ML20198L892

Informs of Concurrence in Final Rule, Deliberate Misconduct by Unlicensed Persons, W/Changes Noted in Encl Pages

ML20198L892
Person / Time
Issue date:	09/30/1997
From:	Lieberman J NRC OFFICE OF ENFORCEMENT (OE)
To:	Knapp M NRC OFFICE OF NUCLEAR REGULATORY RESEARCH (RES)
Shared Package
ML20198L674	List: ML20198L667 ML20198L765 ML20198L892 ML20198L903 ML20198L929 ML20198L965 ML20198L970 ML20198L985 ML20198L996 ML20198M005 ML20198M031 ML20198M042 ML20198M069 ML20198M084 ML20198M087 ML20198M097 ML20198M130 ML20198M136 ML20198M143 ML20198M160 ML20198M200 ML20198M221 ML20198Q028
References
FRN-57FR1890, FRN-63FR1890, RULE-PR-110, RULE-PR-150, RULE-PR-30, RULE-PR-32, RULE-PR-40, RULE-PR-50, RULE-PR-52, RULE-PR-60, RULE-PR-61, RULE-PR-70, RULE-PR-71, RULE-PR-72 AF35-2-010, AF35-2-10, NUDOCS 9801160143
Download: ML20198L892 (23)

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• 4 UNITED STATES

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September 30, 1997 MEMORANDUM T0:

Malcolm R. Knapp, Acting Director Office of Nuclear Regulatory Research-FROM:

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SUBJECT:

FINAL RULE: DELIBERATE MISCONDUCT BY UNLICENSED PERSONS, COMMENTS AND CONCURRENCE I have reviewed the revised rulemaking package and concur in the package, with the changes noted on the attached pages.

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4 UNITED STATES E

NUCLEAR REGULATORY COMMISSION 5

WASHINGTON. D.C. enmaa my

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MEMORANDUM TO:

L. Joseph Callan Executive Director for Operations FROM:

Malcolm R. Knapp, Acting Director Office of Nuclear Regulatory Research

SUBJECT:

FINAL RULE: DELIBERATE MISCONDUCT BY UNLICENSED PERSONS (WITS 960007) 6 6 PM

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The attached Commission papepph(8 Final rule provided for your reviev' and transmittal to the Commission These documents discuss a number of changes to 10 CFR Parts 30, 32,40,50, 52,60,61,70,71,72,110 and 150 dealing with Deliberate Misconduct by unlicensed persons.

The proposed rule was published in the Federal Reaister on October 4,1996. The comment period ended on December 18,1996. The Commission received six comments on the proposed rule, five in favor and one against. A summary of the comments and NRC's responses are discussed in the Statement of Consideration for the Final Rule.

The final rule amends the regulations by extending the scope of the Deliberate Misconduct rule to six new categories of persons: applicants for NRC licenses; applicants for, or holders of, certificates of compliance issued under 10 CFR Parts 71 and 72; applicants for, or holders of, early site permits, standard design certifications, or combined licenses for nuclear power plants issued under Part 52; applicants for, or holders of, certificates of registration issued under Parts 30 and 32; applicants for, or holders of, quality assurance program approvals issued under Part 71; and the employees, contractors, subcontractors and consultants of the first five categories of person:i, so that they may be subject to enforcement action for deliberate violation of any of the Commission's requirements.

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In addition, the Office of Enforcement v2...... u. m.mm..mu n.~, :nf prM:.:. --

c^d~' ": :.;.. c.;i; to address enforcement action [against these categories of unlicensed personsy! iS: '"r d ~+"et'r ;' J., G..;.~..J.. The Federal Register notice that amends NUREG 1600, "Gengral Statement of Policy and Procedures for Enforcement Actiorf," is dernd :: Enclosure 2 W the Commission paper.

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- The Commissioners fBQld:'

L. Joseph Callen, Executive Director for Operations-

SUBJECT:

FINAL RULE DELIBERATE MISCONDUCT BY UNL! CENSED PERSONS PURPOSE:

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To obtain Commission approval for publication of final amendments tog arts 30,32,40, P

50,52,60,61,70,71,72,110 and 150 dealing with deliberate misdonduct of unlicensed persons.

