Deliberate Misconduct by Unlicensed Persons

NUCLEAR REGULATORY COMMISSION

10 CFR Parts 30, 32, 40, 50, 52, 60, 61, 70, 71, 72, 110, and 150

RIN 3150-AF35

Deliberate Misconduct by Unlicensed Persons

AGENCY: Nuclear Regulatory Commission.

ACTION: Proposed rule.

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SUMMARY: The Nuclear Regulatory Commission (NRC) is proposing to revise

its regulations to extend the Deliberate Misconduct Rule to six

categories of persons: applicants for NRC licenses; applicants for, or

holders of, certificates of compliance; applicants for, or holders of,

early site permits, standard design certifications, or combined

licenses for nuclear power plants; applicants for, or holders of,

certificates of registration; applicants for, or holders of, quality

assurance program approvals; and the employees, contractors,

subcontractors and consultants of the first five categories of persons,

so that they may be subject to enforcement action for deliberate

misconduct. Deliberate misconduct may involve providing information

that is known to be incomplete or inaccurate and in some respect

material to the NRC, or it may involve conduct that causes or would

have caused, if not detected, a licensee, certificate holder, or

applicant to be in violation of any of the Commission's requirements.

DATES: The comment period expires December 18, 1996. Comments received

after this date will be considered if it is practical to do so, but the

Commission is able to assure consideration only for comments received

on or/ before this date.

ADDRESSES: Comments may be sent to: Secretary, U.S. Nuclear Regulatory

Commission, Washington, DC 20555-0001. Attn: Docketing and Service

Branch. Hand deliver comments to 11555 Rockville Pike, Maryland,

between 7:45 am and 4:15 pm on Federal workdays.

FOR FURTHER INFORMATION CONTACT: Tony DiPalo, Office of Nuclear

Regulatory Research, U.S. Nuclear Regulatory Commission, Washington, DC

20555-0001, telephone (301) 415-6191, e-mail, [email protected].

SUPPLEMENTARY INFORMATION:

Background

On August 15, 1991 (56 FR 40664), the Commission adopted changes to

NRC regulations that established the Deliberate Misconduct Rule found

at 10 CFR 30.10, 40.10, 50.5, 60.11, 61.9b, 70.10, 72.12, and 110.7b,

which applies to any licensee or any employee of a licensee; and any

contractor (including a supplier or consultant), subcontractor, or any

employee of a contractor or subcontractor, of any licensee. In

addition, 10 CFR 150.2 makes the rule applicable to persons conducting

activities under reciprocity in areas of NRC jurisdiction, (see 10 CFR

150.20). The Deliberate Misconduct Rule placed licensed and unlicensed

persons on notice that they may be subject to enforcement action for

deliberate misconduct that causes or would have caused, if not

detected, a licensee to be in violation of any of the Commission's

requirements, or for deliberately providing to the NRC, a licensee, or

contractor, information that is incomplete or inaccurate in some

respect material to the NRC. The rule also revised the NRC's procedures

for issuing orders to include persons not licensed by the Commission,

but who are otherwise subject to the Commission's statutory authority.

Currently, the Deliberate Misconduct Rule does not apply to:

(1) Applicants for NRC licenses;

(2) Applicants for, or holders of, certificates of compliance

issued under 10 CFR Parts 71 and 72, including those for dry cask

storage;

(3) Applicants for, or holders of, early site permits, standard

design certifications, or combined licenses for nuclear power plants

issued under 10 CFR Part 52;

(4) Applicants for, or holders of, certificates of registration

issued under 10 CFR Parts 30 and 32;

(5) Applicants for, or holders of, quality assurance program

approvals issued under 10 CFR Part 71; and

(6) The employees, contractors, subcontractors, and consultants of

the first five categories of persons.

To ensure that these persons are subject to enforcement action for

wrongdoing under the Deliberate Misconduct Rule, the NRC is proposing

to extend the rule to them. The Commission's proposed rule would also

add the Deliberate Misconduct Rule to 10 CFR Parts 52 and 71 where it

currently does not appear.

The Commission does not believe that it is necessary to add the

Deliberate Misconduct Rule to 10 CFR Part 54 because licensees applying

to renew their operating licenses for nuclear power plants are already

subject to this rule as licensees under 10 CFR Part 50. Similarly, the

Commission does not believe that it is necessary to add the Deliberate

Misconduct Rule to 10 CFR Part 55 because applicants for, and holders

of, reactor operators licenses are already subject to this rule as

employees of 10 CFR Part 50 licensees. Moreover, licensed operators are

subject to all applicable Commission requirements (see 10 CFR 55.53(d))

and thus a finding of deliberate misconduct is not required to take

enforcement action against a licensed reactor operator.

Discussion

It is important that all information provided to the NRC be

complete and accurate in all material respects. Section 186 of the

Atomic Energy Act of 1954, as amended (AEA), underscores this need by

providing that ``[a] license may be revoked for any material false

statement in the application or any statement of fact required [by

statute or regulation]. * * *'' The Commission has promulgated rules

concerning completeness and accuracy of information that specifically

apply to information provided to the Commission by a licensee or an

applicant for a license (see 10 CFR 30.9(a), 40.9(a), 50.9(a),

60.10(a), 61.9a(a), 70.9(a), 71.7a, 72.11(a), 76.9(a) and 110.7a(a)).

Similarly, paragraph (b)

[[Page 51836]]

of each of these sections, which deals with notification to the

Commission of significant safety information, refers to applicants as

well as licensees. Violation of these provisions can result in denial

of the license application, civil enforcement action against a

licensee, or, if appropriate, referral to the Department of Justice for

consideration for criminal prosecution.

The Deliberate Misconduct Rule permits the NRC to take individual

action, such as issuing an order, against an individual who

deliberately provides information that the individual knows to be

incomplete or inaccurate. However, when the Deliberate Misconduct Rule

was promulgated, it did not address applicants for licenses, applicants

for, and holders of, certificates of compliance or certificates of

registration, applicants for, and holders of, early site permits,

certified designs and combined licenses, and applicants for, and

holders of, quality assurance program approvals.

Incomplete or inaccurate information has potential safety

significance, whether submitted before or after a license, certificate,

permit, or approval has been issued. The Commission has clearly

emphasized the importance of applications containing accurate

information; e.g., ``[The Commission] cannot overstate the importance

of a licensee's or an applicant's duty to provide the Commission with

accurate information.'' Randall C. Orem. D.O., CLI-93-14, 37 NRC 423

(1993). The Orem case involved a consultant to an applicant for a

license who provided inaccurate information that was included in the

license application and the Commission found that information as to the

status of the facility was material to the licensing decision. Id. at

428.

The Commission believes that there may be significant safety

consequences from the deliberate submission of false or incomplete

information or other deliberate wrongdoing by an applicant for a

license or other unlicensed persons proposed to be covered by this

modification to the Deliberate Misconduct Rule. For example, a spent

fuel cask that is certified by the NRC on the basis of falsified test

data could represent a threat to public health and safety. Similarly, a

quality assurance program that is submitted to the NRC for approval but

is supported by deliberately falsified data that mask a significant

defect could also be a public health and safety threat. Under the

present Deliberate Misconduct Rule, a certificate holder who obtained a

certificate by deliberate submittal of false information could escape

individual NRC enforcement action because the deliberate misconduct may

not have put an ``NRC licensee'' in violation. To effectively exercise

its authority under the AEA, the Commission needs to prevent or

otherwise deter the deliberate submittal of materially false or

inaccurate information by those entities not currently covered by the

rule. The NRC knows of no reason why the rule should not apply to

persons who deliberately submit materially incomplete or inaccurate

information, whether such submittal is by or on behalf of an applicant,

or by or on behalf of a holder of a license, certificate, permit, or

approval.

The Commission proposes to modify the Deliberate Misconduct Rule

each place it appears in 10 CFR Chapter I to make the rule apply to

applicants for NRC licenses; to applicants for, and holders of,

certificates of compliance issued under 10 CFR Parts 71 and 72; to

applicants for, and holders of, early site permits, certified designs,

and combined licenses for nuclear power plants issued under 10 CFR Part

52; to applicants for, and holders of, certificates of registration

issued under Parts 30 and 32; and to applicants for, and holders of,

quality assurance program approvals issued under Part 71; and to the

employees, contractors, subcontractors and consultants of all the above

categories of persons. This would include, for example, a consultant

engaged by an applicant to prepare a license application for such

activities as radiography, well logging, irradiation, and teletherapy.

