KentuckySB 1002025 Regular SessionSenateWALLET

AN ACT relating to tobacco, nicotine, or vapor product licensure.

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Bill Overview

Analyzed Economic Effects

14 provisions identified: 1 benefits, 8 costs, 5 mixed.

Retailers face nitrous oxide sales limits

Retailers cannot sell or give away covered containers holding only nitrous oxide or a chemical compound mixed with it. Exceptions cover specified medical, dental, manufacturing, food-preparation, and automotive uses. A first citation costs $2,500, and a second costs $5,000. A third citation can bring up to 30 days in jail.

Retailers face stronger underage sales penalties

Retailers, wholesalers, and manufacturers cannot distribute covered products or samples to anyone under 21. Retail owners must explain age-check rules to clerks and keep signed acknowledgments; violations bring $100–$500 fines each. For covered sales and notice violations, clerks pay $100 per citation, while owners receive notice first, then $500 and $1,000 fines. A fourth citation revokes the location’s license; a fourth or later citation within two years bars reapplication for two years. Retailers cannot renew licenses until covered fines are paid.

Retailers risk license loss and bans

The state can suspend or revoke licenses for covered product, tax, regulatory, and federal-law violations. It can also act for another cause the department considers sufficient. Retailers are responsible for covered violations by workers and agents, even without the retailer’s knowledge or instructions. Revocation for any reason bars the retailer from applying for another covered license for two years.

Tobacco retailers need yearly paid licenses

Kentucky retailers must get a state license before selling covered tobacco, nicotine, or vapor products. Each location costs $500 a year, including a $50 nonrefundable application fee credited toward an issued license. Retailers must display the license and renew it yearly. Licenses cannot move between owners or locations; ownership changes require a new license. Fees go to a State Treasury account, except for denied licenses, when the department keeps the application fee.

Unauthorized vapor sales bring escalating fines

Retail owners pay $500 for a first citation for selling unauthorized vapor products. A second or later citation costs $1,000. A fourth citation revokes the license and bars reapplication for two years. Retailers cannot lawfully sell vapor products while a fine remains more than 60 days overdue.

Youth tobacco penalties favor community programs

A child found guilty of a covered tobacco offense cannot be committed because of that offense. People under 21 found possessing or using covered tobacco, alternative nicotine, or vapor products may face community service or cessation programs. Legal exemptions for supervised enforcement activities and other uses listed in the law still apply.

Tobacco fines fund enforcement and education

The law directs half of covered fines to enforcement and half to a public health youth education program. The youth program covers tobacco, alternative nicotine, and vapor product dangers. The law also extends Agriculture Department education duties and its referenced authority to retain 50% of covered fines. Agriculture receives $0.0005 per cigarette pack from existing state cigarette-tax revenue for education costs.

Local governments lose tobacco rule authority

The law expands the state tobacco provisions that take priority over later local rules. Local governments cannot override those provisions through later rules on tobacco use, display, sale, or distribution.

Vapor manufacturers face records and fines

Manufacturers must give product-authorization records to Kentucky wholesalers, or directly to retailers when no wholesaler is used. Records can include FDA authorization, application acceptance or tracking information, or appeal filings, kept on paper or electronically. Missing, false, or misleading information brings fines of $25,000, $50,000, then $75,000 for third and later citations. Manufacturers must notify their wholesale and retail buyers within 30 days after final FDA or court action removes a product.

Wholesalers face tighter vapor supply rules

Wholesalers may supply retailers only with authorized nicotine vapor products. Violations bring a $5,000 fine for the first citation and $15,000 for each later citation. Distributors and wholesalers also cannot supply tobacco, alternative nicotine, or vapor products to retailers whose licenses are revoked.

Business buyers get temporary sales licenses

Buyers taking over an ongoing retail business can receive a temporary license while their permanent application is processed. They must apply for a permanent license and pay its fees, plus a nonrefundable $60 processing fee. Buyers must first publish a local notice inviting protests within 30 days. The temporary license lasts up to 60 days, with one possible 30-day renewal, and ends when permanent licenses are issued. It cannot transfer to someone else or move the business to another location.

Retailer lists expand alongside business reporting

The state publishes licensed tobacco, nicotine, and vapor retailers online, updating the list on each month’s first day. Retailers must disclose authorized nicotine vapor sales in organizational filings, certificate-of-authority applications, and annual reports. The Secretary of State shares its retailer list monthly with alcohol-control and revenue officials. The law repeals an older vapor enforcement and retailer-list provision, while establishing these new duties.

Tobacco retailers face expanded state inspections

Beginning July 1, 2025, a new state licensing division oversees tobacco, nicotine, and vapor products. Licensed sellers receive random checks at least yearly, during business hours or another time the commissioner chooses. Expanded random, unannounced, and targeted inspections also support federal compliance, subject to the law’s stated exception. State investigators can inspect licensed premises without a search warrant and seize contraband. The alcohol-control and agriculture departments can issue enforcement rules covering citations, orders, fee changes, and appeals.

Vapor sellers face tighter product limits

Manufacturers and retailers may sell only nicotine vapor products that qualify as authorized under Kentucky law. Products need FDA authorization or U.S. marketing by August 8, 2016, and an application filed by September 9, 2020. The application route also requires ongoing review without an order, a stay or appeal, or a rescinded or vacated denial. Retailers no longer must keep manufacturer safe-harbor certificates; citation defenses instead rely on authorization proof or an official FDA status change within 45 days after citation. FDA-regulated drugs and devices, and products regulated under Kentucky’s controlled-substances chapter, are excluded from the vapor-product definition.

Sponsors & Cosponsors

Sponsor

Jimmy Higdon
Republican • Senate

Cosponsors

Greg Elkins
Republican • Senate
Stephen Meredith
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 147 • No: 20

Senate vote • 3/13/2025

passed

Yes: 32 • No: 6

House vote • 3/12/2025

3rd reading, passed

Yes: 82 • No: 11

Senate vote • 2/26/2025