ML20198Q028

Requests That Commission Action Be Implemented by Arranging for Publication of Encl Proposed Rule, Deliberate Misconduct by Unlicensed Persons, in Fr,Allowing 75 Days for Public Comment

ML20198Q028
Person / Time
Issue date:	09/25/1996
From:	Bahadur S NRC OFFICE OF NUCLEAR REGULATORY RESEARCH (RES)
To:	Meyer D NRC OFFICE OF ADMINISTRATION (ADM)
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 AF35-2-030, AF35-2-30, NUDOCS 9801220320
Download: ML20198Q028 (1)

Text

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. MEMORANDUM 10: David L. Meyer, Chief A F W-L ,

Rules Review and Directives Branch #~

Olvisicn of Freedom of Information and Publications Services Office of Administration FROM:

Sher Bahadur, Acting Chief /s/i j Regulation Development Branch Division of Regulatory Applications Office of Nuclear Regulatory Research

SUBJECT:

IMPLEMENTATION OF COMMISSION ACTION: PROPOSED RULE-DEllBERATE MISCONDUCT BY UNLICENSED PERSONS By memorandum dated September 11, 1996, the Secretary of the Commission indicated that the Commission (with all Commissioner's agreeing) has approved the proposed rule on Deliberate Misconduct by Unlicensed Persons set o'ct in SECY-96-184.

Please implement the Commission's action by arranging for publication of the

• attached proposed rule in the Federal Register allowing 75 days for public comment.

Attached are three copies of the Federal Register notice plus a disk, a marked-up copy of the Federal Register Notice showing requested changes by the Office of Administration, a Congressional letter package for transmittal to OCA, two copies of the public announcement for transmittal to OPA, and the Comission's SRM.

Attachments:

1. Federal Register Notice 3 copies + disk

2. Marked-up Copy of FR Notice

3. Congressional Letter Package

4. Public Announcement (2 copies)

5. SRM dated 9/11/96 D1HRIBUTIONt Central f/c RDS r/f DNorrison CJHeltemos BMorris w/ enc 1.

FCostanzi RAuluck LRiani CGallagher DNor " ' a DOCUMENT NAME: 0:\0!PALO)DELMISRL 0FC R@:DAA - f f, RDB:DRA

_ m NAME diPkoiayw k b SBahadurN 0

DATE $ /M[96 /h96 0FFICIAL REC 0itD COPY Ng RES FILE CODE:

. 9901220320 990114-POR PR 30 57FR1990 PDR

Attachment 1 Federal Reaister Notice (3 Copies + Disk)

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ACTION: Morris:n, RES

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/ 'c'o, UNITED STATES NUCLEAR REGULATORY COMMISSION Cys: Taylor Milhoan

• I wasHawof ow. o.c. rosss Thompson

., Blaha DiPalo, RES

%,*****,/ Septeinbe r 11, 1996 Lesar. ADM OFFICE OF THE Shelton, IRM SECRETARY MEMORANDUM TO: James M. Taylor Execu Ave ire tor for Operations

.FROM: John C YHo ,

k ecrer.ary

SUBJECT:

STAF1 REQUIREMENTS - SECY-96-194 - PROPOSED RULE - DELIBERATE MISCONDUCT BY UNLICENSED PERSONS The Commission has approved publication of the proposed rulemaking in the Federal Register allowing 75 days for public comment.

(RES) 9600007 cc: Chairman Jackson Commissioner Rogers Commissioner Dicus Commissioner Liaz Commissioner McGaffigan OGC OCA OIG Office Directors, Regions, ACRS, ACNW, ASLBP (via E-Mail)

SECY NOTE: THIS SRM, SECY-96-184, AND THE VOTE SHEETS OF ALL COMMISSIONERS WILL BE MADE PUBLICLY AVAILABLE 5 WORKING DAYS FROM THE DATE OF THIS SRM.

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_RULEMAKING ISSUE August 20, 1996 SECY-96-184

[DB: The Commissioners ifM: James M. Taylor, Executive Director for Operations

SUBJECT:

PROPOSED RULE - DELIBERATE MISCONDUCT BY UNLICENSED PERSONS PURPOSE:

To obtain Comission approval for publication of proposed amendments to the Deliberate Misconduct Rule, found at 10 CFR 30.10, 40.10, 50.5, 60,11, 61.9b, 70.10, 72.12, and llo.7b. These amendments will make this rule apply to six new categories of persons: (1) applicants for NRC licenses; (2) applicants for, or holders of, certificates of compliance issued under 10 CFR Parts 71 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.

BACKGROUND:

In 1991, the Commission adoptad changes to NRC regulations that established the Deliberate Misconduct Rule, which took effect September 16, 1991. This rule placed licensed and unlicensed persons on notice that they may be subject to enforcement action for deliberate misconduct that causes or wouid have

@Jf;. TO BE MADE PUBLICLY AVAILABLE WHEN THE FINAL SRM IS MADE AVAILABLE CONTACT:

Tony DiPalo, DRA/RES (301) 415-6191 y eq fof2fD?1 0 4 9- &

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The Commissioners 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. This rule also revised NRC's procedures for issuing orders to include persons not licensed by the Commission, but who are  !

otherwise subject to the Commission's jurisdiction.