It would also apply to a consultant preparing an application for a

certificate for a spent fuel cask, or individuals conducting

performance tests to support such an application.

The proposed revisions to the Deliberate Misconduct Rule would

appear in 10 CFR 30.10, 40.10, 50.5, 60.11, 61.9b, 70.10, 72.12, and

110.7b. Section 71.11 would be added to incorporate the rule in Part 71

and Sec. 52.10 would be added to incorporate the rule in 10 CFR Part

52. In addition, 10 CFR 150.2 and 10 CFR 32.1(b) would be revised to

incorporate the proposed changes. The scope provisions found in 10 CFR

30.1, 40.2, 50.1, 52.1, 60.1, 61.1(c), 70.2, 71.0, 72.2, and 110.1(a)

would also be modified to reflect these revisions to the rule. The

Commission would make a minor language change by altering the phrase

``but for detection'' to ``if not detected'' where the phrase appears

in each rule, but intends no substantive change by this revision.

Having this enforcement authority available will help the NRC pursue

redress in cases of deliberate misconduct by unlicensed persons acting

within the scope of the Commission's jurisdiction and may deter such

behavior as well.

This rulemaking extending the Deliberate Misconduct Rule to

applicants for NRC licenses; applicants for, and holders of,

certificates of compliance issued under 10 CFR Parts 71 and 72;

applicants for, and holders of, early site permits, standard design

certifications, or combined licenses for nuclear power plants issued

under 10 CFR Part 52; applicants for, and holders of, certificates of

registration issued under 10 CFR Parts 30 and 32; and applicants for,

and holders of, quality assurance program approvals issued under 10 CFR

Part 71; and to the employees, contractors, subcontractors and

consultants of all the above categories of persons, implements the

Commission's authority under the AEA to issue regulations and orders to

any person (defined in section 11s of the AEA to include, e.g., an

individual, corporation, firm, or a Federal, State, or local agency)

who engages in conduct affecting activities within the Commission's

subject matter jurisdiction.

In brief, section 161i of the AEA provides broad authority to issue

regulations and orders as the Commission deems necessary to govern any

activity authorized pursuant to the AEA in order to protect public

health and safety. Section 161b of the AEA similarly authorizes the

Commission to issue regulations and orders to impose ``standards and

instructions'' on persons to govern the possession and use of special

nuclear material, source material, and byproduct material, as may be

necessary or desirable to provide for the common defense and security

and protect public health and safety. Section 234 of the AEA authorizes

the NRC to impose civil penalties on certain unlicensed persons for

violating the NRC's substantive requirements. Section 234a of the AEA

(as amended by section 3116, Title III of the Omnibus Appropriations

Act of 1996, April 28, 1996) reads as follows:

Any person who (1) violates any licensing or certification

provision of sections 53, 57, 62, 63, 81, 82, 101, 103, 104, 107,

109, or 1701 of any rule, regulation, or order issued thereunder, or

any term, condition, or limitation of any license or certification

issued thereunder, or (2) commits any violation for which a license

may be revoked under section 186, shall be subject to a civil

penalty, to be imposed by the Commission, of not to exceed $100,000

for each such violation.

The licensing provisions listed in section 234a generally prohibit

the

[[Page 51837]]

possession, use, receipt, or transfer of nuclear materials or

facilities unless authorized by and in accordance with a license.

The proposed changes are made under the authority of sections 161b

and i and the above-identified licensing and certification provisions

in section 234. The changes apply to any person who engages in

deliberate misconduct, or who deliberately submits materially

incomplete or inaccurate information, as provided in the rule. By

imposing a direct prohibition on unlicensed persons, the Commission may

be able to exercise its section 234 authority to impose civil penalties

on unlicensed persons who deliberately cause a licensee, applicant, or

permit or certificate holder to be in violation of requirements because

they are persons who violate the licensing provisions enumerated in

section 234. In cases when the Commission issues an order (other than

an order imposing a civil penalty) to a person based on deliberate

misconduct that causes a licensee, applicant, or permit or certificate

holder to be in violation of a Commission requirement, the order would

be issued in part pursuant to a regulation (e.g., Sec. 30.10) that was

promulgated under a licensing provision of the AEA. A civil penalty

could be available for violations of such an order. In addition,

criminal sanctions under section 223 of the AEA are available for

willful violations of orders and regulations issued under sections 161b

and i. Injunctions are also available under section 232 of the AEA for

violations of Commission orders.

Electronic Access

Comments may be submitted electronically, in either ASCII text or

WordPerfect format (version 5.1 or later), by calling the NRC

Electronic Bulletin Board (BBS) on FedWorld. The bulletin board may be

accessed using a personal computer, a modem, and one of the commonly

available communications software packages, or directly via Internet.

Background documents on the rulemaking are also available, as

practical, for downloading and viewing on the bulletin board.

If using a personal computer and modem, the NRC rulemaking

subsystem on FedWorld can be accessed directly by dialing the toll-free

number (800) 303-9672. Communication software parameters should be set

as follows: parity to none, data bits to 8, and stop bits to 1 (N,8,1).

Using ANSI or VT-100 terminal emulation, the NRC rulemaking subsystem

can then be accessed by selecting the ``Rules Menu'' option from the

``NRC Main Menu.'' Users will find the ``FedWorld Online User's

Guides'' particularly helpful. Many NRC subsystems and data bases also

have a ``Help/Information Center'' option that is tailored to the

particular subsystem.

The NRC subsystem on FedWorld can also be accessed by a directly

dialed phone number for the main FedWorld BBS, (703) 321-3339, or by

using Telnet via Internet: fedworld.gov. If using (703) 321-3339 to

contact FedWorld, the NRC subsystem will be accessed from the main

FedWorld menu by selecting the ``Regulatory, Government Administration

and State Systems,'' then selecting ``Regulatory Information Mall.'' At

that point, a menu will be displayed that has an option ``U.S. Nuclear

Regulatory Commission'' that will take you to the NRC Online main menu.

The NRC Online area also can be accessed directly by typing ``/go nrc''

at a FedWorld command line. If you access NRC from FedWorld's main

menu, you may return to FedWorld by selecting the ``Return to

FedWorld'' option from the NRC Online Main Menu. However, if you access

NRC at FedWorld by using NRC's toll-free number, you will have full

access to all NRC systems, but you will not have access to the main

FedWorld system.

If you contact FedWorld using Telnet, you will see the NRC area and

menus, including the Rules Menu. Although you will be able to download

documents and leave messages, you will not be able to write comments or

upload files (comments). If you contact FedWorld using FTP, all files

can be accessed and downloaded but uploads are not allowed; all you

will see is a list of files without descriptions (normal Gopher look).

An index file listing all files within a subdirectory, with

descriptions, is available. There is a 15-minute time limit for FTP

access.

Although FedWorld also can be accessed through the World Wide Web,

like FTP, that mode only provides access for downloading files and does

not display the NRC Rules Menu.

For more information on NRC bulletin boards call Mr. Arthur Davis,

Systems Integration and Development Branch, NRC, Washington, DC 20555-

0001, telephone (301) 415-5780; e-mail AXD[email protected].

Certain documents related to this rulemaking, including comments

received, may be examined at the NRC Public Document Room, 2120 L

Street NW. (Lower Level), Washington, DC. These same documents may also

be viewed and downloaded electronically via the Electronic Bulletin

Board established by NRC for this rulemaking as indicated in the

Supplementary Information section.

Compatibility of Agreement State Regulations

This rule is designated a Division-3 matter of compatibility with

respect to Agreement State regulations because it deals with

enforcement actions such as the issuance of orders and civil penalties

to unlicensed persons for deliberate misconduct. In addition to license

applicants, these changes expand applicability of the rule to include

persons such as certificate holders and quality assurance program

approval holders. Such actions are addressed individually by States

through each State's administrative code. Division-3 regulations are

appropriate for Agreement States to adopt, but do not require any

degree of uniformity between the NRC and Agreement State rules.

