25792 Federal Register / Vol. 72, No. 87 / Monday, May 7, 2007 / Notices 

submissions. The Commission will directly 

notify Licensees who are subject to this 

regulation of any fee changes. 

The Commission will forward, to the 

submitting Licensee, all data received from 

the FBI as a result of the Licensee’s 

application(s) for criminal history records 

checks, including the FBI fingerprint record. 

Right to Correct and Complete Information 

Prior to any final adverse determination, 

the Licensee shall make available, to the 

individual, the contents of any criminal 

records obtained from the FBI for the purpose 

of assuring correct and complete information. 

Written confirmation by the individual of 

receipt of this notification must be 

maintained by the Licensee for a period of 

one (1) year from the date of the notification. 

If, after reviewing the record, an individual 

believes that the record is incorrect or 

incomplete in any respect and wishes to 

change, correct, or update the alleged 

deficiency, or to explain any matter in the 

record, the individual may initiate challenge 

procedures. These procedures include either 

direct application by the individual 

challenging the record to the agency (i.e., law 

enforcement agency) that contributed the 

questioned information, or direct challenge 

as to the accuracy or completeness of any 

entry on the criminal history record to the 

Assistant Director, Federal Bureau of 

Investigation Identification Division, 

Washington, DC 20537–9700 (as set forth in 

28 CFR 16.30 through 16.34). In the latter 

case, the FBI forwards the challenge to the 

agency that submitted the data and requests 

that agency to verify or correct the challenged 

entry. Upon receipt of an official 

communication directly from the agency that 

contributed the original information, the FBI 

Identification Division makes any changes 

necessary in accordance with the information 

supplied by that agency. The Licensee must 

allow at least ten (10) days for an individual 

to initiate an action challenging the results of 

an FBI criminal history records check after 

the record is made available for his/her 

review. The Licensee may make a final 

determination for unescorted access to 

radioactive material or other property based 

on the criminal history records check, only 

upon receipt of the FBI’s ultimate 

confirmation or correction of the record. 

Upon a final adverse determination for 

unescorted access to radioactive material or 

other property, the Licensee shall provide the 

individual its documented basis for denial. 

During this review process for assuring 

correct and complete information, unescorted 

access to radioactive material or other 

property shall not be granted to an 

individual. 

Protection of Information 

1. Each Licensee who obtains a criminal 

history records check for an individual, 

pursuant to this Order, shall establish and 

maintain a system of files and procedures for 

protecting the record and the personal 

information from unauthorized disclosure. 

2. The Licensee may not disclose the 

record nor personal information collected 

and maintained to persons other than the 

subject individual, his/her representative, or 

to those who have a need to access the 

information in performing assigned duties in 

the process of determining unescorted access 

to the radioactive material or other property. 

No individual authorized to have access to 

the information may redisseminate the 

information to any other individual who does 

not have a need-to-know. 

3. The personal information obtained on an 

individual from a criminal history records 

check may be transferred to another Licensee 

if the Licensee holding the criminal history 

record receives the individual’s written 

request to redisseminate the information 

contained in his/her file, and the gaining 

Licensee verifies information such as the 

individual’s name, date of birth, social 

security number, sex, and other applicable 

physical characteristics for identification 

purposes. 

4. The Licensee shall make criminal 

history records, obtained under this section, 

available for examination by an authorized 

representative of the NRC to determine 

compliance with the regulations and laws. 

5. The Licensee shall retain all fingerprint 

and criminal history records received from 

the FBI, or a copy, if the individual’s file has 

been transferred, for three (3) years after 

termination of employment or denial to 

unescorted access to radioactive material or 

other property. After the required three (3) 

year period, these documents shall be 

destroyed by a method that will prevent 

reconstruction of the information in whole, 

or in part. 