On November 29, 1991, the NRC staff issued an Order Revoking License to Dr. Randall C. Orem after the staff learned that information in his license a) plication was false and the Office of Investigations (01) determined that tie application was prepared for the applicant by a consultant, who provided the false information. See Landa11 C. Orem. D.0., CLI-93-14, 37 NRC 423 (1993). The Commission, in commenting on a Settlement Agreement reached between Dr. Orem and the NRC staff on the staff's enforcement order, stated:

"We cannot overstate the importance of a licensee's or an applicant's duty to provide the Commission with accurate information." JA. at 427. In this case, the staff realized that under the provisions of the existing Deliberate Misconduct Rule, it was unable to take additional enforcement action against Dr. Orem and it was precluded from taking enforcement action against the consultant. In responding on March 28, 1994 to a staff requirements memorandum (SRM) dated June 28, 1993, the staff discussed the difficulty in ,

reaching Dr. Orem's consultant from an enforcement perspective, because the consultant was working for an applicant rather than for a licensee. This rulemaking is a result of that case.

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 licenses or certificates of compliance. The Commission, in an SRM dated February 8, 1996, advised the Executive Director for Operations (EDD) that it approved SECY-96-017 and had no objections to the proposed changes to the Deliberate Misconduct Rule. In developing this rulemaking the staff now proposes to extend the scope of the Deliberate Misconduct Rule to also cover applicants for, or holders of, early ite 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 of, quality assurance program approvals issued under Part 71 (including the employees of their contractors, subc u tractors and consultants).

DISCUSSION:

In 1987, the Commission promulgated rules concerning completeness and accuracy of information-that apply to information provided to the Commission by an applicant for a license or by licensees (see 10 CFR 30.9(a), 40.9(a), 50.9(a),

54.13,55.9,60.10(a),61.9a(a),70.9(a),71.7(a),72.ll(a),76.9(a),and

.110.7a(a))'. .Similarly, paragraph (b) 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, ori if. appropriate, referral to the Department of Justice for

- consideration' for criminal prosecution.

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1. The Commissioners b In 1991,'the Commission established the Deliberate Miscondo:t Rule found at 10 CFR 30.10, 40;10,_50.5, 60.11, 61.gb, 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 li contractor or subcontractor, of any licensee. Currently, the Deliberate Misconduct Rule does not specifically apply to: .(1) applicants _for NRC l licenses; (2) applicants for, or holders of, certificates of compliance issued j under 10 CFR Parts 71 and 72, including those for dry cask storage; (3) applicants for._or holders of, ear y site permits,. standard design  !

certifications, or combined licenses for nuclear power plants issued under i 10 CFR Part:52; (4) applicants for, or holders of, certificates of-  ;

repistration issued under 10 CFR Parts 30 and 32;;(5) applicants for, or. ,

ho ders of, quality assurance program approvals-issued under 10 CFR Part 71;  ;

and (6) the employees, contractors,. subcontractors ~ and consultants of the- 1 first-five categories of persons. Deliberate misconduct may~ involve  !

- deliberately providing incomplete or inaccurate information to the NRC, or it j may involve deliberately causing a licensee or certificate holder to be in i

. violation of any of,the Commission's requirements. To ensure that these-  !

categories of persons are subject.to enforcement action-for wrongdoing under

- the Deliberate Misconduct Rule, the staff is pro >osing to extend the rule to. l '

them.: The proposed rule also would add the Deli >erate Misconduct Rule to 10 CFR Parts 52 and 71 where it currently does not appear. Through this action )

the NRC-will be better able to take enforcement action against any person who j deliberately provides incomplete and inaccurate information to the NRC, or who i deliberately engages in misconduct which causes a violation of Commission i requirements.

The staff does not believe that it is necessary to add the Deliberate  !

Misconduct Rule to 10 CFR Part 54.because licensees applyino to renw their i operating ?.icenses for nuclear power plants are already subject to this rule l

- as licensees under 10 CFR Part 50. 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 are ,

already subject to this rule as employees of 10 CFR Part 30 licensees. '

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Moreover,' licensed. operators are subject to all appilcable Commission 4 requirements.(see 10 CFR 55.53 (d)) and thus a-finding of deliberate

. misconduct is not required to take enforcement action against a licensed j reactor operator.  ;

The-staff intends to revise its Enforcement- Policy to address enforcement action against the unlicensed persons noted above at the time of publication  :

-of the final rule.  :

C00RDINATIGN:= f

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The Office of;the General = Counsel has no legal objection to this proposed I rule. .

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i The Commissioners RECOMMENDATION:

That the Commission:

1. Approve publication in the Federal Register of the notice of the attached proposed rulemaking.

2. In order to satisfy the requirements of the Regulatory Flexibility Act, 5 U.S.C. 605(b), certify that this rule, if promulgated, will not have a significant economic impact on a substantial number of small entities. This certification is included in the attached Federal Reaister Notice.

3. Note:

a. The proposed rulemaking (Attachment 1) will be published in the Federal Reaister allowing 75 days for public comment.

b. The ap)ropriate Congressional committees will be info)med (Attac1 ment 2).

c. A public announcement will be issued by the Office of Public Affairs when the proposed rulemaking is filed with the Office of the Federal Reaister (Attachment 3).