BACKGROUND:

In SECY 96 017, dated January 26,1996, the NRC staff informed the Commission of its plans to extend the Deliberate Misconduct Rule to certificate holders, and to applicants for liconses or certificates of compliance.- The Cemmission, in an SRM dated February 8, 1996, advised the Executive Director for Operations (EDO) that it approved SECY-96-017 r

and had no objections to the proposed changes to the Deliberate Misconduct Rule found at 10 CFR 30.10, 40.10, 50.6, 60.11, 61.9b, 70.10, 72.12, and 110.7b. In developing this rulemaking, the staff extended the scope of the Deliberate Misconduct Rule to also cover applicants for, or holders of, early site permits, standard design certifications, or combined licenses for nuclear power plants issued under 10 CFR Part 52; applicants for, or holders of, certificates of registration issued under Parts 30 and 32; and applicants for, or holders k-of, quality assurance program approvals issued under Part 71 (including contractors, subcontractors and consultants of the above categories and employees of each of the in addition, the scope of 10 CFR 150.2 was changed to provide notice to these additional

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persons conducting activities under reciprocity in areas of NRC jurisdiction.

The proposed rule was submitted to the Commission for approval (SECY-96-184, dated

August 20,1996) and published in the Federal Renister on October 4,1996 (61 FR I

CONTACT:

Tony DiPalo, DRA/RES HQIE:. TO BE MADE PUBLICLY AVAILABLE (301) 415-6191

. WHEN THE FINAL SRM IS MADE AVAILABLE -

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The Commissioners

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'51835)..The comment period ended on December 18,_1996. The Commission received 6 comments on the proposed rule. The Nuclear Energy institute opposed issuance of the rule j

for allegedly being in exc_ess of statutory authority. Other commenters generally supported i

the rule, but suggested limited changes.

A summary of the comments and NRC's responses are provided in the Statement of Consideration for Final Rule, (Enclosure 1).

I DISCUSSION:

As a result of the staff's review of the public comments, no changes were made to the t

final rule. Thus, the final rule revises the regulations to extend the scope of the Deliberate Misconduct Rule to six categories of persons. They are: (1) applicants for NRC licenses; (2) applicants for, or holders of, certificates of compliance issued under 10 CFR Parts 71

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1 and 72; (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, so that they may be subject to enforcement action. In addition, the Deliberate Misconduct Rule will be added to 10 CFR Parts 52 and 71 where it currently does not appear.

In addition, the staff 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.

l Similarly, the staff 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 i

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 t

55.53 (d)) and thus a finding of deliberate misconduct is not required to take enforcement L

action against a licensed reactor operator.

I As a result of adoption of this final rule, the NRC's Enforcement Policy needs to be amended. The proposed revisions are described in the enclosed Federal Register notice (Enclosure 2). The revision would be effective concurrently with these amendments to the i

regulations.. They will also be reflected in the next revision to NUREG-1600, " General

- Statement of Policy and Procedures for NRC Enforcement Action." As these amendments address the terminology used in referring to various unlicensed entities, e.g., contractors, N

vendors, it is appropriate to modify all existing references to vendors to conform to the Commission's holding in Five Star Products. Inc. and Construction Products Research. Inc.,

38 NRC 169, CLI 93-23, that the term " contractor" includes vendor. These changes are reflected in the Federal Register notice.

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Insert for bottom of page 2 of Comission Paper:

During the final stage of this rulemaking it was recognized that.the Deliberate Misconduct Rule, by its terms does not expressly cover persons who conduct activities that require an NRC license but do not hold a license.

i.e.. using material without a license. The staff is of the view that the Rule covers those persons.

It intends to take action to clarify this matter.

