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Virginia ABC > About > Agency Overview > Authority FAQs

Authority FAQs

During the 2015 General Assembly session, HB 1776 was enacted to convert Virginia ABC from an agency into an authority. This move will better position Virginia ABC to be more flexible and efficient as a retailer, wholesaler and regulator of the sale of distilled spirits. The transition to an authority during 2018 was finalized on January 1, 2019. We hope this information helps future employees, customers, licensees and vendors understand the authority, its structure, its impact on operations and changes to employee benefits.

Overview

What is an authority?

An authority is an independent political subdivision, a classification of state government. Authorities in the state include the Virginia Lottery, Virginia Tourism Corporation, Virginia Port Authority and MCV Authority. The intent behind turning Virginia ABC into an authority is to allow it to operate more like a business, outside of the requirements of the Virginia Public Procurement Act, the Personnel Act and the Virginia Information Technology Act.

Why transition to an authority?

By its very nature, Virginia ABC is unlike most state agencies because it is tasked with regulating industries while also operating like a business to generate revenue through retail sales of distilled spirits, Virginia wine and mixers. Transitioning from a traditional government agency to an authority creates a hybrid business/public-sector entity which has greater flexibility in setting its own policies, specifically in the areas of human resources and procurement. Some of the organizational structure changes include creating a Chief Executive Officer (CEO) position and converting the current full-time three-person board to a part-time five-person board similar to a private sector Board of Directors.

What is the timing of the change?

The Virginia Alcoholic Beverage Control Authority was created on January 15, 2018. It dually operated in conjunction with the Department of Alcoholic Beverage Control for the duration of calendar year 2018 to allow for the gradual transition of employees from one entity to the other.

Potential Employees

How does the authority change state employee classification?

The Virginia Personnel Act is no longer be the governing personnel management document. Instead, the authority operates under its own policies and procedures. With the transition to an authority, all Virginia ABC employees are classified as “at will.” At will employment is the standard employment status in nearly all businesses outside of Virginia state government. This type of employment involves a great deal of flexibility for both the employer and the employee. When an employee accepts at will employment, they are able to leave their company at any time without notice. Employers are also not required to provide notice or explanation when terminating an at-will employee. At will means that employees are not guaranteed employment for any specific period of time. Authority policies still ensure that employees are treated fairly and receive protections from discrimination or harassment. The authority maintains its own grievance process.  

Other

Has the authority changed what Virginia ABC does?

The authority transition has not changed Virginia ABC's current responsibilities, including the transfer of profits to Virginia's general fund. Whether it’s selling distilled spirits, issuing licenses or performing one of the hundreds of support functions, Virginia ABC still operates a profitable business and promotes public safety. Our mission, vision and values reflect the current and future direction of Virginia ABC. Those include:

Mission: To generate a reliable stream of revenue for Virginia and promote public safety through the responsible sale and regulation of alcoholic beverages.
Vision: To bring good spirits and excellent service to Virginia.
Values: (1) Accountability: We build trust by delivering on our promises. (2) Service: We take pride in our role as public servants and put customers, both internal and external, first in all we do. (3) Integrity: We are fair, consistent, transparent and treat everyone with respect. (4) Performance Excellence: We are innovative, collaborative and strive to improve every day.

Has the authority transition impacted the administrative hearings process?

Virginia ABC continues to review hearings processes for addressing disciplinary matters related to ABC law violations, contested applications and franchise disputes. The authority continues to evaluate the revised procedures to ensure that all interested parties have access to an unbiased, fair and efficient dispute resolution system.

How have information technology services changed in 2019?

The authority legislation exempts Virginia ABC from Virginia Information Technology Act (VITA) statutory requirements. Virginia ABC is electing to acquire information technology infrastructure and services outside VITA. Virginia ABC will continue to look at services offered by VITA compared to non-VITA services as we move forward to determine which provides the best value and fit for ABC. Examples include migrating email, collaboration and calendars from VITA to Office365 with Microsoft, rather than the standard VITA Gmail offering. It is not mandated that Virginia ABC completely separate from VITA, but rather provides the organization with the option to determine what VITA should continue to maintain and what Virginia ABC would like to handle differently. In mid-2019, Virginia ABC will go live with a new financial management suite from Oracle, as well as begin implementation of a new point-of-sale system.

What has changed for vendors regarding contracts with Virginia ABC?

The Virginia Public Procurement Act (VPPA) is no longer the governing document for establishing vendor relationships with Virginia ABC. Removing restrictions imposed by the Code of Virginia and the Department of General Services allows Virginia ABC procurement staff to determine how to best achieve the organization’s priorities and goals using their knowledge, experience and best practices.

Questions?

If you have questions and need to get in touch with Virginia ABC, please visit our Contact Us page to find an email and phone number for specific divisions.