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Archive for November, 2014

When State Fire Marshal Butch Browning isn’t busy defending his wearing of unauthorized military decorations and ribbons or trying to shift blame for a carnival ride that malfunctioned only seven hours after his office inspected it, injuring two children in the process, he apparently can play the political game as well as any state appointed official.

Remember the New Living Word School in Ruston? That’s the facility that had only 122 students in 2012, yet was approved for more than 300 vouchers by the Louisiana Department of Education (DOE) even though the school lacked teachers, classrooms, desks or other supporting facilities to handle the increased numbers.

In fact, construction was started on New Living Word’s school without anyone bothering to obtain the requisite building permits or to hire a licensed contractor. In fact, no zoning variance was even obtained to operate the school on property that was zoned for a church.

Moreover, the building itself had so many deficiencies that Ruston building inspector Bill Sanderson refused to approve the structure. Those shortcomings included partitions made of flammable materials and multiple electrical cords lying on the floor between wall outlets and computer equipment.

New Living Word, looking to lose tuition of $6,300 per student (an amount later determined by auditors to be excessive and all the vouchers for the school were pulled), could not afford to wait until all the requirements had been met.

Enter State Sen. Rick Gallot.

It certainly didn’t hurt that Gallot is a member of New Living Word Church and sits on the school’s governing board.

Suddenly, all those deficiencies and procedural violations went away after State Fire Marshal Butch Browning became involved.

Browning subsequently issued an amended approval letter, giving the school the green light to proceed with constructing classrooms in the upper floor of the church gymnasium. He said the school had not requested approval to build the classrooms but that “after further review and as a point of clarification, the upper floor…is included in the scope of the review and is acceptable.”

http://archive.thenewsstar.com/article/20120810/NEWS01/130110033/Fire-marshal-gives-school-go-ahead

The late John Hays, then-publisher of the Ruston weekly newspaper the Morning Paper, wrote on Aug. 27, 2012:

“Lobbying never fails, especially when Louisiana’s controversial school voucher program is the issue. After the state fire marshal fell I line, so, to, did the City of Ruston, approving a jury-rigged private school after a quickie inspection.

“Inspections were scheduled for Monday morning. But with 167 state vouchers (the number by then had been reduced from more than 300—before those, too, were yanked) at $6,300 each, New Living Word wasn’t willing to wait—just as it was not willing to apply for a zoning permit or a building permit or to hire a licensed contractor.”

Hays, holding both Browning and Sanderson responsible for bending the rules, went on to say that Neither Sanderson nor Browning had bothered to explain “why they didn’t pull the plug after New Living Word started construction without the required building permit and without a licensed contractor. Under Ruston 21 master plan, New Living Word was also required to obtain a zoning variance to operate a school on property presently zoned for a church,” Hays wrote.

“What Sanderson cannot change to anyone’s satisfaction is the fact that (church minister Jerry) Baldwin renovated two buildings without the benefit of a land use variance or a building permit, with a complete set of plans by a licensed architect or engineer, and without the use of a licensed general contractor and a licensed trade contractors,” the acerbic Hays said.

“Contrast this treatment of a politically-connected entity to that of a business that dared to ask that it be allowed to put up a sign slightly larger than the rules allowed,” said Ruston’s Walter Abbott on his Lincoln Parish Online blog.

Abbott, also writing about the New Living Word building permit controversy, then attached a link to an earlier story about a local realtor named Brandon Crume who wished to install a 32-square-foot sign in a location where such signs are limited to 16 square feet.

Bound by the rules, since there were no state politicians or appointees to intervene, the Ruston Planning and Zoning Commission denied Crume’s request outright, prompting Abbott to observe that a new business recently announced for Ruston “is showered with incentives, grants and glowing press coverage” and the press conference announcing its coming was attended “by numerous political dignitaries” while an “established Ruston business is encumbered with endless red tape just to remodel a building and put up a sign.”

“Maybe Brandon Crume needed a state senator on his payroll instead of facts and logic in his argument,” Abbott concluded.

The immediate question is why did Browning become involved when the local building inspector had already moved to halt work on the building? The obvious answer is that his intervention was on behalf of Baldwin and the school and not to support the local building inspector. It is equally evident that political pressure was brought to bear upon Sanderson to get him to ease up on the school which at the time, was held in high favor by DOE and by extension, Gov. Bobby Jindal.

