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S.F. No. 3806 - Transportation Omnibus (First Engrossment)
 
Author: Senator Scott J. Newman
 
Prepared By: Alexis C. Stangl, Senate Counsel (651/296-4397)
 
Date: April 19, 2018



 

S.F. No. 3806 is the transportation omnibus bill, which includes various policy and finance provisions relating to the Department of Transportation, the Department of Public Safety, the Metropolitan Council, and MNLARS.

Sec. 1. Certain transit financial activity reporting. Changes the frequency of the legislative auditor's review of the Metropolitan Council’s transportation financial records from quarterly to two times per year.  Strikes a reference to the Counties Transit Improvement Board, which has dissolved.  Effective June 1, 2018.

Sec. 2. Metropolitan area transit account.  The Metropolitan Council may spend funds in the metropolitan area transit account only for system operating expenditures.  Effective June 1, 2018.

Sec. 3.  Unfair practices by manufacturers, distributors, factory branches.  It is unlawful for a motor vehicle manufacturer, distributor, or factory branch to charge back or withhold payment to a motor vehicle dealer due solely to an unreasonable delay in the transfer or registration of a new motor vehicle.  Within 30 days of notice of a chargeback or withholding or denial of a claim, the dealer must transmit certain information to the manufacturer.  This section expires June 30, 2021.

Sec. 4.  Program authority; funding.  Requires at least 49 percent of corridors of commerce funding to be spent on projects inside the metropolitan area and 49 percent outside of the metropolitan area.

Sec. 5.  Route No. 180.   Modifies the route of Highway 54 in Grant County, which allows part of the road to be turned back to the county.

Sec. 6.  Officer Bill Mathews Memorial Highway.  Designates U.S. Highway 12 in Wayzata as “Officer Bill Mathews Memorial Highway.”

Sec. 7.  Trooper Ray Krueger Memorial Highway.  Designates Trunk Highway 210 in Cass County as “Trooper Krueger Memorial Highway.”

Sec. 8.  Trooper Dale G. Roehrich Memorial Highway.  Designates U.S. Highway 61 from Lake City to Wabasha as “Trooper Dale G. Roehrich Memorial Highway.”

Sec. 9.  Warrant Officer Dennis A. Groth Memorial Bridge. Designates a bridge on Highway 52 in Rosemount as "Warrant Officer Dennis A. Groth Memorial Bridge."

Sec. 10.  Specialist Noah Pierce Bridge.  Designates a bridge on Highway 53 in Eveleth as "Specialist Noah Pierce Bridge."

Sec. 11.  Direct negotiation.  Raises the limit on direct negotiations for trunk highway projects from $150,000 to $250,000.

Sec. 12.  Indian employment preference.  Authorizes the commissioner of transportation to implement an Indian employment preference for projects on or near an Indian reservation.

Sec. 13.  Passenger automobile; hearse.  For first registrations of a new vehicle sold by a dealer, the dealer may choose to determine the base value of the vehicle using suggested retail price information from the manufacturer. The registrar must use this base value. The dealer must retain records to show how the value was determined.

Sec. 14.  Listing by dealers.  Allows dealers to withhold tax due from the prior registration period. A lien for registration tax does not attach.

Sec. 15.  Failure to submit within ten days.  Allows deputy registrars to accept applications for registration or transfer.

Sec. 16.  Filing registration applications.  Allows all deputy registrars to accept and process fleet registrations.

Sec. 17.  Fee.  Deputy registrars may collect a filing fee for fleet registration transactions. The commissioner may impose an equivalent administrative fee instead of the filing fee.

Sec. 18.  Multiple licenses.  Allows a dealer with more than one location in the state to move vehicles between the lots without assigning vehicle ownership or title to the lot where the vehicle is located.

Sec. 19.  Designated dealer title and registration liaison.  The commissioner of public safety must designate one or more department employees to respond to questions from dealers and troubleshoot dealer issues related to vehicle titles and registration.

Sec. 20.  Late fee.  The $2 late fee for failure to deliver a title transfer within ten days does not apply to transfers from licensed vehicle dealers.

Sec. 21.  Expedited driver and vehicle services; fee. Allows driver’s license agents and deputy registrars to expedite processing of licenses, permits, ID cards, and vehicle title transactions. The commissioner must not decline an expedited service request solely based on the limitations of the DPS technology systems. Effective November 1, 2018.

