Answering the question "Is CBD oil legal in Kentucky?" is very easy, because it's an unequivocal "Yes." Regarding this, Kentucky state law is one of the most progressive in the U.S. With House Bill 333 passed in 2017, the law excluded industrial hemp and cannabidiol (CBD) from the term "marijuana," which is a Schedule I controlled substance. Therefore, its possession is legal. Kentucky law is aligned with federal law, as clarified by the DEA earlier this year.
Of course, BH 333 comes with certain provisions for CBD product possession, so let's have a quick look at these—also what CBD oil can help you with and a bit about the legal status of medical marijuana in the Bluegrass State.
Ahead of its time, Kentucky passed Senate Bill 50 in 2013. Its goal was to push the state forward as a major hemp producer and commercial agent by having a regulatory framework in place before the national Farm Bill was passed. This happened a year later, and Kentucky is still a leading industrial hemp producer. It also leads the nation in terms of CBD's legal status.
Regarding CBD, Kentucky law allows for its possession, and the HB 333 is clear about CBD legality as stated in an unofficial copy.
"The substance cannabidiol, when transferred, dispensed, or administered pursuant to the written order of a physician practicing at a hospital or associated clinic affiliated with a Kentucky public university having a college or school of medicine...For persons participating in a clinical trial or in an expanded access program, a drug or substance approved for the use of those participants by the United States Food and Drug Administration...A cannabidiol product derived from industrial hemp, as defined in KRS 260.850; or a cannabidiol product approved as a prescription medication by the United States Food and Drug Administration." 
In English, this can be unpacked to mean the following:
So, for your CBD oil, Kentucky law is pretty lenient. It appears there are no restrictions or qualifying medical conditions, as long as your CBD product has been prescribed by a qualified medical doctor. Marijuana, however, is excluded completely from the bill and is not legal in any form—yet. More about that later.
What has CBD oil been shown to work for?
Cannabidiol is one of the best-researched compounds—called cannabinoids—found in theCannabis sativa L. plant, besides tetrahydrocannabinol, or THC. THC is known for causing the typical “high,” or the psychotropic effect marijuana is known for. However, because the CBD molecules bind differently to specific receptors spread throughout the body, it doesn't cause any “high” or alterations in a person's perception or mind.
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For this reason and for the unique way it interacts with the body's endocannabinoid system, CBD is an increasingly popular alternative to pharmaceuticals. While clinical research is still lacking in most areas, the current data shows that CBD has therapeutic potential for the following:
Studies so far have also shown that CBD is nontoxic and safe, even in high doses.
Marijuana for medical or recreational purposes is still illegal in Kentucky. And House Bill 166 battles to see the light of day, despite fervent advocacy.
In Frankfort recently, a legislative panel discussed medical marijuana and its legality. Testifying before the Interim Joint Committee on Licensing, Occupations, and Administrative Regulations, Kevin Sabet, a drug policy advisor for former presidential administrations said:
"As somebody who has studied this as a social scientist for over 20 years, my position is unequivocal that we should not legalize marijuana...We have a hard enough time with our legal drugs."
However, Senate Majority Caucus Chair Dan "Malano" Seum argued in response by asking, "When is the last time we heard of anybody getting hold of rotgut whiskey?"
Seum was referring to the diluting of whiskey during the Prohibition era, when dangerous chemicals were added to the alcohol before the industry was regulated. He added: "It doesn't happen because you can go to a store and get a clean product. You know what you are buying."
Seum made it clear that he is in favor of legalizing medical marijuana, as he had personal experience with its healthful effects. Seum smoked it when he battled with nausea while fighting cancer. According to the Kentucky Legislature eNews Service, Seum argued that regulating marijuana would help ensure that people were not purchasing marijuana laced with other drugs or contaminated with heavy metals or pesticides. 
If the bill is passed, it would allow for prescribed marijuana use for any physician-diagnosed condition. Patients would be allowed to grow their own cannabis (up to six plants), and while cities and counties can opt not to legalize medical marijuana dispensaries, they will not be allowed to prosecute registered users or forbid them to grow. 
Not bad, compared to many other states' legislation. For your CBD oil, Kentucky has many dispensaries, and quality products can be obtained online as well.