"No live fish, live bait fish or live bait organisms that are not native or established in Kentucky waters shall be bought, sold, possessed, imported, or in any way used or released into waters of this Commonwealth."
This is taken straight from the Kentucky Sport Fishing and Boating Guide - 2007 in the section Live Bait. Since there is a chance a goldfish can come off the hook and populate the waters, they are illegal.
Here is the link to the regulations if you want to take a look:
http://fw.ky.gov/fishboat07.asp?lid=...R_PERSONAL_USE



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