Legislature(1997 - 1998)
03/26/1997 02:15 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL 76
"An Act making appropriations for the operating expenses of
the state's integrated comprehensive mental health program;
and providing for an effective date."
DEPARTMENT OF ENVIRONMENTAL CONSERVATION
Co-Chair Therriault MOVED to adopt DEC-#5. [Copy on file].
He explained that the amendment would increase the State Emergency
Response Commission/LEPC grants to the second refined requested
level by SERC. Preliminary request to Department of Environmental
Conservation (DEC) was $576 thousand dollars, refined request to
DEC was $422 thousand dollars, second refined request was $351
thousand dollars. The amount allocated in the Governor's budget
was $311 thousand dollars. The Administration has offered no
explanation as to why the requested amount was not considered.
Co-Chair Therriault pointed out that the amendment would add an
increase of $39.7 thousand dollars in Response Fund expenditures
which would not affect the general fund line while at the same
time would bring the LEPC's funding to the second refined
requested amount. There being NO OBJECTION, DEC-#5 was adopted.
Representative Kohring WITHDREW DEC-#6. [Copy on file]. There
being NO OBJECTION, it was withdrawn.
Representative J. Davies MOVED to adopt DEC-#7. Representative
Kohring OBJECTED for the purpose of discussion.
Representative J. Davies explained that the amendment would
provide the necessary funding to allow the unit to continue
investigation and prosecution of individuals who willingly and
willfully disregard laws that protect public health.
Representative Kohring spoke of the Subcommittee's intent in
addressing the Department of Environmental's budget actions. He
noted that the Criminal Investigation Unit is an aggressive entity
and with an unreasonable approach. He suggested that the
Department should "shift" money from within other BRU's.
Representative J. Davies noted that he was not aware of specific
instances in which the Unit had been overly aggressive. The
Subcommittee's proposed reduction would prelude DEC from
investigating and prosecuting individuals whose activities
endanger public health, as reflected in the following actual
cases:
*Intentional discharge of sewage into the Kenai River;
*Intentional discharge of sewage into residential areas
where children become exposed to fecal water;
*Misrepresentation of real estate as it relates to on-
site septic systems;
*Dumping hazardous materials along a riverbank;
*Failure to perform required tests on seafood to ensure
safe consumption for people.
Representative Kohring MOVED to amend DEC-#7, deleting $148.0 GF
and inserting $98.0 GF. There being NO OBJECTION to the change,
it was incorporated. There being NO OBJECTION to the amended DEC-
Representative J. Davies MOVED to adopt DEC-#8. [Copy on file].
Representative Kohring OBJECTED.
Representative J. Davies explained that the amendment would
restore funding for the Kodiak Inspector's position and would
allow Kodiak seafood processors and the Kodiak Livestock Company
to continue to sell their products in national and foreign
markets.
Representative Kohring agreed the importance of the position. He
emphasized that it should not be threatened as a result of cutting
the budget. The Subcommittee's intent was to cut communications,
rentals and leases.
Representative J. Davies commented that the Legislature has
established positions of "charge-backs" to the Department of
Administration (DOA) to address these concerns. Consumers are
being asked to pay for the things that they are consuming. The
intent is that agencies will become more careful in the way they
spend their budget. DOA must be given the opportunity to make
adjustments and that the amount charged in the prior fiscal year
was too low.
Representative Kohring responded that system wide, the Department
is charging exorbitant numbers. He suggested that since DEC is
being cut and they disagree with the cuts, they are attempting to
obtain additional revenue reflected in the inflated charged rates.
Representative Grussendorf reminded members that the entire
fishing and meat industry will be held responsible for any
problems. Inspection is essential and the Department must make
the cuts at some level. He encouraged members to support DEC-#8.
Representative Kohring pointed out that there are 32 inspector
positions statewide and he felt that one should be moved to
Kodiak.
REPRESENTATIVE ALAN AUSTERMAN noted that the position would
directly affect his district. If it was the intent of the
Administration to place in jeopardy the commercial industry, he
recommended that the Legislature should "call their bluff". The
seafood industry can work without an inspector on site. He
pointed out that Kodiak has the biggest processing responsibility
outside of Unalaska. If something happens, that responsibility
will fall back onto the Administration.