Agreement States are not required to adopt the regulatory approach

identified in Division-3 regulations.

Environmental Impact: Categorical Exclusion

The NRC has determined that this proposed rule relates to

enforcement matters and, therefore, falls within the scope of 10 CFR

51.10(d). Therefore, neither an environmental impact statement nor an

environmental assessment has been prepared for this proposed rule.

Paperwork Reduction Act Statement

This proposed rule does not contain a new or amended information

collection requirement subject to the Paperwork Reduction Act of 1995

(44 U.S.C. 3501, et seq.). Existing requirements were approved by the

Office of Management and Budget, approval numbers 3150-0017, 3150-0151,

3150-0127, 3150-0135, 3150-0009, 3150-0132, 3150-0036, and 3150-0032.

Public Protection Notification

The NRC may not conduct or sponsor, and a person is not required to

respond to, a collection of information unless it displays a currently

valid OMB control number.

Regulatory Analysis

The NRC has statutory authority to issue enforcement actions

against unlicensed persons whose deliberate misconduct causes a

licensee or a certificate holder or an applicant for a license or

certificate to be in violation of the Commission's requirements. On

August 15, 1991 (56 FR 40664) the NRC promulgated the Deliberate

Misconduct Rule which put licensed and unlicensed persons on notice

that they may be subject to enforcement action for

[[Page 51838]]

deliberate misconduct that causes or, if not detected, would cause a

licensee to be in violation of any of the Commission's requirements or

for deliberately providing to the NRC, a licensee, or a contractor

information that is incomplete or inaccurate in some respect material

to the NRC. However, the Deliberate Misconduct Rule does not

specifically apply to:

(1) Applicants for NRC licenses;

(2) Applicants for, and holders of, certificates of compliance

issued under 10 CFR Parts 71 and 72;

(3) Applicants for, and holders of, early site permits, standard

design certifications, or combined licenses for nuclear power plants

issued under 10 CFR Part 52;

(4) Applicants for, and holders of, certificates of registration

issued under 10 CFR Parts 30 and 32;

(5) Applicants for, and holders of, quality assurance program

approvals issued under 10 CFR Part 71; and

(6) The employees, contractors, subcontractors and consultants of

the first five categories of persons.

On November 29, 1991, the NRC staff issued an Order Revoking

License to Dr. Randall C. Orem after the NRC staff learned that

information in his license application was false and that the

application had been prepared by a consultant who had provided the

false information. See Randall C. Orem, D.O., CLI-93-14, 37 NRC 423

(1993). In this case, the NRC staff realized that under the provisions

of the existing Deliberate Misconduct Rule, it was unable to take

additional enforcement action against Dr. Orem and was precluded from

taking enforcement action against the consultant because the consultant

was working for an applicant rather than for a licensee. Subsequently,

the Commission realized that other categories of persons within NRC

jurisdiction had not been explicitly included within the Deliberate

Misconduct Rule; e.g., certificate holders under 10 CFR Parts 71 and 72

and holders of early site permits, certified design certifications and

combined licenses under 10 CFR Part 52.

The Commission believes that there may be significant safety

consequences from the deliberate submission of false or incomplete

information or other deliberate wrongdoing by an applicant for a

license or other unlicensed persons proposed to be covered by this

modification to the Deliberate Misconduct Rule. For example, a spent

fuel cask that is certified by the NRC on the basis of falsified test

data could represent a threat to public health and safety. Similarly, a

quality assurance program that is submitted to the NRC for approval but

is supported by deliberately falsified data that mask a significant

defect could also be a public health and safety threat. The potential

for injury is serious. The NRC knows of no reason why the Deliberate

Misconduct Rule should not apply to persons who deliberately submit

materially incomplete or inaccurate information, whether that submittal

is by or on behalf of an applicant, or by or on behalf of a holder of a

license, certificate, permit, or approval.

The objective of the rule is to explicitly put those persons

encompassed by this modification of the Deliberate Misconduct Rule on

notice that enforcement action may be taken against them for deliberate

misconduct or deliberate submission of incomplete or inaccurate

information, in relation to NRC licensed activities. Under section 234

of the Atomic Energy Act, the Commission may impose civil penalties on

any person who violates any rule, regulation, or order issued under any

one of the enumerated provisions of the Act, or who commits a violation

for which a license may be revoked. The enforcement actions that may be

taken, including orders limiting activities of wrongdoers in the future

and civil penalties, will serve as a deterrent to others throughout the

industry.

The NRC's available alternatives are to promulgate a modification

of the Deliberate Misconduct Rule, as is proposed herein, or do

nothing. Because a case has already occurred where the NRC was

precluded from taking appropriate enforcement action against a

consultant to an applicant and there was potential harm to the public,

the alternative of doing nothing was rejected. The benefits of taking

enforcement action are similar to those of taking action against

licensed entities in that a civil penalty and attendant adverse

publicity encourage future compliance. The Notice of Violation calls

for a precise response regarding the corrective action taken. An

enforcement order, if obeyed, will directly control the involvement of

an individual in a licensed activity. The effect of having these

options available in the enforcement program should reduce the

probability of repetitive violations by wrongdoers.

The NRC does not anticipate that additional investigations will be

necessary to implement the rule because it focuses on the results of

investigations. Based on experience, the NRC expects fewer than 10

additional cases per year to result in enforcement action being taken

against unlicensed individuals. The cost of preparing and publishing

the additional actions beyond the current workload is not significant.

The proposed amendments to the Deliberate Misconduct Rule

constitute the preferred course of action. The cost involved in its

promulgation and application is necessary and appropriate. The

foregoing discussion constitutes the regulatory analysis for this rule.

Regulatory Flexibility Certification

In accordance with the Regulatory Flexibility Act of 1980, 5 U.S.C.

605(b), the Commission certifies that this proposed rule, if adopted,

will not have a significant economic impact on a substantial number of

small entities. The proposed rule would put: (1) applicants for NRC

licenses; (2) applicants for, and holders of, certificates of

compliance issued under 10 CFR Parts 71 and 72, including those for dry

cask storage; (3) applicants for, and holders of, early site permits,

standard design certifications, or combined licenses issued under 10

CFR Part 52; (4) applicants for, and holders of, certificates of

registration issued under 10 CFR Parts 30 and 32; (5) applicants for,

and holders of, quality assurance program approvals issued under 10 CFR

Part 71; and (6) the employees, contractors, subcontractors and

consultants of the first five categories of persons on notice that they

are subject to the Deliberate Misconduct Rule and, therefore, are

subject to civil enforcement action if they deliberately cause a

licensee, certificate holder, or an applicant for a license or

certificate to be in violation of NRC requirements. The proposed rule,

by itself, would not impose any additional obligations on entities that

may fall within the definition of ``small entities'' as set forth in

Section 601(3) of the Regulatory Flexibility Act; or within the

definition of ``small business'' as found in Section 3 of the Small

Business Act, 15 U.S.C. 632; or within the size standards adopted by

the NRC on April 11, 1995 (60 FR 18344).

Backfit Analysis

The NRC has determined that the backfit rule, 10 CFR 50.109, does

not apply to this proposed rule and, therefore, a backfit analysis is

not required for this proposed rule because these amendments do not

involve any provisions that would impose backfits as defined in 10 CFR

50.109(a)(1).

[[Page 51839]]

List of Subjects

10 CFR Part 30

Byproduct material, Criminal penalties, Government contracts,

Intergovernmental relations, Isotopes, Nuclear materials, Radiation

protection, Reporting and recordkeeping requirements.

10 CFR Part 32

Byproduct material, Criminal penalties, Labeling, Nuclear

materials, Radiation protection, Reporting and recordkeeping

requirements.

10 CFR Part 40

Criminal penalties, Government contracts, Hazardous materials

transportation, Nuclear materials, Reporting and recordkeeping

requirements, Source material, Uranium.

10 CFR Part 50

Antitrust, Classified information, Criminal penalties, Fire

protection, Intergovernmental relations, Nuclear power plants and

reactors, Radiation protection, Reactor siting criteria, Reporting and

recordkeeping requirements.

