Senate Bill 245 makes several changes to Kentucky’s licensing and regulatory framework for businesses that sell tobacco, nicotine, and vapor products. The bill was designed, in part, to streamline the licensing process by establishing clearer requirements and creating new options for businesses seeking multiple licenses.
SB 245 received overwhelming bipartisan support throughout the legislative process. The bill was first approved by the Kentucky Senate with a unanimous 36-0 vote before moving to the House, where it also passed unanimously by a vote of 85-0. Because the House made changes to the bill, it returned to the Senate for further consideration. After additional negotiations, both chambers approved a final version of the legislation, with the House voting 78-0 and the Senate voting 35-1. Governor Andy Beshear signed SB 245 into law on April 10, 2026.
One of the primary changes under SB 245 is the licensing process for businesses that sell tobacco, nicotine, or vapor products in Kentucky. The law establishes clearer licensing requirements and introduces a new batch licensing option, allowing eligible businesses with multiple locations to submit a single application or renewal for multiple licenses. Businesses that also hold Kentucky alcohol licenses can coordinate the renewal of their tobacco, nicotine, and vapor product licenses with their alcohol license renewals, making the process more efficient.
SB 245 also updates how licensing fees and renewals are handled. Businesses applying for a tobacco, nicotine, or vapor product license must pay the applicable licensing fee, and certain businesses that paid the $500 licensing fee in 2025 may receive a credit toward their 2026 renewal fee. The law also establishes procedures for changes in ownership, gives businesses an opportunity to correct certain application errors before a license is denied, and outlines the circumstances under which the Kentucky Department of Alcoholic Beverage Control may deny a license application.
The new law also includes requirements affecting the shipment and delivery of tobacco, nicotine, and vapor products. When these products are shipped or delivered to a consumer, the recipient must provide valid identification verifying that the recipient is at least 21 years old. The law also requires age verification at delivery and requires certain packages to carry a notice indicating that they contain tobacco or nicotine products.
The law also changes certain rules relating to the sale of tobacco products to individuals under 21. In addition, it excludes premium cigars and pipe tobacco from the definition of “tobacco products” for certain provisions, clarifying how those products are regulated under Kentucky law.
Because SB 245 includes an emergency clause, the Act became effective on April 10, 2026, when Governor Beshear signed it into law. Some provisions of the Act are retroactive to January 1, 2026. The law also gave businesses that were required to obtain a new license 60 days from the effective date to submit their application and pay the required licensing fee.
For businesses, the practical impact of SB 245 may depend on factors such as the type of products sold, the number of business locations, and the business’s current licensing status.
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