And just what did Gallot promise Jindal in return for support from Baton Rouge via Browning’s involvement?

Shortcuts with safety regulations and procedures often can come back to bite you.

We can only hope there will not be a New Living Word incident reminiscent of the horrific school tragedy from the Robert Penn Warren’s All the King’s Men, the thinly-disguised Pulitzer-Prize winning novel about Huey Long which became the basis of two movies of the same name.

Or of the very real 2011 accident with the carnival ride in Greensburg that injured two siblings only hours after a State Fire Marshal’s inspection failed to shut the ride down because of the removal of an emergency brake on the ride.

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Two legislative committees charged with oversight of the Office of Group Benefits (OGB) are expected to demand that OGB roll back dramatic increases in health care co-payments and deductibles the agency is attempting to impose on hundreds of thousands of state employees to make up for the Jindal administration’s mismanagement of the agency when they meet in tandem on Friday.

The Senate Finance Committee and the House Appropriations Committee will meet at 10 a.m. on Friday but will not take testimony from the public.

The two committees are expected to instruct Nichols and OGB CEO Susan West to slash the increases in deductibles—some couples’ deductibles increased from $300 to $3,000 under the new plan being proposed by OGB–and co-pays.

OGB has already announced a two-month delay in the implementation of steep increases in prescription drug costs and will refund about $4.5 million in overcharges to state employees.

The Jindal administration is attempting to impose the co-pay and deductible increases as a way to recover hundreds of millions of dollars the administration managed to squander as a cost-savings to the state’s own contributions to employees’ premiums as a means to cover huge gaps in Jindal’s state budget.

The entire scenario reads like the script from an old I Love Lucy sitcom as everything the administration had done with OGB has blown up in its face in an improbable comedy of errors. How more insulting to legislators could it get than for Commissioner of Administration Kristy Nichols to provide false testimony to the Joint Legislative Committee on the Budget on Sept. 25 shortly before abruptly leaving the JLCB meeting to take her daughter to a boy band concert in New Orleans?

When asked point blank by State Rep. John Bel Edwards at that Sept. 25 hearing–before heading out to the Smoothie King Arena to settle into the governor’s luxury box seats for the concert—which actuary recommended that OGB reduce premiums by nearly 9 percent, she testified that Buck Consultants made the recommendation.

But Buck reportedly responded by email within days that it never made any such recommendation and that Nichols’ testimony was in direct contradiction to its recommendations.

A July report from Buck reinforces its claim that it never made any such recommendation. “We did not recommend a decrease of 7% effective August 1, 2012, or an additional decrease of 1.77% effective August 1, 2013. Further, we were not asked to provide any recommended rate adjustments for any fiscal years beyond what we provided for Fiscal Year 2012/2013,” the report says.

When witnesses sign cards prior to speaking before a legislative committee, they are certifying that they understand that their testimony is considered as being given under oath.

Edwards also asked at the hearing that Nichols or West provide him with a copy of that recommendation but he said on Wednesday (Nov. 5) that he still had not received that information. “I still have not received any actuarial recommendations for the 2013 and 2014 premium reductions at OGB,” he told LouisianaVoice. “Nor have they told me that such recommendations do not exist. Clearly, they do not.”

If someone were to set out to demonstrate how incompetent an administration could be, he would be hard pressed to find a better example than the manner in which it has handled the Office of Group Benefits—from firing an effective CEO who built up a $500 million reserve fund in favor of a revolving door approach to subsequent CEOs, to firing experience claims handlers with whom OGB members were comfortable, to hiring a California firm with no knowledge of Louisiana’s medical coverage program to handle telephone inquiries because experienced OGB staff were also fired, to attempting to implement emergency rules to enact the cost increases in co-pays and deductibles without the legally required public hearings, to having to refund $4.5 million in prescription drug overcharges for the same violation of the emergency rules procedures, to first claiming that it was not necessary to invoke the emergency rule and then deciding to do just that, to lying to legislators about actuarial recommendations of premium reductions.

