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LEGISLATIVE COMMITTEE BLOG
The Legislature adjourned the 2023-2024 session in the early hours of Saturday, May 11. A veto override session has been scheduled for June 17-18. The Governor is expected to veto 6-8 bills, most notable the Yield bill that sets the education fund statewide property tax rate. Here is an update on the legislation VBRA was most engaged on, followed by a complete list of bills and their status.
RBES
Passed – S.253 – VBRA has spent the past two years working on Residential Building Energy Standards, first with a successful effort to convince the legislature to delay implementation of the latest RBES (based on 2021 IECC code), then with participation in a summer study committee intended to increase code compliance, and finally with legislation that sets the stage for future RBES updates and oversight.
S.253creates a working group of stakeholders to continue the work on RBES compliance and updates, to begin discussions on adopting residential building code in the state, and other duties. Further, the bill gives the state flexibility and discretion in future updates to IECC code by changing statute from “shall” update to “may” update. Lastly, it updates information gathered at the time of contractor registry with OPR.
Still at issue is the impending implementation of the 2024 VT RBES effective July 1. Originally scheduled to go into effect in 2023, VBRA was successful in securing a one-year delay of the new standards due to technical flaws and lack of administration for residential code. Those conditions still exist today. The default position from the Department of Public Service is that that code will go into effect July 1. VBRA continues to advocate for further delay of the code, albeit with few avenues left to secure a pause.
Taxes
The session began with news that statewide education property taxes would increase 20% without intervention. The legislature eventually settled on trying to disguise the immediate property tax pain by raising other taxes and other maneuvers to “buy down” the increase, passing a bill (H.887 Yield bill) which will make the average educational tax increase only about 14%, setting the rate at $1.39 per $100.00. The bill does not tackle the long-term problem of high education expenses and only sets up a study committee - which is unlikely to report back in time to make a difference in school budgeting for next year.
Passed – H.887 funding sources to buy down the education property tax increase:
· Cloud Tax – Removes a current sales tax exemption on pre-written software accessed remotely. Expected to raise $14.7 million.
· Short Term Rental Tax – 3% surcharge on STR’s. Expected to raise $11.8 million.
· One-time infusion of $25 million from anticipated state revenues.
Governor Scott will almost certainly veto bill and the legislature will come back on June 17-18 for a veto override session.
Passed. Other taxes: The Housing / Act 250 bill (below) contains an increase to the Property Tax Transfer paid by the buyer at closing. The increase will go from 1.45% to 3.62% and applies only on second homes. Also, the legislature increased certain fees collected by the Department of Financial Regulation on insurance appointments, renewals and registrations. Expected to raise $17 million.
Not Passed - Wealth taxes: Early on the session was abuzz with the introduction of two taxes aimed at high wealth and high income households. One would have applied income tax to 50% of the unrealized gain or loss of a taxpayer’s assets over $10 million. The other would have established a new top tax bracket of 11.5% (currently 8.5%) on adjusted gross income over $500,000. Neither bill advanced, but the concepts are sure to surface again.
Housing / Act 250
Passed – H.687 - An act relating to community resilience and biodiversity protection through land use. This was one of the biggest legislative efforts of the session. H.687is the product of the Senate’s focus on the housing crisis and the House’s focus on increased environmental protections. The result is a bill that will result in an overhaul of the Natural resources Board (appeals will not move to the new Board), relaxed Act 250 jurisdiction in cities and towns with appropriate infrastructure and planning, increased permit review in critical natural resource areas, and millions for housing programs.
The bill allows for interim permit exemptions during the multi-year transition to a new Tier structure. The Governor has expressed consistent concern that the bill does little to help rural communities who wish to grow, but indications are that there’s enough “good” in the bill for Governor Scott to sign (or at least become law without his signature).
Overview of H.687:
· Establishes the Land Use Review Board (LURB)
o 5 full-time professionals to replace the NRB.
o Permit appeals will stay in the court system and a study committee has been created.
· The Board will work with Regional Planning Commissions to establish a location-based Tier structure through extensive mapping of the entire state.
· Eventually, permanent Act 250 exemptions will be established for cities and towns who go through a comprehensive application process:
o Tier 1A cities and towns - All development exempt.
o Tier 1B towns - Up to 49 units of housing on 10 acres or less exempt.