[FR Doc. E7–8666 Filed 5–4–07; 8:45 am] 

BILLING CODE 7590–01–P 

NUCLEAR REGULATORY 

COMMISSION 

[EA–07–087] 

In the Matter of Certificate Holders and 

All Other Persons Who Seek or Obtain 

Authorized Unescorted Access to 

Radioactive Material or Other Property 

Described Herein; Order Imposing 

Fingerprinting and Criminal History 

Records Check Requirements for 

Unescorted Access to Certain 

Radioactive Material or Other Property 

(Effective Immediately) 

I 

The Certificate Holders identified in 

Attachment 1 to this Order hold 

certificates issued in accordance with 

the Atomic Energy Act (AEA) of 1954, 

as amended, by the U.S. Nuclear 

Regulatory Commission (NRC), 

authorizing them to possess radioactive 

material. On August 8, 2005, the Energy 

Policy Act of 2005 (EPAct) was enacted. 

Section 652 of the EPAct amended 

Section 149 of the AEA to require 

fingerprinting and a Federal Bureau of 

Investigation (FBI) identification and 

criminal history records check of any 

individual who is permitted unescorted 

access to radioactive material or other 

property subject to regulation by the 

Commission, and which the 

Commission determines to be of such 

significance to the public health and 

safety or the common defense and 

security as to warrant fingerprinting and 

background checks. Though a 

rulemaking to implement the 

fingerprinting provisions of the EPAct is 

currently underway, the NRC has 

decided to implement this requirement, 

in part, prior to the completion of the 

rulemaking, because a deliberate 

malevolent act by an individual with 

unescorted access to radioactive 

material or other property has a 

potential to result in significant adverse 

impacts to the public health and safety 

or the common defense and security. 

Those exempted from fingerprinting 

requirements under 10 CFR 73.61 [72 

Federal Register 4945 (February 2, 

2007)] are also exempt from the 

fingerprinting requirements under this 

Order. In addition, individuals who 

have had a favorably-decided U.S. 

Government criminal history records 

check within the last five (5) years, or 

individuals who have an active federal 

security clearance (provided in either 

case that they make available the 

appropriate documentation), have 

satisfied the EPAct fingerprinting 

requirement and need not be 

fingerprinted again. 

Subsequent to the terrorist events of 

September 11, 2001, the NRC issued 

security Orders requiring certain entities 

to implement Additional Security 

Measures (ASMs) or Interim 

Compensatory Measures (ICMs) for 

certain radioactive material. These 

Orders included a local criminal history 

records check to determine 

trustworthiness and reliability of 

individuals needing unescorted access 

to radioactive material or other 

property. ‘‘Access’’ means that an 

individual could exercise some physical 

control over the material or device. In 

accordance with Section 149 of the 

AEA, as amended by the EPAct, the 

Commission is imposing FBI criminal 

history records check requirements, for 

all individuals allowed unescorted 

access to protected areas, secure areas, 

and other areas, as applicable, as set 

forth in the Order, for the Certificate 

Holders identified in Attachment 1 to 

this Order. These requirements will 

remain in effect until the Commission 

determines otherwise. In addition, 

pursuant to 10 CFR 2.202, I find that in 

light of the common defense and 

security matters identified above, which 

warrant the issuance of this Order, the 

public health, safety, and interest 

require that this Order be effective 

immediately. 


pwalker on PROD1PC71 with NOTICES
Federal Register / Vol. 72, No. 87 / Monday, May 7, 2007 / Notices 25793 

1The NRC’s determination of this individual’s 

unescorted access to radioactive material or other 

property, in accordance with the process described 

in Enclosure 3 [available through NRC’s 

Agencywide Documents Access and Management 

System (ADAMS)] to the transmittal letter of this 

Order, is an administrative determination that is 

outside the scope of this Order. 

II 

Accordingly, pursuant to Sections 53, 

62, 63, 81, 147, 149, 161b, 161i, 161o, 

182 and 186 of the AEA of 1954, as 

amended, and the Commission’s 

regulations in 10 CFR 2.202, 10 CFR 

Part 73 and 10 CFR Part 76, it is hereby 

ordered, effective immediately, that all 

certificate holders identified in 

attachment 1 and all other persons who 

seek or obtain unescorted access to 

radioactive material or other property 

described herein shall comply with the 

requirements set forth in this Order. 

A. All Certificate Holders identified in 

Attachment 1 to this Order shall, within 

twenty (20) days of the date of this 

Order, establish and maintain a 

fingerprinting program that meets the 

requirements of Attachment 2 to this 

Order, for unescorted access to 

radioactive material or other property. 