Sec. 22.  Electronic transmission.  Requires the commissioner of public safety to establish standards to approve and allow software companies that provide software to dealers to electronically transmit vehicle title transfer and registration information. Approved companies must be allowed access to department facilities, staff, and technology.

Sec. 23.  Transactions by mail.  Allows deputy registrars to accept and process applications submitted by mail.

Sec. 24.  Vehicle registration data; federal compliance.  Prohibits the commissioner of public safety from restricting the uses for which a licensed dealer may obtain specific data about an individual obtained by the department in connection with a motor vehicle record.

Sec. 25.  Issuance of certificate by deputy registrar.  Allows deputy registrars to issue vehicle titles.  On or before August 1, 2019, the commissioner of public safety must authorize deputy registrars to issue titles subject to procedures established by the commissioner.

Sec. 26.  Owner’s interest terminated or vehicle sold by secured party.  Allows an assignee of a secured party to perform certain actions in place of the assignee.

Sec. 27.  Salvage titles.  Broadens the requirements to obtain a salvage title to apply to all vehicles, regardless of age or value.  Under current law, a salvage title is only required for late-model vehicles (five-years old or newer) or high value vehicles (worth over $9,000 before being damaged or an older vehicle having a gross weight of over 26,000 pounds).

Sec. 28.  Notice of perfection by dealer.  When a security interest in a vehicle sold by a dealer is perfected, the dealer may provide a statement of perfection to the secured party. The statement is considered prima facie evidence of the facts in the statement.

Sec. 29.  Motor vehicle title transfer and registration advisory committee.  Establishes the Motor Vehicle Title and Registration Advisory Committee to advise the commissioner of public safety on title and registration issues. The commissioner of public safety must annually submit reports to the legislature summarizing the committee’s activities, issues identified by the committee, methods taken to address these issues, and recommendations for legislative action.

Sec. 30.  Amounts.  Strikes references to the expired technology surcharge.

Sec. 31.  Railroad train.  Amends the definition of “railroad train” to include other on-track equipment and rolling stock operated on rails.

Sec. 32.  Zoning within local area.  Allows the commissioner of transportation, at the request of a county board, to establish a speed limit in excess of 55 m.p.h., based on an engineering study. The county engineer must erect signs.  A county may, by resolution, increase or decrease the speed limit on a county road by 5 or 10 miles per hour.  The county engineer must erect the signs.  Effective June 1, 2018.

Sec. 33.  Laned highway.  Allows semis and other similarly large vehicles to deviate from the driving lane when approaching and going through a roundabout.

Sec. 34. Slow-moving vehicle.   Requires a mandatory fine of at least $100 (in addition to the $75 criminal and traffic surcharge) for a person who operates a vehicle at less than the speed of traffic in the left driving lane. This does not apply if the vehicle is passing another vehicle, is preparing for a left turn, or is preparing to exit a controlled access highway via a left side exit, or if a specific lane is designated for a specific type of traffic.

Sec. 35.  Passing parked emergency vehicle; citation; probable cause.  If it is not possible to move to another lane, a driver to slow down to a reasonable and prudent speed while passing a stopped emergency vehicle with its lights on.  Effective August 1, 2018.

Sec. 36.  Passing certain parked vehicles.  Requires a driver to slow down to a reasonable and prudent speed while passing a stopped maintenance, utility, or construction vehicle.  Effective August 1, 2018.

Sec. 37.  Roundabouts.  If two semis or other similarly large vehicles drive through a roundabout at the same time, the driver of the vehicle on the right must yield to the vehicle on the left.

Sec. 38.  Requirements.  Drivers must stop at a railroad crossing when on-track equipment or rolling stock is moving on the tracks.

Sec. 39.  Certain vehicles to stop at railroad crossing.  Requires busses and other vehicles for hire to stop, listen, and look at railroad track for the approach of on-track equipment or rolling stock. On-track equipment or rolling stock must not proceed across an exempt crossing unless a person is present to warn traffic.

Sec. 40.  Crossing railroad tracks with certain equipment.  Requires drivers of tractors or other slow-moving equipment to stop, listen, and look for when on-track equipment or rolling stock at railroad crossings.

