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The right to make orders such as the stay at home order in Kentucky is given to the states under the 10th Amendment. All powers not expressly given to the Federal Government are given to the states. So you aren't missing something, its actually the absence of it in the Constitution that makes it a state issue. These are legal orders and punishment would be upheld by the Kentucky court system, because its a Kentucky Law, and the U.S. Supreme Court, because of the 10th Amendment.
Sure it could be contested, but I would advise it is a losing battle because nothing will trump saving lives by the necessary means according to generally accepted science. This would cost time, money and effort and likely could not even be pursued until after the Courts open, which is when businesses should also reopen.
Are there any other aspects of this public health and safety power I could explain for you?