Bill Text: MI HB4410 | 2021-2022 | 101st Legislature | Engrossed


Bill Title: Appropriations: zero budget; omnibus budget appropriations; provide for fiscal year 2021-2022. Creates appropriation act.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed) 2021-06-30 - Laid Over One Day Under The Rules [HB4410 Detail]

Download: Michigan-2021-HB4410-Engrossed.html

 

SENATE Substitute For

HOUSE BILL NO. 4410

A bill to make, supplement, adjust, and consolidate appropriations for various state departments and agencies for the fiscal years ending September 30, 2021 and September 30, 2022; to provide for certain conditions on appropriations; and to provide for the expenditure of the appropriations.

The people of the state of michigan enact:


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ARTICLE 1

GENERAL GOVERNMENT

part 1

line-item appropriations

Sec. 101. There is appropriated to the department of treasury and for certain state purposes related to the appropriations for the fiscal year ending September 30, 2022, from the following funds:


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APPROPRIATION SUMMARY

 

 

 

GROSS APPROPRIATION

 

$

1,412,735,300

Interdepartmental grant revenues:

 

 

 

Total interdepartmental grants and intradepartmental transfers

 

 

0

ADJUSTED GROSS APPROPRIATION

 

$

1,412,735,300

Federal revenues:

 

 

 

Total other federal revenues

 

 

0

Special revenue funds:

 

 

 

Total local revenues

 

 

0

Total private revenues

 

 

0

Total other state restricted revenues

 

 

1,412,735,300

State general fund/general purpose

 

$

0

Sec. 102. DEPARTMENT OF TREASURY

 

 

 

(1) APPROPRIATION SUMMARY

 

 

 

GROSS APPROPRIATION

 

$

1,412,735,300

Interdepartmental grant revenues:

 

 

 

Total interdepartmental grants and intradepartmental transfers

 

 

0

ADJUSTED GROSS APPROPRIATION

 

$

1,412,735,300

Federal revenues:

 

 

 

Total other federal revenues

 

 

0

Special revenue funds:

 

 

 

Total local revenues

 

 

0

Total private revenues

 

 

0

Total other state restricted revenues

 

 

1,412,735,300

State general fund/general purpose

 

$

0

(2) REVENUE SHARING

 

 

 


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City, village, and township revenue sharing

 

$

266,245,100

Constitutional state general revenue sharing grants

 

 

912,040,500

County incentive program

 

 

43,418,800

County revenue sharing

 

 

188,097,200

Financially distressed cities, villages, or townships

 

 

2,500,000

GROSS APPROPRIATION

 

$

1,412,302,300

Appropriated from:

 

 

 

Special revenue funds:

 

 

 

Sales tax

 

 

1,412,302,300

State general fund/general purpose

 

$

0

(3) ONE-TIME APPROPRIATIONS

 

 

 

Coronavirus relief local governments grant reimbursement

 

$

433,000

GROSS APPROPRIATION

 

$

433,000

Appropriated from:

 

 

 

Special revenue funds:

 

 

 

Sales tax

 

 

433,000

State general fund/general purpose

 

$

0

 

 

 

 

 

part 2

provisions concerning appropriations

FOR FISCAL YEAR 2021-2022

general sections

Sec. 201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state sources under part 1 for the fiscal year ending September 30, 2022 is


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$1,412,735,300.00 and total state spending from state sources to be paid to local units of government is $1,412,735,300.00. The itemized statement below identifies appropriations from which spending to local units of government will occur:

DEPARTMENT OF TREASURY

 

 

 

City, village, and township revenue sharing

 

$

266,245,100

Constitutional state general revenue sharing grants

 

 

912,040,500

Coronavirus relief local governments grant reimbursement

 

 

433,000

County incentive program

 

 

43,418,800

County revenue sharing

 

 

188,097,200

Financially distressed cities, villages, or townships

 

 

2,500,000

TOTAL

 

$

1,412,735,300

Sec. 202. The appropriations made and expenditures authorized under this part and part 1 and the departments, commissions, boards, offices, and programs for which appropriations are made under this part and part 1 are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.

Sec. 203. If the state administrative board, acting under section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount appropriated under this article, the legislature may, by a concurrent resolution adopted by a majority of the members elected to and serving in each house, inter-transfer funds within this article for the particular department, board, commission, office, or institution.

 

REVENUE SHARING


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Sec. 301. The funds appropriated in part 1 for constitutional revenue sharing shall be distributed by the department of treasury to cities, villages, and townships, as required under section 10 of article IX of the state constitution of 1963. Revenue collected in accordance with section 10 of article IX of the state constitution of 1963 in excess of the amount appropriated in part 1 for constitutional revenue sharing is appropriated for distribution to cities, villages, and townships, on a population basis as required under section 10 of article IX of the state constitution of 1963.

