By Timothy S. Donahue

Top Takeaways:

  • Provisional licenses available: Retailers that apply before Jan. 1, 2026 may continue operating while ABC reviews their applications.
  • New statewide licensing regime: S.B. 100 requires annual licensure for all tobacco, nicotine, and vapor retailers and strengthens enforcement.
  • Deadline matters: Retailers that do not apply by Jan. 1, 2026, will not be eligible for provisional licenses and risk enforcement action.

Kentucky will issue provisional state licenses to tobacco, nicotine, and vaping product retailers that apply for licensure with the state before Jan. 1, 2026, allowing those businesses to continue operating while their applications for full licensure are under review.

According to a report from the Kentucky Department of Alcoholic Beverage Control, the provisional license will remain valid until action is taken on the pending application, after which it will expire. The measure is intended to prevent retailers that have applied in good faith from being penalized during the transition to a new statewide licensing framework.

The provisional licensing authority stems from Senate Bill 100, which established a new licensing requirement for retailers of tobacco, nicotine, and vapor products and strengthened enforcement to ensure only products legal in Kentucky are sold. ABC expects to issue more than 4,000 new licenses to affected retailers by the end of 2025.

Kentucky Governor Andy Beshear said he signed S.B. 100 into law to prevent the marketing or sale of tobacco and vapor products to youth while supporting compliant businesses during the transition. Beshear said the provisional license allows retailers committed to selling legal products to continue operating as the state implements additional protections for minors.

On Dec. 29, 2025, ABC filed an emergency regulation establishing the provisional licensing process, ensuring that retailers who applied before the Jan. 1, 2026, deadline are not penalized while the agency completes its review of each application.

ABC urged any retailer of tobacco, nicotine, or vaping products that has not yet applied for licensure to act quickly, emphasizing that no provisional licenses will be issued after Jan. 1, 2026. Retailers that miss the deadline could face enforcement action if they continue operating without a license.

To support the implementation of S.B. 100, ABC officials have launched a new online licensing system to streamline applications. The department said it has been working directly with retailers and industry groups to explain the new requirements, assist with the application portal, and answer compliance questions.

Governor Beshear signed S.B. 100 into law on March 24, 2025. In addition to establishing annual state licensure through ABC, the law strengthens enforcement by creating a new enforcement team to investigate consumer complaints, instituting routine and unannounced compliance checks, increasing fines and penalties for violations, and authorizing license revocation and criminal penalties for selling tobacco, nicotine, or vapor products without a valid license. A portion of collected fines will be directed toward youth vaping prevention efforts.

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