There are no specific laws that state a Kentucky Colonel should not, or shall not be allowed to carry or use a badge or a quality identification credential. A Kentucky colonel is a legally commissioned officer with honorary status, in the "old days" the status involved an official act, a commission, duties, identification, a medal and a uniform. Over the years, by 1921 the official duties, medal and uniform had all disappeared, but not the colonel because of his great significance in establishing the Commonwealth in 1792.
In 1957 Chief Justice Combs said, "Kentucky Colonels and notaries public are [commissioned officers] created in the name of the Commonwealth [under the authority of] its Chief Executive."
Adapted from the only applicable law in the Kentucky Revised Statutes Title XIII, Education § 164.980: (Impersonation of a Police Officer Prohibited) No person shall falsely represent himself/herself to be a [Kentucky Colonel] and in such assumed character, arrest, or detain, or search, or question, in any manner the person or property of any person, nor shall any person without the authority of the Governor wear an official uniform, insignia, badge, or other identification bearing the seal of the Commonwealth of Kentucky.