Sec. 302. (1) The funds appropriated in part 1 for city, village, and township revenue sharing are for grants to cities, villages, and townships such that, subject to fulfilling the requirements under subsection (3), each city, village, or township that received a payment under section 952(1) of article 5 of 2020 PA 166 is eligible to receive a payment equal to 102.0% of its total eligible payment under section 952(1) of article 5 of 2020 PA 166, rounded to the nearest dollar. For purposes of this subsection, any city, village, or township that completely merges with another city, village, or township will be treated as a single entity, such that when determining the eligible payment under section 952(1) of article 5 of 2020 PA 166 for the combined single entity, the amount each of the merging local units was eligible to receive under section 952(1) of article 5 of 2020 PA 166 is summed.

(2) The funds appropriated in part 1 for the county incentive program are to be used for grants to counties such that each county is eligible to receive an amount equal to 20% of the amount determined pursuant to the Glenn Steil state revenue sharing act of 1971, 1971 PA 140, MCL 141.901 to 141.921. The amount calculated under this subsection shall be adjusted as necessary to reflect


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partial county fiscal years and prorated based on the total amount appropriated for distribution to all eligible counties. Except as otherwise provided under this subsection, payments under this subsection will be distributed to an eligible county subject to the county's fulfilling the requirements under subsection (3).

(3) For purposes of accountability and transparency, each eligible city, village, township, or county shall certify by December 1, or the first day of a payment month, that it has produced a citizen's guide of its most recent local finances, including a recognition of its unfunded liabilities; a performance dashboard; a debt service report containing a detailed listing of its debt service requirements, including, at a minimum, the issuance date, issuance amount, type of debt instrument, a listing of all revenues pledged to finance debt service by debt instrument, and a listing of the annual payment amounts until maturity; and a projected budget report, including, at a minimum, the current fiscal year and a projection for the immediately following fiscal year. The projected budget report shall include revenues and expenditures and an explanation of the assumptions used for the projections. Each eligible city, village, township, or county shall include in any mailing of general information to its citizens the internet website address location for its citizen's guide, performance dashboard, debt service report, and projected budget report or the physical location where these documents are available for public viewing in the city, village, township, or county clerk's office. Each city, village, township, and county applying for a payment under this subsection shall submit a copy of the performance dashboard, a copy of the debt service report, and a copy of the projected budget report to the department of treasury.


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In addition, each eligible city, village, township, or county applying for a payment under this subsection shall either submit a copy of the citizen's guide or certify that the city, village, township, or county will be utilizing the department of treasury's online citizen's guide. The department of treasury shall develop detailed guidance for a city, village, township, or county to follow to meet the requirements of this subsection. The detailed guidance shall be posted on the department of treasury website and distributed to cities, villages, townships, and counties by October 1.

(4) City, village, and township revenue sharing payments and county incentive program payments are subject to the following conditions:

(a) The city, village, township, or county shall certify to the department that it has met the required criteria for subsection (3) and submitted the required citizen's guide, performance dashboard, debt service report, and projected budget report as required by subsection (3). A department of treasury review of the citizen's guide, dashboard, or reports is not required in order for a city, village, township, or county to receive a payment under subsection (1) or (2). The department shall develop a certification process and method for cities, villages, townships, and counties to follow.

(b) Subject to subdivisions (c), (d), and (e), if a city, village, township, or county meets the requirements of subsection (3), the city, village, township, or county shall receive its full potential payment under this section.

(c) Cities, villages, and townships eligible to receive a payment under subsection (1) shall receive 1/6 of their eligible


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payment on the last business day of October, December, February, April, June, and August. Payments under subsection (1) shall be issued to cities, villages, and townships until the specified due date for subsection (3). After the specified due date for subsection (3), payments shall be made to a city, village, or township only if that city, village, or township has complied with subdivision (a).

(d) Payments under subsection (2) shall be issued to counties until the specified due date for subsection (3). After the specified due date for subsection (3), payments shall be made to a county only if that county has complied with subdivision (a).

(e) If a city, village, township, or county does not submit the required certification, citizen's guide, performance dashboard, debt service report, and projected budget report by the first day of a payment month, the city, village, township, or county shall forfeit the payment in that payment month.

(f) Any city, village, township, or county that falsifies certification documents shall forfeit any future city, village, and township revenue sharing payments or county incentive program payments and shall repay to this state all payments it has received under this section.

(g) City, village, and township revenue sharing payments and county incentive program payments under this section shall be distributed on the last business day of October, December, February, April, June, and August.