Sec. 41.  Manner of loading. It is not an unsecured load for a vehicle hauling sugar beets to leak liquid.  Makes technical and format changes.

Sec. 42.  Glazing material; prohibitions and exceptions.  In order to use the window tinting exemption for limousines, the vehicle must meet the definition of a limousine and must be registered as a limousine.

Sec. 43.  Automobile transporter.  Allows stinger-steered combination automobile transporters 80 feet or less in length to be operated on interstate highways and other designated highways and may carry a load that extends four feet or less in front of the vehicle and six feet or less in the rear. An automobile transporter may transport cargo or freight on a backhaul, as long as it complies with the weight limitations for a truck tractor and semitrailer combination. Definitions are provided.

Sec. 44.  Conditions.  Allows a vehicle hauling raw or unfinished forest products to operate on a segment of Interstate 35 between Carlton County to St. Louis County.

Sec. 45.  Certain emergency vehicles.  Subjects emergency vehicles designed to transport personnel and equipment to support fire suppression or mitigate other hazardous situations to specified weight limits when operated on an interstate highway.

Sec. 46.  License endorsement and permit requirements.  Allows a person with a motorcycle permit to operate a motorcycle on the interstate.

Sec. 47.  Restricted license for farm work.  Allows an individual to use a restricted license for farm work on any type of farm, regardless of how it is legally organized.  The radius in which a farm work license-holder may operate is increased from 20 to 40 miles of the farmhouse.  Effective June 1, 2018.

Sec. 48.  Fees.  Removes references to the expired technology surcharge.

Sec. 49.  Legislative report. The commissioner of transportation is not required to submit a report on the Transportation Economic Development (TED) program if no financial assistance was granted in the previous 24 months.

Sec. 50.  Expiration.  Extends the sunset date of the Non-Motorized Transportation Advisory Committee to June 30, 2022.

Sec. 51.  Continuation of carrier rules.  Makes a conforming change.

Sec. 52.  Hours of service exemptions.  Federal hours of services regulations do not apply to drivers engaged in intrastate transportation within a 150-air-mile radius from the source or distribution point.  Because specific harvest periods are eliminated, these exemptions apply year-round.

Sec. 53.  Hours of service of driver.  Incorporates a federal exemption on agricultural operations during planting and harvesting periods. Establishes the planting and harvest period as January 1 through December 31 of each year, so that the federal exemption applies year-round.

Sec. 54.  Order.  Eliminates the commissioner of transportation’s authority to issue orders regarding tariffs and accounting.

Sec. 55.  Amount of penalty; considerations.  Eliminates the commissioner of transportation's authority to assess administrative penalties for motor carrier violations related to tariffs and accounting requirements. Makes technical changes.

Sec. 56.  Registration, insurance, and filing requirements.  Eliminates the requirement of the certificate or permit holder to file rates and tariffs with the commissioner.

Sec. 57.  Tariff maintenance and contents.  A household goods mover must maintain a tariff showing rates and charges for transporting household goods. The tariff must be prepared in accordance with federal regulations.

Sec. 58.  Tariff availability.  A household good mover must maintain all of its tariffs at its principal place of business and at each of its terminal locations. The tariffs must be available for public inspection.

Section 59.  Compensation fixed by schedule on file.  Makes technical and conforming changes.

Sec. 60.  Highway user tax distribution fund use limitation.  Prohibits the commissioner of public safety from using money from the highway user tax distribution fund to pay for employees working in the public information center.

Sec. 61.  Driver and vehicle services fund.  Creates the driver and vehicle services fund within the state treasury.

Sec. 62.  Driver and vehicle services accounts.  Moves the existing vehicle services operating account, driver services operating account, and driver and vehicle services technology account into the new driver and vehicle services fund; these accounts are currently in the special revenue fund. This section also removes references to the expired technology surcharge and makes other technical and conforming changes.  Requires annual reporting on the driver and vehicle services technology account; project costs; and an estimate of maintenance costs.

Sec. 63.  Comprehensive plan.  Defines “comprehensive plan” by cross-reference to county and municipal planning and zoning statutes.

