STATEMENT OF EMERGENCY

804 KAR 13:025E

Pursuant to KRS 13A.190(1)(a)3. and 2025 Ky. Acts Ch. 78 (SB 100), this emergency regulation is being promulgated to meet an imminent deadline for the promulgation of an administrative regulation that is established by state statute.

Enacted in the 2025 Regular Session, Senate Bill 100 requires the Department of Alcoholic Beverage Control ensure the safe and reasonable regulation of tobacco, nicotine, and vapor products within the Commonwealth. Effective January 1, 2026, Section 31 of Senate Bill 100 requires entities to first obtain a tobacco, nicotine, or vapor product license issued by the Department before they may operate as a retailer selling alternative nicotine products, tobacco products, or authorized nicotine vapor products in or on any premises in Kentucky. Approximately 7,000 tobacco, nicotine, or vapor product retailers are currently operating in the Commonwealth. As of December 29, 2025, the Department had issued 3,362 licenses, with an additional 1,592 applications then pending. In order to ensure that retailers who have applied for a license before January 1, 2026, are not penalized through no fault of their own while the Department continues the process of evaluating each application thoroughly, this emergency regulation is being promulgated to implement a tobacco, nicotine, or vapor product provisional licensing structure as soon as possible to meet the statutory deadline under Senate Bill 100.

This emergency administrative regulation will not be replaced by an ordinary administrative regulation.

SCOTTY TRACY, Commissioner

ANDY BESHEAR, Governor

PUBLIC PROTECTION CABINET

Department of Alcoholic Beverage Control

(New Emergency Administrative Regulation)

804 KAR 13:025E.Provisional license.

RELATES TO:

KRS 438.305 to 438.350

STATUTORY AUTHORITY:

KRS 438.340, 438.3055

CERTIFICATION STATEMENT:

NECESSITY, FUNCTION, AND CONFORMITY:

KRS 438.340 authorizes the department to promulgate administrative regulations as necessary to implement and carry out the provisions of KRS 438.305 to 438.350. KRS 438.3055 permits the department to promulgate administrative regulations that govern the sale and distribution of alternative nicotine products, tobacco products, and vapor products. This emergency administrative regulation provides privileges and restrictions of a provisional license to be issued by the commissioner to applicants for a tobacco, nicotine, or vapor product license whose initial application was filed prior to the license being required on January 1, 2026, but is still pending initial determination on and after January 1, 2026.

Section 1.

Definitions.

(1)

"Alternative nicotine product" is defined by KRS 438.305(1).

(2)

"Authorized nicotine vapor product" is defined by KRS 438.305(2).

(3)

"Commissioner" is defined by KRS 438.305(3).

(4)

"Manufacturer" is defined by KRS 438.305(9).

Section 2.

The commissioner may issue a provisional license to a tobacco, nicotine, or vapor product retailer who applied for a tobacco, nicotine, or vapor product license and paid the nonrefundable application fee required by KRS 438.3063(1) prior to January 1, 2026, but whose application is pending initial determination by the commissioner. No additional application or fee shall be required for the issuance of a provisional license.

Section 3.

A provisional license issued pursuant to this section shall:

(1)

During the period in which the provisional license is effective, authorize the holder to purchase tobacco products, alternative nicotine products, and authorized nicotine vapor products at wholesale from a Kentucky-licensed wholesaler, or directly from a manufacturer, and sell them at retail, subject to the restrictions of KRS 438.305 to 438.350;

(2)

Be posted in a conspicuous place in the premises of the business where tobacco, alternative nicotine products, and authorized nicotine vapor products are sold;

(3)

Expire after:

(a)

Sixty (60) days; or

(b)

An initial determination is made by the commissioner on the application, whichever happens sooner; and

(4)

Not be renewable.

SCOTTY TRACY, Commissioner

RAY PERRY, Secretary

APPROVED BY AGENCY: December 29, 2025

FILED WITH LRC: December 29, 2025 at 3:11 p.m.

PUBLIC HEARING AND COMMENT PERIOD: A public hearing on this administrative regulation shall be held on February 23, 2026, at 9:00 a.m. ET, at 500 Mero Street, Frankfort, Kentucky 40601. Individuals interested in being heard at this hearing shall notify this agency in writing by five workdays prior to the hearing, of their intent to attend. If no notification of intent to attend the hearing was received by that date, the hearing may be cancelled. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted through February 28, 2026. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person.

