This is from the front page of the LA Times...
Over the protests of angry residents, the Los Angeles City Council retreated Friday from its ban on lap dancing and voted to allow near-naked women to continue gyrating in customers laps.
Council members said they had little choice but to reverse the ban once adult business owners had collected enough signatures to force a referendum on the issue on the March 2005 ballot. If he measure had succeeded, a host of new regulations on strip clubs would have been thrown out along with the lap dancing ban.
Rather than take a chance on a costly and politically disruptive public campaign, council members voted 11 to 0 for a compromise in which lap dancing would be allowed, but the city's 40 adult clubs would accept some strict new rules. Among them: Private VIP rooms (where some fear prostitution is occurring) will be banned; touching of the breasts and genitals will not be allowed; and clubs will be forced to hire state licensed security guards and renew their permits every year.