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The Commissioners d. The Chief Counsel for Advocacy of the Small Business -

Administration will be informed of the certification and the -

reasons, as required by the Regulatory Flexibility Act,

e. .The proposed rule does not contain any new or amended information collection requirements subject to the Paperwork Reduction Act of 1995(44U.S.C.3501,etseq.).

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V-g iWs M. T lor xecutive irector for Operations Attachments:

1. Draft FRN

- 2. Draft Congressional Ltrs.

3. Public Announcement Commissioners' comments or consent should be provided directly to SECY by COB Thursday, September 5, 1996. Commission staff office comments, if any, should be submitted to the Commissioners NLT August 28, 1996, with an information copy to SECY. If the paper is of such a nature that it requires additional review and comment, the Commissioners and the Secretariat should be apprised of when comments may be expected.

DISTRIBUTION: ,

Commissioners OGC_ j OCAA 01G OPA OCA EDO SECY' '

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Attachment 1 Federa) pe01 Ster Notice  !

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NUCLEAR REGULATORY ComISSION 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 Comission.  ;

ACTION: Proposed rule.

SUMMARY

The Nuclear Regulatory Comission (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, 1

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 categorier 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.

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4 DATES: The comment period expires [ insert dat'e 75 days from publication)..

Comments received after this date will be ' considered if it.is practical to doz {

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so, but the Commission is able to assure consideration only for comments ,

i received on or/ before this date, l.

ADORESSES:' Comments maylbe 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 l 4:15 pm _on Federal workdays.

FOR FURTHER-!NFORMATION CONTACT: Tony DiPalo, Office of Nuclear _ Regulatory -

Research, U.S. Nuclear Regulatory Commissien, Washington, DC 20555-0001,- ]

telephone (301) 415-61gl,Le-mail, ajd9nrc. gov. l SUPPLEMENTARY INFORMATION:

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> Background On August 15, 1991 (56 FR.40664), the Commission adopted changes.to NRC 1

' regulations that established the Deliberate Misconduct Rule found at 10 CFR  :

130.10, 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 sw :suppliek or consultant), subcontractor, or.any employee of aLeontractor or i 4 subcontractor,=of'anyL11censee.I;In' addition,110CFR150.2makestherule f Lapplicablekto;personsiconducting~activitiesunoerreciprocityinareasof.NRC- i lj0r,isdiction,1(see 10'CFR 150.20). The Deliberate Misconduct Rule placed- -[

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. licensed and unlicensed persons on notice that they may be subject to

, enforce'ent 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 j i

otherwise subject to the Commission's statutory authority. i Currently, the Deliberate Misconduct Rule does not apply to:

(1) Applicants for NRC licenses; (2) Applicants for, or holdert, 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 $2; (4) Applicants for, or holders of, certificates of registration issued under Parts 30 and 32; (5) Applicants for, or holders of, quality assurance projram approvals issued under 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.-

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The Comission 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 b 9ecessary 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 Comission 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 Comission 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, subsection (b) 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 4

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application, civil enforcement action against a licensee, or, if appropriate, j

-referral;to.the Department of. Justice for. consideration for criminal prosecution. . ,

The Deliberate Misconduct Rule pemits the NRC-to take individual j i

action,,such as issuin

sn order, against an individual who deliberately._  !

- provides information that the individual knows to be incomplete or ' inaccurate. 1 However, .when the Deliberate Misconduct Rule was promulgated, it did not ,

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l address applicants for licenses, applicants for, and holders of, certificates- .j of compliance or certificates of registration, applicants for, and holders of,-

Jearly site pemits, certified designs and combined licenses, and applicants l

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l 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 i

'has been issued. The Commission has clearly emphasized the importance of ,

applications containing accurate information; e.g., "[The Commission) cannot  !

ti overstate'the importance of a licensee's or an applicant's duty to provide the Commission with accurate information." Randall C. Ores. D.O. , CLI-93-14, 37 t The' grge case involved a consultant to an applicant for a NRC.423l(1993). y!

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-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. JJ.

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The Commission believes that there may be significant; safety j i

consequences from ths deliberate submission of false or incomplete information  !

or.other. deliberate wrongdoing._by an applicant ^for a license or other'

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unlicensed persons proposed to be covered by this modification to the  ;

1 m Deliberate. Misconduct Rule. For example, a spent fuel cask that is certified  :

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by the NRC on the basis of falsified test data could represent a threat to public health and safety. Similarly, a quality assurance r ogram that is submitted to the NRC for approval but is supported by deliberately falsified 1 I

data that mask a significant defect could also be a public health and safety threat. Under the present Deliberate Mtsconduct 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 P not have put an 'NRC licensee" in violation. To effectively exercise its authority under the AEA, the Comission 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 Comission 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 l

! 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 issuad under 10 CFR Part 52; to applicants for, and holders of, I 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 onsultaV.

engaged by an applicant to prepare a license application for such acth.tht 6

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C 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 ,

l application.

