Yes. The bar/restaurant obtains its license to operate from ...
You'll shortly get set upon by a pack of libertarians who believe that, despite a century of jurisprudence to the contrary, government has no power to regulate what goes on on privately owned property, even if that property is used to operate a business that is open to the public. For them, even a health department that tries to keep rat droppings out of restaurant food is an abuse of government power.
I wonder why smoking bans engender such passion from certain FReepers.