Legislature(2007 - 2008)SENATE FINANCE 532

04/07/2008 09:00 AM Senate FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 231 LOW-INCOME HOUSING; HOMELESSNESS TELECONFERENCED
Moved CSSB 231(HES) Out of Committee
+ HB 419 STATE LEASE-PURCHASE AGREEMENTS TELECONFERENCED
Heard & Held
+ HB 319 DENTISTS & DENTAL ASSISTANTS TELECONFERENCED
Moved SCS CSHB 319(HES) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
                  SENATE FINANCE COMMITTEE                                                                                      
                       April 7, 2008                                                                                            
                         9:17 a.m.                                                                                              
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Stedman called the Senate  Finance Committee meeting                                                                   
to order at 9:17:40 AM.                                                                                                       
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Charlie Huggins, Vice-Chair                                                                                             
Senator Kim Elton                                                                                                               
Senator Donny Olson                                                                                                             
Senator Joe Thomas                                                                                                              
Senator Fred Dyson                                                                                                              
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Jeff Jesse,  Executive Director,  Alaska Mental Health  Trust                                                                   
Authority,  Department  of  Revenue;   Jane  Pierson,  Staff,                                                                   
Representative  Jay Ramras;  Representative  Jay Ramras;  Tom                                                                   
Wright,  Staff, Representative  Mike  Chenault; Mark  Romick,                                                                   
Alaska Housing  Finance Corporation,  Department of  Revenue;                                                                   
Tom  Wright,  Staff,  Representative  Mike  Chenault;  Remond                                                                   
Henderson,  Deputy Director,  Division  of General  Services,                                                                   
Department of Administration                                                                                                    
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Pat Luby,  Advocacy Director,  Alaska Association  of Retired                                                                   
Persons (AARP),  Anchorage; Pete  Higgins, President,  Alaska                                                                   
Dental Society;  Royann Royer,  Chugiak; Gail Walden,  Dental                                                                   
Hygienist, Wasilla; David Logan,  Dentist, Legislative Chair,                                                                   
Alaska Dental  Society; Jim  Lynch, Associate Vice  President                                                                   
of  Finance, University  of  Alaska; Mark  Romick,  Director,                                                                   
Planning  Department,  Alaska  Housing  Finance  Corporation,                                                                   
Department of Revenue                                                                                                           
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 231    "An Act  relating to the Alaska housing  trust fund                                                                   
          and to the Alaska Council on the Homeless; and                                                                        
          providing for an effective date."                                                                                     
                                                                                                                                
          CSSB 321  (FIN) was REPORTED out of  Committee with                                                                   
          a "do pass" recommendation  and with three previous                                                                   
          published  zero fiscal notes  by the Department  of                                                                   
          Public Safety, the Department  of Health and Social                                                                   
          Services,  and the Department  of Corrections,  and                                                                   
          with  a  new  fiscal  note  by  the  Department  of                                                                   
          Revenue.                                                                                                              
                                                                                                                                
CSHB 419(FIN)                                                                                                                   
          "An  Act  relating   to  state  lease-purchases  of                                                                   
          equipment   and   other  personal   property;   and                                                                   
          providing for an effective date."                                                                                     
                                                                                                                                
          CSHB 419(FIN)  was heard and HELD in  Committee for                                                                   
          further consideration.                                                                                                
                                                                                                                                
CSHB 319(L&C)                                                                                                                   
          "An Act  relating to the practice of  dentistry, to                                                                   
          dental assistants, and to dental hygienists."                                                                         
                                                                                                                                
          SCS  CSHB 319(HES)  was REPORTED  out of  Committee                                                                   
          with   a   "do  pass"   recommendation   and   with                                                                   
          indeterminate  fiscal note #2 by the  Department of                                                                   
          Commerce, Community and Economic Development.                                                                         
                                                                                                                                
9:17:59 AM                                                                                                                    
                                                                                                                                
SENATE BILL NO. 231                                                                                                           
                                                                                                                                
     "An Act relating to the Alaska housing trust fund and                                                                      
     to the Alaska Council on the Homeless; and providing                                                                       
     for an effective date."                                                                                                    
                                                                                                                                