The FUBARs and SNAFUs of OGB are so many and so irreversible that they should give pause to anyone who would entertain even the fleeting notion that Gov. Bobby Jindal is capable of leading the free world when, through his inept surrogates, he has, in less than two years, destroyed a relatively small but viable, efficient state agency.

Jindal and Nichols, of course, have a ready explanation for the OGB financial woes: medical costs have risen and it’s all Obamacare’s fault—never Jindal’s.

It’s the same arrogance level as that was demonstrated by Nichols in another appearance before a legislative committee when, trying to explain budget figures, she said somewhat condescendingly, “Let me dumb it down for you.”

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You have to love the Division of Administration (DOA) and the Office of Group Benefits (OGB). Their concern for the 230,000 state employees, retirees and dependents is surpassed only by their arrogance.

Saying “We heard the financial concerns of our members and Legislators,” Commissioner of Administration Kristy Nichols made the self-serving announcement that OGB has decided to delay the effective date of changes arbitrarily (and illegally) implemented to medical and pharmacy plans from Aug. 1 to Sept. 30. OGB RELEASE

Here is the information provided on the OGB web site: https://www.groupbenefits.org/portal/pls/portal30/ogbweb.get_latest_news_file?p_doc_name=4D7A4D344D6A45794E533551524559334E6A4D32

Never mind that State Rep. John Bel Edwards (D-Amite) told Nichols and OGB CEO Susan West back on Sept. 25 that they were flirting with major litigation and the threat of having to refund millions of dollars to OGB members who were hit with benefits changes which were illegal until such time as a rule could be adopted. Here is the link to video clips of that hearing: http://youtu.be/ct652tBa8Mc.

Except for Edwards who said the move was illegal. He requested and obtained an Attorney General’s opinion that agreed with him.

            Nichols, as is her custom, was not going to promulgate rules at all in implementing the new rates members would have to pay for prescriptions even though the law requires advertisement and public hearings on such changes. Instead, the administration, facing a shrinking OGB reserve fund because of its repeated premium cuts, plunged ahead, the law and state employees be damned.

The premiums were reduced so that the state would enjoy a similar reduction in the 75 percent of premiums it is required to pay for health coverage of OGB members. Gov. Bobby Jindal and Nichols cut the rates by nearly 9 percent despite a report from Buck Consultants which stated flatly that it never made such actuarial advice.

Pursuant to testimony given in the Sept. 25 hearing by the Joint Legislative Committee on the Budget (JLCB) in which Kristy said Buck Consultants had recommended a premium reduction, Edwards requested a copy of the actuarial recommendations.

            “I still have not received any actuarial recommendations for the 2013 and 2014 premium reductions at OGB,” Edwards said Tuesday. “Nor have they told me that such recommendations do not exist. Clearly, they do not.”

The OGB web site does contain a request for proposals (RFP) for an actuarial that is dated Sept. 26: https://www.groupbenefits.org/portal/pls/portal30/ogbweb.get_latest_news_file?p_doc_name=4D7A4D774E4445794D793551524559334E444531

The Baton Rouge Advocate said the refunds the state must now make to OGB members who were overcharged in the form of out-of-pocket expenses will come to nearly $4.5 million and is expected to be refunded within 60 days.

http://theadvocate.com/news/10718472-123/group-benefits-change-announced

Getting the refunds for the overcharges won’t be a walk in the park if past experience with the OGB pharmaceutical benefits administrator is any indication. “Members who incurred increased pharmacy costs between Aug. 1 and Sept. 29 based on exclusions must submit an appeals form to MedImpact,” said the news release from OGB, adding that Blue Cross and Blue Shield of Louisiana (BCBS) will reprocess claims for members who incurred increased medical costs through their providers during that time period. There is an appeals form for MedImpact on the OGB web page, but it appears to apply only to prescriptions that were rejected or denied by pharmacies in August and September: https://www.groupbenefits.org/portal/pls/portal30/ogbweb.get_latest_news_file?p_doc_name=4D7A4D344D6A45794E693551524559334E6A4D33

If members incurred costs that were not submitted through a provider, they must submit an appeal request form to Blue Cross and Blue Shield,” the release said. “The forms can be found on the OGB website at www.groupbenefits.org.”