· Tier 3 – Critical resource areas. Automatic Act 250 jurisdiction
· Tier 2 – Everything that’s not Tier 1A, 1B, or 3 - The bulk of the state. No change in jurisdiction, except towns can apply for Tier 1B.
· Creates new Criteria of Forest Block Definitions that must be addressed in permit application.
o New Road-Rule. Any single road of 800ft, or combo of road over 2000ft will trigger jurisdiction.
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· While the Board, Tiers and mapping are being set up there will be Interim Exemptions from Act 250 review. Until January 1, 2027:
o No permits for housing within downtowns.
o 75 or fewer units in new town centers, growth centers, and neighborhood development areas. Areas with permanent zoning and subdivision bylaws and sewer or water or appropriate soils.
o 50 units within a quarter-mile along transit corridors or census-designated urbanized areas with 50,000 residents.
[These are contingent on not being in floodplains or river corridors.]
[Interim Exemptions will not require a jurisdictional opinion]
o No permit amendment is required for the construction of improvements to convert a commercial structure to 29 or fewer housing units.
· H.687 Increases Property Transfer Tax on second homes (not camps) to 3.4%. Landlord’s can avoid this increase by obtaining a landlord’s certificate proving the property is meant to be residential.
· Establishes 3-year property tax freeze for property in designated areas damaged by flooding.
Note: Legislative Committee Agendas are updated frequently throughout each day. The latest committee schedule can be found on this link. A list of weekly hearings for all committees can be found here.
House Committee Work
Agriculture, Food Resiliency, & Forestry – will consider H.81, an act relating to fair repair of agricultural equipment. They will discuss H.614, an act relating to land improvement and timber trespass. The committee will receive updates on cannabis on Wednesday, and the avian flu and cattle on Thursday.
Appropriations – will be holding their conference committee on the budget at 9:00 on Monday with the rest of the week ‘s schedule TBA.
Commerce and Economic Development – TBA.
Corrections and Institutions – will spend the week on the House Floor.
Education – will receive a walkthrough of the Senate changes to H.871, an act relating to a state aid program for school construction. They will discuss pre-k and childcare on Wednesday, and continue to learn about the history of the State Board of Education, hearing next from a teacher at St. Johnsbury Academy who is a former State Board of Education member.
Environment and Energy – will consider the Ways and Means amendment to S.305, an act relating to miscellaneous changes related to the Public Utility Commission on Monday. They will also receive a walkthrough of the Housing/Act 250 bill H.687 as it passed out of the Senate. The committee will spend their remaining time discussing an Act 59 leadership summary.
General and Housing – TBA.
Government Operations and Military Affairs – will continue work on the following bills: H.888, an act relating to the approval of amendments to the charter of the Town of Hartford; H.794, an act relating to services provided by the Vermont Veterans’ Home; S.96, an act relating to privatization contracts; and H.644, an act relating to access to records by individuals who were in foster care.
Health Care – will review the Senate proposal of amendment for H.846, an act relating to peer support provider and recovery support specialist certification on Monday. They will also hold a joint meeting with House Human Services Committee to review a House Judiciary amendment on S.192, an act relating to forensic facility admissions criteria and processes. This joint meeting will also include a review of Rep. Donohue’s amendments to the same bill. The remaining week's schedule is TBA.
Human Services – will review the Senate’s amendment to H.72, an act relating to a harm-reduction criminal justice response to drug use on Monday. They will also review Rep. Garofano’s amendment to S.114, an act relating to the establishment of the Psychedelic Therapy Advisory Working Group. The committee will continue work on Monday to review the Senate’s amendment to H.661, an act relating to child abuse and neglect investigation and substantiation standards and procedures. The remaining week’s schedule is TBA.
Judiciary – will work on the following bills: H.878, an act relating to miscellaneous judiciary procedures; S.285, an act relating to law enforcement interrogations policies; and S.583, an act relating to the Donor Intent Protection Act.
Transportation – TBA.
Ways & Means – TBA.
Senate Committee Work
Agriculture – will review further proposal of amendments to S.301, an act relating to miscellaneous agricultural subjects on Tuesday, with the remaining week’s schedule TBA.
