Gov. Larry Hogan on Monday announced that one of his cabinet secretaries is moving to replace another.

Kelly M. Schulz, now the secretary of the Maryland Department of Labor, Licensing and Regulation, will run the Maryland Department of Commerce going forward, replacing Mike Gill, who has served since Hogan took office in 2015.

“Secretary Schulz is a strong advocate for Maryland’s job creators, and has a proven track record of working directly with our business community to create jobs, enhance economic growth, and expand opportunity for both businesses and workers,” Hogan said in a statement. “I know that Kelly will be instrumental in ensuring that we build on our incredible progress.”

Gill plans to return to the private sector and his old job as chairman of Evergreen Advisors in Columbia.

At DLLR, the former state delegate from Frederick County has managed an agency with nearly 2,000 employees and an operating budget of more than $375 million. She has been in Hogan's cabinet since he took office.

“Business leaders’ number one concern is ensuring they have access to a talented workforce, and I am incredibly proud of the work we’ve been able to do thanks to Governor Hogan’s leadership to prepare Maryland workers for 21st century jobs,” Schulz said in a statement. “Having a leader at Commerce who understands workforce needs will help us grow our private sector and continue to foster an environment where businesses thrive and create even more jobs. I thank Governor Hogan for this honor, and I look forward to working to ensure that Maryland continues to be open for business.”

James E. Rzepkowski, now an assistant labor secretary, will serve as acting secretary in Schulz's stead. Prior to entering the Hogan administration, he represented Anne Arundel County in the House of Delegates, was an assistant secretary in the commerce department's predecessor, the Department of Business and Economic Development, and served as director of workforce development for Constellation Energy Nuclear Group.

The appointments are effective Jan. 1. Schulz's appointment is subject to Senate confirmation.