A roll call vote was taken on the MOTION.
IN FAVOR: Moses, J. Davies, Grussendorf
OPPOSED: Kelly, Kohring, Martin, Mulder, G. Davis, Foster,
Hanley, Therriault.
The MOTION FAILED (3-8).
Representative J. Davies WITHDREW DEC-#9. [Copy on file]. There
being NO OBJECTION, it was withdrawn.
Representative J. Davies MOVED to adopt DEC-#10. [Copy on file].
Representative Kohring OBJECTED.
Representative J. Davies explained that the amendment would
restore the amount necessary to fund travel for the Joint Pipeline
Office liaison at the request of and funded by receipts from
industry and for travel costs associated with DEC's participation
on the Kenai River Advisory Board monthly meetings in Soldotna.
Without the travel funding, DEC will not be represented for Lease
Sales 85A, as well as water quality protection for the Kenai
River. Representative Kohring disagreed that travel money should
be added back into the budget.
A roll call vote was taken on the MOTION.
IN FAVOR: Moses, Mulder, J. Davies, Grussendorf, Kelly
OPPOSED: Kohring, Martin, G. Davis, Foster, Therriault,
Hanley
The MOTION FAILED (5-6).
Representative J. Davies MOVED to adopt DEC-#11. [Copy on file].
Representative Kohring OBJECTED.
Representative J. Davies explained that the amendment would
restore the funding necessary to maintain and repair laboratory
equipment which is used to analyze raw fish, finished and value
added seafood, dairy, red meat and other food products to ensure
safety for the consuming public. In addition, the equipment would
be used to test water and soil samples for contaminants that may
impact human health. Denial of funding would result in
maintenance and repairs being deferred, delays in completing
required tests and possible endangerment of public health.
A roll call vote was taken on the MOTION.
IN FAVOR: Moses, J. Davies, Grussendorf
OPPOSED: Martin, Mulder, G. Davis, Foster, Kelly, Kohring,
Hanley, Therriault
The MOTION FAILED (3-8).
DEPARTMENT OF NATURAL RESOURCES
Representative Kelly revised DNR-#1 changing the BRU component to
Parks and Rec Management, Historical Preservation Office for $50
thousand dollars and the component of Parks Management for $50
thousand dollars. An additional BRU for Resource Development,
component Water Development add an additional $50 thousand
dollars. Representative Kelly MOVED the amended DNR-#1. [Copy on
file]. Representative J. Davies asked to change the Parks
Management unit to $52.5 thousand dollars. Representative Kelly
stated that would be a "friendly" change. There being NO
OBJECTION to the amended DNR-#1, it was adopted.
Representative Kelly MOVED to adopt DNR-#2. [Copy on file].
There being NO OBJECTION, the amendment was adopted.
Representative J. Davies revised DNR-#3 deleting $189.3 thousand
dollars and inserting $131.4 thousand dollars. Representative J.
Davies MOVED to adopt DNR-#3. [Copy on file]. Co-Chair Hanley
OBJECTED.
Representative J. Davies explained that DNR-#3 would restore full
funding for the component which would ensure that the current
level of service could be maintained and that parks could
accommodate the increasing number of visitors who annually spend
many dollars in the State.
Representative Kelly countered, the subcommittee realized that
there would be impacts and decided to cut this area rather than
water development.
A roll call vote was taken on the MOTION.
IN FAVOR: Moses, J. Davies, Grussendorf
OPPOSED: Mulder, G. Davis, Foster, Kelly, Kohring, Martin,
Therriault, Hanley
The MOTION FAILED (3-8).
Representative J. Davies MOVED to adopt DNR-#4. [Copy on file].
Representative Kelly requested to AMEND DNR-#4 by deleting $75
thousand dollars from the component of Geological Development and
in the BRU Admin, $40 thousand dollars from the Recorders Office.
Representative Grussendorf questioned the effect of the deduction
to the recorder's office. Representative Kelly stated that it
would not have a negative effect as it had been added to and then
was removed from the Governor's requested amount. There being NO
OBJECTION, DNR-#4 was adopted.
Representative J. Davies MOVED to adopt DNR-#5. [Copy on file].
Representative Kelly OBJECTED.
