AN ACT relating to economic development.

2026 Regular Session Introduced by Phillip Wheeler

The bill tightens the secretary’s appointment process by requiring a national search, three finalist names presented to the Governor, who can veto and demand new names, with the se

to Committee on Committees (S)

#economicdevelopment #stateagencies

Summary of SB 352 (2026 Regular Session, Kentucky)

Purpose

SB 352 proposes amendments to the process for selecting and appointing the Secretary of the Cabinet for Economic Development in Kentucky. The bill aims to formalize and potentially intensify the governance and credential requirements for the secretary role, emphasizing a professional background in economic development and a structured, executive-level selection process.

Key Provisions

Selection process for Secretary of the Cabinet for Economic Development (KRS 154.10-040):

The Board is responsible for establishing qualifications for the secretary position.
The Board must engage a national search firm and conduct a nationwide search to identify candidates.
From the nationwide pool, the Board must select three (3) candidates for the secretary position.
The three names are submitted to the Governor, who shall choose one to appoint as secretary.
The Governor has the option to reject the initial list of three names and require the Board to submit a new list of three additional names; the Governor would then appoint from that second list.
Once appointed, the secretary serves at the pleasure of the Board (i.e., removal or continued service is governed by the Board’s discretion).

Qualifications for the Secretary:

The secretary must be a person with significant experience and an established reputation as an economic development professional.

Who is Affected

State government leadership: The primary impact is on the appointment process and qualifications for the Cabinet for Economic Development's secretary.

Governor and the Board governing the Cabinet for Economic Development: The Governor gains the authority to approve or reject the Board’s candidate list, effectively wielding a veto option over the initial three candidates.

Economic development professionals: The bill prioritizes candidates with substantial, established experience in economic development, potentially shaping the pool of eligible leaders.

Procedural and Timeline Aspects

Process flow:

Board defines qualifications.
National search firm is engaged; nationwide search conducted.
Three candidates are selected and presented to the Governor.
Governor appoints one of the three, or rejects the first list and directs a new three-name list (from which the Governor then appoints).
Appointed secretary serves at the pleasure of the Board.

Status: Introduced in the Senate on March 2, 2026; referred to the Committee on Committees (S).

Potential Impacts and Implications

Professionalization of leadership: Emphasizes a high level of professional experience in economic development, which may raise the credential bar for future appointees.

Administrative control: The Governor’s ability to require a new slate introduces a potential check on the Board’s initial recommendations, potentially affecting timeliness of appointment.

Policy continuity: By tying the secretary’s tenure to the Board’s pleasure, the bill reinforces Board-level governance over leadership stability.

Note: The text provided is limited to procedural amendments related to the appointment process and qualifications. No specific budgetary provisions or programmatic changes to economic development initiatives are included in the excerpt.