Edwards said the burden should not be placed on state employees and retirees to file appeals on overpayments. “Group Benefits has the claims information and they should be required to make the determination of who is owed what and it should be Group Benefits that takes the initiative on this,” he said.

Of course, by placing the onus on employees and retirees, DOA is counting on members being unfamiliar with the process or uninformed about the refund program altogether. If they do not file appeals for refunds, no refund will be made and the state will not have to repay victims of the overcharges. “That’s why Group Benefits should be the one responsible for seeing to it that everyone who was overcharged because of its illegal actions in implementing the changes in the first place should get those overcharges refunded,” Edwards said. “The members should not be held responsible for the illegal actions of Group Benefits and DOA.”

Here are links to the after-the-fact DOA Emergency Rule declaration: http://www.doa.louisiana.gov/doa/Presentations/Emergency_Rules_-_Office_of_Group_Benefits_9-30-2014.pdf and DOA’s Notice of Intent: http://www.doa.louisiana.gov/doa/Presentations/Ordinary_Rule_-_Office_of_Group_Benefits_10-01-2014.pdf

The clumsy attempt at circumventing the law is just another in a long line of embarrassing episodes perpetrated by the Jindal administration as the governor pays less and less attention to the home front in his quest for the Republican presidential nomination, leaving the job of running the state to appointees equally unqualified as he to run so much as a snow cone stand.

Nichols typically ignored the threat of litigation in making the announcement just as the administration ignored the law in implementing the changes, even disagreeing in that Sept. 25 hearing on the necessity of publishing the proposed changes and conducting public hearings.

And West even attempted to justify the changes by pointing out to retirees and active members that she must pay the same premiums as they. She apparently failed to consider the fact that most state employees and certainly most retirees do not make her $170,000 per year salary.

The Retired State Employees Association (RSEA) threatened a lawsuit, challenging the administration’s contention that it could use the emergency rule (employed repeatedly by the administration during Jindal’s nearly seven years in office) to make changes in the medical and pharmacy plans.

Nichols was not even around for the conclusion of that Sept. 25 JLCB meeting, having stepped out of the committee room ostensibly to take an “important” phone call. In reality, it turned out she stepped out permanently to take her daughter to a boy band concert in New Orleans where she watched from the comfort of the governor’s luxury box at the Smoothie King Arena (see the snow cone stand reference above).

“Let’s hope that the legislature will continue to exercise oversight on this issue to drive more changes in the plans whereby the out-of-pocket cost increases of OGB members are reduced and (so that) the state will share in the cost of restoring the system’s soundness,” Edwards said in a prepared statement.

 

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What kind of person, serving as a municipal fire chief, would purchase ribbons and decorations of previous conflicts from a military surplus store and pen them on his own uniform?

Apparently the kind of person that Deputy Secretary of the Department of Public Safety (DPS) and Gov. Bobby Jindal would want to protect even to the point of prevailing upon an ally in the legislature to file an amendment to abolish the very agency conducting an investigation of that and other offenses.

At the same time State Fire Marshal Butch Browning was being reinstated in May of 2012 by his boss, Mike Edmonson who serves as both State Police Superintendent and Deputy Secretary of DPS, State Rep. Joe Harrison (R-Napoleonville) was introducing an amendment to House Bill 1, the state’s operating budget, to pull the $1.7 million funding for the Office of Inspector General (OIG) in the middle of OIG’s investigation of allegations of payroll fraud and a sloppy inspection of a carnival ride in Greensburg only seven hours before teenage siblings were injured by the ride.

The timing of the amendment was enough to make you toss your lunch of stone cold ethics and hot back room politics.

Browning “retired” on April 18 in the middle of that investigation but returned just 12 days later, on April 30, with an $8,000-per-year increase in pay after being “cleared” by Edmonson of any wrongdoing—six months before an investigative report by OIG was even issued.

But if Jindal and his co-conspirators intended to thwart the investigation by abolishing the agency led by Stephen Street, those efforts wilted in a backlash of public support for the office immediately ensued which caused the legislature—and Jindal—to back down from the effort despite a favorable 11-5 vote on Harrison’s amendment by the House Appropriations Committee.

Remember, this is the same governor who two years later would attempt to sneak through another amendment granting Edmonson a lucrative $55,000-a-year increase in retirement benefits only to have that plan crash and burn when LouisianaVoice learned of the implications of the amendment by State Sen. Neil Riser (R-Columbia).