The proposed revisions to the Deliberate Misconduct Rule will appear in  ;

-10 CFR 30.10, 40.10, 50.5, 60.11, 61.9b, 70.10, 72.12, and llo.7b. Section 71.11 will be added to incorporate the rule in Part 71 and i 52.10 will be ,

- added to incorporate the rule in 10.CFR part 52. In-addition, 10 CFR 150.2 and 10 CFR 32.1(b) will be revised to incorporate the proposed changes. Also,-

.the scope provisions found in 10 CFR 30.1, 40.2, 50.1, 52.1, 60.1, 61.l(c),

70.2, 71.0, 72.2, and 110.1(a) are being modified to reflect these revisions to the rule. The Commission is also making 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 P' arts 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'ragistration issued under Parts 30 and 32; and applicants for, and holders of, quality assurance program approvals issued under Part 71; and t

to the employees, contractors, subcontractors and consultants of all the above 7 .

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categories of persons, implements the Comission's authority under the AEA to issue regulations and orders to any person (defined in section !!s of the AEA to include, e.g., an individual, corporation, firm, or a federal, State, or <

local agency) who engages in ecnduct affecting activities within the Comission's subject matter jurisdiction.

In brief, section 1611 of the AEA provides broad authority to issue -

regulations and orders as the Comission 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 Comission 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 AEn 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 or any rule, regulation, or order issued thereunder, or any term, condition, or limitation of any license or certification issued thereunder, or (2) comits any violation for which a license may be revoked under section 186, shall be subject to a civil penalty, to be imposed by the ,

Comission, of not to exceed $100,000 for each such violation....

The licensing provisions listed in section 234a generally prohibit the 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 ano certification provisions in 8

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., 6 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 1. 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 9

l 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 en FedWorld can be accessed directly by dialing the toll-free number (800) 303-9672. Communication software parameters should be set as follows: phrity to none, data bits to 8, and stop bits to 1 (N,8,1). Using ANSI or VT-100 l 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 Kell." 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 sy:+em.

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 10

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. 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.

1 list of files without descriptions-(normal Gopher look). An index file L listing all' flies within 'a subdirectory, with descriptions, is available, j :

There is a 15-minute time limit for FTP access.

l

- Although FedWorld also can be accessed through' the World Wide" Web, .like l

- FTP 'that mode only provides accessLfor downloading files and does not display.

l- - 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 AXD3Gnrc. gov.

Certain. documents related to this rulemaking, including comments -

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

l (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.

4 - Environmental Impact: Categorical-Exclusion '

L l .

;The NRC has determined that this proposed rule relates to enforcement .

i

~ matters and, therefore, falls within the scope of 10 CFR 51'10(d). Therefore, neither an environmental impact statement nor an environmental assessment has

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i 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- l Managesent and Budget,' approval numbers 3150-0017, 3150-0151, 3150-0127, 3150-0135, 3150-0009, 3150-0132, 3150-0036, and 3150-0032. 1 k

Public Protection Notification [;

-The NRC may not conduct'or sponsor, and a person is not required tu  !

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

OMB-control number.

Compatibility of Agreement State. Regulations ,

This rule is designated a Division-3 matter of compatibility with 4

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 - i administrative code. Division-3 regulations are appropriate for Agreement

^

States lto adopt,fbut do'not' require any degree of uniformity between the NRC Y

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and Agreement State rules. Agreement States are not required to adopt the-regulatory approach identified in Division-3 regulations.--

1 1

j Regulatory Analysis {

I The Nuclear Regulatory Commission has statutory authority to issue -  ;

enforcement actions against unlicensed persons whose deliberate risconduct causes a licensee or a certificate holder. or an applicant for a license or certificate to be in violation of the Comission's requirements.. In 1991, the NRC promulgated the Deliberate Misconduct Rule (56 FR 40664) which put licensed and unlicensed persons on notice that they may be subject to enforcement action- for deliberate misconduct that causes or, if not detected, would cause a licensea 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 incompletc or inaccurate in some respect material to the NRC. However, the Deliberate Miscondu# Rule does not

specifically apply to (1) applicants for NRC licenses, (2) applicants for, and holders of, certificates of compliance hsued under 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 Part 52, (4) applicants for, and-holders of, certificates of registration issued under Parts 30 and 32, (5)-applicants for, and holders of, quality assurance program approvals. issued under Part 71, and (6) the employees, contractors,/ subcontractors and consultants of the'first five categories of persons.

. _ _ _ _ . - ~_

On November 29, 1901, the NRC staff issued an Order Revokhg License to Dr. Randall C. Oram after the 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. 0.0.,

CLI-93-14, 37 NRC 423 (1993). In this case, the staff realized that under the provisions of the existing Delioerate Misconduct Rule, it was unable to take additional enforcement action against Dr. Orem and it was preclue from taking enforcement action against the consultant because the cotw unt ns working for an applicant rather than for a licensee. Subsequently, the Commission realized that other categories of persons within the Commission's jurisdiction had not been explicitly included within the Deliberate Misconduct Rule; e.g., certificate holders under Parts 71 and 72 and holders of early site permits, certified design certifications and combined licenses under 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 b/ this modification to the Deliberate Misconduct Rule. For example, a spent fuei 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 th at. - The potential hr injury is serious, and the NRC knows of no reason why the Deliberate Misconduct Rule should not apply to persons who deliberately l submit materially incomplete or inaccurate information, whether 14

.. . = . . .-

+

)

3._ -

thatLsubmittal 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 Daliberate' 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.

