Kentucky's Senate Bill 100, effective January 1, 2025, mandates that all tobacco and vape retailers obtain a state license to operate legally. This law aims to curb youth access by enabling stricter enforcement, unannounced inspections, and severe penalties for non-compliance, including license revocation and criminal charges for operating without a license.
Key Takeaways:
- Mandatory Licensing: All retailers must pay a $500 annual fee for a state license.
- Stiffer Penalties: Violations can lead to license revocation and criminal charges (Class B misdemeanor to Class D felony).
- Youth Protection: The law empowers the ABC to conduct unannounced inspections to prevent underage sales.
- Provisional Status: Retailers who applied by Jan 1 receive provisional licenses while processing continues.
Senate Bill 100 refers to a new Kentucky legislation that requires all tobacco and vape retailers to obtain a state license, creating a centralized database for regulators to enforce age restrictions and product standards. As of January 1, 2025, this law fundamentally changes the operating landscape for thousands of businesses across the state.
New Requirements for Smoke Shops and Retailers
The legislation, driven by a two-year youth-led advocacy campaign, aims to close loopholes that allowed some stores to operate off the radar. The key changes include:
- Annual License Fee: Retailers must pay $500 annually to the Department of Alcoholic Beverage Control (ABC).
- Location Tracking: The license ensures state regulators know exactly where stores are located for inspections.
- Compliance Checks: The ABC is empowered to conduct unannounced visits to check for underage sales and illicit products.
Penalties for Non-Compliance
The law introduces a tiered system of penalties for retailers who fail to comply, specifically for operating without a license:
| Offense Level | Penalty Type | Consequence |
|---|---|---|
| First Offense | Class B Misdemeanor | Fines and potential jail time (up to 90 days). |
| Second Offense | Class A Misdemeanor | Higher fines and potential jail time (up to 12 months). |
| Subsequent Offenses | Class D Felony | Felony charges with significant prison time (1-5 years). |
Additionally, retailers caught selling to minors now face the new threat of having their license revoked, a penalty that was not previously available to regulators.
Implementation Challenges and Provisional Licenses
Despite the deadline, compliance has been a hurdle. As of December 30, only about 5,304 of the estimated 7,000 retailers had applied. To address this, Governor Andy Beshear announced a grace period mechanism:
- Provisional Licenses: Retailers who submitted applications by January 1st will receive provisional status to keep operating.
- Non-Applicants: Retailers who failed to apply by the deadline have no such protection and face immediate legal risks.
Steve McClain of the Kentucky Retail Federation noted that the application portal only opened in mid-November, giving businesses a short window to upload extensive documentation, which contributed to the backlog.