Sec. 64.  Creation; authorized disbursements.  Strikes the prohibition against giving a municipality assistance from the state airports fund if its comprehensive plan is incompatible with the state aviation plan.                                                                                      

Sec. 65.  Authority to establish.  States that the operation and maintenance of airports is an essential public service. Allows the commissioner of transportation to fund airport safety projects that maintain an existing infrastructure, regardless of a zoning authority’s effort to complete zoning. The commissioner may withhold funding from an airport subject to a proposed zoning ordinance.

Sec. 66.  Airport hazard prevention; protecting existing land uses.  Broadens the application of the section to all land uses, not just built up urban areas.  States that lighting of airport hazards is an essential public service, not just a public purpose.

Sec. 67.  Enforcement under police power.  A municipality may regulate the following in airport hazard areas:  land use; height restrictions; location, size, and use of buildings; and population density.  Strikes the two-mile distance limitation.

Sec. 68.  Joint airport zoning board.  Inserts cross-reference to proposed airport zoning regulation standards in sections 71 and 72, and strikes a reference to the section repealed in the bill.

Sec. 69.  Comprehensive regulations.  Requires a municipality that has adopted a comprehensive plan to include in the plan any airport zoning regulations that apply to an area in the plan.  This is permissive under current law.

Sec. 70.  Notice of proposed zoning regulations, hearing.  Modifies the notice provisions for hearings related to adopting or amending airport zoning regulations.

Sec. 71.  Airport zoning regulations based on commissioner’s standards; submission process. Establishes the process to adopt airport zoning regulations using standards prescribed by the commissioner of transportation.  Requires review of the regulations by the commissioner of transportation.  Local ordinances may be more stringent than the commissioner’s standards. Adopted regulations must be filed with the county recorder. Preserves substantive rights existing and exercised before August 1, 2018.  Provides for protection of existing uses.

Sec. 72.  Custom airport zoning standards.  Provides an alternate process for a local government to establish and adopt custom airport zoning regulations.  Specifies the factors that must be addressed in the custom regulations.  Requires review of the regulations by the commissioner of transportation. Adopted regulations must be filed with the county recorder.  Preserves substantive rights existing and exercised before August 1, 2018.

Sec. 73.  Reasonableness.  Strikes the nonexclusive list of considerations in determining reasonableness of regulations.

Sec. 74.  Federal no hazard determination.  Permits a custom regulation to allow a structure or tree higher than otherwise allowed if the Federal Aviation Administration has analyzed it and determined it does not pose a hazard, require a change in operations, or require mitigation that cannot be accomplished.

Sec. 75.  Membership.  Allows for staggered term length for initial terms of a board of adjustment.  For the Metropolitan Airport Commission, the commission chair makes the appointments.

Sec. 76.  Zoning required.  Allows the commissioner of transportation to fund airport safety projects to maintain existing infrastructure regardless of a zoning authority’s efforts to complete zoning, but otherwise prohibits funding unless the municipality, county, or joint airport zoning board is proceeding on with zoning.

Sec. 77.  Airport safety zone.  Defines “airport safety zone” in the county planning and zoning statute.

Sec. 78.  Comprehensive plan.  Requires county boards to consider the location and dimension of airport safety zones, as well as improvements identified in the airport’s most recent approved layout plan.

Sec. 79.  Comprehensive plans in greater Minnesota; open space.  In adopting a comprehensive plan, counties must consider encouraging land uses in airport safety zones that are compatible with safe operation of the airport and the safety of people in the area.

Sec. 80.  In district zoning, maps.  Requires county zoning maps to include airport safety zones.

Sec. 81.  Airport safety zone.  Adds a cross-reference to the definition of “airport safety zone” to municipal planning and zoning statutes.

Sec. 82.  Preparation and review.  When preparing or amending a comprehensive plan, a municipality must consider the location and dimensions of airport safety zones in the municipality and any improvements identified in the airport’s most recent airport layout plan.

Sec. 83.  Airport safety zoning on zoning maps.  Requires municipal zoning maps to include airport safety zones.

Sec. 84.  Development goals and objectives.  When adopting municipal plans, a municipality must consider encouraging land use in airport safety zones that are compatible with safe operation of the airport and the safety of people in the area.

Sec. 85. Budget.  Requires the transportation portion of the Metropolitan Council’s budget to cover a fiscal year that runs from July 1 to the following June 30 (which matches the state fiscal year), with each transportation budget to be finalized by June 15. The Council’s budgeting in its other functional areas remains on a calendar year basis. The change goes into effect for a budget cycle beginning July 1, 2019.

