming revenue. After correcting for errors in the Mandel, Alamar and Glantz (2005) study, Pakko (2006) found that the smoking ban in Delaware casinos resulted in a loss of $6 million, which represented a loss of over 12 percent relative to the average monthly revenue in the year preceding the smoking ban. In a subsequent study, Pakko (2008) examined the effect on individual casino revenue in Delaware as a result of the smoking ban, with a total revenue effect of approximately 15 percent. Finally, Thalheimer and Ali (2008) estimate a system of slot machine demand equations for the three Delaware casinos. They find that the smoking ban in Delaware reduced gaming demand by nearly 16 percent.” (Emphasis added; the Mandel, Alamar and Glantz study was produced by anti-tobacco activist researchers.)
The current study notes that in 2007, prior to the imposition of the smoking ban, Illinois casinos generated almost $2 billion in revenue and about $805 million in state and local governmental tax revenues. A careful review of the data from the Illinois casinos compared to competing casinos geographically close by in neighboring states of Indiana, Iowa, Missouri and Michigan showed that the smoke-free Illinois casinos had revenue drops of 20% and attendance drops of 10% in 2008 overall; the authors concluded that “the impact of the smoking ban on total admissions amounts to around 10 percent, with our point estimates indicating a downturn of 9 to 13 percent. These estimates imply substantial losses in tax revenue for the state and local communities which host casinos: total casino tax revenue was down by approximately $200 million.”
The only Illinois casino which did not see as much of an impact is located in Peoria and more than 90 miles away from the next closest gaming facility. That suggests that where smoking-allowed and smoke-free casinos are located close to each other, the smoking-allowed facility is going to do better absent other factors, but location and competition make a difference.
“Casinos aren’t the only businesses to suffer with legislated smoking bans,” added Chris McCalla, legislative director of the International Premium Cigar & Pipe Retailers Association (IPCPR). “And when business goes down, employees are eliminated or the businesses close. That means loss of jobs and loss of tax revenues. Nobody wins.
“We’re not against individual business owners declaring no smoking on their premises. It’s their right to do so. It’s local, state and federal governments that should not interfere with the rights of individuals.”
What about restaurants? Anti-smoking advocates shriek with authority that smoking bans do not hurt restaurants and bars, but in a footnote on page 1, Garrett and Pakko wrote: The anti-smoking lobby wants people to think they have truth on their side. This new study, along with others it cites, begins to paint a much more balanced picture that is, in fact, much closer to the truth.
Posted by Rich Perelman on August 20, 2009 at 10:49 AM in Commentaries | Permalink | Comments (0) | TrackBack (0)
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