CONTACT PERSON: Joshua Newton, General Counsel, Alcoholic Beverage Control, 500 Mero Street, Frankfort, Kentucky 40601; Joshua.Newton@ky.gov.

FISCAL IMPACT STATEMENT

(1) Identify each state statute, federal statute, or federal regulation that requires or authorizes the action taken by the administrative regulation:

KRS 438.340, 438.3055

(2) State whether this administrative regulation is expressly authorized by an act of the General Assembly, and if so, identify the act:

Senate Bill 100 of the 2025 Kentucky General Assembly

(3)(a) Identify the promulgating agency and any other affected state units, parts, or divisions:

Kentucky Department of Alcoholic Beverage Control is the promulgating agency. No other state units, parts or divisions are affected by this emergency administrative regulation.

(b) Estimate the following for each affected state unit, part, or division identified in (3)(a):

1. Expenditures:

For the first year:

None

For subsequent years:

None

2. Revenues:

For the first year:

None

For subsequent years:

None

3. Cost Savings:

For the first year:

None

For subsequent years:

None

(4)(a) Identify affected local entities (for example: cities, counties, fire departments, school districts):

This regulation will have no effect on any local entities.

(b) Estimate the following for each affected local entity identified in (4)(a):

1. Expenditures:

For the first year:

None

For subsequent years:

None

2. Revenues:

For the first year:

None

For subsequent years:

None

3. Cost Savings:

For the first year:

None

For subsequent years:

None

(5)(a) Identify any affected regulated entities not listed in (3)(a) or (4)(a):

No other entities will be affected by this regulation. This regulation will have no effect on any other regulated entities.

(b) Estimate the following for each regulated entity identified in (5)(a):

1. Expenditures:

For the first year:

None

For subsequent years:

None

2. Revenues:

For the first year:

None

For subsequent years:

None

3. Cost Savings:

For the first year:

None

For subsequent years:

None

(6) Provide a narrative to explain the following for each entity identified in (3)(a), (4)(a), and (5)(a)

(a) Fiscal impact of this administrative regulation:

This regulation has no fiscal impact.

(b) Methodology and resources used to reach this conclusion:

The only methodology used to reach this conclusion is that the regulation imposes no new action on any regulated body.

(7) Explain, as it relates to the entities identified in (3)(a), (4)(a), and (5)(a):

(a) Whether this administrative regulation will have a "major economic impact", as defined by KRS 13A.010(14):

This regulation will have no economic impact.

(b) The methodology and resources used to reach this conclusion:

The only methodology used to reach this conclusion is that the regulation imposes no new action on any regulated body.

FEDERAL MANDATE ANALYSIS COMPARISON

(1) Federal statute or regulation constituting the federal mandate.

N/A.

(2) State compliance standards.

N/A.

(3) Minimum or uniform standards contained in the federal mandate.

N/A.

(4) Will this administrative regulation impose stricter requirements, or additional or different responsibilities or requirements, than those required by the federal mandate?

N/A.

(5) Justification for the imposition of the stricter standard, or additional or different responsibilities or requirements.

N/A.

STATEMENT OF EMERGENCY

804 KAR 13:025E

This emergency administrative regulation will not be replaced by an ordinary administrative regulation.

SCOTTY TRACY, Commissioner

ANDY BESHEAR, Governor

PUBLIC PROTECTION CABINET

Department of Alcoholic Beverage Control

(New Emergency Administrative Regulation)

804 KAR 13:025E.Provisional license.

RELATES TO:

KRS 438.305 to 438.350

STATUTORY AUTHORITY:

KRS 438.340, 438.3055

CERTIFICATION STATEMENT:

NECESSITY, FUNCTION, AND CONFORMITY:

Section 1.

Definitions.

(1)

"Alternative nicotine product" is defined by KRS 438.305(1).

(2)

"Authorized nicotine vapor product" is defined by KRS 438.305(2).

(3)

"Commissioner" is defined by KRS 438.305(3).

(4)

"Manufacturer" is defined by KRS 438.305(9).

Section 2.

Section 3.