B. All Certificate Holders identified in 

Attachment 1 to this Order shall, within 

twenty (20) days of the date of this 

Order, submit the fingerprints of one (1) 

Individual who: (1) The Certificate 

Holder nominates as the ‘‘reviewing 

official’’ for determining unescorted 

access to radioactive material or other 

property by other individuals; and (2) 

has been determined to be trustworthy 

and reliable in accordance with the 

requirements described in Attachment 3 

to this Order. The NRC will determine 

whether this individual (or any 

subsequent reviewing official) may have 

unescorted access to radioactive 

material or other property, and 

therefore, will be permitted to serve as 

the Certificate Holder’s reviewing 

official.1

C. All Certificate Holders identified in 

Attachment 1 to this Order shall, in 

writing, within twenty (20) days from 

the date of this Order, notify the 

Commission: (1) Of receipt and 

confirmation that compliance with the 

Order will be achieved, (2) if unable to 

comply with any of the requirements 

described in Attachment 2, or (3) if 

compliance with any of the 

requirements are unnecessary in its 

specific circumstances. The notification 

shall provide the Certificate Holder’s 

justification for seeking relief from, or 

variation of, any specific requirement. 

D. Only a NRC-approved reviewing 

official shall review the results of a FBI 

criminal history records check. The 

reviewing official shall determine 

whether an individual may have, or 

continue to have, unescorted access to 

radioactive material or other property. 

Fingerprinting and the FBI 

identification and criminal history 

records check are not required for 

individuals that are exempted from 

fingerprinting requirements under 10 

CFR 73.61 [72 FR 4945 (February 2, 

2007)]. In addition, individuals who 

have had a favorably-decided U.S. 

Government criminal history records 

check within the last five (5) years, or 

have an active Federal security 

clearance (provided in each case that 

the appropriate documentation is made 

available to the Certificate Holder’s 

reviewing official), have satisfied the 

EPAct fingerprinting requirement and 

need not be fingerprinted again. 

E. Fingerprints shall be submitted and 

the results of the FBI criminal history 

records check be reviewed in 

accordance with the procedures 

described in Attachment 2 to this Order. 

No person may have access to 

Safeguards Information or unescorted 

access to any radioactive material or 

property subject to regulation by the 

NRC if the NRC has determined, in 

accordance with its administrative 

review process based on fingerprinting 

and an FBI identification and criminal 

history records check, either that the 

person may not have access to 

Safeguards Information or that the 

person may not have unescorted access 

to radioactive material or property 

subject to regulation by NRC. 

F. The Certificate Holder may allow 

any individual who currently has 

unescorted access to radioactive 

material or other property, in 

accordance with the ASM or ICM 

Security Orders, to continue to have 

unescorted access, pending a decision 

by the reviewing official (based on 

fingerprinting, an FBI criminal history 

records check and a trustworthiness and 

reliability determination) that the 

individual may continue to have 

unescorted access to radioactive 

material or other property. The 

Certificate Holder shall complete 

implementation of the requirements of 

Attachment 2 to this Order within 

ninety (90) days from the date of 

issuance of this Order. 

Certificate Holder responses to 

Condition B. and C. shall be submitted 

to the Director, Office of Nuclear 

Material Safety and Safeguards, U.S. 

Nuclear Regulatory Commission, 

Washington, DC 20555. In addition, 

Certificate Holder responses shall be 

marked as ‘‘Security-Related 

Information—Withhold Under 10 CFR 

2.390.’’

The Director, Office of Nuclear 

Material Safety and Safeguards, may, in 

writing, relax or rescind any of the 

above conditions upon demonstration of 

good cause by the Certificate Holder. 

III 

In accordance with 10 CFR 2.202, the 

Certificate Holder must, and any other 

person adversely affected by this Order, 

may submit an answer to this Order, 

and may request a hearing regarding this 

Order, within twenty (20) days from the 

date of this Order. Where good cause is 

shown, consideration will be given to 

extending the time to request a hearing. 

A request for an extension of time in 

which to submit an answer or request a 

hearing must be made in writing to the 

Director, Office of Nuclear Material 

Safety and Safeguards, U.S. Nuclear 

Regulatory Commission, Washington, 

DC 20555, and include a statement of 

good cause for the extension. The 

answer may consent to this Order. 

