Monday, October 3, 2005

RIHTA Members Respond to Smoking Ban

October 2005
By Dale J. Venturini
President & CEO, Rhode Island Hospitality & Tourism Association

One month after the Rhode Island legislature enacted the statewide smoking ban at most hospitality establishments on March 1, RIHTA sent out a survey to 272 of its member hotels, bars and restaurants to gauge the effects of the smoking ban on their businesses. The results are in, and an overwhelming majority of businesses reported no marked impact on sales in the first month of the ban.

According to the 93 businesses who participated in the survey – representing a strong response rate of 34% – 80.6% of the respondents said that the smoking ban had no impact on sales during the month of March. Surprisingly, members who reported an increase in sales outnumbered those who saw a decrease in sales. 10.8% of respondents saw their sales increase after the smoking ban was enacted, while 8.6% reported a decrease in sales.

When asked those who detected a decline in business to estimate the rate of the decrease, percentages ranged from 2% to 30%, averaging between 5% and 15%. For members who saw sales increase upon the start of the ban, the rate of the increase varied between 2% to 30%.

52% of respondents allowed smoking in their establishments prior to the ban.

The results of RIHTA’s survey echo recent statistics compiled by the Rhode Island Department of Health. According to the Health Department’s Betty Harvey, the department has observed little resistance to the smoking ban law, and report few workplace compliance issues. In fact, the number of non-compliance complaints reported to the Health Department dropped from 46 during the first two weeks of the ban’s enactment, to 15 reported from May 1-15.

On a related note, participants of the RIHTA smoking ban survey were asked to list any factors, other than the smoking ban, that have contributed to decreased sales. Answers ranged from decreases in convention center bookings, to gas prices, the war, and a general slowdown in the economy. The number one reason for a drop in business, according to many respondents, was a snowy winter season.

And at the State House…
As the temperature rises outside, so does the pace at the State House to get as much done before the legislative session winds down. With only a few weeks left before the State Senate and House of Representatives head home for the summer, expect to see a flurry of activity on many pieces of legislation that may affect your business. This is the time to be extra vigilant in tracking legislation. Here is an update on a couple of critical pieces of legislation.

Alcohol Server Training Legislation – Consensus on Legislation Reached
Working with CCRI, URI, MADD, the Department of Business Regulation (DBR), the Division of Substance Abuse of the Department of Mental Health, Retardation and Hospitals (MHRH), state representatives Kenneth Carter and Peter Lewiss, and state senator Leo Raptakis, a consensus on revised Alcohol Server Training legislation has been reached, resulting in legislation that is expected to pass both the House and Senate and be signed by Governor Carcieri.

In order to be a valid training program in Rhode Island, all alcohol server-training programs will be reviewed and certified by MHRH. All servers must be trained in one of the MHRH-approved certification programs within 60-days of employment with a score of not less than 75%. Certification is valid for three years.

RIHTA, in partnership with the National Restaurant Association (NRA), was able to include language that allows for portability of certification (if an employee is trained in a RI MHRH-approved program in another state, the certification is valid in Rhode Island). Further, RIHTA and the NRA stopped a move to prevent online training programs. RIHTA also was able to get a provision included into the legislation that recognizes all persons trained prior to December 31, 2005, as having valid certification.

DBR will act as the enforcement agency, with the power to levy fines and suspensions for violations. Once passed into law, the legislation becomes effective January 1, 2006. All servers must have valid permits no later than 90 days thereafter.

Casino Update – RIHTA Retains Constitutional Law and Gaming Lawyer
RIHTA has retained Attorney Joseph S. Larisa, Jr., of Providence, as counsel relating to the Association’s opposition to the proposed West Warwick destination casino complex.

Mr. Larisa is a former chief legal counsel and chief of staff to former Governor Lincoln Almond. Now in private practice, Larisa served as lead counsel for Governor Carcieri during the Governor’s request for an advisory opinion from the Rhode Island Supreme Court relating to last year’s casino legislation. The Supreme Court sided with the Governor and declared the casino legislation unconstitutional.

Larisa is considered an expert in legal issues regarding the gaming industry and constitutional law. Governor Carcieri has once again retained Larisa in regard to the advisory opinion recently requested by the House of Representatives on this year’s casino legislation.

RIHTA has established a separate legal fund to secure funding for the upcoming legal battle over the destination casino complex proposal.

No comments:

Post a Comment