Sec. 86.  Budget changes or variances; reports.  Requires the Metropolitan Council to submit quarterly reports to the Legislative Commissions on Metropolitan Governance and the legislature on any changes or variances it has made from its adopted budget. Effective June 1, 2018.

Sec. 87.  Accounts; accounting system; controls; audits.  Requires the Metropolitan Council to use the state accounting system for its transportation-related financial activity. The change goes into effect for a budget cycle beginning July 1, 2019.

Sec. 88.  Overview of revenues and expenditures; forecast. Requires the Metropolitan Council to develop a financial overview and forecast in conjunction with the state forecasts in November and February. Specifies financial overview content, including identification of actuals for the previous four years and anticipated financials for the forecast period. The council must review the information with the legislature within two weeks of each forecast. Effective June 1, 2018.

Sec. 89.  Budget assumptions.  Requires the Metropolitan Council to do three things as part of its budget submission to the legislature:  (1) identify the budget assumptions used to prepare the submission; (2) provide copies of any reports or applications that were submitted to the Federal Transit Administration and identify the assumptions made in those reports and applications; and (3) explain the impact of the identified assumptions on the Council’s forecast.

Sec. 90.  Requirement.  Makes conforming and clarifying changes. Effective June 1, 2018.

Sec. 91.  Transportation policy plan. Expands the information required in the Metropolitan Council’s transportation policy plan, to include three scenarios on different levels of funding availability. Requires a plan for each scenario to identify long-term transit system impacts, including unfunded costs for each transit mode. Effective June 1, 2018.

Sec. 92.  Rail colocation prohibition.  The Metropolitan Council and the state of Minnesota are prohibited from constructing a light rail transit line in a shared use rail corridor that would be shared by both freight rail and light rail transit. Effective June 1, 2018.

Sec. 93.  Operating costs.  Provides a definition of “operating costs” for purposes of light rail transit funding.

Section 94.  Legislative report.  Requires the Metropolitan Council, as part of its legislative report, to identify and explain assumptions and methodologies used to prepare the report.  (The legislative report is submitted each even-numbered year and is a report on transit finance in the metropolitan area.)

Sec. 95.  Exemptions; certain manufacturers; commissioner of transportation; road maintenance.  Allows the commissioner of transportation to waive payment and performance bonds on direct negotiation contracts.

Sec. 96.  Administration and related services.  Amends a provision from the 2017 Transportation omnibus bill so that the commissioner of public safety must  not spend the appropriation from the highway user tax distribution fund for public information center employees.

Sec. 97.  Editing MNLARS transactions.  Requires the commissioner of public safety to ensure that deputy registrars are able to edit specified transactions in MNLARS. The ability to edit a transaction ends at the end of the business day after the transaction was completed. Any edits made are tracked in MNLARS.

Sec. 98.  Engine brakes; regulation by Minneapolis.  Allows Minneapolis to adopt an ordinance to restrict or prohibit the use of an engine brake (or “Jake brake”) on westbound Interstate 94 between LaSalle and the Lowry Tunnel. The commissioner of transportation must erect the appropriate signs and the city pays the costs for the signs.  Effective the day following final enactment.

Sec. 99.  Legislative Route No. 180 turnback; speed limit.  If the commissioner of transportation turns back any portion of Highway 54 in Grant County, the speed limit on the highway must remain at 60 miles per hour.  Effective June 1, 2018.

Sec. 100.  Legislative Route No. 222 removed.  Turns back Highway 222 to Red Lake County.

Sec. 101.  Legislative Route No. 253 removed.  Turns back Highway 253 to Faribault County.

Sec. 102.  Legislative Route No. 254 removed.  Turns back Highway 254 to Faribault County.

Sec. 103.  Legislative Route No. 277 removed.  Turns back Highway 277 to Chippewa County.

Sec. 104.  Legislative Route No. 298 removed.  Turns back Highway 298 to the City of Faribault.

Sec. 105.  Legislative Route No. 299 removed.  Turns back Highway 299 to the City of Faribault.

Sec. 106.  Legislative Route No. 323 removed.  Turns back Highway 323 to the City of Faribault.

