"We have 40 years of experience among us," said commission Chairman Larry Lunt. "We know he is the best person for this job."

Selecting Kellen could be the last act for the present commission, as three of its five members' terms expire at the end of the month. Lunt said the board decided to act because "the new board will not have the experience that we do."

Consumers can expect little change in the state's liquor-control system with Kellen, the department's No. 2 for the past 32 years, at the helm. Any departures from Utah's tightly controlled liquor laws would require approval from Utah lawmakers - and Kellen said he isn't planning to push anything new.

Wednesday was the second time commissioners have demonstrated confidence in Kellen, one of several staffers cited in a December legislative audit for retiring, then reclaiming his old job six months later while retaining his retirement benefits.

As director, Kellen said he won't continue the rehiring practice - which isn't illegal but is commonly known as "double dipping" - within his department because lawmakers indicated the practice should be stopped.

Kellen, 64, replaces Kenneth Wynn, 71, who resigned after serving 30 years as director of the department. As operations director, Kellen oversees the agency's central liquor warehouse and the state's 38 liquor stores and 100 package agencies in small towns and resorts, with annual sales of more than $200 million. He was the department's acting director in 1975 and 1976.

Unlike the majority of the five commissioners, Kellen is a social drinker and will "taste products that we offer," he said.

Lunt said because the director's post is an appointed position, the commission was not required to publicly advertise the job or to interview candidates. Commissioners independently came to the conclusion that Kellen should take over as director, he said, but had not discussed the issue until a meeting on Wednesday that resulted in a unanimous vote.

Before the vote on Kellen's appointment, Lunt had asked commissioners to go into a closed meeting to discuss the issue. But commissioner Nick Hale said he was so sure of Kellen's competence that the move was unnecessary. The other commissioners agreed and applauded Kellen after the vote.

The commissioners' choice is subject to Gov. Jon Huntsman's approval. Huntsman spokeswoman Lisa Roskelley said the department's hiring process is unique but not inappropriate. If affirmed by Huntsman, Kellen's appointment will be effective June 30.

The former director's salary was over $90,000, according to state records. Kellen's state salary is just over $86,000.

Kellen, a decorated Vietnam veteran, has spent most of his career working in the department. In 2005, he was among seven workers who took retirement status and was rehired after a six-month waiting period in which he worked part-time for the agency.

Legislative auditors said in a December report that staffers manipulated hiring policies by holding open slots to allow retired colleagues to reclaim their old jobs. Kellen also was among 12 of 18 retirees who returned to the same job immediately after their six-month waiting period had expired. The department did not recruit for at least seven of the positions during the waiting periods.

Wynn defended the staffers, saying many had been forced to retire after lawmakers ended a 20-year-old policy in 2005 that had allowed state employees to trade eight hours of unused sick leave for a month of post-retirement benefits.

Kellen said his decision to return to the department was based on his family need for medical insurance.

dawn@sltrib.com