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- The Commissioners 4

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.The staff has determined that this is not a " major" r as defined in the Small Business Regulatory Enforcement Fairness et of 1996, 5 U.S.C.-

804(2) and has confirmed this determination ith OMB. The appropriate

Congressional and GAO contacts will be informed (Enclosure 5).

t L. Joseph Callan Executive Director for Operations

Enclosures:

' As stated (5)

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• l FO_R FURTHER INFORMATION CONTACT: Tony DiPalo, Office of Nuclear Regulatory Research, U.S. Nuclear bgulatory Commission, Washington, DC 205554001, telephone 2(301) 415 6191, e-mail, ajd@nrc. gov.

SUPPLEMENTARY INFORMATION:

Background

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

. regulations that established the Deliberate Misconduct Ru!9 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 licenses; and any contractor (including a supplier or consultant),

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- subcontractor, or any employee of a contractor or subcontractor, of any licenses, in addition,10 CFR 150.2, Scope, provides netice to persons conducting activities under reciprocity in areas of NRC jurisdiction the.t the,y are subject to the rule (33,3 10 CFR 150.20, Recognition of Agreement State licenses). The Deliberate Misconduct Rule placed

. licensed and unlicensed persons on notice that they may be subject to enforcement action for deliberate misconduct that creuses or would have caused, if not detected, a licensee to be in violation of any of the Commission's requinments, or for deliberatel/ providing to the g

NRC, a licensee, or contractor, information that is incomplete or inaccurate in some

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n respect material to the NRC. T r

,also vis dithe NRC's procedures f,issuin o ers

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t (10 CFR 30.9,40.9,50.9, ctc.). The d: liberate submissi n cf inf rmati:n which is

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incomplete or inaccurate in material respects, where the s the information knows of the incompleteness or inaccuracy, may be considered deliberate misconduct.

However, the submission of information acknowledged to be incomplete would not be considered rjetiberate misconduct if it is made in good faith and based on the best 1

f information available, but is corrected later based on additional informationpfanalysis. The NRC's General Statement of Policy and Procedures for Enforcement Actions (NUREG-1600) (Enforcement Policy) points out that a c!tation is not made if an initial submittal was accurate when made but later turns out to be erroneous because of newly discovered information or advances in technology. The Commission recognizes that oralinformation may in some situations be less reliable. This is addressed in Section IX of the NRC's Gana'=' St 6.omu roncy and Procedure for, Enforcement Action (NUMt:w i600, n

nforcement Polic As the Commission stated in the original Deliberate Misconduct Rufe:

" It would be an erroneous reading of the final rule on deliberate misconduct to conclude that conscientious people may be subject to personalliability for mistakes. The Commission realizes that people may make mistakes while acting in good faith, 5

Enforcement action directly against individuals are not to be used for activities caused by A

merely negligent conduct. These persons should have no fear of individual liability under this regulation, as the rule requires that there be deliberate misconduct before the rule's sanctions may be imposed. The Commission recognizas, pat enforcement actions involving individuals are significant action 3 that need to be closely controlled and judir:lously applied." (See 56 FR 40664,40681)

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e centractor or subcontractor. Thus, the r:gulations do not c:untenance the disparity of treatment envisioned by the commenter.

s Comment: One commenter representing a source production and equipment company favored the provisions of the proposed rule but, also, recommended that the rule be revised to apply to persons who maintain the equipment malfunction records that are required by the Quality Assurance and Quality Control (OA/QC) programs required under 10 CFR Part 32 for the manufacture and distribution of radiography equipment. This commenter also believes that because these records are not part of the Quality Assurance f

program, they are not submitted to the NRC as part of a re

ion certificate application. Nevertheless, the accuracy and integrit-

's are essential for the QA/OC program to be effective. The currer -

sliberate i

1 Misconduct rule appears to apply oe" se NRC as part of a registration certificate

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licensee, certificats ant to be in violation of any rule, regulation, or order; o.

r limitation of any license issued by the Commic,sion," The rule p.