Unless the answer consents to this 

Order, the answer shall, in writing and 

under oath or affirmation, specifically 

set forth the matters of fact and law for 

which the Certificate Holder or other 

person adversely affected relies and the 

reasons as to why the Order should not 

have been issued. Any answer or 

request for a hearing shall be submitted 

to the Secretary, Office of the Secretary, 

U.S. Nuclear Regulatory Commission, 

ATTN: Rulemakings and Adjudications 

Staff, Washington, DC 20555. Copies 

shall also be sent to the Director, Office 

of Nuclear Material Safety and 

Safeguards, U.S. Nuclear Regulatory 

Commission, Washington, DC 20555; to 

the Assistant General Counsel for 

Materials Litigation and Enforcement at 

the same address; and to the 

Certificatee, if the answer or hearing 

request is by an individual other than 

the Certificatee. Because of possible 

delays in delivery of mail to United 

States Government offices, it is 

requested that answers and requests for 

hearing be transmitted to the Secretary 

of the Commission, either by means of 

facsimile transmission to (301) 415–

1101, or via e-mail to 

hearingdocket@nrc.gov, and also to the 

Office of the General Counsel, either by 

means of facsimile transmission to (301) 

415–3725, or via e-mail to 

OGCMailCenter@nrc.gov. If a person 

other than the Certificate Holder 

requests a hearing, that person shall set 

forth, with particularity, the manner in 

which his/her interest is adversely 

affected by this Order and shall address 

the criteria set forth in 10 CFR 2.309. 

If a hearing is requested by the 

Certificate Holder or an individual 

whose interest is adversely affected, the 


pwalker on PROD1PC71 with NOTICES
25794 Federal Register / Vol. 72, No. 87 / Monday, May 7, 2007 / Notices 

Commission will issue an Order 

designating the time and place of a 

hearing. If a hearing is held, the issue to 

be considered at such hearing shall be 

whether this Order should be sustained. 

Pursuant to 10 CFR 2.202(c)(2)(i), the 

Certificate Holder may, in addition to 

demanding a hearing, at the time the 

answer is filed, or sooner, move that the 

presiding officer set aside the immediate 

effectiveness of the Order on the 

grounds that the Order, including the 

need for immediate effectiveness, is not 

based on adequate evidence, but on 

mere suspicion, unfounded allegations, 

or error. 

In the absence of any request for 

hearing, or written approval of an 

extension of time in which to request a 

hearing, the provisions as specified 

above in Section III, shall be final 

twenty (20) days from the date of this 

Order without further Order or 

proceedings. 

If an extension of time for requesting 

a hearing has been approved, the 

provisions, as specified above in Section 

III, shall be final when the extension 

expires, if a hearing request has not 

been received. An answer or a request 

for a hearing shall not stay the 

immediate effectiveness of this order. 

Dated this 30th day of April 2007. 

For the Nuclear Regulatory Commission. 

Michael F. Weber, 

Director, Office of Nuclear Material, Safety 

and Safeguards. 

Attachment 1—List of Applicable Certificate 

Holders 

Certificate No. GDP–0001 

Docket No.: 70–7001 

USEC—Paducah 

Certificate No. GDP–0002 

Docket No.: 70–7002 

USEC—Portsmouth 

Attachment 2—Requirements for 

Fingerprinting and Criminal History 

Records Checks of Individuals When 

Licensee’s Reviewing Official Is Determining 

Unescorted Access to Radioactive Material 

or Other Property 

Licensees shall comply with the following 

requirements of this Attachment. 

1. Each Licensee subject to the provisions 

of this Attachment shall fingerprint each 

individual who is seeking or permitted 

unescorted access to radioactive material or 

other property. The Licensee shall review 

and use the information received from the 

Federal Bureau of Investigation (FBI) and 

ensure that the provisions contained in the 

subject Order and this Attachment are 

satisfied. 

2. The Licensee shall notify each affected 

individual that the fingerprints will be used 

to secure a review of his/her criminal history 

record and inform the individual of the 

procedures for revising the record or 

including an explanation in the record, as 

specified in the ‘‘Right to Correct and 

Complete Information’’ section of this 

Attachment. 