JEFF JESSE,  EXECUTIVE DIRECTOR,  ALASKA MENTAL HEALTH  TRUST                                                                   
AUTHORITY,  DEPARTMENT OF  REVENUE,  acknowledged the  issues                                                                   
raised by the  Committee in previous meetings  regarding this                                                                   
bill.                                                                                                                           
                                                                                                                                
Co-Chair  Stedman  noted an  email  from Mark  Romick,  AHFC,                                                                   
(copy  on  file),  which  answers  some  of  the  Committee's                                                                   
concerns.  He  reported on a $10 million  capital expenditure                                                                   
from the  Department of  Revenue for  this legislation.   The                                                                   
appropriation is in SB 221.  $2.5  million comes from each of                                                                   
four  sources:  general  fund,   AHFC,  Mental  Health  Trust                                                                   
Authority,  and private sources.   He  requested to  know the                                                                   
position of the Mental Health Trust Board.                                                                                      
                                                                                                                                
Mr. Jesse reported  that the trustees have  worked diligently                                                                   
on low-income  housing issues  for a number  of years.   They                                                                   
have invested  $3  million to  $4 million over  the last  few                                                                   
years.  The Mental Health Trust  recognizes a concern that it                                                                   
needs  to provide  more on-going  support for  projects.   He                                                                   
stated that  the Trust is willing  to commit to  this project                                                                   
for at least five  years at the $2.5 million  level per year.                                                                   
To date,  that is  the largest  commitment the Mental  Health                                                                   
Trust has made.                                                                                                                 
                                                                                                                                
9:22:24 AM                                                                                                                    
                                                                                                                                
PAT LUBY,  ADVOCACY DIRECTOR,  ALASKA ASSOCIATION  OF RETIRED                                                                   
PERSONS (AARP),  ANCHORAGE, testified  in support of  SB 231.                                                                   
He disavowed the stereotype of  homeless people.  He reported                                                                   
that  AARP has  tracked the  number  of grandparents  raising                                                                   
grandchildren  in  Alaska  and  the  corresponding  financial                                                                   
ramifications.    He  discussed the  circumstances  faced  by                                                                   
homeless children.                                                                                                              
                                                                                                                                
9:24:05 AM                                                                                                                    
                                                                                                                                
Co-Chair  Hoffman  MOVED  to  REPORT  CSSB  231(FIN)  out  of                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal notes.  There  being NO OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CSSB  321 (FIN)  was REPORTED  out  of Committee  with a  "do                                                                   
pass" recommendation  and with three previous  published zero                                                                   
fiscal  notes  by  the  Department   of  Public  Safety,  the                                                                   
Department of Health and Social  Services, and the Department                                                                   
of Corrections, and with a new  fiscal note by the Department                                                                   
of Revenue.                                                                                                                     
                                                                                                                                
9:25:34 AM                                                                                                                    
                                                                                                                                
CS FOR HOUSE BILL NO. 319(L&C)                                                                                                
                                                                                                                                
     "An Act relating to the practice of dentistry, to                                                                          
     dental assistants, and to dental hygienists."                                                                              
                                                                                                                                
REPRESENTATIVE  JAY RAMRAS,  Sponsor, explained  that HB  319                                                                   
continues  the  responsible  exporting  of  dentistry  across                                                                   
Alaska, particularly  in the  rural areas.   Oral hygiene  is                                                                   
critical  and  contributes  to  the  health  and  nutritional                                                                   
benefits of an individual.                                                                                                      
                                                                                                                                
JANE PIERSON,  STAFF, REPRESENTATIVE JAY RAMRAS,  related the                                                                   
details of the bill:                                                                                                            
                                                                                                                                
    · Oral health plays a key role in overall health.                                                                           
      Unfortunately not all Alaskan's enjoy good dental                                                                         
      health due to geographical barriers, cost of dental                                                                       
      care and limitations on dental personnel.                                                                                 
                                                                                                                                
