Full Text of HB0142 101st General Assembly
HB0142ham001 101ST GENERAL ASSEMBLY | Rep. Maurice A. West, II Filed: 3/19/2019
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| 1 | | AMENDMENT TO HOUSE BILL 142
| 2 | | AMENDMENT NO. ______. Amend House Bill 142 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Business Enterprise for Minorities, Women, | 5 | | and Persons with
Disabilities Act is amended by changing | 6 | | Sections 2 and 4f as follows:
| 7 | | (30 ILCS 575/2)
| 8 | | (Section scheduled to be repealed on June 30, 2020) | 9 | | Sec. 2. Definitions.
| 10 | | (A) For the purpose of this Act, the following
terms shall | 11 | | have the following definitions:
| 12 | | (1) "Minority person" shall mean a person who is a | 13 | | citizen or lawful
permanent resident of the United States | 14 | | and who is any of the following:
| 15 | | (a) American Indian or Alaska Native (a person | 16 | | having origins in any of the original peoples of North |
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| 1 | | and South America, including Central America, and who | 2 | | maintains tribal affiliation or community attachment). | 3 | | (b) Asian (a person having origins in any of the | 4 | | original peoples of the Far East, Southeast Asia, or | 5 | | the Indian subcontinent, including, but not limited | 6 | | to, Cambodia, China, India, Japan, Korea, Malaysia, | 7 | | Pakistan, the Philippine Islands, Thailand, and | 8 | | Vietnam). | 9 | | (c) Black or African American (a person having | 10 | | origins in any of the black racial groups of Africa). | 11 | | Terms such as "Haitian" or "Negro" can be used in | 12 | | addition to "Black or African American". | 13 | | (d) Hispanic or Latino (a person of Cuban, Mexican, | 14 | | Puerto Rican, South or Central American, or other | 15 | | Spanish culture or origin, regardless of race). | 16 | | (e) Native Hawaiian or Other Pacific Islander (a | 17 | | person having origins in any of the original peoples of | 18 | | Hawaii, Guam, Samoa, or other Pacific Islands).
| 19 | | (2) "Woman" shall mean a person who is a citizen or | 20 | | lawful permanent
resident of the United States and who is | 21 | | of the female gender.
| 22 | | (2.05) "Person with a disability" means a person who is | 23 | | a citizen or
lawful resident of the United States and is a | 24 | | person qualifying as a person with a disability under | 25 | | subdivision (2.1) of this subsection (A).
| 26 | | (2.1) "Person with a disability" means a person with a |
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| 1 | | severe physical or mental disability that:
| 2 | | (a) results from:
| 3 | | amputation,
| 4 | | arthritis,
| 5 | | autism,
| 6 | | blindness,
| 7 | | burn injury,
| 8 | | cancer,
| 9 | | cerebral palsy,
| 10 | | Crohn's disease, | 11 | | cystic fibrosis,
| 12 | | deafness,
| 13 | | head injury,
| 14 | | heart disease,
| 15 | | hemiplegia,
| 16 | | hemophilia,
| 17 | | respiratory or pulmonary dysfunction,
| 18 | | an intellectual disability,
| 19 | | mental illness,
| 20 | | multiple sclerosis,
| 21 | | muscular dystrophy,
| 22 | | musculoskeletal disorders,
| 23 | | neurological disorders, including stroke and | 24 | | epilepsy,
| 25 | | paraplegia,
| 26 | | quadriplegia and other spinal cord conditions,
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| 1 | | sickle cell anemia,
| 2 | | ulcerative colitis, | 3 | | specific learning disabilities, or
| 4 | | end stage renal failure disease; and
| 5 | | (b) substantially limits one or more of the | 6 | | person's major life activities.
| 7 | | Another disability or combination of disabilities may | 8 | | also be considered
as a severe disability for the purposes | 9 | | of item (a) of this
subdivision (2.1) if it is determined | 10 | | by an evaluation of
rehabilitation potential to
cause a | 11 | | comparable degree of substantial functional limitation | 12 | | similar to
the specific list of disabilities listed in item | 13 | | (a) of this
subdivision (2.1).