.st ly to information submitted to the NRC, but also, to information / records that the lic see/applicent is required to, or has committed to,

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- (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 n

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 1

(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 l

4 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

-1 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, proct. ka. Instruction, contract, I

purchase order, or policy of a holder of, or applicant for, an early site permit, certified i

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

PART 60-DlSPOSAL OF HIGH-LEVEL RADIOACTIVE WASTES IN GEOLOGIC REPOSITORIES -

4

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

- AUTHORITY: Secs 51, 53, 62, 63, 65, 81,161,182,183, 234, 68 Stat. 929,

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930,'932; 933, 935, 948, 953, 954, as amended (42 U.S.C. 2071,2073,2092,2093, l

1 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. 91 130, 83 Stat. 853 (42 U.S.C. 4332); secs 114,121,' Pub. L. 97-4 425; 96 Stat. 2213g, 2228, as amended (42 U.S.C.10134,10141) and Pub. L. _102-486, sec. 2002,106 Stat. 3123 (42 U.S.C. 5851).

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16. Section 60.1, is revised to read as follows:

W l 80.1 PuroonamijScone.

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This part prescribes rules governing the licensing of the U.S. Department of Energy to recalve and possess source, special nuclear, and byproduct material at a geologic t

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, c:quipment, materials, or other goods or services, that relate to a licensee's or applicant's activities subject to I

this part, that they may be individually subject to NRC enforcement action for violation of I 60,11, i

17. Section 60,11 is revised to read as follows:

i 80.11 Deliberate miscorn et.

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

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i any contractor (including a supplier or consultant), subcontractor, employee of a contractor w

or subcontractor of any licensee or applicant who knowingly provides to any licensee,

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. applicant, contractor, or subcontsactor, 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 applicent'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.

i PART 61-LICENSING REQUIREMENTS FOR LAND DISPOSAL OF RADIOACTIVE WASTE i

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, i

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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, certificate holder, quality assurance program approval holder, applicant, or the contractor or subcontractor of any of them.

PART 72--LICENSING REQUIREMENTS FOR THE INDEPENDENT STORAGE OF SPENT NUCLEAR FUEL AND HIGH LEVEL RADIOACTIVE WASTE

27. The authority citation for Part 72 continuos to read as follows:

AUTHORITY: Sees. 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, CB46); Pub. L. 95 601, sec.10,92 Stat. 295 mended by Pub.L. 102-486, SEC 7902,106 Stat. 3123 (42 U.S.C. 5851); sec.102, Pub. L. 91 190, 83 Stat. (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 44

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. Issued und:r s:c. 1894 68 Stat. 935 (42 U.S.C. 2239); s:c 134, Pub. i.,97 425, 96

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' Stat. 2230 (42 U.S.C.10154), Section 72.96(d) also issued under sec.14E(g), pub. L.

4 100 203,101 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, Stat. 2230'(42 U.S.C.10153) ano sec. 218(a), 96 Stat. 2252 (42 U.S.C.

10198).

28. In section 72.2, paragraph (f) is revisea to read as follows:

I 72.2 Scone.

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(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 i 72.12.

29. Section 72.12 is revised to read as follows:

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- E 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

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NUCLEAR REGULATORY COMMISSION -

INUREG 1600) 4 Policy and Procedure for Enforcement Actions;. Deliberate Misconduct Rule AGENCY: Wuclear Regulatory Commission.

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- ACTION: Policy statement: Amendment T

SUMMARY

The Nuclear Regulatory Commission (NRC) is amending its " General-Statement of Policy and Procedure for NRC Enforcement Actions" to conform to modifications to the Deliberate Misconduct Rule. These modifications extend that Rule to

- applicants for NRC licenses, applicants for, and holders of, certificates of compliance, early site permits, standard design certifications, or combined licenses issued under Part 52, app!! cants for or holders of certificates of registration quality assurance approvals, and the p

j employees, contractors, subcontractors, and consultants of those persons By a separate action published in this issue of the Federal Register, the Commission has issued a final rule amending 10 CFR Parts 30, 32, 40, 50, 52, 60, 61, 70, 71, 72,110, and 150.

- EFFECTIVE DATE:

This action is effective on [30 days after publication in the Federal Register).

FOR FURTHER INFORMATION CONTACT: James Lieberman, Director, Office of Enforcement, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001, (301) 415 2741.