   · HB 319 follows the provisions allowing for expanded                                                                        
      duties of dental hygienist and dental assistants                                                                          
      improving access to dental care and reducing costs                                                                        
      for dental care.                                                                                                          
                                                                                                                                
    · With expanded duties, dental hygienist, dental                                                                            
      assistants and dentists can provide greater access                                                                        
      and more costs effective care.                                                                                            
                                                                                                                                
    · This bill specifically lays the framework for                                                                             
      expanding dental assistant's duties for two specific                                                                      
      procedures.  It would allow a certified dental                                                                            
      assistant, under a dentist's direct supervision to                                                                        
      place fillings into a cavity prepared by a licensed                                                                       
      dentist.  And allows a certified dental assistant,                                                                        
      under a dentist's  direct supervision, to polish teeth                                                                    
      that are already clean of tarter.  These expanded                                                                         
      duties are already permitted in 36 other states.                                                                          
                                                                                                                                
    · Includes under a dental hygienists' scope of practice                                                                     
      the ability to obtain a restorative function                                                                              
      endorsement permitting placement of a filling into a                                                                      
      cavity prepared  by a licensed dentist and perform the                                                                    
      activities  authorized under a collaborative agreement                                                                    
      with licensed dentist.                                                                                                    
                                                                                                                                
    · Authorizes a licensed dental hygienist to administer                                                                      
      local anesthetic  agents under the general supervision                                                                    
      of a licensed dentist. Sixteen other states have                                                                          
      variations of these provisions in place.                                                                                  
                                                                                                                                
    · Authorizes the Dental Board to approve a                                                                                  
      collaborative agreement between a licensed dentist                                                                        
      and a licensed dental hygienist and specifies the                                                                         
      services  and procedures allowed under a collaborative                                                                    
      agreement.                                                                                                                
                                                                                                                                
    · Applies supervision requirements to a dental                                                                              
      hygienist operation in conjunction with a licensed                                                                        
      dentist under a collaborative agreement.                                                                                  
                                                                                                                                
    · Dental assistants who perform expanded duties of                                                                          
      packing cavities  or polishing teeth will have to pass                                                                    
      a training program and an exam prior to becoming                                                                          
      eligible for certification by the Alaska Dental                                                                           
      Board.  Furthermore, the supervising dentist must                                                                         
      personally authorize the procedure and examine the                                                                        
      patient afterwards.                                                                                                       
                                                                                                                                
    · This bill is supported by the Alaska Dental Society,                                                                      
      Alaska Board  of Dental Examiners, Alaska State Dental                                                                    
      Hygienist Association, Alaska Dental Outreach                                                                             
      Consortium and the Alaska Native Tribal Health                                                                            
      Consortium.                                                                                                               
                                                                                                                                
    · Oral health plays a key role in overall health.                                                                           
      Untreated dental problems can cause pain, effect                                                                          
      nutrition, and influence quality of life.  This bill                                                                      
      will increase the efficiency of delivering dental                                                                         
      while upholding the quality of that care.                                                                                 
                                                                                                                                
9:29:40 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman  summarized that the bill would  improve the                                                                   
lack of dental services in rural  areas.  Ms. Pierson said it                                                                   
would have a  positive effect in both rural  and urban Alaska                                                                   
because  it   would  expand  the   practices  done   by  both                                                                   
assistants  and hygienists.   Co-Chair  Stedman asked  if any                                                                   
groups oppose the bill.  Ms. Pierson  said none that she knew                                                                   
of.                                                                                                                             
                                                                                                                                
Senator Thomas  praised the combining  of two bills  into one                                                                   
and  suggested that  the  bill would  also  provide a  career                                                                   
track for dental assistants.   He reported that there was not                                                                   
opposition to the bill in previous committees.                                                                                  
                                                                                                                                