| 14 | | (3) "Minority-owned business" means a business which | 15 | | is at least
51% owned by one or more minority persons, or | 16 | | in the case of a
corporation, at least 51% of the stock in | 17 | | which is owned by one or
more minority persons; and the | 18 | | management and daily business operations of
which are | 19 | | controlled by one or more of the minority individuals who | 20 | | own it.
| 21 | | (4) "Women-owned business" means a business which is at | 22 | | least
51% owned by one or more women, or, in the case of a | 23 | | corporation, at
least 51% of the stock in which is owned by | 24 | | one or more women; and the
management and daily business | 25 | | operations of which are controlled by one or
more of the | 26 | | women who own it.
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| 1 | | (4.1) "Business owned by a person with a disability" | 2 | | means a business
that is at least 51% owned by one or more | 3 | | persons with a disability
and the management and daily | 4 | | business operations of which
are controlled by one or more | 5 | | of the persons with disabilities who own it. A
| 6 | | not-for-profit agency for persons with disabilities that | 7 | | is exempt from
taxation under Section 501 of the Internal | 8 | | Revenue Code of 1986 is also
considered a "business owned | 9 | | by a person with a disability".
| 10 | | (4.2) "Council" means the Business Enterprise Council | 11 | | for Minorities, Women, and Persons with Disabilities | 12 | | created under Section 5 of this Act.
| 13 | | (5) "State contracts" means all contracts entered into | 14 | | by the State, any agency or department thereof, or any | 15 | | public institution of higher education , including | 16 | | community college districts , regardless of the source of | 17 | | the funds with which the contracts are paid, which are not | 18 | | subject to federal reimbursement. "State contracts" does | 19 | | not include contracts awarded by a retirement system, | 20 | | pension fund, or investment board subject to Section | 21 | | 1-109.1 of the Illinois Pension Code. This definition shall | 22 | | control over any existing definition under this Act or | 23 | | applicable administrative rule.
| 24 | | "State construction contracts" means all State | 25 | | contracts entered
into by a State agency or public | 26 | | institution of higher education for the repair, |
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| 1 | | remodeling,
renovation or
construction of a building or | 2 | | structure, or for the construction or
maintenance of a | 3 | | highway defined in Article 2 of the Illinois Highway
Code.
| 4 | | (6) "State agencies" shall mean all departments, | 5 | | officers, boards,
commissions, institutions and bodies | 6 | | politic and corporate of the State,
but does not include | 7 | | the Board of Trustees of the University of Illinois,
the | 8 | | Board of Trustees of Southern Illinois University,
the | 9 | | Board of Trustees
of Chicago State University, the Board of | 10 | | Trustees of Eastern Illinois
University, the Board of | 11 | | Trustees of Governors State University, the Board of
| 12 | | Trustees of Illinois State University, the Board of | 13 | | Trustees of Northeastern
Illinois
University, the Board of | 14 | | Trustees of Northern Illinois University, the Board of
| 15 | | Trustees of Western Illinois University,
municipalities or | 16 | | other local governmental units, or other State | 17 | | constitutional
officers.
| 18 | | (7) "Public institutions of higher education" means | 19 | | the University of Illinois, Southern Illinois University, | 20 | | Chicago State University, Eastern Illinois University, | 21 | | Governors State University, Illinois State University, | 22 | | Northeastern Illinois University, Northern Illinois | 23 | | University, Western Illinois University, the public | 24 | | community colleges of the State, and any other public | 25 | | universities , colleges, and community colleges now or | 26 | | hereafter established or authorized by the General |
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| 1 | | Assembly.
| 2 | | (8) "Certification" means a determination made by the | 3 | | Council
or by one delegated authority from the Council to | 4 | | make certifications, or by
a State agency with statutory | 5 | | authority to make such a certification, that a
business | 6 | | entity is a business owned by a
minority, woman, or person | 7 | | with a disability for whatever
purpose. A business owned | 8 | | and controlled by women shall be certified as a | 9 | | "woman-owned business". A business owned and controlled by | 10 | | women who are also minorities shall be certified as both a | 11 | | "women-owned business" and a "minority-owned business".