Appropriations – will possibly vote on Monday on H.630, an act relating to boards of cooperative education services, and H.657, an act relating to the modernization of Vermont’s communication taxes and fees. The remaining week’s schedule is TBA.
Economic Development, Housing and General Affairs – TBA.
Education – TBA.
Finance – TBA.
Government Operations – TBA.
Health and Welfare – TBA.
Institutions – TBA.
Judiciary – TBA.
Natural Resources and Energy – will possibly vote on H.877, an act relating to miscellaneous agricultural subjects on Tuesday. The remaining week’s schedule is TBA.
Vermont Legislative Update
We’re getting close to adjournment, however, consensus is not close on many of the major issues, like housing, public safety, and affordability, that the Legislature spent the last 17 weeks working on. We’ll keep this update pretty short as many items are dynamic, however, if you read nothing else, look at our quick overview of the road to adjournment.
In this week’s update:
View this week's report
Today, the House Environment and Energy Committee took up and passed S.253, the RBES bill.
[To look at the language you’ll need to review the version as Passed the Senate, and then compare with the Committee Amendment, Draft 1.1. Or, see the summary below for highlights. S.253: as Passed by The Senate S.253: Committee Amendment, Draft 1.1. The amendment will be combined with the underlying bill before it goes to the House floor.}
Here’s where they ended up:
Stretching back to a year and a half ago VBRA, working alongside the American Institute of Architects Vermont (AIAVT), engaged the LCAR committee to delay adoption of the required 2021 IECC energy code. Then, the associations worked all session on S.253. The working group is intended to make sure builders and designers are at the table for future energy code updates and as the state considers the adoption of residential code. [It is the intention of this House committee to secure funding to extend the working group beyond the two years.]
VBRA members devoted countless hours in study committees, testifying and strategy sessions.
In no particular order, many thanks to:
Now, our work is not done. As a separate issue – but of course related – we do still intend to engage LCAR on a further delay of the 2024 RBES, scheduled to go into effect July 1, 2024. Our basic argument will be: the conditions that existed a year ago that convinced LCAR to delay still exist today. Nothing has changed. I spoke with Rep. Bongartz, House Environment and Energy member and LCAR member, and he’s aware that we intend to pursue a further delay and is at least agreeable to the conversation. He just voted to change “shall” to “may” for future RBES on the argument that it makes no sense without an agency, residential code, enforcement, etc.
Regards,
Andrew
Andrew Brewer | Government Relations SpecialistDowns Rachlin Martin PLLC | Business Sense · Legal Ingenuityw is that52 State Street | Montpelier, VT 05602-3176 Cell: 802-279-0838 | Direct: 802-225-5514abrewer@drm.com | www.drm.com
Agriculture, Food Resiliency, & Forestry – will hold a budget discussion on Tuesday regarding the Vermont Association of Conservation Districts and NOFA Vermont. The committee will receive an update regarding the equine industry on Thursday.
Appropriations – will possibly vote on S.213, an act relating to the regulation of wetlands, river corridor development, and dam safety on Tuesday morning. Tuesday afternoon they will do the same for S.98, an act relating to Green Mountain Care Board authority over prescription drug costs. The remainder of the week is TBA.
Commerce and Economic Development – will discuss the BEGAP program within the budget with the remainder of their time TBA.
Corrections and Institutions – TBA.
Education – will continue work on the following bills: S.204, an act relating to young readers; S.167, an act relating to miscellaneous amendments to education law; S.304, an act relating to Vermont’s Career and Technical Education programs; and S.284, an act relating to student use of cell phones and other personal electronic devices in schools.
Environment and Energy – TBA.
General and Housing – will possibly vote on S.102, an act relating to expanding employment protections and collective bargaining rights, on Tuesday. They will review Senate action on sections of H.55 related to Paid Leave, and receive a review of the housing sections of H.687 on Wednesday.
Government Operations and Military Affairs – will continue work on an number of bills: Committee Bill – Pay Act; S.55, an act relating to authorizing public bodies to meet electronically under Vermont’s Open Meeting Law; S.9, an act relating to the authority of the State Auditor to examine the books and records of state contractors; S.96, an act relating to privatization contracts; S.220, an act relating to Vermont’s public libraries; H.649, an act relating to the Truth and Reconciliation Commission; H.844, an act relating to appeal rights for extraterritorial users of municipal water and sewer systems; and S.159, an act relating to the County and Regional Governance Study Committee.
