Ml23270c019 (1)

FINAL SUPPORTING STATEMENT
FOR
NRC FORM 749, “MANUAL LICENSE VERIFICATION REPORT”/LICENSE VERIFICATION
SYSTEM
(3150-0223)
EXTENSION
Description of the Information Collection
Compliance with the requirements in 10 CFR Part 37, “Physical Protection of Byproduct
Material” became mandatory in March 2014 for U.S. Nuclear Regulatory Commission (NRC)
licensees possessing certain quantities of radioactive materials and Agreement State licensees
were required to comply with the requirements by March of 2016. One of the requirements in 10
CFR Part 37 requires licensees to verify, with the license issuing authority or through the
License Verification System (LVS), a licensee’s license before transferring certain types and
quantities of radioactive materials. The information to be verified includes details such as the
authorization for the receipt of the type, form, and quantity of radioactive material to be
transferred and that the licensee is authorized to receive radioactive material at the location
requested for delivery.
The current information collection seeks to facilitate the verification that is conducted by
contacting the license issuing authority, either through the LVS or manually by contacting the
license issuing agency directly. The verification outside of the LVS is completed by both the
licensee transferring the radioactive materials and the license issuing agency, using NRC Form
749, Manual License Verification Report, while the verification through the LVS is done within
the system. The information collected on NRC Form 749 represents the minimum information
necessary for the license issuing agency to determine if the requested transfer of radioactive
material is authorized on a recipient’s license, and to provide the verification outcome to the
licensee transferring the materials as described in Part 37.71(a) and (b). The information
collected through the LVS represents the minimum information needed for the licensee
conducting the verification to access the recipient’s license.
The information being provided by the licensee transferring radioactive materials on the NRC
Form 749 includes the date of the verification request, the transferring licensee information,
including license issuing agency, licensee name, license number, contact name, title, phone
number, fax number (if applicable), and email address. Also provided is the receiving licensee
information including license issuing agency, licensee name, license number, license
amendment number, license issue date, authorized storage location, radioactive material being
requested, the material chemical/physical form, and the quantity/activity being requested.
The information being provided by the license issuing agency on NRC Form 749 includes the
verifier’s name, phone number, fax number (if applicable), and email address. In addition, the
verification date and verification outcome are also provided. This information allows the NRC to
ensure that they are only providing non-public, sensitive license information to authorized
individuals.