| 12 | | (9) "Control" means the exclusive or ultimate and sole | 13 | | control of the
business including, but not limited to, | 14 | | capital investment and all other
financial matters, | 15 | | property, acquisitions, contract negotiations, legal
| 16 | | matters, officer-director-employee selection and | 17 | | comprehensive hiring,
operating responsibilities, | 18 | | cost-control matters, income and dividend
matters, | 19 | | financial transactions and rights of other shareholders or | 20 | | joint
partners. Control shall be real, substantial and | 21 | | continuing, not pro forma.
Control shall include the power | 22 | | to direct or cause the direction of the
management and | 23 | | policies of the business and to make the day-to-day as well
| 24 | | as major decisions in matters of policy, management and | 25 | | operations.
Control shall be exemplified by possessing the | 26 | | requisite knowledge and
expertise to run the particular |
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| 1 | | business and control shall not include
simple majority or | 2 | | absentee ownership.
| 3 | | (10) "Business" means a business that has annual gross | 4 | | sales of less than $75,000,000 as evidenced by the federal | 5 | | income tax return of the business. A firm with gross sales | 6 | | in excess of this cap may apply to the Council for | 7 | | certification for a particular contract if the firm can | 8 | | demonstrate that the contract would have significant | 9 | | impact on businesses owned by minorities, women, or persons | 10 | | with disabilities as suppliers or subcontractors or in | 11 | | employment of minorities, women, or persons with | 12 | | disabilities.
| 13 | | (11) "Utilization plan" means a form and additional | 14 | | documentations included in all bids or proposals that | 15 | | demonstrates a vendor's proposed utilization of vendors | 16 | | certified by the Business Enterprise Program to meet the | 17 | | targeted goal. The utilization plan shall demonstrate that | 18 | | the Vendor has either: (1) met the entire contract goal or | 19 | | (2) requested a full or partial waiver and made good faith | 20 | | efforts towards meeting the goal. | 21 | | (12) "Business Enterprise Program" means the Business | 22 | | Enterprise Program of the Department of Central Management | 23 | | Services. | 24 | | (B) When a business is owned at least 51% by any | 25 | | combination of
minority persons, women, or persons with | 26 | | disabilities,
even though none of the 3 classes alone holds at |
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| 1 | | least a 51% interest, the
ownership
requirement for purposes of | 2 | | this Act is considered to be met. The
certification category | 3 | | for the business is that of the class holding the
largest | 4 | | ownership
interest in the business. If 2 or more classes have | 5 | | equal ownership interests,
the certification category shall be | 6 | | determined by
the business.