Health Care – will review the Senate proposal of amendment for H.766, an act relating to prior authorization and step therapy requirements, on Tuesday. They will receive an update on drug importation and hear updates from designated and specialized service agencies throughout the week.
Human Services – will receive a bill introduction to S.114, an act relating to the establishment of the psychedelic therapy advisory working group, and continue work on S.302, an act relating to public health outreach programs regarding dementia risk. On Thursday morning the committee will go on a field trip to St. Albans to visit Spectrum Youth and Family Services.
Judiciary – will work on the following bills: S220, an act relating to Vermont’s public libraries; Prop 4 – declaration of rights; S.192, an act relating to forensic facility admissions criteria and processes; and S.285, an act relating to law enforcement interrogation policies.
Ways & Means – will potentially vote on the following bills: H.546, an act relating to administrative and policy changes to tax laws; S.309, an act relating to miscellaneous changes to DMV laws; S.301, an act relating to miscellaneous agricultural subjects; and S.310, an act relating to natural disaster government response, recovery and resiliency. The rest of the week is TBA.
Agriculture – will potentially vote on H.877, an act relating to miscellaneous agricultural subjects, and continue work on H.81, an act relating to fair repair of agricultural equipment.
Appropriations – TBA.
Economic Development, Housing and General Affairs – will vote on H.704, an act relating to disclosure of compensation in job advertisements; H.55, an act relating to unemployment insurance amendments; and H.612, an act relating to miscellaneous cannabis amendments.
Education – will vote on H.630, an act relating to cooperative educations services. The remainder of the week is TBA.
Government Operations – will take up H.626, an act relating to animal welfare, and take testimony on H.702, an act relating to legislative operations and government accountability. On Wednesday they will work on H.875, an act relating to the State Ethics Commission and the State Code of Ethics.
Health and Welfare – will continue work on the following bills: H.72, an act relating to harm reduction criminal justice response to drug use; H.121, an act relating to enhancing consumer privacy; S.25, an act relating to PFAS; and H.612, an act relating to miscellaneous cannabis amendments.
Judiciary – will consider the following bills: H.876, an act relating to miscellaneous amendments to the corrections laws; H.645, an act relating to the expansion of approaches to restorative justice; H.780, an act relating to judicial nominations and appointments; S.209, an act relating to prohibiting unserialized firearms; H.745, an act relating to the Vermont Parentage Act; and H.878, an act relating to miscellaneous judiciary procedures.
Natural Resources and Energy – will work on H.687, an act relating to community resilience and biodiversity protection through land use. The remainder of the week is TBA.
Sincerely,
The Vermont Builders and Remodelers Association
We’re headed into the final stretch of the session despite it feeling as if there is no way we could be. There is a tentative date for adjournment of May 10th, and a quick survey of those around the building, and especially of those who have made their way to the House Clerk’s Office to participate in the betting pool, indicates that adjournment will be on schedule or very close to on schedule.
Agriculture, Food Resiliency, & Forestry – will continue work on S.301, an act relating to miscellaneous agricultural subjects, and S.102, an act relating to expanding employment protections and collective bargaining rights. On Friday they will receive a Jumping Worms Update.
Commerce and Economic Development – will continue work on S.289, an act relating to age-appropriate design code, and on Friday they will take testimony on recent updates on data privacy developments in other states.
Corrections and Institutions – will review House Judiciary’s work on S.195, an act relating to how a defendant’s criminal record is considered in imposing conditions of release.
Environment and Energy – will work on a number of bills: S.253, an act relating to building energy codes; S.254, an act relating to including rechargeable batteries and battery-containing products under the State battery stewardship program, and S.258, an act relating to the management of fish and wildlife.
General and Housing – will devote the week to S.102, an act relating to expanding employment protections and collective bargaining rights.
Government Operations and Military Affairs – will continue work on an number of bills: S.55, an act relating to authorizing public bodies to meet electronically under Vermont’s Open Meeting Law; S.310, an act relating to natural disaster government response, recovery, and resiliency; H.885, an act relating to approval of an amendment to the charter of the Town of Berlin; Committee Bill- Pay Act; S.220, an act relating to Vermont’s public libraries; S.183, an act relating to re-envisioning the Agency of Human Services; H.886, an act relating to the approval of amendments to the charter of the City of South Burlington.