A provisional license issued pursuant to this section shall:

(1)

(2)

Be posted in a conspicuous place in the premises of the business where tobacco, alternative nicotine products, and authorized nicotine vapor products are sold;

(3)

Expire after:

(a)

Sixty (60) days; or

(b)

An initial determination is made by the commissioner on the application, whichever happens sooner; and

(4)

Not be renewable.

SCOTTY TRACY, Commissioner

RAY PERRY, Secretary

APPROVED BY AGENCY: December 29, 2025

FILED WITH LRC: December 29, 2025 at 3:11 p.m.

CONTACT PERSON: Joshua Newton, General Counsel, Alcoholic Beverage Control, 500 Mero Street, Frankfort, Kentucky 40601; Joshua.Newton@ky.gov.

FISCAL IMPACT STATEMENT

(1) Identify each state statute, federal statute, or federal regulation that requires or authorizes the action taken by the administrative regulation:

KRS 438.340, 438.3055

(2) State whether this administrative regulation is expressly authorized by an act of the General Assembly, and if so, identify the act:

Senate Bill 100 of the 2025 Kentucky General Assembly

(3)(a) Identify the promulgating agency and any other affected state units, parts, or divisions:

Kentucky Department of Alcoholic Beverage Control is the promulgating agency. No other state units, parts or divisions are affected by this emergency administrative regulation.

(b) Estimate the following for each affected state unit, part, or division identified in (3)(a):

1. Expenditures:

For the first year:

None

For subsequent years:

None

2. Revenues:

For the first year:

None

For subsequent years:

None

3. Cost Savings:

For the first year:

None

For subsequent years:

None

(4)(a) Identify affected local entities (for example: cities, counties, fire departments, school districts):

This regulation will have no effect on any local entities.

(b) Estimate the following for each affected local entity identified in (4)(a):

1. Expenditures:

For the first year:

None

For subsequent years:

None

2. Revenues:

For the first year:

None

For subsequent years:

None

3. Cost Savings:

For the first year:

None

For subsequent years:

None

(5)(a) Identify any affected regulated entities not listed in (3)(a) or (4)(a):

No other entities will be affected by this regulation. This regulation will have no effect on any other regulated entities.

(b) Estimate the following for each regulated entity identified in (5)(a):

1. Expenditures:

For the first year:

None

For subsequent years:

None

2. Revenues:

For the first year:

None

For subsequent years:

None

3. Cost Savings:

For the first year:

None

For subsequent years:

None

(6) Provide a narrative to explain the following for each entity identified in (3)(a), (4)(a), and (5)(a)

(a) Fiscal impact of this administrative regulation:

This regulation has no fiscal impact.

(b) Methodology and resources used to reach this conclusion:

The only methodology used to reach this conclusion is that the regulation imposes no new action on any regulated body.

(7) Explain, as it relates to the entities identified in (3)(a), (4)(a), and (5)(a):

(a) Whether this administrative regulation will have a "major economic impact", as defined by KRS 13A.010(14):

This regulation will have no economic impact.

(b) The methodology and resources used to reach this conclusion:

The only methodology used to reach this conclusion is that the regulation imposes no new action on any regulated body.

FEDERAL MANDATE ANALYSIS COMPARISON

(1) Federal statute or regulation constituting the federal mandate.

N/A.

(2) State compliance standards.

N/A.

(3) Minimum or uniform standards contained in the federal mandate.

N/A.

(4) Will this administrative regulation impose stricter requirements, or additional or different responsibilities or requirements, than those required by the federal mandate?

N/A.

(5) Justification for the imposition of the stricter standard, or additional or different responsibilities or requirements.

N/A.

Page Generated: 2/6/2026, 4:11:08 PM

Title 804 | Chapter 013 | Regulation 025E

804 KAR 13:025E.Provisional license.

RELATES TO:

STATUTORY AUTHORITY:

CERTIFICATION STATEMENT:

NECESSITY, FUNCTION, AND CONFORMITY:

Section 1.

(1)

(2)

(3)

(4)

Section 2.

Section 3.

(1)

(2)

(3)

(a)

(b)

(4)

804 KAR 13:025E.Provisional license.

RELATES TO:

STATUTORY AUTHORITY:

CERTIFICATION STATEMENT:

NECESSITY, FUNCTION, AND CONFORMITY:

Section 1.

(1)

(2)

(3)

(4)

Section 2.

Section 3.

(1)

(2)

(3)

(a)

(b)

(4)