Representative J. Davies explained that DNR-#5 would restore
funding for the assistant to the Commissioner, two development
specialists and a Natural Resource's officer. He stressed that
agriculture was underfunded in the State and that removal of the
positions would provide for the demise of the program.
Representative Kelly clarified that the program had been funded
under the Agriculture Revolving Loan Fund (ARLF). Representative
Davies pointed out that he was advocating for a funding switch
from ARLF to general funds.
A roll call vote was taken on the MOTION.
IN FAVOR: J. Davies, Grussendorf, Moses
OPPOSED: Mulder, G. Davis, Foster, Kelly, Kohring, Hanley,
Therriault
Representative Martin was not present for the vote.
The MOTION FAILED (3-7).
Representative J. Davies MOVED to adopt DNR-#6. [Copy on file].
Co-Chair Hanley OBJECTED.
(Tape Change HFC 97-81, Side 2).
Representative J. Davies explained that DNR-#6 would provide
additional funding, reducing permitting and lease time. He pointed
out that would be an addition to the Governor's request.
A roll call vote was taken on the MOTION.
IN FAVOR: J. Davies, Grussendorf, Moses
OPPOSED: G. Davis, Foster, Kelly, Kohring, Martin, Mulder,
Therriault, Hanley
The MOTION FAILED (3-8).
Representative J. Davies MOVED to adopt DNR-#7. [Copy on file].
He pointed out the funds used would be from the ARLF funds.
Representative Kelly stated that he did not object to the
recommendation. There being NO OBJECTION, DNR-#7 was adopted.
Representative J. Davies MOVED to adopt DNR-#8. [Copy on file].
Co-Chair Therriault OBJECTED. Representative J. Davies commented
that the amendment would restore the funding level to State Fairs.
A roll call vote was taken on the MOTION.
IN FAVOR: Grussendorf, Moses, J. Davies
OPPOSED: G. Davis, Foster, Kelly, Kohring, Martin, Mulder,
Therriault, Hanley
The MOTION FAILED (3-8).
Representative J. Davies MOVED to adopt DNR-#9. [Copy on file].
Co-Chair Hanley OBJECTED.
Representative J. Davies explained that the amendment would allow
the state parks to be supported by "user" fees. He pointed out
that eighty percent of the visitation to the parks is from Alaska
residents. He proposed that the $2.2 million dollar program
receipts in the Department's budget be split in half. Co-Chair
Hanley stated that the amendment would have little impact and that
he would prefer to keep it the way in which the Department had
structured the use. Representative J. Davies explained that the
Department did not object to the amendment and that the amendment
would not impact the bottom line.
A roll call vote was taken on the MOTION.
IN FAVOR: Grussendorf, Kelly, J. Davies
OPPOSED: Foster, Kohring, Martin, Mulder, G. Davis,
Therriault, Hanley
Representative Moses was not present for the vote.
The MOTION FAILED (3-7).
OFFICE OF THE GOVERNOR
Representative Foster MOVED to adopt the revised GOV-#1. [Copy on
file].
KYLE JOHANSEN, STAFF, REPRESENTATIVE BILL WILLIAMS, noted that the
special project funding in the amount of $75 thousand dollars was
intended for the Southeast sea urchin fishery. To date, the
amount previously funded in combination with GOV-#1 would provide
$171 thousand dollars. There being NO OBJECTION, GOV-#1 was
adopted.
DEPARTMENT OF CORRECTIONS
Representative J. Davies MOVED to adopt COR-#1. [Copy on file].
Representative Mulder OBJECTED.
REPRESENTATIVE GENE KUBINA explained that the amendment would
restore $1.5 million dollars to the entire BRU. He stated that
the proposed cuts would force a 92 position vacancy within the
institution for the next fiscal year. That reduction would fall
mostly upon the Division of Institutions. The unallocated amount
coupled with premium pay reductions, would add 29 more forced
vacancy throughout the twelve institutions.
Representative Mulder spoke against COR-#1 noting that the
Department of Corrections budget over the past three years has
been increased over $13 million dollars. The level of reduction
in the referenced BRU is 2.577 below the FY97 authorized level
with authorization to carry forward spending. He added, the
subcommittee's intent was to bring down the average cost per day
per inmate. He noted that the current cost is $105 dollars per
day.