4 The alternatives available to the Commission are to promulgate a modification-of the Deliberate Misconduct Rule, as is proposed herein, or do nothing. Given the fact that a case has already occurred where the Commission was precluded from taking appropriate enforcement action against a consultant to an applicant, and the 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 as to corrective action taken, and'an enforcement order, if obeyed, will directly control the involvement of-an individual in a licensed activity. The effect of having 15

n. .- _ . - -,- . .. - - - - . . - . _ . . . - - . .-_ . . .

l 1

, q these optionsl avail'able .in the enfor_ ement- c program should reduce.the

' probability of. repetitive vio1'ations by wrongdoers.

"The NRC does notLanticipate' 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. i i

The rule constitutes the preferred-course of action and the cost involved in its promulgation' and application is necessary and appropriate.

ine. foregoing discussion constitutes the regulatory analysis for this rule.

Regulatory riexibility Certification 9

d' 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 1icenses; (2). applicants-for,vand holders of,tcertificates of compliance istued 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 -

h 11ssued underL10 CFR Part 52;;(4) applicants for, and holders of, certificates.

U Lof registration issuedL c under. Parts 30 and 32; (5)- applicants for,-and holders -

- of 1 quality assurance program approvals issued under Part -71; and (6); the o ,

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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, they 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).

List of Subjects 10 CFR Part 30 Byproduct material, Criminal penalties, Government contracts,

' Intergovernmental relations, Isotopes, Nuclear materials, Radiation protection,. Reporting and recordkeeping requirements.

17-

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10 CFR Part 32:

/ Byproduct materiakCriminallpenalties, Nuclear materials,7 Labeling,.

- TRadiation protect. ion, Reporting and recordkeeping requirements;

1. Il0 CFR:Part 40-

- Crisinal 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, q

Intergovernmentil relatio'ns,' 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 i

= license, Early site' permit,: Emergency planning, Fees, Inspection, Limited work

. . authorization,E Nuclear power plants and reactors, Probabilistic risk -

I assessment,- Prototype, Reactor siting criteria, Redress of site, Reporting and-4 recordkeeping requirements, Standard _ design, Standard design' certification.

210 CFR Part 60

$, R Criminals penalties, High-level waste, Nuclear power plants and reactors,-

,, :p Nuclear-materials,;. Reporting' and recordkeeping requirements, Waste treatment:.

1iandfdisposal.: ,

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10 CFREPart'61:

CrjuinaNpenalties, Low-level waste, Nuclear materials,: Reporting.and recohdkeeping-requirements;LWastetreatmentanddisposal:.-: q

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--10 CFR Part 70; q

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' ! Criminal penalties,! Hazardous materials transportation, Material control-  ;

v and accounting, Nuclear materials, Packaging and containers, Radiation

protection,

Reporting and recordkeeping requirements, Scientific ' equipment, >

Security measures,- Special nuclear material.- d 10'CFR Part 71-Criminal penalties,-Hazardous materials transportation, Nuclear materials, Packaging and containers, Reporting 1and recordkeeping requirements. 3

'10 CFR Part 72 Manpower training programs,_ Nuclear materials, Occupational safety and health; Reporting and recordkeeping tequirements,2 Security measures, Spent ,

fuel,

'10 CFR.Part 110 Administrative practice and-procedure, Classified;informati1on,' Criminal. -

ipenalties,; Export',; Import,L Intergovernmental;. rel ations, Nuclear materials,

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, ' Nuclear' powerLplants and reactors,. Reporting and recordkeeping~ requirements,. d o _

Scientific equipmentn

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10 CFR Part'1507 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 4, as ar ad; the Energy Reorganization Act of 1974, as awended;. and 5 U.S.c. 553; ti.a 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, (4r U.S.C. 5851).

Section 30.34(b) also issued under sec. 184, 68 Stat. 9! . .s amended (42 U.S.C. 2234)-, - Section 30.61 also issued under sec.187, 68 Stat. 955 (42 U.S.C. 2237).-

20

' ~ '

2m ;Section 30.1, Scope'is revised to read as follows:-

• ~

'l 30'l' Scone.

LThis..part ~prsscribes rules applicable to all personsiin the United:

- States governing domestic licensing of byproduct material-under the Atomic-Energy Act of41954,' as amended- (68 Stat. 919),cand. 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,-th'at-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 i 30.10.

F

3. -

Section 30.10 is revised to read as follows:

1 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 -l

consultant),- subcontractor, employee of a contractor or subcontractor'of- any 4

licensee 6 applicant for a license or certificate of: registration, who i knowingly lprov_ ides to any. licensee, applicant, certificate holder, contractor, c>

E or;suEontractor,lany components, equipment, materials, or other goods or L' 8 k I. 4 a  : 21

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services 1that 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 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.

22

i l

i i

LPART 32--SPECIFIC DOMESTIC LICENSES TO MANUFACTURE OR TRANSFER CERTAIN ITEMS CONTAINING BYPRODUCT MATERIAL 1

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.l(b) is revised to read as-follows:

5 32.1 Purpose and scope.

(a) ..........

(ks The provisions and requirements of this part are in addition to, and not in n;stitution 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 i follows:

AUTHORITY: Secs. 62, 63, 64, 65, .81,161,182,183,186, 68 Stat. 932,

-933,~935, 948, 953, 954, 955,- as amended, secs, lle(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.