(h) Payments distributed under this section may be withheld pursuant to sections 17a and 21 of the Glenn Steil state revenue sharing act of 1971, 1971 PA 140, MCL 141.917a and 141.921.

(5) The unexpended funds appropriated in part 1 for city,


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village, and township revenue sharing and the county incentive program shall be available for expenditure under the program for financially distressed cities, villages, or townships after the approval of transfers by the legislature pursuant to section 393(2) of the management and budget act, 1984 PA 431, MCL 18.1393.

(6) Any city, village, or township eligible to receive a payment under subsection (1) and determined to have a retirement pension benefit system in underfunded status under section 5 of the protecting local government retirement and benefits act, 2017 PA 202, MCL 38.2805, must allocate an amount equal to its current year eligible payment under subsection (1) less the sum of its eligible payment for city, village, and township revenue sharing in 2019 PA 56 to its pension unfunded liability. A city, village, or township that has issued a municipal security under section 518 of the revised municipal finance act, 2001 PA 34, MCL 141.2518, is exempt from this requirement.

Sec. 303. (1) The funds appropriated in part 1 for county revenue sharing shall be distributed by the department of treasury so that each eligible county receives a payment equal to 106.6435% of the amount determined pursuant to the Glenn Steil state revenue sharing act of 1971, 1971 PA 140, MCL 141.901 to 141.921, less the amount for which the county is eligible under section 302(2) of this part. The amount calculated under this subsection shall be adjusted as necessary to reflect partial county fiscal years and prorated based on the total amount appropriated for distribution to all eligible counties.

(2) The department of treasury shall annually certify to the state budget director the amount each county is authorized to expend from its revenue sharing reserve fund.


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(3) Any county eligible to receive a payment under subsection (1) and determined to have a retirement pension benefit system in underfunded status under section 5 of the protecting local government retirement and benefits act, 2017 PA 202, MCL 38.2805, must allocate an amount equal to the sum of its current year eligible payment for county revenue sharing and the county incentive program less the sum of its 2019 PA 56 eligible payment for county revenue sharing and the county incentive program to its pension unfunded liability. A county that has issued a municipal security under section 518 of the revised municipal finance act, 2001 PA 34, MCL 141.2518, is exempt from this requirement.

Sec. 304. (1) The funds appropriated in part 1 for financially distressed cities, villages, or townships shall be granted by the department of treasury to cities, villages, and townships that have 1 or more conditions that indicate probable financial distress, as determined by the department of treasury. A city, village, or township with 1 or more conditions that indicate probable financial distress may apply in a manner determined by the department of treasury for a grant to pay for specific projects or services that move the city, village, or township toward financial stability. Grants are to be used for specific projects or services that move the city, village, or township toward financial stability. The city, village, or township must use the grants under this section to make payments to reduce unfunded accrued liability; to repair or replace critical infrastructure and equipment owned or maintained by the city, village, or township; to reduce debt obligations; or for costs associated with a transition to shared services with another jurisdiction; or to administer other projects that move the city, village, or township toward financial stability. The


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department of treasury shall award no more than $2,000,000.00 to any city, village, or township under this section.

(2) The department of treasury shall provide a report to the senate and house of representatives appropriations subcommittees on general government, the senate and house fiscal agencies, and the state budget director by March 31. The report shall include a list by grant recipient of the date each grant was approved, the amount of the grant, and a description of the project or projects that will be paid by the grant.

(3) The unexpended funds appropriated in part 1 for financially distressed cities, villages, or townships are designated as a work project appropriation, and any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditure for projects under this section until the projects have been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:

(a) The purpose of the project is to provide assistance to financially distressed cities, villages, and townships under this section.

(b) The projects will be accomplished by grants to cities, villages, and townships approved by the department of treasury.

(c) The total estimated cost of all projects is $2,500,000.00.

(d) The tentative completion date is September 30, 2026.

Sec. 305. The funds in part 1 for coronavirus relief local government grants reimbursement shall be used to make payments to cities, villages, townships, and counties that received a coronavirus relief local government grant in 2020 PA 144 and subsequently returned at least some portion of the grant. The


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payments shall be made by the department of treasury to each local unit of government in the same amount that each local unit of government returned the coronavirus relief local government grants.