Health Care – will continue testimony on S.98, an act relating to Green Mountain Care Board authority over prescription drug costs, and S.192, an act relating to forensic facility admissions criteria and processes.
Human Services – will receive a bill introduction to S.302, an act relating to public health outreach programs regarding dementia risk, and S.186, an act relating to the systemic evaluation of recovery residences and recovery communities.
Judiciary – will continue work on S.195, an act relating to how a defendant’s criminal record is considered in imposing conditions of release, S.259, an act relating to climate change cost recovery, and S.58, an act relating to public safety.
Transportation – will work on S.309, an act relating to miscellaneous changes to laws related to the Department of Motor Vehicles, motor vehicles, and vessels.
Ways & Means – will consider the following bills: S.184, an act relating to the temporary use of automated traffic law enforcement (ATLE) systems; H.861, an act relating to reimbursement parity for health care services delivered in person, by telemedicine, and by audio-only telephone; PVR Update on Act 68 of 2023 Reappraisal Study; S.305, an act relating to miscellaneous changes related to the Public Utility Commission; S.213, an act relating to the regulation of wetlands, river corridor development, and dam safety; H.629, an act relating to changes to property tax abatement and tax sales.
Agriculture – will work on H.614, an act relating to land improvement fraud and timber trespass, and H.877, an act relating to misc. agricultural subjects.
Education – will receive a walk-through of H.887, an act relating to property tax rates, H.874, an act relating to miscellaneous changes in education laws, and possibly vote on H.871, an act relating to the development of an updated State aid to school construction program. They will hold the Secretary of Education confirmation hearing on Tuesday.
Health and Welfare – will continue work on the following bills: H.661, an act relating to child abuse and neglect investigation and substantiation standards; S.25, an act relating to PFAS; H.612, an act relating to miscellaneous cannabis amendments; and H.121, an act relating to enhancing consumer privacy.
Judiciary – will consider the following bills: House changes to S.209, an act relating to prohibiting unserialized firearms; H.745, an act relating to the Vermont Parentage Act; H.780, an act relating to judicial nominations and appointments; H.173, an act relating to prohibiting manipulating a child for the purpose of sexual contact; H.655, an act relating to qualifying offenses for sealing criminal history records and access to sealed criminal history records; H.645, an act relating to the expansion of approaches to restorative justice; H.878, an act relating to miscellaneous judiciary procedures; and H.876, an act relating to miscellaneous amendments to the corrections laws.
Natural Resources and Energy – will possibly vote on H.289, an act relating to the Renewable Energy Standard on Monday with the rest of the week TBA.
For many, this legislative session is about three things, which we’ve been covering consistently: housing, public safety, and the education cost crisis. As we approach the final legislative phase, the common thread peaks through each topic; many people in Montpelier have not had to operate in a fiscally constrained environment for some time now, and some never have.
As such, many debates become about change in policy vs. finding more funding, and it is not always along party lines as you might think.
So, as legislators discuss housing legislation, they need to remember that we don’t need to compromise our state’s environment to reach these necessary targets. So, when you think back on the eclipse, remember the natural wonder and community you experienced, however, also remember it as the trial run of the Vermont we need to become.
Agriculture, Food Resiliency, & Forestry – will discuss agricultural property transfers, and receive more testimony on H.567, an act relating to the sale of dogs, cats and wolf-hybrids by pet shops, and on S.301, the Senate’s act relating to miscellaneous agricultural subjects.
Appropriations – will possibly vote on H.626, an act relating to animal welfare on Tuesday, with the rest of the week TBA.
Commerce and Economic Development – will continue work on S.289, an act relating to age-appropriate design code on Tuesday, and S.150, an act relating to automobile insurance.
Corrections and Institutions – will consider an act relating to how a defendant’s criminal record is considered in imposing conditions of release. They will receive an update on the Corrections Investigative Unit.
Environment and Energy – will work on a number of bills including: S.213, an act relating to the regulation of wetlands, river corridor development and dam safety; S.305, an act relating to miscellaneous changes related to the Public Utility Commission; S.259, an act relating to climate change cost recovery; and S.258, an act relating to the management of fish and wildlife.