Sec. 107.  Marked Interstate Highway 35 signs.  Requires the commissioner of transportation to erect signs on Interstate Highway 35 that direct motorists to the campuses of the Minnesota State Academy for the Deaf and Minnesota State Academy for the Blind. The commissioner is prohibited from removing signs for the campuses that are posted on marked Trunk Highway 60.  Effective the day following final enactment.

Sec. 108.  MNLARS reimbursement from the Joint House and Senate Subcommittee on Claims.  A person may seek reimbursement from the Joint House and Senate Subcommittee on Claims for costs incurred due to MNLARS.  Effective June 1, 2018.

Sec. 109.  Motor Vehicle Title Transfer and Registration Advisory Committee; First Appointments; First Meeting.  Requires appointments to the Motor Vehicle Title Transfer and Registration Advisory Committee to be made by September 15, 2018, and the first meeting must be by November 1, 2018.

Sec. 110.  Public awareness campaign.  Requires the commissioner of public safety to conduct a public awareness campaign to increase knowledge about slow-moving traffic in left-hand lanes.

Sec. 111.  Marked Interstate Highway 94 study; appropriation.   Appropriates $500,000 in fiscal year 2019 from the trunk highway fund to the commissioner of transportation to conduct a feasibility study on expanding Interstate Highway 94 from St. Michael to St. Cloud.

Sec. 112.  Interstate Highway 35 at County Road 9 in Rice County interchange feasibility study; appropriation. Appropriates $500,000 in fiscal year 2019 from the trunk highway fund to the commissioner of transportation to conduct a feasibility study on an interchange at Interstate Highway 35 and County Road 9 in Rice County.

Sec. 113.  Appropriation; deputy registrar reimbursements.  Appropriates $9,000,000 in fiscal year 2018 from the special revenue fund to the commissioner of management and budget for grants to deputy registrars. Of this amount, $3,000,000 is from the vehicle services operating account and $6,000,000 is from the driver services operating account.  $4,500,000 is allocated proportionally based on the number of transactions completed by a deputy registrar from August 1, 2017 through January 31, 2018, compared to the total number of transactions completed by all deputy registrars in the same time period.  $4,500,000 is allocated proportionally based on the number of transactions completed by a deputy registrar from July 1, 2014 through June 30, 2017, compared to the total number of transactions completed by all deputy registrars in that time period.

The commissioner must exclude transactions by a deputy registrar that is no longer operating and by a deputy registrar office operated by the state. A deputy registrar office operated by the state is ineligible to receive funds under this section.  The commissioner must make efforts to reimburse deputy registrars within 30 days of enactment.  Effective June 1, 2018.

Sec. 114.  Appropriation; MNLARS funding.  Appropriates $15.1 million from the general fund in fiscal year 2019 to the commissioner of public safety for contracted technical staff and technical costs related to improving MNLARS.  $5.5 million is added to the base appropriation in fiscal year 2020 for the final payment of the FAST Enterprises contract. The appropriations are subject to quarterly review by the MNLARS steering committee. The MNLARS appropriations cannot be used for additional employees at the Department of Public Safety.

Sec. 115.  Appropriation; CAT II approach system; Rochester.  $ 900,000 in fiscal year 2019 is appropriated from the state airport fund to the commissioner of transportation for a grant to the city of Rochester to acquire and install a CAT II approach system at the Rochester International Airport.  A local match is required.

Sec. 116.  Revisor’s instruction.  Directs the revisor to change statutory references to the “special revenue fund” to the “driver and vehicle services fund” where appropriate.

Sec. 117.  Repealer.  Repeals Minnesota  Statutes, section 168.013, subd. 21 (establishing the technology surcharge, which is now expired); section 221.161, subdivisions 2, 3, and 4 (relating to household good carrier tariffs); section 360.063, subd. 4 (airport approach recommendations and plans); section 360.065, subd. 2 (regulations submitted to commissioner); and section 360.066, subds. 1a and 1b (protection of existing neighborhood; amendment of standards).

Sec. 118.  Application.  Sections 63 to 84 and section 117, paragraph (b), are effective August 1, 2018, and apply to airport sponsors that make or plan to make changes to runway lengths or configurations on or after that date.  These sections do not apply to airport safety zoning ordinances approved and in effect on August 1, 2018; have not made and are not planning to make changes to runway lengths or configurations; and  are not required to update airport safety zoning ordinances.

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