U.S. Nuclear Regulatory Commission
Implementation of Policy and Guidance Directive FC 86-2, Revision 1, "Processing Material License Applications Involving Change of Ownership"
HPPOS-257 PDR-9306070100
Title: Implementation of Policy and Guidance Directive FC
86-2, Revision 1, "Processing Material License Applications
Involving Change of Ownership"
See the memorandum from J. E. Glenn to C. J. Holloway dated
August 18, 1989, and the enclosed Policy and Guidance
Directive, FC 86-2, Rev. 1. This guidance document changed
NMSS policy regarding the issuance of new licenses because
of change of ownership of licensed facilities. The new
policy states that only an amendment is necessary to
reflect the change in identity of the licensee in such a
case. HPPOS-124 contains a related topic.
10 CFR Part 30, Section 30.34 (b) states: "No license
issued or granted pursuant to the regulations in this part
and Parts 31 through 35, nor any right under a license
shall be transferred, assigned or in any manner disposed
of, either voluntary or involuntary, directly or
indirectly, through transfer of control of any license to
any person, unless the Commission shall, after securing
full information, find that the transfer is in accordance
with the provisions of the Act and shall give its consent
in writing."
Similar regulations are contained in 10 CFR Sections 40.46
and 70.36. Thus, the regulations are very clear that the
control of licenses cannot be transferred without written
permission from the Commission. The burden of adhering to
this requirement is on the transferor; however, it may be
necessary for the transferee to provide supporting
information. The transferor is an NRC licensee that is
selling or otherwise giving up control of a licensed
operation, and the transferee is an organization that is
proposing purchase or otherwise gaining control of an
NRC-licensed operation.
FC 86-2, Rev. 1, changed NMSS policy regarding the issuance
of new licenses because of change of ownership of licensed
facilities. Previous policy required, in part, that a new
license be issued if the transferor would remain in
business as a separate entity. The new policy state that
only an amendment is necessary to reflect the change in
identity of the licensee to a transferee in such a case.
This policy reflects the appropriate level of review to
assure that health and safety issues are resolved.
However, there will be times when for NRC's administrative
purposes a new license number will need to be issued. The
middle five digits of a byproduct license are referred to
as an institution code. The institution code identifies
both the licensed entity and a site of operations. Several
licenses may be issued using the same institution code. The
use of the same institution code for two separate and
currently existing entities would defeat the usefulness of
this administrative system.
Therefore, NMSS and the Regions will sometimes be issuing
new license numbers (institution codes) for licensing
actions which, in fact, are amendments to an existing
license. There will be no increase in the technical
review. The License Tracking System will only permit such
an action to be treated as an issuance of a new license. A
fee for an amendment rather than a fee for a new license
will be charged in those instances where NMSS or the
Regions issue a new license for administrative purpose
only. This will save time of both are respective staffs
that would otherwise be required to approve these as
exceptions on a case-by-case basis.
Regulatory references: 10 CFR 30.34, 10 CFR 40.46, 10 CFR
70.36
Subject codes: 3.5, 11.2, 11.6, 11.7
Applicability: All