10 CFR Part 52

Administrative practice and procedure, Antitrust, Backfitting,

Combined license, Early site permit, Emergency planning, Fees,

Inspection, Limited work authorization, Nuclear power plants and

reactors, Probabilistic risk assessment, Prototype, Reactor siting

criteria, Redress of site, Reporting and recordkeeping requirements,

Standard design, Standard design certification.

10 CFR Part 60

Criminal penalties, High-level waste, Nuclear power plants and

reactors, Nuclear materials, Reporting and recordkeeping requirements,

Waste treatment and disposal.

10 CFR Part 61

Criminal penalties, Low-level waste, Nuclear materials, Reporting

and recordkeeping requirements, Waste treatment and disposal.

10 CFR Part 70

Criminal penalties, Hazardous materials transportation, Material

control and accounting, Nuclear materials, Packaging and containers,

Radiation protection, Reporting and recordkeeping requirements,

Scientific equipment, Security measures, Special nuclear material.

10 CFR Part 71

Criminal penalties, Hazardous materials transportation, Nuclear

materials, Packaging and containers, Reporting and recordkeeping

requirements.

10 CFR Part 72

Manpower training programs, Nuclear materials, Occupational safety

and health, Reporting and recordkeeping requirements, Security

measures, Spent fuel.

10 CFR Part 110

Administrative practice and procedure, Classified information,

Criminal penalties, Export, Import, Intergovernmental relations,

Nuclear materials, Nuclear power plants and reactors, Reporting and

recordkeeping requirements, Scientific equipment.

10 CFR Part 150

Criminal penalties, Hazardous materials transportation,

Intergovernmental relations, Nuclear materials, Reporting and

recordkeeping requirements, Security measures, Source material, Special

nuclear material.

For the reasons stated in the preamble and under the authority of

the Atomic Energy Act of 1954, as amended; the Energy Reorganization

Act of 1974, as amended; and 5 U.S.C. 553; the NRC is proposing to

adopt the following amendments to 10 CFR Parts 30, 32, 40, 50, 52, 60,

61, 70, 71, 72, 110, and 150.

PART 30--RULES OF GENERAL APPLICABILITY TO DOMESTIC LICENSING OF

BYPRODUCT MATERIAL

1. The authority citation for Part 30 continues to read as follows:

Authority: Secs. 81, 82, 161, 182, 183, 186, 68 Stat. 935, 948,

953, 954, 955, as amended, sec. 234, 83 Stat. 444, as amended (42

U.S.C. 2111, 2112, 2201, 2232, 2233, 2236, 2282); secs. 201, as

amended, 202, 206, 88 Stat. 1242, as amended, 1244, 1246 (42 U.S.C.

5841, 5842, 5846).

Section 30.7 also issued under Pub. L. 95-601, sec. 10, 92 Stat.

2951 as amended by Pub. L. 102-486, sec. 2902, 106 Stat. 3123, (42

U.S.C. 5851). Section 30.34(b) also issued under sec. 184, 68 Stat.

954, as amended (42 U.S.C. 2234). Section 30.61 also issued under

sec. 187, 68 Stat. 955 (42 U.S.C. 2237).

2. Section 30.1 is revised to read as follows:

Sec. 30.1 Scope.

This part prescribes rules applicable to all persons in the United

States governing domestic licensing of byproduct material under the

Atomic Energy Act of 1954, as amended (68 Stat. 919), and under title

II of the Energy Reorganization Act of 1974 (88 Stat. 1242), and

exemptions from the domestic licensing requirements permitted by

section 81 of the Act. This part also gives notice to all persons who

knowingly provide to any licensee, applicant, certificate of

registration holder, contractor, or subcontractor, components,

equipment, materials, or other goods or services, that relate to a

licensee's, applicant's or certificate of registration holder's

activities subject to this part, that they may be individually subject

to NRC enforcement action for violation of Sec. 30.10.

3. Section 30.10 is revised to read as follows:

Sec. 30.10 Deliberate misconduct.

(a) Any licensee, certificate of registration holder, applicant for

a license or certificate of registration, employee of a licensee,

certificate of registration holder or applicant; or any contractor

(including a supplier or consultant), subcontractor, employee of a

contractor or subcontractor of any licensee or applicant for a license

or certificate of registration, who knowingly provides to any licensee,

applicant, certificate holder, contractor, or subcontractor, any

components, equipment, materials, or other goods or services that

relate to a licensee's, certificate holder's or applicant's activities

in this part, may not:

(1) Engage in deliberate misconduct that causes or would have

caused, if not detected, a licensee, certificate of registration

holder, or applicant to be in violation of any rule, regulation, or

order; or any term, condition, or limitation of any license issued by

the Commission; or

(2) Deliberately submit to the NRC, a licensee, certificate of

registration holder, an applicant, or a licensee's, certificate

holder's or applicant's, contractor or subcontractor, information that

the person submitting the information knows to be incomplete or

inaccurate in some respect material to the NRC.

(b) A person who violates paragraph (a)(1) or (a)(2) of this

section may be subject to enforcement action in accordance with the

procedures in 10 CFR Part 2, subpart B.

(c) For the purposes of paragraph (a)(1) of this section,

deliberate misconduct by a person means an intentional act or omission

that the person knows:

(1) Would cause a licensee, certificate of registration holder or

applicant to be in violation of any rule, regulation, or order; or any

term, condition, or

[[Page 51840]]

limitation, of any license issued by the Commission; or

(2) Constitutes a violation of a requirement, procedure,

instruction, contract, purchase order, or policy of a licensee,

certificate of registration holder, applicant, contractor, or

subcontractor.

PART 32--SPECIFIC DOMESTIC LICENSES TO MANUFACTURE OR TRANSFER

CERTAIN ITEMS CONTAINING BYPRODUCT MATERIAL

4. The authority citation for Part 32 continues to read as follows:

Authority: Secs. 81, 161, 182, 183, 68 Stat. 935, 948, 953, 954,

as amended (42 U.S.C. 2111, 2201, 2232, 2233); sec. 201, 88 Stat.

1242, as amended (42 U.S.C. 5841).

5. Section 32.1(b) is revised to read as follows:

Sec. 32.1 Purpose and scope.

* * * * *

(b) The provisions and requirements of this part are in addition

to, and not in substitution for, other requirements of this chapter. In

particular, the provisions of Part 30 of this chapter apply to

applications, licenses, and certificates of registration subject to

this part.

PART 40--DOMESTIC LICENSING OF SOURCE MATERIAL

6. The authority citation for Part 40 continues to read as follows:

Authority: Secs. 62, 63, 64, 65, 81, 161, 182, 183, 186, 68

Stat. 932, 933, 935, 948, 953, 954, 955, as amended, secs. 11e(2),

83, 84, Pub. L. 95 604, 92 Stat. 3033, as amended, 3039, sec. 234,

83 Stat. 444, as amended (42 U.S.C. 2014(e)(2), 2092, 2093, 2094,

2095, 2111, 2113, 2114, 2201, 2232, 2233, 2236, 2282); sec. 274,

Pub. L. 86-373, 73 Stat. 688 (42 U.S.C. 2021); secs. 201, as

amended, 202, 206, 88 Stat. 1242, as amended, 1244, 1246 (42 U.S.C.

5841, 5842, 5846); sec. 275, 92 Stat. 3021, as amended by Pub. L.

97-415, 96 Stat. 2067 (42 U.S.C. 2022).

Section 40.7 also issued under Pub. L. 95-601, sec. 10, 92 Stat.

2951 as amended by Pub. L. 102-486, sec 2902, 106 Stat. 3123, (42

U.S.C. 5851). Section 40.31(g) also issued under sec. 122, 68 Stat.

939 (42 U.S.C. 2152). Section 40.46 also issued under sec. 184, 68

Stat. 954, as amended (42 U.S.C. 2234). Section 40.71 also issued

under sec. 187, 68 Stat. 955 (42 U.S.C. 2237).

7. Section 40.2 is revised to read as follows:

Sec. 40.2 Scope.

Except as provided in Secs. 40.11 to 40.14, inclusive, the

regulations in this part apply to all persons in the United States.

This part also gives notice to all persons who knowingly provide to any

licensee, applicant, contractor, or subcontractor, components,

equipment, materials, or other goods or services, that relate to a

licensee's or applicant's activities subject to this part, that they

may be individually subject to NRC enforcement action for violation of

Sec. 40.10.