 

ARTICLE 2

SUPPLEMENTAL APPROPRIATIONS

PART 1

LINE-ITEM APPROPRIATIONS

FOR FISCAL YEAR 2020-2021

Sec. 101. There is appropriated for various state departments and agencies to supplement appropriations for the fiscal year ending September 30, 2021, from the following funds:

APPROPRIATION SUMMARY

 

 

 

GROSS APPROPRIATION

 

$

384,700,000

Interdepartmental grant revenues:

 

 

 

Total interdepartmental grants and intradepartmental transfers

 

 

0

ADJUSTED GROSS APPROPRIATION

 

$

384,700,000

Federal revenues:

 

 

 

Total other federal revenues

 

 

367,700,000

Special revenue funds:

 

 

 

Total local revenues

 

 

0

Total private revenues

 

 

0

Total other state restricted revenues

 

 

0

State general fund/general purpose

 

$

17,000,000

Sec. 102. DEPARTMENT OF HEALTH AND HUMAN SERVICES

 

 

 

(1) APPROPRIATION SUMMARY

 

 

 


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GROSS APPROPRIATION

 

$

260,000,000

Interdepartmental grant revenues:

 

 

 

Total interdepartmental grants and intradepartmental transfers

 

 

0

ADJUSTED GROSS APPROPRIATION

 

$

260,000,000

Federal revenues:

 

 

 

Total other federal revenues

 

 

260,000,000

Special revenue funds:

 

 

 

Total local revenues

 

 

0

Total private revenues

 

 

0

Total other state restricted revenues

 

 

0

State general fund/general purpose

 

$

0

(2) ONE-TIME APPROPRIATIONS

 

 

 

Hospital COVID-19 grants

 

$

160,000,000

Long-term care facility supports

 

 

100,000,000

GROSS APPROPRIATION

 

$

260,000,000

Appropriated from:

 

 

 

Federal revenues:

 

 

 

Coronavirus state fiscal recovery fund

 

 

260,000,000

State general fund/general purpose

 

$

0

Sec. 103. DEPARTMENT OF STATE POLICE

 

 

 

(1) APPROPRIATION SUMMARY

 

 

 

GROSS APPROPRIATION

 

$

12,700,000

Interdepartmental grant revenues:

 

 

 

Total interdepartmental grants and intradepartmental transfers

 

 

0

ADJUSTED GROSS APPROPRIATION

 

$

12,700,000

Federal revenues:

 

 

 


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Total other federal revenues

 

 

2,700,000

Special revenue funds:

 

 

 

Total local revenues

 

 

0

Total private revenues

 

 

0

Total other state restricted revenues

 

 

0

State general fund/general purpose

 

$

10,000,000

(2) SPECIALIZED SERVICES

 

 

 

Secondary road patrol program

 

$

2,700,000

GROSS APPROPRIATION

 

$

2,700,000

Appropriated from:

 

 

 

Federal revenues:

 

 

 

Coronavirus state fiscal recovery fund

 

 

2,700,000

State general fund/general purpose

 

$

0

(3) ONE-TIME APPROPRIATIONS

 

 

 

Emergency and disaster response and mitigation

 

$

10,000,000

GROSS APPROPRIATION

 

$

10,000,000

Appropriated from:

 

 

 

State general fund/general purpose

 

$

10,000,000

Sec. 104.  DEPARTMENT OF EDUCATION

 

 

 

(1) APPROPRIATION SUMMARY

 

 

 

GROSS APPROPRIATION

 

$

105,000,000

Interdepartmental grant revenues:

 

 

 

Total interdepartmental grants and intradepartmental transfers

 

 

0

ADJUSTED GROSS APPROPRIATION

 

$

105,000,000

Federal revenues:

 

 

 

Total other federal revenues

 

 

105,000,000

Special revenue funds:

 

 

 


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Total local revenues

 

 

0

Total private revenues

 

 

0

Total other state restricted revenues

 

 

0

State general fund/general purpose

 

$

0

(2) ONE-TIME APPROPRIATIONS

 

 

 

COVID-19 child care public assistance

 

$

105,000,000

GROSS APPROPRIATION

 

$

105,000,000

Appropriated from:

 

 

 

Federal revenues:

 

 

 

Federal funds

 

 

105,000,000

State general fund/general purpose

 

$

0

Sec. 106.  DEPARTMENT OF TREASURY

 

 

 

(1) APPROPRIATION SUMMARY

 

 

 

GROSS APPROPRIATION

 

$

7,000,000

Interdepartmental grant revenues:

 

 

0

Total interdepartmental grants and intradepartmental transfers

 

 

0

ADJUSTED GROSS APPROPRIATION

 

$

7,000,000

Federal revenues:

 

 

 

Total other federal revenues

 

 

0

Special revenue funds:

 

 

 

Total local revenues

 

 

0

Total private revenues

 

 

0

Total other state restricted revenues

 

 

0

State general fund/general purpose

 

$

7,000,000

(2) ONE-TIME APPROPRIATIONS

 

 

 

Wrongful imprisonment compensation fund

 

$

7,000,000

GROSS APPROPRIATION

 

$

7,000,000


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Appropriated from:

 

 

 

State general fund/general purpose

 

$

7,000,000

 

PART 2

PROVISIONS CONCERNING APPROPRIATIONS

FOR FISCAL YEAR 2020-2021

GENERAL SECTIONS

Sec. 1201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state sources under part 1 for the fiscal year ending September 30, 2021 is $17,000,000.00 and total state spending from state sources to be paid to local units of government is $0.00.