Senator  Huggins  pointed  out  that  the  bill  talks  about                                                                   
"direct  supervision"  and "indirect  supervision",  but  not                                                                   
about  "general supervision".    Ms. Pierson  explained  that                                                                   
general  supervision would  be  supervision  where a  dentist                                                                   
would  not  have  to  be  present  to  directly  oversee  the                                                                   
procedure.                                                                                                                      
                                                                                                                                
9:31:20 AM                                                                                                                    
                                                                                                                                
Senator Olson asked  how many dental hygienists  there are in                                                                   
rural  Alaska.   Ms. Pierson  deferred to  the Alaska  Dental                                                                   
Society to answer.  Co-Chair Stedman  said he had a list that                                                                   
shows that information.                                                                                                         
                                                                                                                                
Senator Olson  questioned if "direct supervision"  means that                                                                   
the  dentist is  present  and  supervising injections.    Ms.                                                                   
Pierson said that  is correct.  Senator Olson  asked if there                                                                   
had  been any  problems with  local anesthesia  in the  past.                                                                   
Ms. Pierson deferred to others to answer.                                                                                       
                                                                                                                                
9:33:11 AM                                                                                                                    
                                                                                                                                
PETE HIGGINS, PRESIDENT, ALASKA  DENTAL SOCIETY, testified in                                                                   
support  of HB  319.   He pointed  out  that the  legislation                                                                   
would  help dentists  in urban  areas take  on more  Medicaid                                                                   
patients.    He  addressed  the   question  about  hygienists                                                                   
administering anesthetics.   He said they are  currently able                                                                   
to if they pass the test, but  dental assistants would not be                                                                   
able to.   The  purpose of the  bill is  to ensure  that more                                                                   
patients receive dental services.   Other states already have                                                                   
this in place.                                                                                                                  
                                                                                                                                
9:35:26 AM                                                                                                                    
                                                                                                                                
ROYANN ROYER, CHUGIAK,  testified in support of HB  319.  She                                                                   
listed  her  vast  experience  in  the  dental  field.    She                                                                   
advocated for  the legislation  based on personal  experience                                                                   
delivering dental  care in rural areas.  She  maintained that                                                                   
the  legislation would  lead to  more  people being  treated.                                                                   
She noted this service is practiced in many other states.                                                                       
                                                                                                                                
9:37:28 AM                                                                                                                    
                                                                                                                                
GAIL WALDEN, DENTAL HYGIENIST,  WASILLA, testified in support                                                                   
of  HB  319.   She  pointed  out that  hygienists  have  been                                                                   
administering anesthesia in Alaska  since 1981.  She reported                                                                   
that there have  never been any disciplinary  actions against                                                                   
the hygienists.                                                                                                                 
                                                                                                                                
9:39:06 AM                                                                                                                    
                                                                                                                                
DAVID  LOGAN,  DENTIST,  LEGISLATIVE   CHAIR,  ALASKA  DENTAL                                                                   
SOCIETY, spoke  in support of HB  319.  It will  help provide                                                                   
more services in  rural and underserved areas of  Alaska.  He                                                                   
clarified   the  three   different   types  of   supervision.                                                                   
"Direct" means that  the dentist is in the  facility and sees                                                                   
the  patient before  and  after  the procedure.    "Indirect"                                                                   
means the dentist has seen the  patient before the procedure,                                                                   
but  does not  necessarily see  them  afterwards.   "General"                                                                   
means that dentist has diagnosed  the condition and is not in                                                                   
the facility at the time.                                                                                                       
                                                                                                                                
Co-Chair Stedman  noted one fiscal note by  the Department of                                                                   
Commerce, Community and Economic Development.                                                                                   
                                                                                                                                
Representative  Ramras reported that  the intent of  the bill                                                                   
is to do no  harm.  The work would be done  under appropriate                                                                   
supervision.                                                                                                                    
                                                                                                                                
Senator  Olson  MOVED to  REPORT  SCS  CSHB 319(HES)  out  of                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal  note.  There being NO  OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
SCS CSHB  319(HES) was REPORTED  out of Committee with  a "do                                                                   
pass" recommendation  and with  indeterminate fiscal  note #2                                                                   
by  the  Department  of  Commerce,   Community  and  Economic                                                                   
Development.                                                                                                                    
                                                                                                                                