23'

l5841,7 5842,: 5846);-- sec. 275, 92 Stat.- 3121, ts amended by- Pub. L. 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 ame. 'ad by Pub. L. 102-486, sec 2902, 106-Stat. 3123, (42 U.S.C. 5851), r

'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 amanded (42 U.S.C.

2234).- Section 40.71 also issued under sec.107, 68 Stat. 955 (42 U.S.C.

2237). .

7.: Section 40.2, Scope is revised to read as follows:

1 40.2 Scope.

Except as provided in il 40.11 to 40.14, inclusive,' the regulations in this.part: apply to all persons in the United Sta?es. 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 5 40.10.-

8. Section 40.10 is revised to read- as follows:

.5 40.10 Deliberate miscondJct.

(a) Any licensee, applicant for a license, employee of a licensee or applicant;; or any contractor (including a supplier or consultant),

24

, ~f

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 thispart;maynot:

(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 intentioni.1 act or omission that the person

_ knows:

-(l) 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 Crvaission; or

(?) Constitutes a violation of a requirement, procedure, instruction, contract purchase order,- or policy of a licensee, applicant, contractor, or

abcontractor.

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- 25 l' N-v

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i PART SOLDOMESTIC LICENSING OF PRODUCTION-AND UTILIZATION FACILITIES

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

3

'~

AUTHORITY:" Secs. - 102, .103, 104, .:105, : 161, 182, 183,[186,- 18'), 68 Stat.

1936,- 937,_938, 948, 953, 954, 955, 956,: as-_ amended, sec. 234, 83 Stat._-1244,-

as amendedL(42 U.S.C. 2132, 2133, 2134, 2135,-2201, 2232,_2233,-2236, 2239,

[ 2282); secs.i201, as amended, 202, 206, 88 Stat. 1242, as amended, 1244,-1246 (42 U.S.C. 5841, 5842, 5846).

m

- -Section-50.7-also issued under Pub. L.95-601, sec. 10, 92 Stat. 2951 as amended-bytPub~-L. 102-486,isec; 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, 50.55g and Appendix Q also-issued under sec. 102,-Pub. L.91-190, 83 Stat.x 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 issuediunder 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).

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.10.. Section 50.1, Basis, purpose, and procedures applicable is' revised to. read as follows:-

~

l 50.1 Basis. 'DurDose. and 'Drocedures aDDlicable. -

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. Thisz part also gives noti a to all persons who knowingly provide to any licensee,

' applicant,: contractor, or subcontractor, comoonents, 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 5 50.5.

11. Section 50.5 is revised to read as follows:

5 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 s'ubcontractor, any components, equipment, materials, or other

_ good s or serv i cesht at rel ate to a licensee's or applicant's activities in this part, maycnot:' .

(1)~ Engage in deliberate misconduct that causes or would have caused, if s

notidetected, a licensee-or applicant to be in violation of any rule, f -

27 s.-

a

i regulation, or order; or any term, condition,'or limitation of any license issued by the Commission; or

~

(2). Deliberately submit to the NRC, a 1icensee, an' applicant, or a li::ensee's or applicant's contractor or subcontractor, information that the person subeitting 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 PEP)iITS; 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,: aa amended, sec. 234, 83 Stat.1244, as amended (42 U.S.C.-  ;

28-

4 -

2133, 2201,~ 2232 - 2233, 2236, 2239,- 2282); secs'.- 201, 202, 206, 80 Stat. ,1242,  !

1244, 1246, as amended- (42 U.S.C. 5841, 942,' 5846); _  ;

13. : Section 52.1',L Scope is revised:to read as follows:

1 52.1 Scope. ,

This part governs the issuance of early site permits, standard design certifications, and combined licenses for nuclear power facilities licensed undet section 103 or 104b of the Atomic Energy Act .of 1954, as amended (68 t 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 i 52.10.

1 a

14. Section 52.9 is added following 5 52.8 and reads as follows:

i 52.9 Deliberate Misconduct.

'(a)f 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 1for, an early site permit, standard 29 x

-1 e

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

_(1) Engage in deliberate misconduct that causes or would have caused, if not detected, a holder of, or applicant for, an early site pennit, standard _

design certification, or combined license, to be in violation of any rule, j regulation, or order; or any term, condition, or limitation of any permit, i 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 certif' cation, or combined license, or a- l contractor, subcontractor, or consultant of any of them information that the person submitting the information knows to be incomplete or inaccurate in some respct material to the NRC.

(b) A person who violates paragraph (a)(1) or (a)(2) of this section may J be subject to enforcement action in accordance with the procedures in 10 CFR j

-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

-_kwws:

.(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 1.icense. issued by the Commission; or- >

30

l

- (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 RADI0 ACTIVE WASTES IN GE0 LOGIC 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. 2E139, 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, Purpose and scope is revised to read as follows:

i 6

0.1 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

~

31

_- 1-v

5

_ provide :to any, licensee, applicant, contractcp,1 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 i 60.11.

s

-17. Section 60.11 is revised to read as followsi s

5 60,11' Deliberate misconduct.-

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

-s applicalet; pr 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, La ' 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.tolthe NRC.