3. Fingerprints for unescorted access need 

not be taken if an employed individual (e.g., 

a Licensee employee, contractor, 

manufacturer, or supplier) is relieved from 

the fingerprinting requirement by 10 CFR 

73.61 for unescorted access, has had a 

favorably-decided U.S. Government criminal 

history records check within the last five (5) 

years, or has an active Federal security 

clearance. Written confirmation from the 

Agency/employer which granted the Federal 

security clearance or reviewed the criminal 

history records check must be provided. The 

Licensee must retain this documentation for 

a period of three (3) years from the date the 

individual no longer requires unescorted 

access to radioactive material or other 

property associated with the Licensee’s 

activities. 

4. All fingerprints obtained by the 

Licensee, pursuant to this Order, must be 

submitted to the Commission for 

transmission to the FBI. 

5. The Licensee’s Reviewing Official shall 

review the information received from the FBI 

and consider it, in conjunction with the 

trustworthiness and reliability requirements 

established by the previous ASM or ICM 

Security Orders, in making a determination 

whether to grant, or continue to allow, 

unescorted access to radioactive material or 

other property. 

6. The Licensee shall use any information 

obtained as part of a criminal history records 

check solely for the purpose of determining 

an individual’s suitability for unescorted 

access to the radioactive material or other 

property. 

7. The Licensee shall document the basis 

for its determination whether to grant, or 

continue to allow, unescorted access to the 

radioactive material or other property. 

Prohibitions 

A Licensee shall not base a final 

determination to deny an individual access 

to radioactive material or other property 

solely on information received from the FBI 

involving an arrest more than one (1) year 

old, for which there is no information as to 

disposition of the case, or an arrest that 

resulted in dismissal of the charge or an 

acquittal. 

A Licensee shall not use information 

received from a criminal history records 

check obtained pursuant to this Order in a 

manner that would infringe upon the rights 

of any individual under the First 

Amendment to the Constitution of the United 

States, nor shall the Licensee use the 

information in any way which would 

discriminate among individuals on the basis 

of race, religion, national origin, sex, or age. 

Procedures for Processing Fingerprint Checks 

For the purpose of complying with this 

Order, Licensees shall, using an appropriate 

method listed in 10 CFR 73.4, submit to the 

Nuclear Regulatory Commission’s (NRC’s) 

Division of Facilities and Security, Mail Stop 

T–6E46, one completed, legible standard 

fingerprint card (Form FD–258, 

ORIMDNRCOOOZ) or, where practicable, 

other fingerprint records for each individual 

seeking unescorted access to radioactive 

material or other property, to the Director of 

the Division of Facilities and Security, 

marked for the attention of the Division’s 

Criminal History Check Section. Copies of 

these forms may be obtained by writing the 

Office of Information Services, U.S. Nuclear 

Regulatory Commission, Washington, DC 

20555–0001, by calling (301) 415–5877, or 

via e-mail to forms@nrc.gov. Practicable 

alternative formats are set forth in 10 CFR 

73.4. The Licensee shall establish procedures 

to ensure that the quality of the fingerprints 

taken results in minimizing the rejection rate 

of fingerprint cards due to illegible or 

incomplete cards. 

The NRC will review submitted fingerprint 

cards for completeness. Any Form FD–258 

fingerprint record containing omissions or 

evident errors will be returned to the 

Licensee for corrections. The fee for 

processing fingerprint checks includes one 

resubmission if the initial submission is 

returned by the FBI because the fingerprint 

impressions cannot be classified. The one 

free re-submission must have the FBI 

Transaction Control Number reflected on the 

resubmission. If additional submissions are 

necessary, they will be treated as initial 

submittals and will require a second payment 

of the processing fee. 

Fees for processing fingerprint checks are 

due upon application. Licensees shall submit 

payment with the application for processing 

fingerprints by corporate check, certified 

check, cashier’s check, money order, or 

electronic payment, made payable to ‘‘U.S. 

NRC.’’ [For guidance on making electronic 

payments, contact the Facilities Security 

Branch, Division of Facilities and Security, at 

(301) 415–7404]. Combined payment for 

multiple applications is acceptable. The 

application fee (currently $27) is the sum of 

the user fee charged by the FBI for each 

fingerprint card or other fingerprint record 

submitted by the NRC on behalf of a 

Licensee, and an NRC processing fee, which 

covers administrative costs associated with 

NRC handling of Licensee fingerprint 

submissions. The Commission will directly 

notify Licensees who are subject to this 

regulation of any fee changes. 

