Kentucky's laws regarding Reptiles and Amphibians are fairly lax (for better or worse depending on how you look at it):

(8) Amphibians and reptiles.
(a) Except as provided for in Section 2 of this administrative regulation and this subsection, captive wildlife permits are not required for persons taking or possessing up to five (5) individuals of each species of a native reptile or amphibian. Exception to taking or possessing five (5) individuals of each species:
1. No limit on snapping and smooth and spiny softshell turtles;
2. Fifteen (15) per night limit on bullfrogs; and
3. Possession limit of twenty-five (25) dusky salamanders (spring lizards) of the genus Desmognathus.
(b) There shall not be a limit on the number of individuals of each species possessed by a commercial or noncommercial captive wildlife permit holder, provided the permit holder does not possess more than five (5) wild-caught individuals of each species of amphibian or reptile.
(c) A captive wildlife permit shall not be required to hold reptiles with a color morphology that is distinctly different from the wild type of the same species of reptile.

I couldn't find the exact reg. but I'm fairly certain commercial permit holders are legallly able to breed native species of amphibians and reptiles.