Hospitality Law Blog

Tobacco Retailers: URGENT Licensing Action Needed

The 2025 Kentucky legislative session saw the General Assembly enact Senate Bill 100, which requires retailers selling tobacco, nicotine, and vapor products to hold a tobacco-specific permit, effective January 1, 2026. 

However, until yesterday, there were no regulations, guidance or means to apply for these licenses.  Retailers may have assumed flexibility or a grace period for compliance; however, with less than 60 days before the effective date of the statute requiring the retail license, the Kentucky Department of Alcoholic Beverage Control (“ABC”) has now released both an application portal, and as of November 4, the pertinent proposed permanent and emergency regulations.

With the launch of the application portal and the publication of the emergency regulations, the ABC for the first time identified the application requirements for these permits, which are substantial. Critically, the ABC indicates there will be no grace and that permits are required to be in hand by January 1, 2026, which gives retailers less than two months to secure them. No retailers are exempt. If you wish to sell these products as of January 1, you must have this new license in-hand.

The application process requires several pieces of documentation for initial applicants, including several photos of the building, retail space, and point of sale where the products will be sold, for instance. The application also requires certification of compliance with the individual provisions of Kentucky statutes governing the sale of tobacco, nicotine and vapor products.

The ABC estimates that more than 7,000 retail locations throughout the Commonwealth will be affected by the new licensing scheme. With the clock ticking, they’ve also hinted that late filers may not have their licenses in hand by the January 1 deadline, so anyone in need of these licenses is highly encouraged to apply now. Our regulatory attorneys are prepared to quickly and efficiently assist you in complying with this new licensing requirement.

Stephen G. Amato is a Member of McBrayer law. Mr. Amato focuses his practice in the areas of hospitality law, civil litigation, employment law, and administrative law, and is located in the firm's Lexington office. He can be reached at samato@mcbrayerfirm.com or (859) 231-8780.

T. Neal Morris is an Associate with McBrayer in the Lexington office.  Mr. Morris focuses his practice in the area of hospitality & tourism law, alcoholic beverage regulation, administrative law, employment litigation and insurance defense. He can be reached at (859) 231-8780 or nmorris@mcbrayerfirm.com. 

Services may be performed by others. This article does not constitute legal advice.