Not quite right.
I think it's more like this.
The law states that smoking is permitted in rooms so marked.
Further, let's say that a person may smoke his own cigarettes where the laws allow smoking at all.
So Joe Camel rents a smoking permitted room. Note the law allows this. The law also says his smokes is his right.
So Joe lights one up and this tiny little robot from Hitchikers Guide flies through a little panel, squirts Joes cigarette out, takes it then zips out the room. Well business needs take precedence right? Not if they violate the law.
BTW I want that robot