The Commission will forward, to the 

submitting Licensee, all data received from 

the FBI as a result of the Licensee’s 

application(s) for criminal history records 

checks, including the FBI fingerprint record. 

Right to Correct and Complete Information 

Prior to any final adverse determination, 

the Licensee shall make available, to the 

individual, the contents of any criminal 

records obtained from the FBI for the purpose 

of assuring correct and complete information. 

Written confirmation by the individual of 

receipt of this notification must be 

maintained by the Licensee for a period of 

one (1) year from the date of the notification. 

If, after reviewing the record, an individual 

believes that the record is incorrect or 

incomplete in any respect and wishes to 

change, correct, or update the alleged 

deficiency, or to explain any matter in the 

record, the individual may initiate challenge 

procedures. These procedures include either 

direct application by the individual 


pwalker on PROD1PC71 with NOTICES
Federal Register / Vol. 72, No. 87 / Monday, May 7, 2007 / Notices 25795 

challenging the record to the agency (i.e., law 

enforcement agency) that contributed the 

questioned information, or direct challenge 

as to the accuracy or completeness of any 

entry on the criminal history record to the 

Assistant Director, Federal Bureau of 

Investigation Identification Division, 

Washington, DC 20537–9700 (as set forth in 

28 CFR 16.30 through 16.34). In the latter 

case, the FBI forwards the challenge to the 

agency that submitted the data and requests 

that agency to verify or correct the challenged 

entry. Upon receipt of an official 

communication directly from the agency that 

contributed the original information, the FBI 

Identification Division makes any changes 

necessary in accordance with the information 

supplied by that agency. The Licensee must 

allow at least ten (10) days for an individual 

to initiate an action challenging the results of 

an FBI criminal history records check after 

the record is made available for his/her 

review. The Licensee may make a final 

determination for unescorted access to 

radioactive material or other property based 

on the criminal history records check, only 

upon receipt of the FBI’s ultimate 

confirmation or correction of the record. 

Upon a final adverse determination for 

unescorted access to radioactive material or 

other property, the Licensee shall provide the 

individual its documented basis for denial. 

During this review process for assuring 

correct and complete information, unescorted 

access to radioactive material or other 

property shall not be granted to an 

individual. 

Protection of Information 

1. Each Licensee who obtains a criminal 

history records check for an individual, 

pursuant to this Order, shall establish and 

maintain a system of files and procedures for 

protecting the record and the personal 

information from unauthorized disclosure. 

2. The Licensee may not disclose the 

record nor personal information collected 

and maintained to persons other than the 

subject individual, his/her representative, or 

to those who have a need to access the 

information in performing assigned duties in 

the process of determining unescorted access 

to the radioactive material or other property. 

No individual authorized to have access to 

the information may redisseminate the 

information to any other individual who does 

not have a need-to-know. 

3. The personal information obtained on an 

individual from a criminal history records 

check may be transferred to another Licensee 

if the Licensee holding the criminal history 

record receives the individual’s written 

request to redisseminate the information 

contained in his/her file, and the gaining 

Licensee verifies information such as the 

individual’s name, date of birth, social 

security number, sex, and other applicable 

physical characteristics for identification 

purposes. 

4. The Licensee shall make criminal 

history records, obtained under this section, 

available for examination by an authorized 

representative of the NRC to determine 

compliance with the regulations and laws. 

5. The Licensee shall retain all fingerprint 

and criminal history records received from 

the FBI, or a copy, if the individual’s file has 

been transferred, for three (3) years after 

termination of employment or denial to 

unescorted access to radioactive material or 

other property. After the required three (3) 

year period, these documents shall be 

destroyed by a method that will prevent 

reconstruction of the information in whole, 

or in part. 

Attachment 3—Trustworthiness and 

Reliability Requirements 

In order to ensure the safe handling, use, 

and control radioactive material or other 

property, each licensee shall control and 

limit access to radioactive material or other 

property to those individuals who have 

established the need-to-know, and are 

considered to be trustworthy and reliable. 

