By Morgan Porter, Attorney, DBL Law
On March 13, 2026, Kentucky Governor Andy Beshear signed Senate Bill 145 into law, enacting a series of changes affecting alcoholic beverage licensees and retailers of tobacco, nicotine, and vapor products across the Commonwealth. Due to an emergency clause included in the legislation, the Act became effective immediately upon signing, with several tobacco and vapor product licensing provisions applying retroactively to January 1, 2026.
Businesses operating in these industries should be aware of the following developments.
Expanded Opportunities for Caterers
SB 145 provides greater flexibility for licensed caterers by modifying Kentucky’s caterer’s license requirements. Among other changes, the legislation:
- Removes certain restrictions regarding the storage of alcoholic beverages outside of the licensed premises;
- Allows service of alcohol on Sundays without navigating prior limitations;
- Clarifies that the Department of Alcoholic Beverage Control (ABC) may not impose minimum attendance requirements for catered events; and
- Prohibits the Department of Alcoholic Beverage Control from limiting the number of events a caterer may serve during a given period.
These changes may create additional business opportunities for caterers and event venues throughout Kentucky.
New Deadline for ABC License Decisions
The legislation also requires the Department of Alcoholic Beverage Control to approve or deny license applications within 45 days of receipt. This provision is intended to provide greater predictability for businesses seeking licenses or approvals.
New Licensing Requirements for Tobacco, Nicotine, and Vapor Product Retailers
Beginning July 1, 2026, retailers selling tobacco products, alternative nicotine products, or authorized nicotine vapor products must obtain a tobacco, nicotine, or vapor product license from the Department of Alcoholic Beverage Control.
Key requirements include:
- A $50 nonrefundable application fee;
- An annual $500 licensing fee per location;
- Annual license renewals; and
- Posting the license in a conspicuous location at the retail premises.
Licenses may not be transferred between owners or locations, and a new license is required upon a change in ownership.
Increased Enforcement and Penalties
SB 145 strengthens enforcement measures for retailers that sell tobacco, nicotine, or vapor products to individuals under the age of 21 or sell unauthorized nicotine vapor products.
The law establishes escalating penalties, including:
- Revocation of a retailer’s tobacco, nicotine, or vapor product license upon a fourth citation within a two-year period, accompanied by a two-year prohibition on obtaining a new license.
- Monetary fines for both employees and retail establishments;
- License renewal restrictions for retailers with unpaid fines;
- Revocation of a retailer’s tobacco, nicotine, or vapor product license upon a fourth citation within a two-year period, accompanied by a two-year prohibition on obtaining a new license
Annual Compliance Checks and Public Reporting
The Department of Alcoholic Beverage Control is now required to conduct annual compliance inspections of licensed retailers and publish a monthly online list of businesses holding tobacco, nicotine, or vapor product licenses.
What Businesses Should Do Now
Businesses involved in the sale of alcoholic beverages, tobacco products, alternative nicotine products, or vapor products should review their operations and compliance procedures to ensure they are prepared for the new requirements. Retailers should evaluate employee training programs, age-verification procedures, product inventories, and licensing status before the July 1, 2026 implementation date.
If you have questions about how Senate Bill 145 may impact your business, the attorneys at DBL Law are available to assist.
Next Steps
DBL Law’s Beer, Wine & Spirits Practice Group is available to assist businesses with licensing, compliance, and regulatory matters related to Kentucky’s evolving alcohol, tobacco, nicotine, and vapor product laws. Contact Morgan Porter to learn more.