9:42:41 AM                                                                                                                    
                                                                                                                                
CS FOR HOUSE BILL NO. 419(FIN)                                                                                                
                                                                                                                                
     "An Act relating to state lease-purchases of equipment                                                                     
     and other personal property; and providing for an                                                                          
     effective date."                                                                                                           
                                                                                                                                
Senator  Huggins MOVED  to ADOPT SCS  CSHB 419(FIN),  labeled                                                                   
25-LS1567\O, Cook, 4/3/08.                                                                                                      
                                                                                                                                
Senator Dyson OBJECTED.   He requested an explanation  of the                                                                   
changes in the new CS.                                                                                                          
                                                                                                                                
9:43:48 AM                                                                                                                    
                                                                                                                                
TOM WRIGHT,  STAFF, REPRESENTATIVE  MIKE CHENAULT,  explained                                                                   
that the  new CS is the  bill that was originally  introduced                                                                   
in House Finance.   It does not allow any agency  to do state                                                                   
lease purchases.                                                                                                                
                                                                                                                                
Senator  Dyson  WITHDREW  his  OBJECTION.    There  being  NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
Mr.  Wright explained  that  there  were concerns  about  the                                                                   
usage of the master  lease line of credit.  One  of the items                                                                   
used for lease purchase was Governor  Murkowski's jet.  There                                                                   
have been 29 separate lease purchases.   The legislature last                                                                   
year  authorized $16  million for  the master  lease line  of                                                                   
credit.   This  was  problematic because  there  was no  fund                                                                   
source for  it.  There  were a number  of items  that avoided                                                                   
the appropriation process.                                                                                                      
                                                                                                                                
Mr.  Wright related  that  the other  concern  was that  some                                                                   
payments were not  showing up in the detail book.   There was                                                                   
lack  of information  about  the source  of  funding and  who                                                                   
controlled the  dollar amounts.   The original intent  of the                                                                   
bill was to stop the master lease line of credit.                                                                               
                                                                                                                                
Co-Chair  Stedman  suggested  that Mr.  Wright  provide  more                                                                   
information.                                                                                                                    
                                                                                                                                
Mr. Wright reiterated  that the bill does apply  to all lease                                                                   
purchase  agreements.    One  of the  problems  was  that  AS                                                                   
36.30.085 was  too broad  and lacked a  definition of  what a                                                                   
lease purchase agreement  was or how the departments  were to                                                                   
use it.  There were only four  agencies that were entitled to                                                                   
use it.   A 1987 Attorney  General's opinion opened  the door                                                                   
to departmental abuse due to the broadness of the statute.                                                                      
                                                                                                                                
Mr. Wright reported  that one of the goals of  the bill is to                                                                   
have a  reporting mechanism regarding  lease purchases.   Any                                                                   
agency  that  enters  into a  lease  purchase  contract  over                                                                   
$100,000 must  provide written notice  within 10 days  to the                                                                   
House  and   Senate  presiding   officers  and  the   Finance                                                                   
Committee chairs.  It also requires  OMB to compile a list of                                                                   
every lease  purchase item  a department  enters into.   This                                                                   
information  would  be  used   when  drafting  the  operating                                                                   
budget.                                                                                                                         
                                                                                                                                
9:49:47 AM                                                                                                                    
                                                                                                                                
Senator  Dyson termed  the bill  draconian.   He asked  which                                                                   
organizations  would  be  included.    Mr.  Wright  said  the                                                                   
organizations  could still lease  equipment, but  they cannot                                                                   
enter into a  lease purchase agreement.  Senator  Dyson asked                                                                   
if the  problems occur when the  leases end up  as purchases.                                                                   
Mr. Wright said that was correct.   The biggest objection the                                                                   
House Finance Committee had was  the lack of limitations with                                                                   
the use of the master lease line of credit.                                                                                     
                                                                                                                                
