Enjoying a cocktail with a cigarette in hand is a time-honored custom as ingrained in the club culture as tipping the barkeep. For some reason (probably a Freudian fixation), the two habits are impossibly inseparable. There is something sensually satisfying about chasing the first sip of a martini with a deep, Dionysian drag off a freshly lit cigarette. And, even for nonsmokers, the mysterious ambiance of a smoke-filled barroom is a natural complement to the libationary experience.

Therefore, last New Year''s Eve was a bittersweet celebration for drinkers and smokers. At the stroke of midnight, champagne glasses were lifted as cigarettes butts were simultaneously extinguished, and barflies said good-bye to their sultry ritual. On Jan. 1, a California Assembly Bill (AB-13), which outlaws smoking in all enclosed areas including bars in order to protect employees from second-hand smoke, went into effect.

But now that the ashes have settled and the smoke has cleared, the gloom and doom that many proprietors predicted for the coming year has for the most part not materialized.

"It''s a fifty-fifty situation," says Vince LaRocca, owner of Viva Monterey. "There are those who enjoy the idea of being in a smoke-free environment, and then there is the person who does like to smoke and is inconvenienced by having to step outside."

Nonetheless, some bar owners are finding some clever ways to cope with the new law. For instance, Bosso''s Two Cushion Club in New Monterey has creatively circumvented the law by making all four bartenders co-owners.

"We''re allowed to smoke because we have no employees," says Bosso''s co-owner Darrell Proffitt. "That is the only way we could figure out, and our lawyer could figure out, how we could have a place where people can come to smoke and have a drink."

Other local watering holes, such as the Crown and Anchor, LALLApalooza and Peter B''s Brewpub in Monterey, and the Rodeo Inn and Lounge in Salinas, have created finite but functional outdoor smoking areas where patrons can legally light up.

And those establishments that are fortunate enough to possess ample patio seating--such as the Mucky Duck and London Bridge pubs in Monterey, the Baja Cantina in Carmel Valley, and the Forge in the Forest in Carmel--have become smoking meccas.

"The law really hasn''t affected us," says Karen Blackwell, owner of Mucky Duck Pub. "We''re fortunate enough to have the patio," she says, adding that the Duck has even gained customers due to their large outdoor seating space where customers can eat, drink and puff away at their pleasure.

For smokers who frequent bars that lack an outdoor smoking area, or who just prefer sitting inside, the ceremonial step outside has become an accepted layer in the smoking and drinking ritual.

"I still have all the same customers inside, they just step outside to smoke," says Blackwell. "People were annoyed in January, but you don''t see that anymore. It''s just natural now. "

When the nicotine urge hits, the routine goes something like this: The patron covers his/her drink with a napkin or coaster, indicating to the bartender that the drink is not finished. The smoker then steps outside to light up and is likely accompanied by another smoker in keeping with the social nature of the habit. And, if the customer is well-liked and/or tips well, the bartender will defend to the death his/her seat at the bar, ensuring a pleasant return.

But others say that the step outside is hurting business. "[The law] is terrible. It reduces sales by probably 20 percent," says Art Trafton, general manager of the Rodeo Inn. "Every time you have to get up and go smoke a cigarette, it''s one more reason to leave."

That''s why a good number of local bar owners are simply snubbing the new law altogether by refusing to comply. Smoke can still be seen wafting in the rafters of many area hot-spots. Still others comply, for the most part, but shortly before closing, when the tourists filter out and only the regulars remain, the ashtrays appear out of hiding and the bartender relaxes with the last few remaining patrons and an end-of-the-night stogie.

Luckily, local law enforcement officials don''t seem to be bending over backwards to bust renegade smokers and owners. As long as no one complains, it doesn''t seem to be a problem.

"For the most part, the law is complaint driven," says Officer Phil Penko of the Monterey Police Department. "If an officer observes smoking in an establishment, he will document the incident and inform the bar representative and customer, but then we generally refer it to the code enforcement officer [in the city attorney''s office.]"

The Monterey city attorney''s office has so far emphasized code compliance rather than enforcement, says Lane Christensen, a legal assistant with the city of Monterey. Officials are attempting to educate bar owners about the law rather than cite them, she says, but that could soon change.

"There are some bar owners who are flagrantly ignoring the law," says Christensen. "In those cases, we are definitely pursuing action, but no citations have been issued yet. However, that may be on the horizon." Likewise, officials in Seaside and Carmel report that, at least so far, no citations have been issued for AB-13 violators.

Whether they choose to comply or not, many proprietors say that the state Assembly has overstepped their bounds with AB-13, denying owners, patrons and employees alike a basic freedom of choice. Whether or not smoking should be allowed, they say, is a decision that should be left to individuals owners, not the state legislature.

"Most of the employees hate [the law] because they all smoke," says Trafton. "The people who pass the laws are not the workers; maybe they thought they were doing it for the workers, but they enacted a law that nobody wants."

"I can see their position on it being a health issue," says LaRocca, "but as an owner, certainly I would like to make that choice."

But hopeful rumors that the law may be repealed have not been realized. Although lawmakers tried four times in the last state Legislature session to end the smoking prohibition, all of those attempts have failed. So, for now, the future of smoking in bars is still a bit hazy.