HD15 - Organization and Management Review of the State Corporation Commission

  • Published: 1987
  • Author: Joint Legislative Audit and Review Commission
  • Enabling Authority: Appropriation Act - Item 11 (Regular Session, 1985)

Executive Summary:
The State Corporation Commission (SCC) is an independent regulatory agency within Virginia State government. Established by the Constitution of Virginia in 1902, the SCC exercises legislative, judicial, and executive powers. The SCC regulates the railroad, telephone, telegraph, water, gas, electric, motor carrier, financial institution, insurance, securities, and retail franchising industries in Virginia. The SCC also administers all laws for the regulation and control of corporations doing business in the Commonwealth.

For the most part, the overall organization and management of the SCC are sound. The SCC's special fund structure helps to ensure that special funds are not commingled. The organizational structure groups regulatory staff and activities into logical components. A strong personnel system has been developed. And a comparison of see regulatory activities to statutory responsibilities indicated that the see is in compliance with legislative intent in most instances.

A number of areas within the SCC require attention to address shortcomings, however. These shortcomings concern financial management, general organization and management, personnel and staffing practices, and the scope of SCC authority and responsibility. These areas are summarized below. Full statements of specific recommendations and supporting details are contained in the text of this report.