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SUPPLEMENTARY INFORMATION:

The Commission's " General Statement of Policy and Procedure for NRC Enforcement Actions" (Enforcement Folicy or Policy) was first issued on September 4, 1980 Since that time, the Enforcement Policy has been revised on a number of occasions. On June 30,1995 (60 FR 34381), the Enforcement Policy was revised in its entirety and was also published as NUREG 1600. The Policy primarily sddresses violations by licensees and certain non-licensed persons, as discussed further in footnote 3 to Section I, Introduction and Purpose, and in Section X: Enforcement Action Against Non-licensees.

The Deliberate Misconduct Rule was adopted in September 1991 and 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, or any licensee. The Deliberate Misconduct Rule placec' 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 e

NRC.

The final rulemaking expands the Deliberate Misconduct Rule, where it appears in 10 CFR Parts 30,40,50,60,61,70,72, and 110, and adds the Rule to Parts 52 and 71.

This expansion arises out of a realization that the current Rule does not apply to applicants 2

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for NRC licenses, applicants for, or holders of, certificates of compliance, early site i

permits, standard design certifications, or combined licenses issued under Part 52, i

applicants for or holders of certificates of registrationjuality assurance program approvals -

and the employees, contractors, subcontractors, and consultants of those persons. The Commission believes that it is equally important for these categories of persons to be subject to enforcement action for deliberate wrongdoing, such as the submission of inaccurate or incomplete information.

The Commission is making this change to the General Statement of Policy and Procadure for NRC Enforcement Actions to make it consistent with the regulations. The changes include: (1) expansion of footnote 3 in Section I, which discusses the scope of the Policy; (2) deletion of the reference to vendors in Section VI.C 5, to avoid possible confusion as a result of a partiallisting of those to whom the Rule and Policy apply; and (3) restating the opening sentence in Section VI.C.5 and in Section X: Enforcement Actions Against Non-licensees, to set out the full scope of the Rule and its application through the Enforcement Policy.

The Commission has held that the term " contractor" includes a vendor or supplier that manufactures and offers for sale materials intended for use by NRC licensees and certified to meet the requirements of 10 CFR Part 50, Appendix B. In the Matter of: Five Star Products, Inc. and Construction Products Research, Inc., 38 NRC 169, CLl 93 23 (October 21,1993), in light of that holding, the remaining references to vendors throughout the Enforcement Policy are also being modified to refer to contractors as the 3

l TABLE 1 A-BASE CIVIL PENALTIES -

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Power reactors an aseous dif3 sion pl s......

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Fhe I fabricators, indus rlal p Ecos sors,f jnc indepfndep't spent uretrhble Wage installations....(.V...........w and rr oniJored. f

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Test reactors, mills and uranium conversion f acilities, contractors, waste disposal licensees, i

and industrial radiographers.......................$ 11,000

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l C. - Orders

5. Orders to non-licensees, including contractors and subcontractors, holders of NRC approvals, e.g., certificates of compliance, early site permits, standard design certificates, or applicants for any of them, and to employees of any of the foregoing ere j

used when the NRC has identified deliberate misconduct that may cause a licensee to be in violation of an NRC requirement or where incomplete or ireccurate information is deliberately submitted or where the NRC loses its reasonable assurance that the licensee will meet NRC requirements with that person involved in licensed activities.

9

,......7....;..

X. ENFCRCEMENT ACTION ACAINST NON LICENSEES The Commission's enforcement policy is also applicable to non-licensees, including contractors and subcontractors, holders of NRC approvals, e.g., certificates of compliance, early site permits, standard design certificates, quality assurance program approvals, or applicants for any of them, and to employees of any of the foregoing, who knowingly provide components, equipment, or other goods or services that relate to a licensee's activities subject to NRC regulation. The prohibitions and sanctions for any of these persons who engage in deliberate misconduct or knowing submission of incomplete or inaccurate information are provided in the rule on deliberate misconduct, e.g.,10 CFR 30.10 and 50.5.