OIG serves as white-collar watchdog and as an internal affairs division within state government but Harrison, in offering his amendment, argued that OIG’s functions overlapped those of State Police and the Attorney General’s Office.

As we have already seen, State Police, under the direction of Edmonson, gave Browning high marks in exonerating him from any wrongdoing and as we have also seen in other matters, the Attorney General’s Office is more than a little reluctant to involve itself in the investigation of any state agency—except of course in a situation such as that of former Department of Health and Hospitals Secretary Bruce Greenstein where the feds are already actively investigating a questionable contract with Greenstein’s former employer.

In that case, Attorney General intervention made good press.

In fact, since the 1974 State Constitution was adopted over the objections of then-Attorney General Billy Guste, the Attorney General’s duties are primarily restricted to defending state agencies, not investigating them and can generally enter a local matter at the express invitation of the local district attorney. In fact, the Attorney General has even begged off certain investigative matters, citing a potential conflict of interest should his office be called to defend or represent the agency.

Hammond attorney and state government watchdog C.B. Forgotston, former chief counsel for the House Appropriations Committee disagreed with Harrison’s contention that the OIG is “pretty much redundant.”

Forgotston said the office might be redundant “if any other agency in the state was stopping waste and fraud within the executive branch. Nobody at the state level is pursuing corruption in Louisiana,” he said.

Street said he linked his office’s funding to the amount of money it uncovers through wrongdoing by state officials and contractors. OIG’s annual report in 2012 showed the office had uncovered $3.2 million in fraud and waste the previous fiscal year, nearly double the office’s $1.7 million budget appropriation.

The reaction to Harrison’s bill and to Jindal’s transparent ploy was immediate.

“Is it a bargain to spend $1 to root out nearly $2 in fraud in Louisiana?” the Lake Charles American Press asked in a May 15, 2012, editorial. http://www.americanpress.com/AP-Editorial-5-16-12

“Apparently, some members of the state Legislature don’t think so,” the editorial said, adding that Harrison had admitted that he did not agree with the OIG’s investigation of Browning. He said there should have been no investigation in the first place but Street said his office had received a complaint (from the New Orleans Metropolitan Crime Commission) about how Browning was doing his job and so he launched an investigation. “I was told if you do this (job) right, you’ll eventually have people trying to shut you down,” Street was quoted by the paper as saying.

The editorial disagreed with Harrison’s claim that State Police and the Attorney General’s Office could take up the slack. “The attorney general in Louisiana is too much of a political species to launch investigations into wrongdoing by other politicians or political agencies,” it said in something of an understatement. “An office that ferrets out nearly $2 in fraud for every $1 it costs is too valuable to Louisiana to eliminate.”

The non-partisan Public Affairs Research Council (PAR) agreed. “The state needs a self-motivated watchdog agency to stop waste, mismanagement, abuse and fraud in executive-branch government,” it said in a May 7, 2012, news release. http://www.parlouisiana.com/explore.cfm/parpublications/commentariesandletters/100092

“Stephen Street… is a former criminal staff lawyer with the Third Circuit Court of Appeal, a former public defender and a former Section Chief with the state Attorney General’s Insurance Fraud Support Unit who handled white-collar prosecutions. He has extensive experience teaching courses on white-collar crime investigation,” the PAR release said.

“A sudden halt in funding of the Inspector General would terminate ongoing investigations and send a message nationwide that Louisiana government is open for corrupt or wasteful business. Lawmakers who oppose continued funding of the office while also criticizing particular ongoing investigations are running the risk of deeply politicizing the state’s law enforcement systems. If these efforts at shutting down the Inspector General’s office are successful, their effect will be to strongly encourage further political interference in the law enforcement profession throughout the state,” the release said.

