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, 3 costs, 3 mixed.

Strict penalties for underage and vape sales

From January 1, 2026, you cannot sell tobacco or alternative nicotine products to anyone under 21. You must post notice and check ID when you believe a buyer is under 21. Clerk fines are $100 on the first, second, and third citations; owners are fined $500 on the second and $1,000 on the third. A fourth citation on or after July 1, 2026 revokes the license and bars reapplying for two years. Retailers may sell only FDA‑authorized nicotine vapor products. Selling unauthorized vapor products brings a $500 fine on the first citation and $1,000 on later ones; a fourth citation on or after July 1, 2026 revokes the license and bars reapplying for two years. Unpaid fines older than 60 days stop lawful vapor sales until paid. There is a defense if a minor used fake or altered ID, or if an official FDA status change occurred within 45 days as specified.

License and fees to sell tobacco and vapes

Beginning January 1, 2026, retailers must hold a state tobacco, nicotine, or vapor product license. Each application includes a $50 nonrefundable fee, and the annual license fee is $500 per premises. Licenses last one year, must be posted, and cannot be transferred; a new owner needs a new license. The department may deny renewal if the business is a delinquent taxpayer. The Act applies these licensing and related rules retroactive to January 1, 2026.

Faster decisions and transition for tobacco licenses

The department must approve or deny covered license applications within 45 days. Denied applicants can appeal within 30 days, but licenses may be suspended or revoked for listed violations. If revoked, a retailer can be barred from reapplying for two years. During an ownership change, a buyer may get a transitional license for up to 60 days, plus one 30‑day renewal, by filing, advertising as required, and paying all fees including a $60 processing fee.

Broader off-site alcohol catering rights

The law expands what licensed caterers can do. A caterer can hold a primary license at its commissary and banquet hall in wet areas or certain moist areas. Off-site alcohol service is allowed with food when food makes up at least 70% of receipts in moist areas, 50% in some wet cities/counties without quota drink licenses, and 35% in other wet areas. Caterers may take telephone drink orders only when food is ordered for the event and may charge by the drink, cash bar, or by the event. For private events in dry areas, a caterer may serve guests 21+ if drinks were legally bought in wet/moist areas and are not sold in the dry area. The event space served by the caterer is not treated as a public place for KRS Chapter 222. The department cannot set a minimum number of customers or limit how many events a caterer may serve.

More golf courses can sell drinks

Qualifying nine‑ or eighteen‑hole golf courses in wet areas or certain moist precincts can get a limited golf course license. It allows retail drink sales for on‑site use only, not package sales. The course must buy alcohol from licensed wholesalers or distributors.

Rules and limits for alcohol caterers

Caterers must follow many of the same rules as retail drink licensees unless a caterer rule conflicts. A caterer cannot cater alcohol at a place that already has a retail or special temporary alcohol license, except certain licensed charity auctions. Caterers must post a copy of their license at each catered event and keep required records.

Inspections and public list of retailers

Starting January 1, 2026, the department investigates each application and does random compliance checks at least once a year. Beginning July 1, 2026, it posts a monthly online list of licensed retailers. License and application fees go to the department’s trust account. The department keeps fines under these statutes, using half for enforcement and half for a youth program run by Public Health.

Alcohol license terms and renewals

Most department licenses last no more than one year, and renewals run year‑round by rule. Producers, wholesalers, and distributors may choose a one‑ or two‑year term. For the first year after July 15, 2016, local officials had to prorate costs or issue provisional local licenses when renewal dates did not match state dates.

Sponsors & Cosponsors

Sponsor

Julie Raque Adams
Republican • Senate

Cosponsors

Matthew Koch
Republican • House
Nick Wilson
Republican • House

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