Contractors who supply products or services provided for use in nuclear activities are subject to certain requirements designed to ensure that the products or services supplied that could affect safety are of high quality. Through procurement contracts with licensees, suppliers may be required to have quality assurance programs that meet applicable tsquirements e.g.,10 CFR Part 50, Appendix B, and 10 CFR Part 71, j

Subpart H. Contractors supplying certain products or services to licensees are subject to the requirements of 10 CFR Part 21 regarding reporting of defects in basic components.

When inspections determine that violations of NRC requirements have occurred, or that contractors have failed to fulfill contractual commitments (e.g.,10 CFR Part 50, Appendix B) that could adversely affect the quality of a safety significant product or service, enforcement action will be taken. Notices of Violation and civil penalties will be 13

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@36 The Honorable Newt Gingrich

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Speaker of the United States House of Represnetatives h.

Wathington, DC 20515 Dear Mr.

Pursuant to Subtitle E of the Small Business Regulatory Enforcement Fairness Act of 1996, 5 U.S.C. 801, the Nuclear Regulatory Commission (NRC) is submitting a final rule to amend 1 regulations to extend the Deliberate Misconduct Rule to six categories of persons: applicants for NRC licenses; applicants for, and 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 holdors 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 in some respect material to the NRC, or it may involve conduct that causes or would have caused, if net detected, a licensee, certificate holder, or applicant to be in violation of any of the Commission's requirements. Thc NRC b::!! eves thet because there may be significant safety consequences from the intentional submittal of incomplete or inaccurate information or other deliberate wrongdoing by such persons, these persons should be subject to enforcement action under the Commission's existing rules regarding deliberate raisconduct, in addition, the NRC's Enforcement Policy is modified concurrently to reflect these changes to the regulations.

We have determined that this rule is not a " major rule" as d9 fined in 5 U.S.C. 804(2). We have confirmed this determination with the Office of Management and Budget.

l l

Enclosed is a copy of the final rule, which is being transmitted to the Office of the Federal Register for publication. The Regulatory Flexibility Certification is included in the final rule.

A Regulatory Analysis has been prepared for this final rule and is included in the Federal Register notice, however the benefits derived from the changes to the current regulation are similar to those proided by the Deliberate Misconduct Rule, which became effective on September 16,1091.

Sincerely, Dennis K. Rathbun, Director Office of Congressional Affairs

Enclosure:

Final Rule

- - -. - - ~ - - - - - - - - - - -

v The H:norcble Newt Gingrich t'

Speak:r cf the Unit:d St:tes Hous3 of Repr:snet:tiv:s Washington. DC 20515 fDear Mr.

- Pursuant to Subtitle ~E of.the Small Business Regulatcry Enforcement Fairness Act of 1996, 5 U.S.C. 8014 the Nuclear Regulatory Commission (NRC) is ubmitting a final rule to amend its regulations to extend tha Deliberate Misconduct Hule to six categories of-persons: applicants for NRC licenses; applicants for, and 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, subcontractc,rs, and cor&Jitants of the first five categories of persons, so that they may be subject to enforcement action for deliberett misconduct.

Deliberate misconduct may involve providing information that is known to be incomplete or inaccurate in some resmet 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. The NRC believes that because there may be significant safety consequences from the intentional submittal of incomplete or-inaccurate information or other deliberate wrongdoing by such persons, these persons should be subject to enfoicement action under the Commission's existing rules regarding deliberate misconduct. In addition, the NRC's Enforcement Policy is modified concurrently-3 to reflect these changes to the regulations.

We have determined that this rule is not a " major rule" as defined in 5 U.S.C. 804(2). We have confirmed this determination with the Office'of Management and Budget.

L Encloced ls' a copy of the final rule,'_ whir:n is being transmitted to the Office of the Federal Register for publication. The Regulatory Flexibility Certification is included in the final rule.

1

- A Regulatory Analysis has been prepared for this final rule and is included in the Federal Register notice, however the benefits derived frwn the changes to the current regulation

are similar to those provided by the Deliberate Misconduct Rule, which became effective

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on September 16,1991.