| 7 | | (Source: P.A. 99-143, eff. 7-27-15; 99-462, eff. 8-25-15; | 8 | | 99-642, eff. 7-28-16; 100-391, eff. 8-25-17.) | 9 | | (30 ILCS 575/4f) | 10 | | (Section scheduled to be repealed on June 30, 2020) | 11 | | Sec. 4f. Award of State contracts. | 12 | | (1) It is hereby declared to be the public policy of the | 13 | | State of Illinois to promote and encourage each State agency | 14 | | and public institution of higher education , including | 15 | | community colleges, to use businesses owned by minorities, | 16 | | women, and persons with disabilities in the area of goods and | 17 | | services, including, but not limited to, insurance services, | 18 | | investment management services, information technology | 19 | | services, accounting services, architectural and engineering | 20 | | services, and legal services. Furthermore, each State agency | 21 | | and public institution of higher education , including | 22 | | community colleges, shall utilize such firms to the greatest | 23 | | extent feasible within the bounds of financial and fiduciary | 24 | | prudence, and take affirmative steps to remove any barriers to | 25 | | the full participation of such firms in the procurement and |
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| 1 | | contracting opportunities afforded. | 2 | | (a) When a State agency or public institution of higher | 3 | | education, other than a community college, awards a | 4 | | contract for insurance services, for each State agency or | 5 | | public institution of higher education, it shall be the | 6 | | aspirational goal to use insurance brokers owned by | 7 | | minorities, women, and persons with disabilities as | 8 | | defined by this Act, for not less than 20% of the total | 9 | | annual premiums or fees. | 10 | | (b) When a State agency or public institution of higher | 11 | | education, other than a community college, awards a | 12 | | contract for investment services, for each State agency or | 13 | | public institution of higher education, it shall be the | 14 | | aspirational goal to use emerging investment managers | 15 | | owned by minorities, women, and persons with disabilities | 16 | | as defined by this Act, for not less than 20% of the total | 17 | | funds under management. Furthermore, it is the | 18 | | aspirational goal that not less than 20% of the direct | 19 | | asset managers of the State funds be minorities, women, and | 20 | | persons with disabilities. | 21 | | (c) When a State agency or public institution of higher | 22 | | education, other than a community college, awards | 23 | | contracts for information technology services, accounting | 24 | | services, architectural and engineering services, and | 25 | | legal services, for each State agency and public | 26 | | institution of higher education, it shall be the |
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| 1 | | aspirational goal to use such firms owned by minorities, | 2 | | women, and persons with disabilities as defined by this Act | 3 | | and lawyers who are minorities, women, and persons with | 4 | | disabilities as defined by this Act, for not less than 20% | 5 | | of the total dollar amount of State contracts. | 6 | | (d) When a community college awards a contract for | 7 | | insurance services, investment services, information | 8 | | technology services, accounting services, architectural | 9 | | and engineering services, and legal services, it shall be | 10 | | the aspirational goal of each community college to use | 11 | | businesses owned by minorities, women, and persons with | 12 | | disabilities as defined in this Act for not less than 20% | 13 | | of the total amount spent on contracts for these services | 14 | | collectively. When a community college awards contracts | 15 | | for investment services, contracts awarded to investment | 16 | | managers who are not emerging investment managers as | 17 | | defined in this Act shall not be considered businesses | 18 | | owned by minorities, women, or persons with disabilities | 19 | | for the purposes of this Section. | 20 | | (e) When a community college awards a contract, it | 21 | | shall be the aspirational goal of each community college to | 22 | | use businesses owned by minorities, women, and persons with | 23 | | disabilities, as defined in this Act, for not less than 20% | 24 | | of the total dollar amount of all contracts entered into by | 25 | | the community college district, regardless of the source of | 26 | | the funds with which the contracts are paid, which are not |
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| 1 | | subject to federal reimbursement. | 2 | | The percentage specified in this subsection (e) | 3 | | relates to the total dollar amount of contracts during each | 4 | | fiscal year, calculated by examining independently each | 5 | | type of contract for each community college which lets such | 6 | | contracts. Only the percentage of arrangements which | 7 | | represents the participation of businesses owned by | 8 | | minorities, women, and persons with disabilities on such | 9 | | contracts shall be included. | 10 | | (f) When a community college awards construction | 11 | | contracts, it shall be the aspirational goal of each | 12 | | community college to use businesses owned by minorities and | 13 | | women, as defined in this Act, for not less than 20% of the | 14 | | total amount of construction contracts entered into by the | 15 | | community college district, regardless of the source of the | 16 | | funds for which the contracts are paid, which are not | 17 | | subject to federal reimbursement.
