On June 1, 2021, the NRC issued a Notice of Violation, an Exercise of Enforcement Discretion, and a Proposed Imposition of Civil Penalty in the amount of $3,750 to William W. Backus Hospital (Licensee) for a severity level III problem containing three violations that occurred on or before May 5, 2020: (1) failure to transfer seven sealed sources for disposal to an authorized recipient pursuant to 10 CFR 20.2001(a); (2) failure to label the sources or their container while in the licensee’s possession pursuant to 10 CFR 20.1904(a); and (3) failure to inventory or leak test the sources pursuant to 10 CFR 35.67(b)(2). Further, in order to emphasize the importance of controlling licensed material, given the circumstances of the case, the NRC exercised enforcement discretion to issue a Proposed Imposition of Civil Penalty in the amount of $3,750.