James Gill, then a columnist for the New Orleans Times-Picayune, wasn’t nearly as charitable. As only he can, Gill noted that Edmonson had exonerated and reinstated Browning even before Street’s investigation was complete. Then came Gill’s zinger: “Perhaps Edmonson forgot that he had claimed Browning’s resignation had nothing to do with the allegations against him.” http://www.nola.com/opinions/index.ssf/2012/05/battle_over_funding_for_louisi.html

Gill quoted Harrison as claiming that he had thought for two years that Louisiana did not need an inspector general. “Anyone but a politician would be carted off to the funny farm for saying that,” he wrote, adding that despite Harrison’s claim that his amendment had nothing to do with Browning, he launched into “a passionate denunciation of the inspector general’s office over its treatment of browning.” Gill quoted Harrison as saying no good investigator “would bring it (the investigation) to this point without verifying information.”

“Even a politician deserves a trip to the funny farm for spouting such nonsense,” said Gill at his derisive best.

But even more to the point, Gill observed that “Since Browning has already been returned to duty, it may not matter much what conclusions the inspector general reaches.”

May not indeed. This administration is, after all, the gold standard of ethics.

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First of all, to all those loyal readers, including those employees throughout state government, who contributed so generously to our most recent fund raiser, please accept our heartfelt appreciation. We are trying to respond personally to all of you who contributed on line and by snail mail. We met our goal and that will help us in our research for the book we are writing on the administration (and chronic absenteeism) of our part-time governor.

Should he be foolish enough to try for higher office, the book should attract national attention as the only source of insight into the real Bobby Jindal (as opposed to Faux News and his op-ed pieces in the Washington Post).

Also, we regret to inform Commissioner of Administration Kristy Nichols that her check for our fund raiser was apparently lost in the mail. She may wish to re-send.

Oh, one more thing, Kristy. The definition of insanity, as you know, is trying the same thing over and over and expecting different results. Well, there is another, lesser known definition: Trying to discourage state employees from reading LouisianaVoice by blocking access to our blog or by forbidding employees to log onto it. In case you may be unaware of it, we suggested long ago that state employees not log onto LouisianaVoice at work lest they feed the paranoia that already runs rampant throughout the Division of Administration (DOA).

We know all about your little dictum that state employees are not to log onto our web page—and we concur. And why even bother to claim that blocking access was because of “bandwidth issues” when no one is buying that feeble explanation? After all, they will have plenty time to absorb our posts at home, on their own time…on their own computers, Smart Phones, etc. Uh, you do know they have these devices at home, don’t you? They can—and do—read us extensively there…and there’s not a thing you can do about it.

We also know all about your threat to monitor DOA employees’ emails—and that is your right. The computers do belong to the state, after all, but somehow makes you look pretty small and conveys the image that you have little else to do with your own time than snoop through state workers’ emails. But that’s okay because we happen to agree that the computers should be used for work and not for shopping on Amazon.com as I witnessed management personnel doing during my years in state employment.

Kristy, you may wish to refer back to that super-secret employee survey taken by IBM in the state agencies under DOA. You know, the survey that revealed such deep-seated discontent and distrust of the administration on the part of state employees. Did you ever wonder, Kristy, why that survey reflected such an undercurrent of unhappiness among your employees? Did you? Of course not. You just wrote the $25,000 check to IBM and filed the survey away in a drawer somewhere without ever trying to understand the prevailing mood. Oh, that’s right, you had a concert to attend in New Orleans so you couldn’t be bothered with such trivial matters.

And as for Stephen Russo, the Executive Counsel for the Department of Health and Hospitals: You can instruct your people not to talk to us until you turn blue in the face but you should know they’re talking to us anyway and they will continue to do so, your demands notwithstanding.

Truth be known, we’re kinda enjoying all the attention and fuss being made over our little stories. We know when you’re squirming we’re pretty close to something you don’t want us to know. If we were just blowing smoke, you really wouldn’t give a rat’s patootie, now would you?

But let us latch onto a story like the one we broke about the proposed benefit changes by the Office of Group Benefits or the one about how Jindal and State Police Superintendent Mike Edmonson tried to sneak in that $55,000 per year retirement benefit increase for Edmonson, or how the Department of Education tried to enter into that furtive agreement with Rupert Murdoch to share private student data or how Jindal tried to have Murphy Painter wrongly prosecuted for doing his job which irritated Jindal financial backer Tom Benson and suddenly we’re off limits.

Have you checked out our masthead recently, the part where it says “It is understandable when a child is afraid of the dark but unforgivable when a man fears the light”?

You may wish to commit those words to memory.

 

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