In the case of | 18 | | construction contracts, the provisions of this Act | 19 | | requiring a portion of the contracts awarded to businesses | 20 | | owned and controlled by persons with disabilities do not | 21 | | apply. | 22 | | (2) As used in this Section: | 23 | | "Accounting services" means the measurement, | 24 | | processing and communication of financial information | 25 | | about economic entities including, but is not limited to, | 26 | | financial accounting, management accounting, auditing, |
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| 1 | | cost containment and auditing services, taxation and | 2 | | accounting information systems. | 3 | | "Architectural and engineering services" means | 4 | | professional services of an architectural or engineering | 5 | | nature, or incidental services, that members of the | 6 | | architectural and engineering professions, and individuals | 7 | | in their employ, may logically or justifiably perform, | 8 | | including studies, investigations, surveying and mapping, | 9 | | tests, evaluations, consultations, comprehensive planning, | 10 | | program management, conceptual designs, plans and | 11 | | specifications, value engineering, construction phase | 12 | | services, soils engineering, drawing reviews, preparation | 13 | | of operating and maintenance manuals, and other related | 14 | | services. | 15 | | "Emerging investment manager" means an investment | 16 | | manager or claims consultant having assets under | 17 | | management below $10 billion or otherwise adjudicating | 18 | | claims. | 19 | | "Information technology services" means, but is not | 20 | | limited to, specialized technology-oriented solutions by | 21 | | combining the processes and functions of software, | 22 | | hardware, networks, telecommunications, web designers, | 23 | | cloud developing resellers, and electronics. | 24 | | "Insurance broker" means an insurance brokerage firm, | 25 | | claims administrator, or both, that procures, places all | 26 | | lines of insurance, or administers claims with annual |
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| 1 | | premiums or fees of at least $5,000,000 but not more than | 2 | | $10,000,000. | 3 | | "Legal services" means work performed by a lawyer | 4 | | including, but not limited to, contracts in anticipation of | 5 | | litigation, enforcement actions, or investigations. | 6 | | (3) Each State agency and public institution of higher | 7 | | education , including community colleges, shall adopt policies | 8 | | that identify its plan and implementation procedures for | 9 | | increasing the use of service firms owned by minorities, women, | 10 | | and persons with disabilities. | 11 | | (4) Except as provided in subsection (5), the Council shall | 12 | | file no later than March 1 of each year an annual report to the | 13 | | Governor and the General Assembly. The report filed with the | 14 | | General Assembly shall be filed as required in Section 3.1 of | 15 | | the General Assembly Organization Act. This report shall: (i) | 16 | | identify the service firms used by each State agency and public | 17 | | institution of higher education, (ii) identify the actions it | 18 | | has undertaken to increase the use of service firms owned by | 19 | | minorities, women, and persons with disabilities, including | 20 | | encouraging non-minority-owned firms to use other service | 21 | | firms owned by minorities, women, and persons with disabilities | 22 | | as subcontractors when the opportunities arise, (iii) state any | 23 | | recommendations made by the Council to each State agency and | 24 | | public institution of higher education to increase | 25 | | participation by the use of service firms owned by minorities, | 26 | | women, and persons with disabilities, and (iv) include the |
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| 1 | | following: | 2 | | (A) For insurance services: the names of the insurance | 3 | | brokers or claims consultants used, the total of risk | 4 | | managed by each State agency and public institution of | 5 | | higher education by insurance brokers, the total | 6 | | commissions, fees paid, or both, the lines or insurance | 7 | | policies placed, and the amount of premiums placed; and the | 8 | | percentage of the risk managed by insurance brokers, the | 9 | | percentage of total commission, fees paid, or both, the | 10 | | lines or insurance policies placed, and the amount of | 11 | | premiums placed with each by the insurance brokers owned by | 12 | | minorities, women, and persons with disabilities by each | 13 | | State agency and public institution of higher education. | 14 | | (B) For investment management services: the names of | 15 | | the investment managers used, the total funds under | 16 | | management of investment managers; the total commissions, | 17 | | fees paid, or both; the total and percentage of funds under | 18 | | management of emerging investment managers owned by | 19 | | minorities, women, and persons with disabilities, | 20 | | including the total and percentage of total commissions, | 21 | | fees paid, or both by each State agency and public | 22 | | institution of higher education. | 23 | | (C) The names of service firms, the percentage and | 24 | | total dollar amount paid for professional services by | 25 | | category by each State agency and public institution of | 26 | | higher education. |