ROBERT COLE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF CORRECTIONS, commented that in FY95, the Department
inherited a $13.5 million dollar supplemental. That fiscal year,
the supplemental was reduced to $7 million dollars. Of the $14
million difference between the FY96 and FY98 request, about $5
million was for the out-of-state contract and the additional $4.8
million dollars was for the community jails. Consequently, of the
$14 million dollars, $9 million was "eaten" up on contracts which
the Department had no choice but to implement.
In the last two years, the Department has not had a supplemental
budget request. The Governor submitted a conservative budget, the
difference in the request from FY97 was $1.7 million dollars which
was for negotiated contracts. The proposed budget presumes that
the Department could cut at least $4 million dollars out of basic
operations. He emphasized that would be a serious challenge for
the Department.
The correctional population is rising. The proposal for the
budget recommends eliminating the special assistant to the
Governor, reducing the travel and contractual budget and
eliminating funding for data processing. There are thirteen pages
of proposed cuts.
Representative Moses asked if services to municipalities had been
collected. Mr. Cole stated that the Department tries, although,
there is not exist a formula for charge-backs. The State has
responsibility for misdemeanors. In order to solve the issue,
there needs to be an equitable formula which can be used for all
municipalities.
In response to Representative Martin question, Mr. Cole advised
that the jail population is increasing. Since the 1980's, there
has been a 300% increase in the number of persons incarcerated due
to changes in the criminal code on the federal and state level.
Representative J. Davies questioned the premium pay issue. Mr.
Cole explained that the Department is required to carry a certain
percentage of vacancy. The premium pay pays for a shift
differentials and also for the over-time costs.
A roll call vote was taken on the MOTION to adopt DOC-#1.
IN FAVOR: Grussendorf, Moses, J. Davies
OPPOSED: Kelly, Kohring, Martin, Mulder, G. Davis, Foster,
Therriault
Co-Chair Hanley was not present for the vote.
The MOTION FAILED (3-7).
Representative J. Davies MOVED to adopt DOC-#2. [Copy on file].
Representative Mulder OBJECTED.
Representative Kubina explained that the proposed replacement of
$1.1 million general fund dollars with federal funds would be a
disallowed transaction under federal grant rules. He stressed
that the states' eligibility for the actual receipt of the federal
Crime bill grant funds would be in jeopardy.
Representative Mulder countered that the question would be the use
of the federal funds and what they would be appropriated for. He
stated that it was clear in the federal statutes that the money
must be used for new beds. It is not the intent of the
Subcommittee to remove any beds or to use any State general funds.
The reduction of general funds is a separate issue.
(Tape Change HFC 97-82, Side 1).
A roll call vote was taken on the MOTION.
IN FAVOR: Moses, J. Davies, Grussendorf
OPPOSED: Kohring, Martin, Mulder, G. Davis, Foster,
Therriault
Representatives Kelly and Hanley were not present for the vote.
The MOTION FAILED (3-6).
Representative J. Davies MOVED to adopt DOC-#3. Copy on file.
Representative Mulder OBJECTED.
Mr. Cole explained that Amendment #3 would address the proposed
replacement of $1 thousand general fund dollars with the federal
crime bill funds and would be a disallowed transaction under
federal grant rules and the states' eligibility for actual receipt
of the federal crime bill grant funds would be in jeopardy.
Representative Mulder stated that the federal funds were to be
used for purchasing more soft beds. The position made to the
Department of Justice is that the purchase of additional soft beds
would eliminate some of the overcrowding in the existing
facilities, which is the intention for the funds.
Representative J. Davies requested further clarification of the
issue. Mr. Cole noted that the problems with DOC-#2 and DOC-#3 is
the math used to address what the cost for existing beds will be.
New beds are a more complicated issue. He questioned if
supplanting meant the replacement of funding that would have
otherwise been appropriated had the federal money not been
available or would it be restricted to funds appropriated, cut and
replacement with other federal funds. Mr. Cole stressed that all
three of these items are at issue.
Representative J. Davies suggested that the funds would be better
used as capital funds to actually expand the physical facilities.
Representative Mulder reiterated that purchasing new soft beds
would make better sense by encouraging the Department to use more
soft beds which would expand the capacity.
A roll call vote was taken on the MOTION.