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The information collected through the LVS includes the receiving licensee’s name, license
number, and license amendment number or issue date.
A. JUSTIFICATION
1. Need For and Practical Utility of the Collection of Information
There is broad U.S. Government and international interest in ensuring licensees
receive only authorized radioactive materials in authorized quantities for radioactive
materials of concern. Prior to the implementation of the Web-based Licensing (WBL)
system and the LVS, there was no single information system available to verify the
authorized licensees, users, locations, or quantities of certain radioactive materials.
The NRC WBL contains the licenses issued by the NRC and Agreement States for
licenses that authorize certain quantities of radioactive materials. The verification of
licenses is part of a comprehensive radioactive source control program for the
radioactive materials of greatest concern. Although a national license verification
system cannot ensure the physical protection of sources, it provides for greater
source accountability. A national license verification system in conjunction with other
controls improves security for certain radioactive materials in quantities of concern.
The requirements for the verification of licenses through the regulatory authority prior
to the transfer of quantities of radioactive materials of concern are contained in 10
CFR Part 37. In particular:
Section 37.71(a) requires any licensee transferring category 1 quantities of
radioactive material to a licensee of the Commission or an Agreement State, prior to
conducting such transfer, to verify with the NRC's license verification system or the
license issuing authority that the transferee's license authorizes the receipt of the
type, form, and quantity of radioactive material to be transferred and that the licensee
is authorized to receive radioactive material at the location requested for delivery. If
the verification is conducted by contacting the license issuing authority, the transferor
shall document the verification. For transfers within the same organization, the
licensee does not need to verify the transfer.
Section 37.71(b) requires any licensee transferring category 2 quantities of
radioactive material to a licensee of the Commission or an Agreement State, prior to
conducting such transfer, to verify with the NRC's license verification system or the
license issuing authority that the transferee's license authorizes the receipt of the
type, form, and quantity of radioactive material to be transferred. If the verification is
conducted by contacting the license issuing authority, the transferor shall document
the verification. For transfers within the same organization, the licensee does not
need to verify the transfer.
Section 37.71 (c) allows in an emergency where the licensee cannot reach the
license issuing authority and the license verification system is nonfunctional, the
licensee may accept a written certification by the transferee that it is authorized by
license to receive the type, form, and quantity of radioactive material to be
transferred. The certification must include the license number, current revision
number, issuing agency, expiration date, and for a category 1 shipment the
authorized address. The licensee shall keep a copy of the certification. The
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certification must be confirmed by use of the NRC's license verification system or by
contacting the license issuing authority by the end of the next business day. If the
licensee contacts the licensing issuing authority, they can use the NRC Form 749 to
facilitate the manual license verification as it is used for 37.71 (a) and (b).
37.71 (c) is an exception for an emergency case where the LVS is not available and
the regulator that issued the license cannot be reached. In this emergency case, the
licensees are allowed to complete the verification with each other, and they must
follow up with a documented license verification with the regulator the next day. This
can be either using LVS or using the manual process and optionally the 749 form.
37.71 (d) requires the transferor to keep a copy of the verification documentation as
a record for 3 years. Note that the burden for maintaining the record of the
verification is covered under recordkeeping burden for 10 CFR Part 37, OMB
clearance number 3150-0214.
2. Agency Use of Information
The NRC and Agreement State agencies will use the information collected to
determine if the licensee requesting receipt of radioactive materials of concern is
authorized to receive the type, form, and quantity of radioactive material to be
transferred and that the licensee is authorized to receive radioactive material at the
location requested for delivery. This verification helps protect the nation from the
threat of the malevolent use of radioactive materials.
3. Reduction of Burden Through Information Technology
There are no legal obstacles to reducing the burden associated with this information
collection through the use of information technology. The NRC encourages licensees
to use information technology when it would be beneficial to them.
The LVS is a web-based system used to ensure only authorized quantities of
radioactive materials are obtained by legitimate users. The LVS assists in ensuring
that parties involved in radioactive materials transfers are completing a valid transfer
between legitimate license-holders. It provides a way for licensees nationwide to
quickly confirm license validity and ensure maximum possession limit compliance of
licensees seeking to obtain radioactive materials.
A review of the manual license verification report submissions for the years 2020,
2021, and 2022, indicate that 100% of the submissions were completed
electronically by emailing the NRC Form 749.

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4. Effort to Identify Duplication and Use Similar Information
No sources of similar information are available. There is no duplication of
requirements.
5. Effort to Reduce Small Business Burden
While some licensees who are subject to the 10 CFR Part 37 license verification
requirements are small businesses, the concerns associated with the safe and
secure use of radioactive materials of concern are the same for large and small
entities. It is not possible to reduce the burden on small businesses by less frequent
or less complete license verification procedures while maintaining the required level
of public health and safety and common defense and security. It is estimated that 38
percent of respondents to this collection are small businesses.
6. Consequences to Federal Program or Policy Activities if the Collection Is Not
Conducted or Is Conducted Less Frequently
The NRC Form 749 is a voluntary form to facilitate a manual license verification,
which can be used when the licensee does not have internet access to complete the
verification online through the LVS; if the licensee’s LVS user account is expired or
inactive; or if the licensee receives a message in LVS to contact the regulatory
agency. If the NRC Form 749 were not available, licensees who do not have access
to LVS for these reasons would need to provide their own mechanism for
documenting the manual verification.
If the information on NRC Form 749 and in the LVS were not provided by the
licensee and the license issuing authority, the regulatory agencies inspecting for
compliance with the 10 CFR Part 37 requirements would not have a way to
determine if the licensee requesting receipt of radioactive materials of concern is in
compliance with the license verification requirement in 10 CFR 37.71. To assure
adequate protection of the public health and safety and the common defense and
security, licensees and regulatory agencies provide this information prior to the
transfer of radioactive materials of concern.
7. Circumstances Which Justify Variation from OMB Guidelines
Contrary to OMB Guidelines in 5 CFR 1320.5(d)(2), Sections 37.71(a) through (d) of
10 CFR Part 37 require licensees to verify a license prior to the transfer of
radioactive materials of concern (a reporting frequency of less than 30 days).
This information collection frequency is necessary to ensure only authorized
licensees are receiving radioactive materials of concern in authorized quantities at
authorized locations.