General and Housing – will continue work on Prop 3 – Declaration of Rights; right to collectively bargain, and S.102, an act relating to expanding employment protections and collective bargaining rights.
Government Operations and Military Affairs – will continue work on an number of bills including: S.55, an act relating to authorizing public bodies to meet electronically under Vermont’s Open Meeting Law; S.310, an act relating to natural disaster government response, recovery, and resiliency; and S.42, an act relating to divestment of State pension funds of investments in the fossil fuel industry.
Health Care – will take testimony on S.98, an act relating to Green Mountain Care Board authority over prescription drug costs. On Thursday they will receive an overview of the All-Payer Health Equity Approaches and Development (AHEAD) Model.
Human Services – will devote a few days to S.192, an act relating to forensic facility admissions criteria and processes. They will take testimony on Conflict-Free Case Management on Thursday, and Friday will be spent on S.186, an act relating to the systemic evaluation of recovery residences and recovery communities.
Judiciary – will take up S.209, an act relating to prohibiting unserialized firearms, frames and receivers, for a vote on Tuesday and will devote much of their remaining week on S.58, an act relating to public safety.
Transportation – will continue work on S.184, an act relating to the temporary use of automated traffic law enforcement (ATLE), and review a fiscal note on H.868, the transportation bill as recommended by the Senate Committee on Transportation. They will also have a discussion regarding railroad leases.
Ways & Means – On Monday the committee will continue their work on their committee property tax bill (an expanded Yield bill) and try to complete work on that bill by Tuesday. The remaining schedule is TBA.
Agriculture – will spend the week on H.706, an act relating to banning the use of neonicotinoid pesticides, and H.614, an act relating to land improvement and timber trespass. Thursday morning the committee will consider H.81, an act relating to the fair repair of agricultural equipment.
Appropriations – will hold general discussions regarding the FY 2025 budget bill, without details noted.
Economic Development, Housing and General Affairs – will take testimony on the following bills: H.639, an act relating to flood risk disclosure; H.10, an act relating to VEGI (with a possible vote on Tuesday); H.121, an act relating to enhancing consumer privacy; H.687, an act relating to community resilience and biodiversity protection through land use; H.707, an act relating to revising the delivery and governance of the VT workforce system; H.867, an act relating to miscellaneous amendments to laws governing alcoholic beverages and the Board of Liquor and Lottery; and H.612, an act relating to miscellaneous cannabis amendments.
Education – will continue work on H.871, an act relating to the development of an updated State aid to school construction program. They will take testimony on H.873, an act relating to PCBs in schools, and H.630, an act relating to boards of cooperative education services. Throughout the week, the committee will consider questions related to the process of confirming a new Secretary of Education and hear from the State Board of Education about the hiring process.
Finance – will continue work on H.657, an act relating to the modernization of Vermont’s communications taxes and fees, and H.659, an act relating to captive insurance. The remainder of the week is TBA.
Health and Welfare – will consider the following bills: H.721, an act relating to expanding access to Medicaid and Dr. Dynasaur; H.233, an act relating to licensure and regulation of pharmacy benefit managers; H.72, an act relating to a harm-reduction criminal justice response to drug use; H.879, an act relating to the Emergency Temporary Shelter Program; H.766, an act relating to prior authorization and step therapy requirements, health insurance claims, and provider contracts; and H.661, an act relating to child abuse and neglect investigation and substantiation standards.
Institutions – will review H.822, an act relating to a report on the postgraduation career and settlement behaviors of students attending Vermont colleges and universities, and continue work on H.882, an act relating to capital construction and State bonding budget adjustment.
Judiciary – will receive a walkthrough of H.350, an act relating to the Uniform Directed Trust Act, and H.279, an act relating to the Uniform Trust Decanting Act. They will also continue work on H.27, an act relating to coercive controlling behavior and abuse prevention orders.
Natural Resources and Energy – TBA.
Transportation – will continue work on H.868, the FY 2025 Transportation Budget.
We know you might be over talking about the eclipse, however, there’s a policy angle we’d like to get at here. The most recent estimates put the visitors this weekend at 160,000 coming to our little state of only 645,000, mainly concentrated in the northern half of the state and 50,000 people around Burlington’s Church Street Marketplace.
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