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| 1 | | (D) The names of service firms, the percentage and | 2 | | total dollar amount paid for services by category to firms | 3 | | owned by minorities, women, and persons with disabilities | 4 | | by each State agency and public institution of higher | 5 | | education. | 6 | | (E) The total number of contracts awarded for services | 7 | | by category and the total number of contracts awarded to | 8 | | firms owned by minorities, women, and persons with | 9 | | disabilities by each State agency and public institution of | 10 | | higher education. | 11 | | (5) For community college districts, the Business | 12 | | Enterprise Council shall only report the following information | 13 | | for each community college district: (i) the name of the | 14 | | community colleges in the district, (ii) the name and contact | 15 | | information of a person at each community college appointed to | 16 | | be the single point of contact for vendors owned by minorities, | 17 | | women, or persons with disabilities, (iii) the policy of the | 18 | | community college district concerning certified vendors, (iv) | 19 | | the certifications recognized by the community college | 20 | | district for determining whether a business is owned or | 21 | | controlled by a minority, woman, or person with a disability, | 22 | | (v) outreach efforts conducted by the community college | 23 | | district to increase the use of certified vendors, (vi) the | 24 | | total expenditures by the community college district in the | 25 | | prior fiscal year in the divisions of work specified in | 26 | | paragraphs (a), (b), and (c) of subsection (1) of this Section |
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| 1 | | and the amount paid to certified vendors in those divisions of | 2 | | work, and (vii) the total number of contracts entered into for | 3 | | the divisions of work specified in paragraphs (a), (b), and (c) | 4 | | of subsection (1) of this Section and the total number of | 5 | | contracts awarded to certified vendors providing these | 6 | | services to the community college district , (viii) the total | 7 | | expenditures and the total number of contracts entered into by | 8 | | the community college district in the prior fiscal year as | 9 | | specified in paragraph (e) of subsection (1), and the amount | 10 | | paid to certified vendors and the total number of contracts | 11 | | awarded to vendors, and (ix) the total expenditures and the | 12 | | total number of contracts entered into by the community college | 13 | | district in the prior fiscal years as specified under paragraph | 14 | | (f) of subsection (1), and the amount paid to certified vendors | 15 | | and the total number of contracts awarded to certified venders . | 16 | | The Business Enterprise Council shall not make any utilization | 17 | | reports under this Act for community college districts for | 18 | | Fiscal Year 2015 and Fiscal Year 2016, but shall make the | 19 | | report required by this subsection for Fiscal Year 2017 and for | 20 | | each fiscal year thereafter. The Business Enterprise Council | 21 | | shall report the information in items (i), (ii), (iii), and | 22 | | (iv) of this subsection beginning in September of 2016. The | 23 | | Business Enterprise Council shall may collect the data needed | 24 | | to make its report from the Illinois Community College Board. | 25 | | (6) The status of the utilization of services shall be | 26 | | discussed at each of the regularly scheduled Business |
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| 1 | | Enterprise Council meetings. Time shall be allotted for the | 2 | | Council to receive, review, and discuss the progress of the use | 3 | | of service firms owned by minorities, women, and persons with | 4 | | disabilities by each State agency and public institution of | 5 | | higher education; and any evidence regarding past or present | 6 | | racial, ethnic, or gender-based discrimination which directly | 7 | | impacts a State agency or public institution of higher | 8 | | education contracting with such firms. If after reviewing such | 9 | | evidence the Council finds that there is or has been such | 10 | | discrimination against a specific group, race or sex, the | 11 | | Council shall establish sheltered markets or adjust existing | 12 | | sheltered markets tailored to address the Council's specific | 13 | | findings for the divisions of work specified in paragraphs (a), | 14 | | (b), and (c) of subsection (1) of this Section.
| 15 | | (Source: P.A. 99-462, eff. 8-25-15; 99-642, eff. 7-28-16; | 16 | | 100-391, eff. 8-25-17.)
| 17 | | Section 99. Effective date. This Act takes effect upon | 18 | | becoming law.".
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