IN FAVOR: Moses, J. Davies, Grussendorf
OPPOSED: Kohring, Martin, Mulder, G. Davis, Foster, Kelly,
Therriault
Representative Hanley was not present for the vote.
The MOTION FAILED (3-7).
Representative J. Davies MOVED to adopt DOC-#4. [Copy on file].
Representative Mulder OBJECTED.
Representative Kubina explained that the funds would reinstate the
out-of-state contracts within the Administration and Operations
BRU. That section would provide classification support,
responsibility of prisoners assigned to out-of-state facilities,
and general oversight of all out-of-state operations. If this
program is within its own BRU, institutions would not be able to
provide direct financial support for enhancement to the program.
A roll call vote was taken on the MOTION.
IN FAVOR: Moses, J. Davies, Grussendorf
OPPOSED: Martin, Mulder, G. Davis, Foster, Kelly, Kohring,
Therriault
Representative Hanley was not present for the vote.
The MOTION FAILED (3-7).
Representative J. Davies WITHDREW DOC-#5. [Copy on file]. There
being NO OBJECTION, it was withdrawn.
Representative J. Davies MOVED to adopt DOC-#6. [Copy on file].
Representative Mulder OBJECTED.
Representative J. Davies stated that the amendment would delete
one of the intent provisions which would transfer a pre-trial
misdemeanor from jails to CRC's. He stated that was not
practical. The pre-trail issue is problematic.
Mr. Cole emphasized that there exists a "business obligation" to
the private sector to place as many misdemeanant pretrial persons
in CRC within 12 hours of booking unless a determination has been
made that the prisoner is a threat to public safety. This is a
public safety concern.
Representative Mulder recommended a change to DOC-#6. He pointed
out that currently there is no definition of nonviolent
misdemeanor. The Legislature is trying to encourage the
Department to put as many people as possible into half way house
beds. He agreed that he was sensitive to domestic violence
situations and would be amenable to adding language to the end of
the first section:
"The Department should be sensitive to the safety
of victims, before placing misdemeanant
convicted of crimes involving domestic
violence."
Representative Mulder MOVED that language following removal of
"delete" and changing it to "amend". Discussion followed
regarding striking the language "nonviolence" in part (b) of the
amendment and adding the same sentence following portion (b).
There being NO OBJECTION, the above language was changed.
FRONT SECTION
Co-Chair Hanley MOVED to adopt the Division of Insurance section
to the Front #1-Governor's recommended amendment. [Copy on file].
There being NO OBJECTION, it was adopted.
Co-Chair Hanley MOVED to adopt the Alaska Science and Technology
Foundation section to the Front #1. There being NO OBJECTION, it
was adopted.
Co-Chair Hanley noted that the Department of Natural Resources
section would not be moved. The $150 thousand dollars will be
added in the supplemental budget.
Co-Chair Hanley MOVED to amend the Alaska Public Utilities
Commission section changing it to designated program receipts.
There being NO OBJECTION, it was adopted.
Co-Chair Hanley MOVED to adopt the amended Section 12(c) which
will return it to standard language. There being NO OBJECTION, it
was adopted.
Co-Chair Hanley MOVED to adopt the amended Section 13(a) which
will allow the utilization of the Department of Fish and Game
funds. There being NO OBJECTION, it was adopted.
Co-Chair Hanley MOVED to adopt the amended Section 19 which would
correct the funding source for occupational licensing. There
being NO OBJECTION, it was adopted.
Co-Chair Hanley MOVED to adopt Section 26(c), State Debt and other
Obligations. There being NO OBJECTION, it was adopted.
(Tape Change HFC 97-82, Side 2).
Co-Chair Hanley noted that the amended Section #31 and Section #4
would be HELD.
Co-Chair Hanley MOVED to adopt Section 11, which would provide the
deletion of the Exxon Valdez Oil Spill Trustee Council. There
being NO OBJECTION, it was adopted.
Co-Chair Hanley noted that Sections 16(b), 16(c) and 16(d) would
not be deleted.
Co-Chair Hanley spoke to adoption of Front-#2 and it's components.
[Copy on file]. He stated that he would amend the amendment to
add a deletion to Page 7, Line 12 (c): "Except as provided in
(d)," and to Page 7, Lines 15-17, delete (d).