8. Section 40.10 is revised to read as follows:

Sec. 40.10 Deliberate misconduct.

(a) Any licensee, applicant for a license, employee of a licensee

or applicant; or any contractor (including a supplier or consultant),

subcontractor, employee of a contractor or subcontractor of any

licensee or applicant for a license, who knowingly provides to any

licensee, applicant, contractor, or subcontractor, any components,

equipment, materials, or other goods or services that relate to a

licensee's or applicant's activities in this part, may not:

(1) Engage in deliberate misconduct that causes or would have

caused, if not detected, a licensee or applicant to be in violation of

any rule, regulation, or order; or any term, condition, or limitation

of any license issued by the Commission; or

(2) Deliberately submit to the NRC, a licensee, an applicant, or a

licensee's or applicant's contractor or subcontractor, information that

the person submitting the information knows to be incomplete or

inaccurate in some respect material to the NRC.

(b) A person who violates paragraph (a)(1) or (a)(2) of this

section may be subject to enforcement action in accordance with the

procedures in 10 CFR Part 2, subpart B.

(c) For the purposes of paragraph (a)(1) of this section,

deliberate misconduct by a person means an intentional act or omission

that the person knows:

(1) Would cause a licensee or applicant to be in violation of any

rule, regulation, or order; or any term, condition, or limitation, of

any license issued by the Commission; or

(2) Constitutes a violation of a requirement, procedure,

instruction, contract, purchase order, or policy of a licensee,

applicant, contractor, or subcontractor.

PART 50--DOMESTIC LICENSING OF PRODUCTION AND UTILIZATION

FACILITIES

9. The authority citation for Part 50 continues to read as follows:

Authority: Secs. 102, 103, 104, 105, 161, 182, 183, 186, 189, 68

Stat. 936, 937, 938, 948, 953, 954, 955, 956, as amended, sec. 234,

83 Stat. 1244, as amended (42 U.S.C. 2132, 2133, 2134, 2135, 2201,

2232, 2233, 2236, 2239, 2282); secs. 201, as amended, 202, 206, 88

Stat. 1242, as amended, 1244, 1246 (42 U.S.C. 5841, 5842, 5846).

Section 50.7 also issued under Pub. L. 95-601, sec. 10, 92 Stat.

2951 as amended by Pub. L. 102-486, sec. 2902, 106 Stat 3123, (42

U.S.C. 5851). Section 50.10 also issued under secs. 101, 185, 68

Stat. 936, 955, as amended (42 U.S.C. 2131, 2235); sec. 102, Pub. L.

91-190, 83 Stat. 853 (42 U.S.C. 4332). Sections 50.13, 50.54(dd),

and 50.103 also issued under sec. 108, 68 Stat. 939, as amended (42

U.S.C. 2138). Sections 50.23, 50.35, 50.55, and 50.56 also issued

under sec. 185, 68 Stat. 955 (42 U.S.C. 2235). Sections 50.33a,

50.55a and Appendix Q also issued under sec. 102, Pub. L. 91-190, 83

Stat. 853 (42 U.S.C. 4332). Sections 50.34 and 50.54 also issued

under sec. 204, 88 Stat. 1245 (42 U.S.C. 5844). Sections 50.58,

50.91, and 50.92 also issued under Pub. L. 97-415, 96 Stat. 2073 (42

U.S.C. 2239). Section 50.78 also issued under sec. 122, 68 Stat. 939

(42 U.S.C. 2152). Sections 50.80-50.81 also issued under sec. 184,

68 Stat. 954, as amended (42 U.S.C. 2234). Appendix F also issued

under sec. 187, 68 Stat. 955 (42 U.S.C 2237).

10. Section 50.1 is revised to read as follows:

Sec. 50.1 Basis, purpose, and procedures applicable.

The regulations in this part are promulgated by the Nuclear

Regulatory Commission pursuant to the Atomic Energy Act of 1954, as

amended (68 Stat. 919), and Title II of the Energy Reorganization Act

of 1974 (88 Stat. 1242), to provide for the licensing of production and

utilization facilities. This part also gives notice to all persons who

knowingly provide to any licensee, applicant, contractor, or

subcontractor, components, equipment, materials, or other goods or

services, that relate to a licensee's or applicant's activities subject

to this part, that they may be individually subject to NRC enforcement

action for violation of Sec. 50.5.

11. Section 50.5 is revised to read as follows:

Sec. 50.5 Deliberate misconduct.

(a) Any licensee, applicant for a license, employee of a licensee

or applicant; or any contractor (including a supplier or consultant),

subcontractor, employee of a contractor or subcontractor of any

licensee or applicant for a license, who knowingly provides to any

licensee, applicant, contractor, or subcontractor, any components,

equipment, materials, or other goods or services that relate to a

licensee's or applicant's activities in this part, may not:

(1) Engage in deliberate misconduct that causes or would have

caused, if not detected, a licensee or applicant to be in violation of

any rule, regulation, or

[[Page 51841]]

order; or any term, condition, or limitation of any license issued by

the Commission; or

(2) Deliberately submit to the NRC, a licensee, an applicant, or a

licensee's or applicant's contractor or subcontractor, information that

the person submitting the information knows to be incomplete or

inaccurate in some respect material to the NRC.

(b) A person who violates paragraph (a)(1) or (a)(2) of this

section may be subject to enforcement action in accordance with the

procedures in 10 CFR Part 2, subpart B.

(c) For the purposes of paragraph (a)(1) of this section,

deliberate misconduct by a person means an intentional act or omission

that the person knows:

(1) Would cause a licensee or applicant to be in violation of any

rule, regulation, or order; or any term, condition, or limitation, of

any license issued by the Commission; or

(2) Constitutes a violation of a requirement, procedure,

instruction, contract, purchase order, or policy of a licensee,

applicant, contractor, or subcontractor.

PART 52--EARLY SITE PERMITS; STANDARD DESIGN CERTIFICATIONS; AND

COMBINED LICENSES FOR NUCLEAR POWER PLANTS

12. The authority citation for Part 52 continues to read as

follows:

Authority: Secs. 103, 104, 161, 182, 183, 186, 189, 68 Stat.

936, 948, 953, 954, 955, 956, as amended, sec. 234, 83 Stat. 1244,

as amended (42 U.S.C. 2133, 2201, 2232, 2233, 2236, 2239, 2282);

secs. 201, 202, 206, 88 Stat. 1242, 1244, 1246, as amended (42

U.S.C. 5841, 5842, 5846).

13. Section 52.1 is revised to read as follows:

Sec. 52.1 Scope.

This part governs the issuance of early site permits, standard

design certifications, and combined licenses for nuclear power

facilities licensed under section 103 or 104b of the Atomic Energy Act

of 1954, as amended (68 Stat. 919), and Title II of the Energy

Reorganization Act of 1974 (88 Stat. 1242). This part also gives notice

to all persons who knowingly provide to any holder of or applicant for

an early site permit, standard design certification, or combined

license, or to a contractor, subcontractor, or consultant of any of

them, components, equipment, materials, or other goods or services,

that relate to the activities of a holder of or applicant for an early

site permit, standard design certification, or combined license,

subject to this part, that they may be individually subject to NRC

enforcement action for violation of Sec. 52.10.

14. Section 52.9 is added following Sec. 52.8 and reads as follows:

Sec. 52.9 Deliberate misconduct.

(a) Any holder of, or applicant for, an early site permit, standard

design certification, or combined license, including its employees,

contractors, subcontractors, or consultants and their employees, who

knowingly provides to any holder of, or applicant for, an early site

permit, standard design certification, or combined license, or to a

contractor, subcontractor or consultant of any of them, equipment,

materials, or other goods or services that relate to the activities of

a holder of, or applicant for, an early site permit, standard design

certification or combined license in this part, may not:

(1) Engage in deliberate misconduct that causes or would have

caused, if not detected, a holder of, or applicant for, an early site

permit, standard design certification, or combined license, to be in

violation of any rule, regulation, or order; or any term, condition, or

limitation of any permit, certification or license issued by the

Commission; or

(2) Deliberately submit to the NRC, a holder of, or applicant for,

an early site permit, standard design certification, or combined

license, or a contractor, subcontractor, or consultant of any of them

information that the person submitting the information knows to be

incomplete or inaccurate in some respect material to the NRC.