'(b):A' person who; violates paragraph (a)(1) or (a)(2) of this section may

^

be subject to enforcementcaction in accordance with the: procedures'in -10 CFR part.2, subpart B.

, 32 Y M e a w -- ,- n -~'-

(c) For the_ purposes of paragraph (a)(1) of this section, deliberate misconduct by a person meanszan -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 RADI0 ACTIVE WASTE-

18. The authority citation' for-Part 61 continues to read as follows:

AUTHORITY: Secs. 53, 57, 62, 63, 65, 81, 161, 182, 183, 58 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. Section 61.1, Purpose and Scope is revised to read as follows:

5 61.1 Puroose and Scooe.

-(c)- This part also gives notice to all-persons who knowingly provide to any licensee, applicant, contractor, or' subcontractor, components, equipment,.

33

4 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 161.9b.

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

I 61.9b Deliberate misconduct.

(a) Any licensee, applicant for a license, employee of a licensee.or applicant; Lor 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 -irr deliberate misconduct that causes or would have caused, if not detected, a licensee or applicant to be in violatic, 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)1 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.

34 mw - , - -----a- , -

(c) Forsthel purposes of paragraph '(a)(1) of this section,- deliberate -

misconduct by a person means-an intentional act or on.ission 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, 5046).

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, ec. 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 issuod 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

- 35

i 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, Scope is revised to read as follows:

I 70,2 Scope.

Except as provided in il 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 i 70.10,

23. Section 70.10 is revised to read as follows:

I 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 licen:ee or applicant to be in violation of any rule, 36 I

a

=c h

+.

regulation,"orLorder;: or any!ters, condition, or limitation.of any:licensel .

1 issued by the Commission;1or l

.(2) Deliberately sabeittto the NRC,'a licensee, aniapplicant, or:as [

. 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 befsubject.to enforcement action in accordance with the procedures-in -

• I

10 CFR Part 2, subpart B.

(c)' 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)-lWould cause a licensee or_ applicant to be in violation of any rule,

< regulation, or order; or any term, condition, or limitation,_ of any license q

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 Lsubcontractor.

PART 71--PACKAGING AND TRANSPORTATION OF RADI0 ACTIVE MATERIAL

- 2 4 .~ The authority citation for Part 71 continues.to read as follows: a LAUTHORITY: Secs. 53, 57, 62, 63, 81,=161,-182, 183, 68 Stat. 930, 932,- ,

933, 935, 948,;-953,1954,l as-amended,-sec. 1701, 106 Stat. 2951, 2952, 2953.(42

U.S.C. 2073; 2077L2092, 2093, 2111,L2201, 2232,i 2233, 2297f); sees. 201, as-

> amended,f 202, 206,;88-Stat. 1242;-~as amended, _ 1244, 1246 (42 U.S.C. 5841, h ,. 37 ,

i .

4

,$.l eN, e- v,v~-

i 5842,5846).-- Section 71.97 also issued under sec. 301,; Pub. L.96-295, 94 '

Stat.;789-790.

25. Section 11.0,' Purpose and scope is revised to read as follows:

I 71.0 Puroose and Scope.

'[ add new subsection (f) tu read as follows:]

(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

-l 71.11.

26. Section 71.11 is added to read as follows':

. E'71 11 Deliberate misconduct.

- (a) EThis 1

section applies to any---

(1) Licensee:-

(2). Certificate holder;

^

(3) Quality as:urance program _ approval holder;-

38

h 4

(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 centractor or subcontractor, information that the person submitting i;e 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 fl0 CFR part 2, subpart B.

39

, .,7

(d) For the purposes of paragraph (b)(1) of this section, deliberate misconduct by a person mehns 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 RADI0 ACTIVE 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.

40

4 100-203, 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.I.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), Put, 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, Scope is revised to read as follows:

5 Scope.

(f) rkis part also gives notice to all persens who knowingly provide to any licenst :ertificate 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.

41

I 4

29. _section 72.12 is_ revised to read as follows:

~1,J2.12 Deliberate misconttuct.

(a) Any licensee, certificate holder, applicant for a license or certificate, employee 'of _a licensee, certi.*icate holder, or applicant- for a license er 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 certificatu who knowingly provides to any licensee, certificate holder, applicant for a license or certificate, contractor, or subcontractor, any components, mtorials, or other-goods or services that relate to a licensevs, certificate homer's, or applicant's activities subject to this part, may not:

(1) Engage in deliberate miscenduct that causes or w,uld 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 certificato 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 L 110 CFR parti 2 isubpart B.

t -

H ~

42-b 4 ,

g

_ [ E.* , N- , ,

n . --. . - - .

(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 holdo. 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 EQ..PMENT AND ~.TERIAL

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, Ill, 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.l(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.104, 3 Stat. 954, as amended 43 4

(42 U.S.C. 2234). Section 110.52 alsc issued under sec. 186, 68 Stat. 955 (12 U.S.C. 2236). Sections 110.80-110.113 also issued under 5 U.S.C. 552, 554.

Sections 110.130-110.135 also 1: sued 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 Feq.).

31. Sectioi 110.1, Purpose and scope is revised to read as follows:

1 11

0.1 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 il 110.8 and 110.9, and the import of nuclear equipment and material, as set out in i llo.9a. This part also giver notice to all persons who knowingly provide to any * 'censee, 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 i 110.7b.