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8. Consultations Outside the NRC
Opportunity for public comment on the information collection requirements for this
clearance package was published In the Federal Register on July 28, 2023 (88 FR
48920). In addition, nine potential respondents were contacted via email as part of
the public consultation process. The respondents contacted included one
manufacturer of radiography sources and eight radiography companies. No
comments were received in responses to these consultations.
9. Payment or Gift to Respondents
Not applicable.
10. Confidentiality of Information
Confidential and proprietary information is protected in accordance with NRC
regulations at 10 CFR 9.17(a) and 10 CFR 2.390(b). However, no information
normally considered confidential or proprietary is requested.
11. Justification for Sensitive Questions
Not Applicable.
12. Estimated Burden and Burden Hour Cost
The average monthly number of manual license verifications for the years 2020,
2021, and 2022 is 49 for a total estimate of 589 annual verifications. Due to the
simplicity of the form and the minimal information being requested, the estimated
burden on licensees is 0.10 hours (6 minutes) per verification. This includes
completing the form and submitting it via email to the LVS help desk. While the form
has a number of fields on it, the actual fields populated by the licensee are the date,
their license information and the receiving licensee information (both of which are
readily available and do not require a lookup), and the material and quantity being
requested, which is also readily available. The remaining fields are populated by the
LVS help desk staff or the regulatory agency that issued the license. The total
estimated annual burden in hours is 59 hours (0.10 hrs. x 589 submissions), for a
total annual financial burden of $17,110 (59 hours x $290/hr.).
The average monthly number of license verifications conducted through the LVS for
the years 2020, 2021, and 2022 is 391 for a total estimate of 4,689 annual
verifications. Since the transferring licensee must verify the receiving licensee’s
license through the LVS, the estimated burden on licensees is 0.07 hours (4
minutes) per verification. This includes login into the LVS, entering the receiving
licensee’s name, license number, amendment number or issue date, and examining
the material and quantity being requested. The total estimated annual burden in
hours is 328 hours (0.07 hrs. x 4,689 submissions), for a total annual financial
burden of $95,120 (328 hours x $290/hr.).

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The recordkeeping burden is addressed in the 10 CFR Part 37 OMB Clearance,
OMB clearance number 3150-0214.
The $290 hourly rate used in the burden estimates is based on the Nuclear
Regulatory Commission’s fee for hourly rates as noted in 10 CFR 170.20 “Average
cost per professional staff-hour.” For more information on the basis of this rate, see
the Revision of Fee Schedules; Fee Recovery for Fiscal Year 2022 (87 FR 37214,
Jun. 22, 2022).
13. Estimate of Other Additional Costs
There are no additional costs.
14. Estimated Annualized Cost to the Federal Government
Based on data from 2020, 2021 and 2022, out of the estimated annual total of 589
manual license verification submissions to the LVS help desk, the NRC processes an
estimated 18 submissions per year for licensees wanting to transfer materials in
quantities of concern to NRC licensees. The rest of the submissions are for licensees
wanting to transfer materials to Agreement State licensees, therefore, those
submissions are processed by the Agreement State regulatory agencies. Due to the
simplicity of the form and the minimal information needed to complete a license
verification, the estimated burden to the federal government is 0.17 hours (10
minutes) per verification. The estimated annual cost to the federal government is 3
hours (0.17 hrs. x 18 submissions), for a total annual financial burden of $870 (3
hours x $290/hr.).
15. Reasons for Change in Burden or Cost
There was no significant change in the number of forms submitted during the years
2020, 2021, and 2022. In the last clearance, the NRC estimated an average of 587
manual license verifications per year. The current submission estimates 589 manual
verifications annually. Verifications performed through the LVS decreased 15%
during the years 2020, 2021, and 2022, from an annual average of 5,520 to 4,689.
The decrease can be attributed to the economic slowdown caused by the Covid-19
public health emergency.
The information provided by licensees will ensure that only authorized licensees
obtain radioactive materials in authorized amounts. The collection will allow the NRC
or Agreement State to confirm that (1) a license is valid and accurate, (2) a licensee
is authorized to acquire quantities and types of radioactive materials, and (3) that the
licensee is authorized to receive radioactive material at the location requested for
delivery.
16. Publication for Statistical Use
Licensee submittals will not be published.
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17. Reason for Not Displaying the Expiration Date
The expiration date will be displayed.
18. Exceptions to the Certification Statement
None.
B. COLLECTIONS OF INFORMATION EMPLOYING STATISTICAL METHODS
Not applicable.

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