Senator Dyson  summarized that the  intent of the bill  is to                                                                   
prevent  departments from  purchasing  equipment through  the                                                                   
subterfuge of  a lease purchase  and bypassing  the budgeting                                                                   
process.  Mr. Wright said that was correct.                                                                                     
                                                                                                                                
Co-Chair  Stedman  noted  that  there  was  language  in  the                                                                   
capital budget  to deal with this  issue.  It was  decided to                                                                   
follow the House's lead on this matter.                                                                                         
                                                                                                                                
9:52:56 AM                                                                                                                    
                                                                                                                                
Senator Thomas  asked for  clarification of the  departments'                                                                   
responsibility regarding leases.   Mr. Wright said that under                                                                   
the CS  there would  be no  lease purchase  agreements.   Mr.                                                                   
Wright clarified  that one  could not enter  into a  lease of                                                                   
personal property.  It does not apply to real property.                                                                         
                                                                                                                                
Co-Chair  Stedman  asked  who   controls  the  dollar  amount                                                                   
available.   Mr. Wright  reiterated that  there is  no dollar                                                                   
amount listed  under the  master lease line  of credit.   Co-                                                                   
Chair  Stedman  inquired how  the  payments  show up  in  the                                                                   
budgets that are presented.  Mr.  Wright said that was one of                                                                   
the questions  that the  House Finance  Committee had.   Some                                                                   
agencies do report in the detail books and some don't.  Co-                                                                     
Chair Stedman thought that would  create concern.  Mr. Wright                                                                   
agreed.                                                                                                                         
                                                                                                                                
9:55:04 AM                                                                                                                    
                                                                                                                                
Senator  Dyson requested  an example about  how the  building                                                                   
improvements were  abused.  Mr.  Wright did not know  if that                                                                   
had  happened.    He  gave  an  example  of  a  purchase  for                                                                   
carpeting for the State Office Building.                                                                                        
                                                                                                                                
Senator  Dyson  noted that  the  agencies  may be  using  the                                                                   
process to subvert the capital  projects process.  He gave an                                                                   
example.    He  agreed  with the  intent  of  the  bill,  but                                                                   
emphasized  that  the  legislature  must  be  responsible  in                                                                   
providing needed equipment.                                                                                                     
                                                                                                                                
9:57:57 AM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman  said  when  looking back  at  this  year's                                                                   
capital  budget,  the  Administration   reduced  departmental                                                                   
requests  by $1  billion before  the  Committee received  it.                                                                   
The  Senate   Finance  Committee  reduced   the  legislators'                                                                   
requests by about $1.1 billion.                                                                                                 
                                                                                                                                
9:58:14 AM                                                                                                                    
                                                                                                                                
JIM LYNCH,  ASSOCIATE VICE  PRESIDENT OF FINANCE,  UNIVERSITY                                                                   
OF ALASKA,  voiced  concern about  the lack  of a floor  when                                                                   
reporting to the  Office of Management and Budget.   He spoke                                                                   
in  favor  of  the accountability  aspect  of  the  bill  and                                                                   
against removing the ability to lease purchase.                                                                                 
                                                                                                                                
10:01:53 AM                                                                                                                   
                                                                                                                                
REMOND  HENDERSON,  DEPUTY  DIRECTOR,   DIVISION  OF  GENERAL                                                                   
SERVICES,  DEPARTMENT OF  ADMINISTRATION,  commented that  if                                                                   
the CS prohibits  the leasing of equipment or  other personal                                                                   
property  when necessary,  the  Department of  Administration                                                                   
objects to the  bill.  He spoke in favor of  the bill version                                                                   
which  was  amended  in  the  House  and  contains  reporting                                                                   
requirements.                                                                                                                   
                                                                                                                                
Co-Chair Stedman noted two zero fiscal notes.                                                                                   
                                                                                                                                
HB  419  was   heard  and  HELD  in  Committee   for  further                                                                   
consideration.                                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 10:03 AM.                                                                                          
                                                                                                                                

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