Sec. 1202. The appropriations made and expenditures authorized under this part and part 1 and the departments, commissions, boards, offices, and programs for which appropriations are made under this part and part 1 are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.

Sec. 1203. If the state administrative board, acting under section 3 of 1921 PA 2, MCL 17.3, transfers funds from an amount appropriated under this article, the legislature may, by a concurrent resolution adopted by a majority of the members elected to and serving in each house, inter-transfer funds within this article for the particular department, board, commission, office, or institution.

Sec. 1204. Funds appropriated in part 1 are subject to applicable federal audit and reporting requirements. Prompt action shall be taken if instances of noncompliance are identified, including noncompliance identified in an audit finding. If any instance of noncompliance is identified, including noncompliance


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identified in an audit finding, the state budget director shall take necessary and immediate action to rectify it. The state budget director shall notify the senate and house appropriations committees and the senate and house fiscal agencies when an instance of noncompliance is identified.

Sec. 1205. The state budget director shall report on the status of funds appropriated in part 1, and all funds appropriated related to the coronavirus relief effort, to the senate and house appropriations committees and the senate and house fiscal agencies on a monthly basis until all funds are exhausted.

 

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Sec. 1301. From the funds appropriated in part 1 for hospital COVID-19 grants, the department of health and human services shall provide grants to hospitals in this state to help cover increased hospital costs and reduced hospital revenue related to the COVID-19 pandemic. The grant to each hospital shall equal each hospital's percentage of total state Medicaid inpatient claims revenue, including Medicaid managed care inpatient claims revenue, in the most recent 12 months for which the information is available multiplied by the appropriation for hospital COVID-19 grants in part 1.

Sec. 1302. (1) From the funds appropriated in part 1 for long-term care facility supports, the department of health and human services shall allocate $100,000,000.00 to provide a $23.00 per Medicaid day increase to nursing facilities that have experienced a 5% or greater decline in the nursing facility's average daily census during the last 3 calendar quarters of the fiscal year ending September 30, 2021 when compared to the nursing facility's


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average daily census as reported in the nursing facility's 2019 Medicaid cost report. A nursing facility may be eligible for reimbursement for 1 or all 3 calendar quarters based on each nursing facility's change in average daily census by calendar quarter.

(2) Each nursing facility may request from the department of health and human services the additional $23.00 per Medicaid day increase at the end of each calendar quarter. The request must include the average daily census as reported on the applicable 2019 Medicaid cost report based on total licensed beds, the actual applicable calendar quarter's average daily census, and a detailed weekly average daily census for the calendar quarter. The department of health and human services may request additional documentation to verify census. The request must also include the number of Medicaid days of care rendered for the applicable 2021 calendar quarter, including Medicaid integrated care organization days and healthy Michigan plan days.

(3) After receiving the request with all of the applicable information, the department of health and human services must remit payment to the nursing facility within 14 days. The department must reconcile payments under this section by no sooner than 92 days after September 30, 2021. As a condition of receiving funds appropriated in this section, the nursing facility must agree to any appropriate payment or recovery action for any over or under payment disclosed from this reconciliation process, and the department of health and human services must report to each nursing facility whether this reconciliation process identified any over or under payments.

DEPARTMENT OF EDUCATION


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Sec. 1401. (1) From the funds appropriated in part 1 for COVID19 child care public assistance, the provider reimbursement rates for child care centers, group home providers, registered family homes, and licensed exempt providers are increased by 40% from the provider rates as of September 30, 2020, rounded up to the nearest $0.05.

(2) Rate increases funded under subsection (1) are effective from October 1, 2020 to September 30, 2021.

Sec. 1402. From the funds appropriated in part 1 for COVID-19 child care public assistance, the department shall make payments to child care providers, beginning on June 28, 2021 and ending on September 30, 2021, for eligible children in the child development and care program based on enrollment rather than based on attendance.

DEPARTMENT OF STATE POLICE

     Sec. 1501.  The funds appropriated in part 1 for emergency and disaster response and mitigation shall be used to cover costs related to the June 2021 weather events in the State of Michigan.

 

 

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