Strong v. Chandler

Summary

The Kentucky Supreme Court held that the Attorney General may inspect confidential and proprietary records held by the Cabinet for Economic Development when investigating whether an economic incentive contract resulted in an improper payment or credit from the state treasury. The court concluded that this inspection authority arises independently under KRS 15.060(2) and is not barred by the Open Records Act. It affirmed an order requiring the Attorney General to conduct the inspection in camera under the circuit court’s supervision.

Holdings

1. KRS 15.060(2) empowers the Attorney General to compel production and inspect records in the possession of Commonwealth officers when the records are relevant to determining whether money was improperly paid from, or must be recovered for, the state treasury.
2. The Open Records Act does not prohibit or limit the Attorney General's inspection of the records because KRS 61.878(5) permits information sharing between public agencies for a legitimate governmental need or function, and KRS 61.878(1)(c)(3) excludes records whose disclosure is directed by another statute.
3. The Attorney General may inspect relevant records before instituting a recovery action; KRS 15.060(2) does not require a lawsuit to be pending before the inspection authority arises.

Questions Presented

1. Whether KRS 15.020 and KRS 15.060 authorize the Attorney General to inspect Cabinet records relevant to determining whether economic-incentive funds were improperly paid or must be recovered.
2. Whether the Open Records Act, including KRS 61.878(1)(c)(2)(b), prohibits or limits the Attorney General's inspection of confidential and proprietary incentive-contract records.
3. Whether the Attorney General's inspection authority under KRS 15.060(2) arises before the filing of a recovery action.

Disposition

affirmed