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EXECUTIVE SUMMARY When the Smoke-Free Air Act went into effect on March 30,2003, questions were raised about how the law would affect the City's restaurants and bars. Would the law hurt business? . Would some establishments have to layoff workers or close? One year later, the data are clear. The City's bar and restaurant industry is thriving and its workers are breathing cleaner, safer air. Since the law went into effect, business receipts for restaurants and bars have increased, employment has risen, virtually all establishments are complying with the law, and the number of new liquor licenses issued has increased-all signs that New York City bars and restaurants are prospering. The vast majority of New Yorkers support the law and say they are more likely to patronize bars and restaurants now that they are smoke-free. And, most importantly, the health of all New Yorkers, customers and workers alike, is now protected from the harmful health effects of second-hand smoke. The data show that: . Business tax receipts in restaurants and bars are up 8.7%; . Employment in restaurants and bars has increased by 10,600 jobs (about 2,800 seasonally adjusted jobs) since the law's enactment; . 97% of restaurants and bars are smoke-free; . N ew Yorkers overwhelmingly support the law; . Air quality in bars and restaurants has improved dramatically; . Levels of cotinine, a by-product of tobacco, decreased by 85 % in nonsmoking workers in bars and restaurants; and . 150,000 fewer New Yorkers are exposed to second-hand smoke on the job. While this report focuses largely on the economic impact, if any, that the Smoke-Free Air Act has had on the food and beverage industry, it is important to keep in mind the primary intent of the law: to protect workers from exposure to second-hand smoke. Just 30 minutes of exposure to second-hand smoke produces some of the same physical reactions that occur due to long-term smoking, and can increase the risk of heart attacks in non-smokers. Now, because of the passage of the Smoke-Free Air Act, workers and patrons of the City's bars and restaurants are breathing cleaner, safer air every day. The report is divided into 8 sections: 1. Bar and restaurant tax receipts 2. Bar and restaurant employment 3. Bar and restaurant openings and closings 4. Compliance with the Smoke-Free Air Act 5. Public opinion 6. Workplace air quality 7. Worker protection 8. The State of a Smoke-Free City