Co-Chair Hanley noted that Section 1 is the intent language
already outlined in the Executive Budget Act. The second part of
the amendment would increase AHFC dividend to general fund account
for the recently released Insurance Fund. The final part of the
amendment would be the Governor's intent when addressing fiscal
notes. The Legislature can fund fiscal notes at Conference
Committee.
Representative J. Davies MOVED to divide the question of Front-#2
into Section A, change to Page 1, and Section B, addressing the
remaining portion of the amendment. There being NO OBJECTION, it
was divided.
Co-Chair Hanley MOVED to adopt Front-#2(B). There being NO
OBJECTION, it was adopted.
Co-Chair Hanley MOVED to adopt Front-#2(A). Representative J.
Davies OBJECTED. Representative Grussendorf questioned how such a
change would affect the long range fiscal plan.
A roll call vote was taken on the MOTION.
IN FAVOR: Moses, Mulder, G. Davis, Foster, Kelly, Kohring,
Martin, Therriault, Hanley
OPPOSED: J. Davies, Grussendorf
The MOTION PASSED (9-2).
Co-Chair Hanley MOVED to adopt Front-#3. [Copy on file]. He
explained that the possibility of federal match rate change for
the State's payment of Medicaid funds. The change could result in
a reduced State payment from 50% to 38% rate. The amendment
assumes this will pass this fiscal year, with a net zero intent.
Representative J. Davies noted concern with the contingency
decision associated with the proposed change. Co-Chair Hanley
stated that the Legislative Budget and Audit Committee (LBA) could
authorize the increased federal funds. There being NO OBJECTION,
the amendment was adopted.
Representative Grussendorf MOVED to adopt the new Front-#4. [Copy
on file]. Representative Martin pointed out that the $9 million
dollars from Wishbone Hill was separate funding and was not
included in the Railroad. Co-Chair Hanley noted that the
appropriation had been to the Alaska Railroad and that it could
not be spent without a contract dealing with the Wishbone Mine.
Representative Martin commented that he would accept the changed
Representative G. Davis OBJECTED to Front-#4. He stated that he
was opposed because it would put more constraints on the Railroad
and would not provide a true assessment of the true value. Co-
Chair Hanley pointed out that the amendment would not have any
effect on the legislation currently in the Legislative Body.
A roll call vote was taken on the MOTION.
IN FAVOR: Foster, Kelly, Kohring, Martin, Hanley
OPPOSED: Mulder, J. Davies, G. Davis, Grussendorf, Moses
Representative Therriault was not present for the vote.
The MOTION PASSED (5-5).
Representative Grussendorf MOVED to adopt Front-#5. [Copy on
file]. He stated that the amendment would add $125 thousand
dollars to the Alaska Marine Highway System fund to restore
funding for the operation of the bars on the ferries.
VIRGINIA STONKUS, FISCAL ANALYST, LEGISLATIVE FINANCE DIVISION,
corrected that the new number for the Marine Highway stabilization
fund is $28.383 million dollars. Co-Chair Hanley OBJECTED.
A roll call vote was taken on the MOTION.
IN FAVOR: J. Davies, G. Davis, Grussendorf, Moses
OPPOSED: Foster, Kelly, Kohring, Martin, Mulder,
Therriault, Hanley
The MOTION FAILED (4-7).
(Tape Change HFC 97-83, Side 1).
STATEWIDE
Co-Chair Hanley MOVED to adopt State-#1. [Copy on file]. He
explained that items in the proposed amendment were capital budget
projects which were not included in the Mental Health Trust
Authority indicating a true capital budget request. There being
NO OBJECTION, it was adopted.
As a technical amendment, Co-Chair Hanley MOVED that the capital
projects be added as part of the title for the capital bill.
There being NO OBJECTION, it was adopted.
Co-Chair Hanley MOVED to adopt State-#4. [Copy on file]. Co-
Chair Hanley explained that this amendment was needed to complete
transfers associated with the Executive Order '98 which transfers
Weights and Measures from Commerce and Commercial Vehicles
Inspections from Public Safety to the Department of Transportation
and Public Facilities. There being NO OBJECTION, it was adopted.
HB 75 and HB 76 were HELD in Committee for further consideration.
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