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

1 110.7b Deliberate misconduct.

(a) Any licensee, applicant for a license, employca of a licensee or applicant; or any contractor (including a supplier or consultant),

subcontractor, employee of a contractor or stacontractor of any licensee or applicant for a license, who knowingly provides to any licensee, applicant, 44

.- . _ _ . _ - . _ ~

i t

a 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 11. 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.-

45

PART 150--EXEMPT 10NS 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, lle(2), 81, 68 Stat. 923, 935, as amended, secs. 83, 84, 92 Stat. 3033, 3039 (42 U.S.C. 2014e(2), 2111, 2113, 21145 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 Sta+. 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:

I 150.2 Scooe.

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 tervices that relate to a licensee's, certificate holder's, quality assurance program approval holder's or

, 46 p:

applicant's activities subject to this part, that they may be individually subject to NRC enforcement actior. for violation of Il 30.10, 40.10, 70.10 and l i

71.11.=

Dated at Rockville, Maryland, this day of , 1996.

. For the Nuclear Regulatory Comission.

John C. Hoyle, Secretary of the Comission.

f 47

_.i..

- 7 . . . - . _ _. - _ . _ . -

a I

i b

1 1 i

L Attachment 2 I

Congressional Letters ,

6

)

E h

Y i

- g _

kMi f 4 , ,- . . _ , , , _ , , _

. jnng1 UNffED STATES g

. NUCLEAR REGULATORY COMMIS810N WASHINGTON, D.C. See86 eeM I g,e...j The Honorable Lauch Faircloth, Chairman i Subcommittee on Cleen Air, Wetlands, Private Property and Nuclear Safety.

Connittee on Environment and Public Works United States Senate Washington, DC 20510  :

Dear Mr. Chairman:

Er.cloced for the information of the subcommittee is a copy of a notice of a ,

proposed rule dealing with deliberate misconduct to be published in the Federal Reaister. The Nuclear Regulatory Commission (NRC) is proposing to  !

. revise its regulations to extend the Deliberate Misconduct Rule to six categories of persons: (1) applicants for NRC licenses; (2) applicants for, or holders of, certificates of compliance issued under 10 CFR Parts 71 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 IU 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. The Deliberate Mtsconduct Rule was originally issued in 1991 (56 FR 40664).

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 deliberate conduct'that causes or would have caused, if not detected, a licensee, certificate bolder, 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 materially incomplete or inaccurate information or other deliberate wrongdi,ing by such persons, the categories of persons cited above also should be subject to enforcement action under the Commission's rules regarding deliberate misconduct.

The Commission is issuing the proposed rule for public comment.

Sincerely, f

Dennis K. Rathbun, Director Office of Congreesional Affairs ,

Enclosure:

Federal. Register Notice

-i cc: Senator Bob Graham-

.-- ,.n

l j

f f .gT "

umso smas

.e s*  ; NUCLEAR REGULATORY COMMIS$lON  !

WASHINGTON, D.C. asse6 eeM i

• • ~

I t

The Honorable Dan Schaefer, Chairman  :

Subcommittee on Energy and Power -

Committee on Commerce  :

United States House of Representatives l Washington, DC 20515 Gear Mr. Chairman: f Enclosed for the information of the subcommittee is a copy of a notice of a  !

proposed' rule dealing with deliberate misconduct to be published in the vederal Reaister. The Nuclear Regulatory Commission (NRC) is proposing to  ;

revise its regulations to extend the Deliberate Misconduct Rule to six -

categories of persons: (1). applicants for NRC licenses; (2) applicants for, or holders of, certificates of compliance issued under 10 CFR Parts 71 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' i employees, contractors, subcontractors and consultants of the first five categories of persons, so that they may be subject to enforcement action. The -

Deliberate Misconduct Rule was originally issued in 1991 (56 FR 40664).

Deliberate misconduct may involve providing information that is known to be '

incomplete or inaccurate in scme respect material to the NRC, or it may involve deliberate 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 materially incomplete or inaccurate information or other deliberate wrongdoing by such

-persons, the categories of persons cited above-also should be subject to enforcomant action under the Commission's rules regarding deliberate misconduct.

The Commission is issuing the proposed rule for public comment.

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

Enclosure:

-Federal Register Notice

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Representative Frank-Pallone-r---, - v w,, , ~ ~- ---- vr--,, , ,-nn-,-

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Attachment 3 Public Announcement

i NRC Amending Requirements Governing Delibtrate Misconduct by Unlicensed Persons The Commission adopted changes to NRC regulations that established the However, Deliberate Misconduct Rule, which took effect September 16, 1991.

through an oversight, the rule failed to address a number of categories of persons who engage in activities within the Connission's subject matter jurisdiction.

To correct this deficiency in the regulations, the Nuclear Regulatory Connission (NRC) is proposing to revise its regulations to extend the Deliberate Misconduct Rule to apply to six categories of persons:

(1) applicants for NRC licenses; (2) applicants for, or holders of, certificates of compliance issued under 10 CFR Parts 71 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 tha first five categories of Deliberate persons, so that they may be subject to enforcement action.

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

NRC believes that because there may be significant safety consequences from the intentional

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