KentuckySB 1452026 Regular SessionSenateWALLET

AN ACT relating to the Department of Alcoholic Beverage Control and declaring an emergency.

Sponsored By: Julie Raque Adams (Republican)

Signed by Governor

Alcoholic BeveragesDistilled SpiritsEffective Dates, EmergencyFoods And BeveragesLicensingMalt BeveragesState AgenciesWine And Wineries

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Bill Overview

Analyzed Economic Effects

8 provisions identified: 2 benefits, 2 costs, 4 mixed.

Stricter penalties for youth sales, illegal vapes

It is illegal to sell tobacco, alternative nicotine, or vapor products to anyone under 21. Stores must post the age rule and check ID when they reasonably believe a buyer is under 21. Fines rise per premises: first citation $100 to the clerk; second $100 to the clerk + $500 to the owner; third $100 to the clerk + $1,000 to the owner; on or after July 1, 2026, a fourth citation revokes the license and bars reapplication for two years. Retailers cannot renew licenses until fines are paid, and unpaid vapor‑related fines over 60 days suspend lawful vapor sales. Retailers may sell only authorized nicotine vapor products. Owner fines are $500 for a first citation and $1,000 for later citations; on or after July 1, 2026, a fourth citation revokes the license for two years. Limited defenses apply if FDA review status changed within 45 days or if the product is authorized by law.

License and fees to sell tobacco and vapes

Beginning July 1, 2026, you must hold a state tobacco, nicotine, or vapor product retail license to sell these products. The annual fee is $500 per location and the license must be posted. Applications require a nonrefundable $50 fee that applies to the license if issued. Licenses cannot be transferred to a new owner or location; a buyer must obtain a new license. During a purchase, the commissioner may issue a transitional license for up to 60 days plus one 30‑day renewal with a $60 processing fee, while the permanent license is processed after public notice and a 30‑day protest window. Starting July 1, 2026, the commissioner must approve or deny applications; denials state reasons and can be appealed within 30 days. If a license is revoked, the retailer cannot reapply for two years. Retailers with an existing KRS Chapter 243 license may begin the tobacco/vapor application at their next renewal.

Broader alcohol service for caterers

Licensed caterers can use their commissary or banquet hall as the primary licensed site in wet or moist areas. They may sell and serve drinks off‑site only with food, and only if food is at least 70% in moist cities/counties, 10% in moist precincts, 50% in wet areas without quota drink licenses, or 35% in other wet areas. They can take phone alcohol orders only with food orders and accept payment by the drink, cash bar, or by the event. Caterers cannot serve alcohol at places that already hold a retail or temporary alcohol license, except certain charity auctions. In dry areas, at private events, they may serve only guests 21+ with drinks lawfully bought in wet or moist areas, and no sales happen in the dry area. The Department cannot set event‑size minimums or cap how many events a caterer may do. Caterers must post their license at each function, keep required records, and keep alcohol stock locked when not in use.

Limited drink license for golf courses

A nine‑ or eighteen‑hole course that meets USGA rules in a wet area, a place where alcohol sales are lawful, or a qualifying moist precinct can get a limited golf course license. It allows on‑site retail drink sales from licensed wholesalers and distributors. Package (to‑go) alcohol sales are not allowed.

Cigarette tax share funds enforcement and youth

The Department of Alcoholic Beverage Control receives $0.0005 per pack from the state cigarette tax. All license and application fees go into a State Treasury trust and agency account; if no license is issued, the Department keeps the application fee. All fines under these tobacco laws go to the Department: 50% offset enforcement costs and 50% fund a youth education program run by the Department for Public Health.

Faster, clearer alcohol license renewals

Most Department licenses last no more than one year, and renewals are spread across the year. The Department must approve or deny a license application within 45 days. Producers, wholesalers, and distributors can choose a one‑ or two‑year term. The Department can deny renewal if the licensee is a delinquent taxpayer under KRS 131.1815.

Effective dates and emergency start

The amendments in Sections 3–11 apply back to January 1, 2026. An emergency is declared, so the Act takes effect upon passage and approval by the Governor or upon its otherwise becoming law.

State checks and public list for retailers

The Department investigates each tobacco or vapor license application. If a license is approved, it does random inspections or compliance checks at least once each year during normal hours. The Department sets a statewide enforcement plan and schedule to meet federal youth‑sale guidance. On the first day of each month beginning July 1, 2026, it posts an online list of all licensed retailers.

Sponsors & Cosponsors

Sponsor

Julie Raque Adams
Republican • Senate

Cosponsors

Mike Wilson
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 154 • No: 16

Senate vote • 3/5/2026

passed

Yes: 35 • No: 2

House vote • 3/3/2026

3rd reading, passed

Yes: 84 • No: 13

Senate vote • 2/12/2026