Licensees shall document the basis for 

concluding that there is reasonable assurance 

that the individuals that are granted 

unescorted access to radioactive material or 

other property are trustworthy and reliable, 

and do not constitute an unreasonable risk 

for malevolent activities. 

The Licensee shall comply with the 

requirements of this Attachment: 

1. The trustworthiness and reliability of an 

individual shall be determined based on a 

background investigation: 

(a) The background investigation shall 

address at least the past three (3) years, and, 

at a minimum, include verification of 

employment, education, and personal 

references. The licensee shall also, to the 

extent possible, obtain independent 

information to corroborate the information 

provided by the employee (i.e., seeking 

references not supplied by the individual). 

(b) If an individual’s employment has been 

less than the required three (3) year period, 

educational references may be used in lieu of 

employment history. 

The licensee’s background investigation 

requirements may be satisfied for an 

individual that has an active Federal security 

clearance. 

2. The licensee shall retain documentation 

regarding the trustworthiness and reliability 

of individual employees for three years after 

the individual’s employment ends. 

[FR Doc. E7–8762 Filed 5–4–07; 8:45 am] 

BILLING CODE 7590–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Investment Company Act Release No. 

27812; 812–13340] 

First Trust Exchange-Traded Fund, et 

al.; Notice of Application 

April 30, 2007. 

AGENCY: Securities and Exchange 

Commission (‘‘Commission’’). 

ACTION: Notice of an application for an 

order under section 12(d)(1)(J) of the 

Investment Company Act of 1940 (the 

‘‘Act’’) for exemption from sections 

12(d)(1)(A) and (B) of the Act and under 

sections 6(c) and 17(b) of the Act for an 

exemption from section 17(a) of the Act. 

SUMMARY OF THE APPLICATION: The 

applicants request an order to permit 

certain management investment 

companies and unit investment trusts 

registered under the Act to acquire 

shares of certain open-end management 

investment companies registered under 

the Act that are outside the same group 

of investment companies. 

APPLICANTS: First Trust ExchangeTraded Fund (‘‘Initial Trust’’), First 

Trust Exchange-Traded Fund II (‘‘Trust 

II’’), and First Trust Exchange-Traded 

AlphaDEX Fund (‘‘AlphaDEX Trust’’) 

(collectively, the ‘‘Existing Trusts’’), 

First Trust Advisors L.P. (the 

‘‘Advisor’’) and First Trust Portfolios 

L.P. (the ‘‘Distributor’’). 

FILING DATES: The application was filed 

on November 7, 2006, and amended on 

April 27, 2007. 

HEARING OR NOTIFICATION OF HEARING: An 

order granting the application will be 

issued unless the Commission orders a 

hearing. Interested persons may request 

a hearing by writing to the 

Commission’s Secretary and serving 

applicants with a copy of the request, 

personally or by mail. Hearing requests 

should be received by the Commission 

by 5:30 p.m. on May 29, 2007, and 

should be accompanied by proof of 

service on applicants, in the form of an 

affidavit or, for lawyers, a certificate of 

service. Hearing requests should state 

the nature of the writer’s interest, the 

reason for the request, and the issues 

contested. Persons who wish to be 

notified of a hearing may request 

notification by writing to the 

Commission’s Secretary. 

ADDRESSES: Secretary, U.S. Securities 

and Exchange Commission, 100 F 

Street, NE., Washington, DC 20549–

1090; Applicants, 1001 Warrenville 

Road, Lisle, Illinois 60532. 

FOR FURTHER INFORMATION CONTACT: 

Barbara T. Heussler, Senior Counsel, at 

(202) 551–6990, or Mary Kay Frech, 

Branch Chief, at (202) 551–6821 

(Division of Investment Management, 

Office of Investment Company 

Regulation). 

SUPPLEMENTARY INFORMATION: The 

following is a summary of the 

application. The complete application 

may be obtained for a fee at the Public 

Reference Desk, U.S. Securities and 

Exchange Commission, 100 F Street, 

NE., Washington DC 20549–0102 

(telephone (202) 551–5850). 

Applicants’ Representations 

1. The Existing Trusts, Massachusetts 

business trusts, are each an open-end 


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