KRS 438.337: Responsibilities of Department of Alcoholic Beverage Control in

enforcement of KRS 438.305 to 438.350 -- Disposition of revenue and fines

collected under KRS 138.140 and 438.305 to 438.350 -- Statistics --

Enforcement plan -- Publication of list of licensees.

(1) The department shall carry out the enforcement provisions of KRS 438.305 to

438.350.

(2) (a) 1. The department shall be entitled to the revenue produced by one -

twentieth of one cent ($0.0005) of the three -cent ($0.03) per pack

revenue collected by the Finance and Administration Cabinet from the

state excise tax on the sale of cigarettes as imposed by KRS 138.140.

2. One hundred percent (100%) of the license and application fees imposed

by KRS 438.3063 unless the license is denied sha ll be deposited in a

trust and agency account created in the State Treasury. If no license is

issued, the application fee shall be retained by the department in

accordance with KRS 438.3063.

(b) One hundred percent (100%) of the fines collected under KRS 4 38.305 to

438.350 shall be retained by the department.

(c) The department shall keep fifty percent (50%) of any fines collected under

KRS 438.305 to 438.350 to offset the costs of enforcement. The remaining

fifty percent (50%) of funds shall go to a youth program administered by the

Department for Public Health directed at targeting and educating youth on the

dangers of tobacco products, alternative nicotine products, and vapor

products.

(3) The department shall be responsible for maintaining statistics for compilation of

required reports to be submitted to the United States Department of Health and

Human Services.

(4) The department shall devise a plan and timeframe for enforcement to determine by

random inspection if the percentage of retailers, wholesaler s, or distributors making

illegal sales to persons under the age of twenty -one (21) does or does not exceed

federal guidelines preventing tobacco sales to persons under the age of twenty -one

(21).

(5) (a) The department shall investigate the information provided in each application

for a tobacco, nicotine, or vapor product license.

(b) Notwithstanding KRS 438.330 and 438.331, if the tobacco, nicotine, or vapor

product license is approved, random inspections or compliance checks of the

licensee shall be conducted not less than once annually during normal

business hours or as deemed appropriate by the commissioner.

(6) On or after July 1, 2026, the department shall, on the first day of each month,

create, update, and publish on its website a list of retail establishments that possess

a tobacco, nicotine, or vapor product license.