Sincerely, e

i Dennis K. Rathbun, Director Office of Congressional Affairs

Enclosure:

Final Rule i

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The Honorable Al Gore President of the United i

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Washington, DC 20 0

Dear Mr.psffT Pursuant to Subtitle E of the Small Business Regulatory Enforcement Fairness Act of 1996, 5 U.S.C. 801, the Nuclear Regulatory Commission (NRC) is submitting a final rule to amend its regulations to extend the Delioetste Misconduct Rule to six categories of -

persons: applicants for NRC licenses; applicants for, and ho!ders of, certificates of compilence; applicants for, of holders of, early site permits, standsd design certifications, or combined licenses for nuclear power plants; applicants for, or holders of, certificates of registration; applicants f ar, or holders of, quality assurance program opprovals; and the l

employees, contractors, subcantractors, and consultants of the first five categories of persons, so that they may be subject to enforcement action for deliberate misconduct.

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Deliberate misconduct may involve providing information that is known to be incomplete or fnaccurate 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 i

violation of any of the Commisslun's requirements. The NRC believes that because there may be sigr.ificant safety consequences from the intentional submittel of incomplete or inaccurats information or other deliberate wrongdoing by such persons, these persons i

thould be subject to enforcement action under the Commission's existing rules regarding deliberate misconduct, in addition, the NRC's Enforcement Policy is modified concurrently to reflect these changes to the regulations.

We have w wrmined that this rule is not a " major rule" as defined in 5 U.S.C. 804!2). We l

have contumed this determinatl.m with the Office of Management and Budget.

Enclosed is a copy of the final rule, which is being transmitted to the Office of the Federal Register for publication.. The Regulatory Flexibility Certification is included in the final rule.

A Regulatory Analysis has been prepared for this final rule a W is included in the Federal 8tegister notice, however the benefits derived from the char.cos to the current regu!stion ce similar to tnose provided by the Deliberate Misconduct Rule, which became effective on September 16,1991.

6 Sincerely, Dennis K. Rathbua, Director Office of Congressional ANeits j

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The Honorable Al Gore

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Pr:sident of the United Stat:s Son:te Washington, DC 20510 I

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Pursuant to Subtitle E of the Small Business Regulatory Enforcement Fairness Act of Igg 6, j

6 U.S.C. 801, the Nuclear Regulatory Commission (NRC) is submitting a final rule to amend its regulations to extend the Del:!* rate Misconduct Rule to six categories of persons: applicants for NRC licenses; applicants for, and holders of, certificates of compliance; applicants for, or holders of, early site permits, standard design certifications, or combined licenses for nuclear power plants; applic.mts for, or holders of, certif! cates of registration; applicants for, or holders of, quality assurance program approvals; and the i

employees, contractors, subcontractors, and consuhants of the first five categories of i

l 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 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. The NRC bolivves that because there may be significant safety consequences from the intentional subm ttei of incomplete or inaccurate information or other deliberate wrongdoing by such persons, these persons should be subject to enforcement action under the Commission's existing rules regarding i

deliberate misconduct. In addition, the NRC's Enforcement Polky is modified concurrently to reflect these changes to the regulations.

We havw determinsd ti.at this rule is not a " major rule" as defined in G U.S.C. 804(2). We

[

1 have confirmed thh determination with the Office of Management and Budget.

t i

Enclosed is a copy of the final rule, which is being transmitted to the Office of the Federal Register for publication. The Regulatory Flexibility Certification is included in the final rule.

A Regulatory Analysis has been prepared for this final rule and is included in the Federal Register notice, however the benefits derived from the changes to the current regulation are similar to those provided by the Deliberate Misconduct Rule, which became effective on September 16,1991.

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Sincereiy,

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i Dennis K. Rathbun, Director Office of Congressional Affairs i

Enclosure:

Final Rule r

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'The Offices of Administration, Nuclear Reactor Reguiation, Nuclear Material Safety and Safeguards, Enforcement, and State Programs concur in the Final Rule amendments. The Chief Financial Officer has reviewed this Commission Paper for resource impacts and has no objections. The Chief information Officer has reviewed this Commission Paper for Information technology and information management implications and concurs in it. The Of fice of the General Counsel has no legal objection to this Final Rule.

Attachment:

Commission Paper w/encis.

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