(b) A person who violates paragraph (a)(1) or (a)(2) of this

section may be subject to enforcement action in accordance with the

procedures in 10 CFR part 2, subpart B.

(c) For the purposes of paragraph (a)(1) of this section,

deliberate misconduct by a person means an intentional act or omission

that the person knows:

(1) Would cause a holder of, or applicant for, an early site

permit, standard design certification, or combined license, to be in

violation of any rule, regulation, or order; or any term, condition, or

limitation, of any license issued by the Commission; or

(2) Constitutes a violation of a requirement, procedure,

instruction, contract, purchase order, or policy of a holder of, or

applicant for, an early site permit, certified design or combined

license, or a contractor or subcontractor of any of them.

PART 60--DISPOSAL OF HIGH-LEVEL RADIOACTIVE WASTES IN GEOLOGIC

REPOSITORIES

15. The authority citation for Part 60 continues to read as

follows:

Authority: Secs. 51, 53, 62, 63, 65, 81, 161, 182, 183, 68 Stat.

929, 930, 932, 933, 935, 948, 953, 954, as amended (42 U.S.C. 2071,

2073, 2092, 2093, 2095, 2111, 2201, 2232, 2233); secs. 202, 206, 88

Stat. 1244, 1246 (42 U.S.C. 5842, 5846); secs. 10 and 14, Pub. L.

95-601, 92 Stat. 2951 (42 U.S.C. 2021a and 5851); sec. 102, Pub. L.

91-190, 83 Stat. 853 (42 U.S.C. 4332); secs. 114, 121, Pub. L. 97-

425, 96 Stat. 2213g, 2228, as amended (42 U.S.C. 10134, 10141) and

Pub. L. 102-486, sec. 2902, 106 Stat. 3123 (42 U.S.C. 5851).

16. Section 60.1 is revised to read as follows:

Sec. 60.1 Purpose and scope.

This part prescribes rules governing the licensing of the U.S.

Department of Energy to receive and possess source, special nuclear,

and byproduct material at a geologic repository operations area sited,

constructed, or operated in accordance with the Nuclear Waste Policy

Act of 1982. This part does not apply to any activity licensed under

another part of this chapter. This part also gives notice to all

persons who knowingly provide to any licensee, applicant, contractor,

or subcontractor, components, equipment, materials, or other goods or

services, that relate to a licensee's or applicant's activities subject

to this part, that they may be individually subject to NRC enforcement

action for violation of Sec. 60.11.

17. Section 60.11 is revised to read as follows:

Sec. 60.11 Deliberate misconduct.

(a) Any licensee, applicant for a license, employee of a licensee

or applicant; or any contractor (including a supplier or consultant),

subcontractor, employee of a contractor or subcontractor of any

licensee or applicant for a license, who knowingly provides to any

licensee, applicant, contractor, or subcontractor, any components,

equipment, materials, or other goods or services that relate to a

licensee's or applicant's activities in this part, may not:

(1) Engage in deliberate misconduct that causes or would have

caused, if not detected, a licensee or applicant to be in violation of

any rule, regulation, or order; or any term, condition, or limitation

of any license issued by the Commission; or

(2) Deliberately submit to the NRC, a licensee, an applicant, or a

licensee's or applicant's contractor or subcontractor, information that

the person submitting

[[Page 51842]]

the information knows to be incomplete or inaccurate in some respect

material to the NRC.

(b) A person who violates paragraph (a)(1) or (a)(2) of this

section may be subject to enforcement action in accordance with the

procedures in 10 CFR part 2, subpart B.

(c) For the purposes of paragraph (a)(1) of this section,

deliberate misconduct by a person means an intentional act or omission

that the person knows:

(1) Would cause a licensee or applicant to be in violation of any

rule, regulation, or order; or any term, condition, or limitation, of

any license issued by the Commission; or

(2) Constitutes a violation of a requirement, procedure,

instruction, contract, purchase order, or policy of a licensee,

applicant, contractor, or subcontractor.

PART 61--LICENSING REQUIREMENTS FOR LAND DISPOSAL OF RADIOACTIVE

WASTE

18. The authority citation for Part 61 continues to read as

follows:

Authority: Secs. 53, 57, 62, 63, 65, 81, 161, 182, 183, 68 Stat.

930, 932, 933, 935, 948, 953, 954, as amended (42 U.S.C. 2073, 2077,

2092, 2093, 2095, 2111, 2201, 2232, 2233); secs. 202, 206, 88 Stat.

1244, 1246 (42 U.S.C. 5842, 5846); secs. 10 and 14, Pub. L. 95-601,

92 Stat. 2951 (42 U.S.C. 2021a and 5851) and Pub. L. 102-486, sec

2902, 106 Stat. 3123, (42 U.S.C. 5851).

19. In Sec. 61.1, paragraph (c) is revised to read as follows:

Sec. 61.1 Purpose and scope.

* * * * *

(c) This part also gives notice to all persons who knowingly

provide to any licensee, applicant, contractor, or subcontractor,

components, equipment, materials, or other goods or services, that

relate to a licensee's or applicant's activities subject to this part,

that they may be individually subject to NRC enforcement action for

violation of Sec. 61.9b.

20. Section 61.9b is revised to read as follows:

Sec. 61.9b Deliberate misconduct.

(a) Any licensee, applicant for a license, employee of a licensee

or applicant; or any contractor (including a supplier or consultant),

subcontractor, employee of a contractor or subcontractor of any

licensee or applicant for a license, who knowingly provides to any

licensee, applicant, contractor, or subcontractor, any components,

equipment, materials, or other goods or services that relate to a

licensee's or applicant's activities in this part, may not:

(1) Engage in deliberate misconduct that causes or would have

caused, if not detected, a licensee or applicant to be in violation of

any rule, regulation, or order; or any term, condition, or limitation

of any license issued by the Commission; or

(2) Deliberately submit to the NRC, a licensee, an applicant, or a

licensee's or applicant's contractor or subcontractor, information that

the person submitting the information knows to be incomplete or

inaccurate in some respect material to the NRC.

(b) A person who violates paragraph (a)(1) or (a)(2) of this

section may be subject to enforcement action in accordance with the

procedures in 10 CFR part 2, subpart B.

(c) For the purposes of paragraph (a)(1) of this section,

deliberate misconduct by a person means an intentional act or omission

that the person knows:

(1) Would cause a licensee or applicant to be in violation of any

rule, regulation, or order; or any term, condition, or limitation, of

any license issued by the Commission; or

(2) Constitutes a violation of a requirement, procedure,

instruction, contract, purchase order, or policy of a licensee,

applicant, contractor, or subcontractor.

PART 70--DOMESTIC LICENSING OF SPECIAL NUCLEAR MATERIAL

21. The authority citation for Part 70 continues to read as

follows:

Authority: Secs. 51, 53, 161, 182, 183, 68 Stat. 929, 930, 948,

953, 954, as amended, sec. 234, 83 Stat. 444, as amended, sec. 1701,

106 Stat. 2951, 2952, 2953 (42 U.S.C. 2071, 2073, 2201, 2232, 2233,

2282, 2297f); secs. 201, as amended, 202, 204, 206, 88 Stat. 1242,

as amended, 1244, 1245, 1246 (42 U.S.C. 5841, 5842, 5845, 5846).

Sections 70.1(c) and 70.20a(b) also issued under secs. 135, 141,

Pub. L. 97-425, 96 Stat. 2232, 2241 (42 U.S.C. 10155, 10161).

Section 70.7 also issued under Pub. L. 95-601, sec. 10, 92 Stat.

2951 (42 U.S.C. 5851). Section 70.21(g) also issued under sec. 122,

68 Stat. 939 (42 U.S.C. 2152). Section 70.31 also issued under sec.

57d, Pub. L. 93-377, 88 Stat. 475 (42 U.S.C. 2077). Sections 70.36

and 70.44 also issued under sec. 184, 68 Stat. 954, as amended (42

U.S.C. 2234). Section 70.61 also issued under secs. 186, 187, 68

Stat. 955 (42 U.S.C. 2236, 2237). Section 70.62 also issued under

sec. 108, 68 Stat. 939, as amended (42 U.S.C. 2138).

