The South Dakota Senate voted 21-14 Wednesday to extend a state smoking ban to bars, video lottery casinos and Deadwood gambling halls.
In doing so, the Senate might also have voted to worsen the state budget deficit by encouraging gamblers who like to smoke to take their business to Native American casinos and others where smoking is allowed, critics of the ban said.
"It was very disappointing," said Republican state Sen. Tom Nelson of Lead, who opposed the ban. "I thought we had a good argument, particularly in a year when we have these economic woes. We still have at least a $30 million budget gap to make up, and quite possibly, next year, we could have an additional $20 to $25 million in that gap."
Gambling industry lobbyists have argued the ban could cost the state $25 million to $30 million a year as play on video lottery is reduced. Nelson said there would be additional losses in Deadwood gambling.
Supporters argue that the health benefits of protecting the public and workers from the harmful effects of secondhand smoke will pay for any losses over time. They also doubt the economic loss will be as severe as opponents of the ban predict.
"I don't think that number is accurate, especially when there's no place else they can go to smoke," Sen. Stan Adelstein, R-Rapid City, said after the vote. "There could be some impact. But they are playing because they like to play, not because they like to smoke."
There had been some speculation in the Capitol that Gov. Mike Rounds might veto the bill because of its potential budget impacts. Video lottery is a crucial state funding source that provides more than $100 million a year. Rounds typically doesn't discuss vetoes in advance. And spokesman Joe Kafka said by e-mail Wednesday that the governor didn't have a comment on HB1240.
Round has spoken critically about the human damage done by smoking.
Nelson said he didn't have an opinion about a potential veto. Adelstein said he thought it was unlikely.
In approving HB1240, the Senate expanded an existing ban on smoking in public places to include bars and casinos, as well as restaurants with liquor licenses. Exceptions to the ban are motel rooms, cigar bars and smoke shops.
It took two hours of floor debate Wednesday and an amendment that reduces the legal penalty for violating the law to move the bill out of the Senate by a larger margin than some senators expected.
Sen. Frank Kloucek, D-Scotland, proposed the amendment, which would reduce the penalty from a Class 2 misdemeanor to a petty offense. It was an important change in shaping the final vote total, Nelson said.
"It took a lot of bite out of the penalty, but it's still a very enforceable law," he said. "That's why the margin became so much larger."
Because of the amendment, the South Dakota House must agree to the change. That chamber had already passed the bill last month with the higher penalty.
Adelstein said the $25 fine that goes with the petty offense could be multiplied by the number of people smoking in an establishment and charged to the owners.
"Truth be told, it could be a very serious penalty," he said. "If you find 30 smokers in a place, that's $25 times 30."
A Senate bill mandating a similar ban failed in that body last month on a 17-18 vote. But the House version added exceptions for motel rooms, cigar bars and smoke shops.
Supporter said those additions were key in winning more Senate support the second time through.
Adelstein said he thinks the bill is going to come out of conference committee, get the governor's approval and become law. And it will save South Dakota money over time, he said.
"In the long run, the state pays for every smoker," he said.
Sen. Gordon Howie, R-Rapid City, voted against the bill but said he understood the importance of the health arguments.
"There's a compelling health argument, so that carries a lot of weight," Howie said. "It comes right down to whether you decided this is an argument about health or about personal rights and responsibilities."
In the Senate on Wednesday, health won.
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