22. Section 70.2 is revised to read as follows:

Sec. 70.2 Scope.

Except as provided in Secs. 70.11 to 70.13, inclusive, the

regulations in this part apply to all persons in the United States.

This part also gives notice to all persons who knowingly provide to any

licensee, applicant, contractor, or subcontractor, components,

equipment, materials, or other goods or services, that relate to a

licensee's or applicant's activities subject to this part, that they

may be individually subject to NRC enforcement action for violation of

Sec. 70.10.

23. Section 70.10 is revised to read as follows:

Sec. 70.10 Deliberate misconduct.

(a) Any licensee, applicant for a license, employee of a licensee

or applicant; or any contractor (including a supplier or consultant),

subcontractor, employee of a contractor or subcontractor of any

licensee or applicant for a license, who knowingly provides to any

licensee, applicant, contractor, or subcontractor, any components,

equipment, materials, or other goods or services that relate to a

licensee's or applicant's activities in this part, may not:

(1) Engage in deliberate misconduct that causes or would have

caused, if not detected, a licensee or applicant to be in violation of

any rule, regulation, or order; or any term, condition, or limitation

of any license issued by the Commission; or

(2) Deliberately submit to the NRC, a licensee, an applicant, or a

licensee's or applicant's contractor or subcontractor, information that

the person submitting the information knows to be incomplete or

inaccurate in some respect material to the NRC.

(b) A person who violates paragraph (a)(1) or (a)(2) of this

section may be subject to enforcement action in accordance with the

procedures in 10 CFR part 2, subpart B.

(c) For the purposes of paragraph (a)(1) of this section,

deliberate misconduct by a person means an intentional act or omission

that the person knows:

(1) Would cause a licensee or applicant to be in violation of any

rule, regulation, or order; or any term, condition, or limitation, of

any license issued by the Commission; or

(2) Constitutes a violation of a requirement, procedure,

instruction, contract, purchase order, or policy of a licensee,

applicant, contractor, or subcontractor.

PART 71--PACKAGING AND TRANSPORTATION OF RADIOACTIVE MATERIAL

24. The authority citation for Part 71 continues to read as

follows:

Authority: Secs. 53, 57, 62, 63, 81, 161, 182, 183, 68 Stat.

930, 932, 933, 935, 948,

[[Page 51843]]

953, 954, as amended, sec. 1701, 106 Stat. 2951, 2952, 2953 (42

U.S.C. 2073, 2077, 2092, 2093, 2111, 2201, 2232, 2233, 2297f); secs.

201, as amended, 202, 206, 88 Stat. 1242, as amended, 1244, 1246 (42

U.S.C. 5841, 5842, 5846).

Section 71.97 also issued under sec. 301, Pub. L. 96-295, 94

Stat. 789-790.

25. Section 71.0 is amended by adding a new paragraph (f) to read

as follows:

Sec. 71.0 Purpose and scope.

* * * * *

(f) This part also gives notice to all persons who knowingly

provide to any licensee, certificate holder, quality assurance program

approval holder, applicant for a license, certificate, or quality

assurance program approval or to a contractor, or subcontractor of any

of them, components, equipment, materials, or other goods or services,

that relate to a licensee's, certificate holder's, or applicant's

activities subject to this part, that they may be individually subject

to NRC enforcement action for violation of Sec. 71.11.

26. Section 71.11 is added to read as follows:

Sec. 71.11 Deliberate misconduct.

(a) This section applies to any--

(1) Licensee;

(2) Certificate holder;

(3) Quality assurance program approval holder;

(4) Applicant for a license, certificate, or quality assurance

program approval;

(5) Contractor (including a supplier or consultant) or

subcontractor, to any person identified in paragraphs (a)(1) through

(a)(4) of this section; or

(6) Employee of any person identified in paragraphs (a)(1) through

(a)(5) of this section.

(b) A person identified in paragraph (a) of this section who

knowingly provides to any entity, listed in paragraphs (a)(1) through

(a)(5) of this section, any components, materials, or other goods or

services that relate to a licensee's, certificate holder's, quality

assurance program approval holder's or applicant's activities subject

to this part may not:

(1) Engage in deliberate misconduct that causes or would have

caused, if not detected, a licensee, certificate holder, quality

assurance program approval holder, or any applicant to be in violation

of any rule, regulation, or order; or any term, condition, or

limitation of any license, certificate or approval issued by the

Commission; or

(2) Deliberately submit to the NRC, a licensee, a certificate

holder, quality assurance program approval holder, an applicant for a

license certificate or quality assurance program approval, or a

licensee's, applicant's, certificate holder's or quality assurance

program approval holder's contractor or subcontractor, information that

the person submitting the information knows to be incomplete or

inaccurate in some respect material to the NRC.

(c) A person who violates paragraph (b)(1) or (b)(2) of this

section may be subject to enforcement action in accordance with the

procedures in 10 CFR part 2, subpart B.

(d) For the purposes of paragraph (b)(1) of this section,

deliberate misconduct by a person means an intentional act or omission

that the person knows:

(1) Would cause a licensee, certificate holder, quality assurance

program approval holder or applicant for a license, certificate, or

quality assurance program approval to be in violation of any rule,

regulation, or order; or any term, condition, or limitation, of any

license or certificate issued by the Commission; or

(2) Constitutes a violation of a requirement, procedure,

instruction, contract, purchase order, or policy of a licensee,

applicant, contractor, or subcontractor.

PART 72--LICENSING REQUIREMENTS FOR THE INDEPENDENT STORAGE OF

SPENT NUCLEAR FUEL AND HIGH-LEVEL RADIOACTIVE WASTE

27. The authority citation for Part 72 continues to read as

follows:

Authority: Secs. 51, 53, 57, 62, 63, 65, 69, 81, 161, 182, 183,

184, 186, 187, 189, 68 Stat. 929, 930, 932, 933, 934, 935, 948, 953,

954, 955, as amended, sec. 234, 83 Stat. 444, as amended (42 U.S.C.

2071, 2073, 2077, 2092, 2093, 2095, 2099, 2111, 2201, 2232, 2233,

2234, 2236, 2237, 2238, 2282); sec. 274, Pub. L. 86-373, 73 Stat.

688, as amended (42 U.S.C. 2021); sec. 201, as amended, 202, 206, 88

Stat. 1242, as amended, 1244, 1246 (42 U.S.C. 5841, 5842, 5846);

Pub. L. 95-601, sec. 10, 92 Stat. 2951 (42 U.S.C. 5851); sec. 102,

Pub. L. 91-190, 83 Stat. 853 (42 U.S.C. 4332); Secs. 131, 132, 133,

135, 137, 141, Pub. L. 97-425, 96 Stat. 2229, 2230, 2232, 2241, sec.

148, Pub. L. 100-203, 101 Stat. 1330-235 (42 U.S.C. 10151, 10152,

10153, 10155, 10157, 10161, 10168).

Section 72.44(g) also issued under secs. 142(b) and 148(c), (d),

Pub. L. 100-203, 101 Stat. 1330-232, 1330-236 (42 U.S.C. 10162(b),

10168(c), (d)). Section 72.46 also issued under sec. 189, 68 Stat.

955 (42 U.S.C. 2239); sec. 134, Pub. L. 97-425, 96 Stat. 2230 (42

U.S.C. 10154). Section 72.96(d) also issued under sec. 145(g), Pub.

L. 100-203, 101 Stat. 1330-235 (42 U.S.C. 10165(g)). Subpart J also

issued under secs. 2(2), 2(15), 2(19), 117(a), 141(h), Pub. L. 97-

425, 96 Stat. 2202, 2203, 2204, 2222, 2224 (42 U.S.C. 10101,

10137(a), 10161(h)). Subparts K and L are also issued under sec.

133, 98 Stat. 2230 (42 U.S.C. 10153) and sec. 218(a), 96 Stat. 2252

(42 U.S.C. 10198).

28. Section 72.2 is amended by adding a new paragraph (f) to read

as follows:

Sec. 72.2 Scope.

* * * * *

(f) This part also gives notice to all persons who knowingly

provide to any licensee, certificate holder, applicant for a license or

certificate, contractor, or subcontractor, components, equipment,

materials, or other goods or services, that relate to a licensee's,

certificate holder's, or applicant's activities subject to this part,

that they may be individually subject to NRC enforcement action for

violation of Sec. 72.12.

29. Section 72.12 is revised to read as follows:

Sec. 72.12 Deliberate misconduct.

(a) Any licensee, certificate holder, applicant for a license or

certificate, employee of a licensee, certificate holder, or applicant

for a license or certificate; or any contractor (including a supplier

or consultant) or subcontractor, employee of a contractor or

subcontractor of any licensee, certificate holder, or applicant for a

license or certificate who knowingly provides to any licensee,

certificate holder, applicant for a license or certificate, contractor,

or subcontractor, any components, materials, or other goods or services

that relate to a licensee's, certificate holder's, or applicant's

activities subject to this part, may not:

(1) Engage in deliberate misconduct that causes or would have

caused, if not detected, a licensee, certificate holder or applicant to

be in violation of any rule, regulation, or order; or any term,

condition, or limitation of any license or certificate issued by the

Commission; or

(2) Deliberately submit to the NRC, a licensee, a certificate

holder, an applicant for a license or certificate, or a licensee's,

applicant's, or certificate holder's contractor or subcontractor,

information that the person submitting the information knows to be

incomplete or inaccurate in some respect material to the NRC.

(b) A person who violates paragraph (a)(1) or (a)(2) of this

section may be subject to enforcement action in accordance with the

procedures in 10 CFR part 2, subpart B.

(c) For the purposes of paragraph (a)(1) of this section,

deliberate misconduct by a person means an

[[Page 51844]]

intentional act or omission that the person knows:

(1) Would cause a licensee, certificate holder or applicant for a

license or certificate to be in violation of any rule, regulation, or

order; or any term, condition, or limitation, of any license or

certificate issued by the Commission; or

(2) Constitutes a violation of a requirement, procedure,

instruction, contract, purchase order, or policy of a licensee,

applicant, contractor, or subcontractor.

PART 110--EXPORT AND IMPORT OF NUCLEAR EQUIPMENT AND MATERIAL

30. The authority citation for Part 110 continues to read as

follows:

Authority: Secs. 51, 53, 54, 57, 63, 64, 65, 81, 82, 103, 104,

109, 111, 126, 127, 128, 129, 161, 181, 182, 183, 187, 189, 68 Stat.

929, 930, 931, 932, 933, 936, 937, 948, 953, 954, 955, 956, as

amended (42 U.S.C. 2071, 2073, 2074, 2077, 2092-2095, 2111, 2112,

2133, 2134, 2139, 2139a, 2141, 2154-2158, 2201, 2231-2233, 2237,

2239); sec. 201, 88 Stat. 1242, as amended (42 U.S.C. 5841; sec 5,

Pub. L. 101-575, 104 Stat 2835 (42 U.S.C. 2243).

Sections 110.1(b)(2) and 110.1(b)(3) also issued under Pub. L.

96-92, 93 Stat. 710 (22 U.S.C. 2403). Section 110.11 also issued

under sec. 122, 68 Stat. 939 (42 U.S.C. 2152) and secs. 54c and

57d., 88 Stat. 473, 475 (42 U.S.C. 2074). Section 110.27 also issued

under sec. 309(a), Pub. L. 99-440. Section 110.50(b)(3) also issued

under sec. 123, 92 Stat. 142 (42 U.S.C. 2153). Section 110.51 also

issued under sec. 184, 68 Stat. 954, as amended (42 U.S.C. 2234).

Section 110.52 also issued under sec. 186, 68 Stat. 955 (42 U.S.C.

2236). Sections 110.80-110.113 also issued under 5 U.S.C. 552, 554.

Sections 110.130-110.135 also issued under 5 U.S.C. 553. Sections

110.2 and 110.42 (a)(9) also issued under sec. 903, Pub. L. 102-496

(42 U.S.C. 2151 et seq.).

31. Section 110.1 is revised to read as follows:

Sec. 110.1 Purpose and scope.

(a) The regulations in this part prescribe licensing, enforcement,

and rulemaking procedures and criteria, under the Atomic Energy Act,

for the export of nuclear equipment and material, as set out in

Secs. 110.8 and 110.9, and the import of nuclear equipment and

material, as set out in Sec. 110.9a. This part also gives notice to all

persons who knowingly provide to any licensee, applicant, contractor,

or subcontractor, components, equipment, materials, or other goods or

services, that relate to a licensee's or applicant's activities subject

to this part, that they may be individually subject to NRC enforcement

action for violation of Sec. 110.7b.

32. Section 110.7b is revised to read as follows:

Sec. 110.7b Deliberate misconduct.

(a) Any licensee, applicant for a license, employee of a licensee

or applicant; or any contractor (including a supplier or consultant),

subcontractor, employee of a contractor or subcontractor of any

licensee or applicant for a license, who knowingly provides to any

licensee, applicant, contractor, or subcontractor, any components,

equipment, materials, or other goods or services that relate to a

licensee's or applicant's activities in this part, may not:

(1) Engage in deliberate misconduct that causes or would have

caused, if not detected, a licensee or applicant to be in violation of

any rule, regulation, or order; or any term, condition, or limitation

of any license issued by the Commission; or

(2) Deliberately submit to the NRC, a licensee, an applicant, or a

licensee's or applicant's contractor or subcontractor, information that

the person submitting the information knows to be incomplete or

inaccurate in some respect material to the NRC.

(b) A person who violates paragraph (a)(1) or (a)(2) of this

section may be subject to enforcement action in accordance with the

procedures in 10 CFR part 2, subpart B.

(c) For the purposes of paragraph (a)(1) of this section,

deliberate misconduct by a person means an intentional act or omission

that the person knows:

(1) Would cause a licensee or applicant to be in violation of any

rule, regulation, or order; or any term, condition, or limitation, of

any license issued by the Commission; or

(2) Constitutes a violation of a requirement, procedure,

instruction, contract, purchase order, or policy of a licensee,

applicant, contractor, or subcontractor.

PART 150--EXEMPTIONS AND CONTINUED REGULATORY AUTHORITY IN

AGREEMENT STATES AND IN OFFSHORE WATERS UNDER SECTION 274

33. The authority citation for Part 150 continues to read as

follows:

Authority: Sec. 161, 68 Stat. 948, as amended, sec. 274, 73

Stat. 688 (42 U.S.C. 2201, 2021); sec. 201, 88 Stat. 1242, as

amended (42 U.S.C. 5841).

Sections 150.3, 150.15, 150.15a, 150.31, 150.32 also issued

under secs. 11e(2), 81, 68 Stat. 923, 935, as amended, secs. 83, 84,

92 Stat. 3033, 3039 (42 U.S.C. 2014e(2), 2111, 2113, 2114). Section

150.14 also issued under sec. 53, 68 Stat. 930, as amended (42

U.S.C. 2073). Section 150.15 also issued under secs. 135, 141,

Pub.L. 97-425, 96 Stat. 2232, 2241 (42 U.S.C. 10155, 10161). Section

150.17a also issued under sec. 122, 68 Stat. 939 (42 U.S.C. 2152).

Section 150.30 also issued under sec. 234, 83 Stat. 444 (42 U.S.C.

2282).

34. Section 150.2 is revised to read as follows:

Sec. 150.2 Scope.

The regulations in this part apply to all States that have entered

into agreements with the Commission or the Atomic Energy Commission

pursuant to subsection 274b of the Act. This part also gives notice to

all persons who knowingly provide to any licensee, applicant for a

license or certificate or quality assurance program approval, holder of

a certificate or quality assurance program approval, contractor, or

subcontractor, any components, equipment, materials, or other goods or

services that relate to a licensee's, certificate holder's, quality

assurance program approval holder's or applicant's activities subject

to this part, that they may be individually subject to NRC enforcement

action for violation of Secs. 30.10, 40.10, 70.10 and 71.11.

Dated at Rockville, Maryland, this 30th day of September, 1996.

For the Nuclear Regulatory Commission.

William M. Hill,

Acting Secretary of the Commission.

[FR Doc. 96-25494 Filed 10-3-96; 8:45 am]

BILLING CODE 7590-01-P