[House Report 109-441]
[From the U.S. Government Publishing Office]



109th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     109-441

======================================================================



 
 PROVIDING FOR CONSIDERATION OF H.R. 4975, LOBBYING ACCOUNTABILITY AND 
                        TRANSPARENCY ACT OF 2006

                                _______
                                

  April 27 (legislative day, April 26), 2006.--Referred to the House 
                   Calendar and ordered to be printed

                                _______
                                

    Mr. Dreier, from the Committee on Rules, submitted the following

                              R E P O R T

                       [To accompany H. Res. 783]

    The Committee on Rules, having had under consideration 
House Resolution 783, by a record vote of 9 to 2, reports the 
same to the House with the recommendation that the resolution 
be adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for consideration of H.R. 4975, the 
Lobbying Accountability and Transparency Act of 2006, under a 
structured rule. The rule provides one hour of general debate, 
equally divided and controlled by the Majority Leader and the 
Minority Leader, or their designees. The rule waives all points 
of order against consideration of the bill.
    The rule provides that in lieu of the amendments 
recommended by the Committees on the Judiciary, Rules, and 
Government Reform now printed in the bill, the amendment in the 
nature of a substitute consisting of the text of the Rules 
Committee Print dated April 21, 2006, modified by the amendment 
printed in part A of this report, shall be considered as 
adopted in the House and in the Committee of the Whole. The 
rule provides that the bill, as amended, shall be considered as 
an original bill for purpose of further amendment and shall be 
considered as read.
    The rule makes in order only those amendments printed in 
part B of this report, which may be offered only in the order 
printed in this report, may be offered only by a Member 
designated in this report, shall be considered as read, shall 
be debatable for the time specified in this report equally 
divided and controlled by the proponent and an opponent, shall 
not be subject to amendment, and shall not be subject to a 
demand for division of the question in the House or in the 
Committee of the Whole. The rule waives all points of order 
against the amendments printed in part B of this report. The 
rule provides one motion to recommit with or without 
instructions.
    The rule provides that in the engrossment of H.R. 4975, the 
Clerk shall add the text of H.R. 513, as passed by the House, 
as new matter at the end of H.R. 4975 and shall make 
appropriate conforming changes.
    The rule further provides that after the passage of H.R. 
4975, it shall be in order to take from the Speaker's table S. 
2349 and to consider the Senate bill in the House. The rule 
waives all points of order against consideration of the Senate 
bill. The rule provides that it shall be in order to strike all 
after the enacting clause of the Senate bill and to insert in 
lieu thereof the provisions of H.R. 4975 as passed by the 
House. The rule waives all points of order against that motion. 
Finally, the rule provides that if that motion is adopted and 
the Senate bill, as amended, is passed, it then shall be in 
order to move that the House insist on its amendment to the 
Senate bill and request a conference thereon.

                         EXPLANATION OF WAIVERS

    The waiver of all points of order against consideration of 
the bill includes a waiver of 4(a) of Rules XIII, requiring a 
three-day layover of a committee report, because the Committees 
on the Judiciary, Rules, House Administration, and Government 
Reform, did not file their reports on the bill (H. Rept. 109-
439, Parts 1-4) until Tuesday, April 25, 2006 and the House may 
consider the bill as early as Thursday, April 27, 2006. The 
Committee is not aware of any points of order against the bill 
or amendments made in order under the rule. All other waivers 
of all points of order provided in the rule are prophylactic in 
nature.

                            COMMITTEE VOTES

    Pursuant to clause 3(b) of House rule XIII the results of 
each record vote on an amendment or motion to report, together 
with the names of those voting for and against, are printed 
below:

Rules Committee record vote No. 183

    Date: April 26, 2006.
    Measure: H.R. 4975, Lobbying Accountability and 
Transparency Act of 2006.
    Motion by: Mrs. Slaughter.
    Summary of motion: To report an open rule.
    Results: Defeated 2 to 9.
    Vote by Members: Diaz-Balart--Nay; Hastings (WA)--Nay; 
Sessions--Nay; Putnam--Nay; Capito--Nay; Cole--Nay; Bishop--
Nay; Gingrey--Nay; Slaughter--Yea; McGovern--Yea; Dreier--Nay.

Rules Committee record vote No. 184

    Date: April 26, 2006.
    Measure: H.R, 4975, Lobbying Accountability and 
Transparency Act of 2006.
    Motion by: Mrs. Slaughter.
    Summary of motion: To make in order and provide the 
appropriate waivers for the amendment offered by Mr. Baird, 
which prohibits securities trading based on nonpublic 
information relating to pending or prospective legislative 
action, requires additional reporting by Members and employees 
of Congress of securities transactions, and requires 
registration and reporting by political intelligence firms.
    Results: Defeated 2 to 9.
    Vote by Members: Diaz-Balart--Nay; Hastings (WA)--Nay; 
Sessions--Nay; Putnam--Nay; Capito--Nay; Cole--Nay; Bishop--
Nay; Gingrey--Nay; Slaughter--Yea; McGovern--Yea; Dreier--Nay.

Rules Committee record vote No. 185

    Date: April 26, 2006.
    Measure: H.R. 4975, Lobbying Accountability and 
Transparency Act of 2006.
    Motion by: Mr. McGovern.
    Summary of motion: To make in order and provide the 
appropriate waivers for the amendment offered by Mr. Tom Davis 
of Virginia, which would: (1) require all political appointees 
and senior officials in Federal agencies and the White House to 
report the contacts they have with private parties seeking to 
influence official government action; (2) deem lawyers, 
lobbyists and executives appointed to high-level government 
positions to have a prohibited conflict of interest if they 
take official actions affecting their former clients or 
employers within two years of entering government; (3) restrict 
activities of procurement officials as they pass between the 
government and private sectors; (4) provide whistleblower 
protections for national security personnel; (5) eliminate the 
use of unregulated ``pseudo-classifications'' such as 
``sensitive but unclassified'' or ``for official use only,'' 
and (6) require the Federal government to disclose its role in 
funding or disseminating advertising and communications and 
prohibits the expenditure of funds unauthorized propaganda.
    Results: Defeated 2 to 9.
    Vote by Members: Diaz-Balart--Nay; Hastings (WA)--Nay; 
Sessions--Nay; Putnam--Nay; Capito--Nay; Cole--Nay; Bishop--
Nay; Gingrey--Nay; Slaughter--Yea; McGovern--Yea; Dreier--Nay.

Rules Committee record vote No. 186

    Date: April 26, 2006.
    Measure: H.R. 4975, Lobbying Accountability and 
Transparency Act of 2006.
    Motion by: Mr. McGovern.
    Summary of motion: To make in order and provide the 
appropriate waivers for the amendment offered by Mr. Van 
Hollen, which requires that a registered lobbyist must disclose 
the ``solicitation and transmission'' of a campaign 
contribution on behalf of a candidate. Also requires disclosure 
by a registered lobbyist if he or she is a treasurer of a 
campaign or a chairman of a political committee.
    Results: Defeated 2 to 9.
    Vote by Members: Diaz-Balart--Nay; Hastings (WA)--Nay; 
Sessions--Nay; Putnam--Nay; Capito--Nay; Cole--Nay; Bishop--
Nay; Gingrey--Nay; Slaughter--Yea; McGovern--Yea; Dreier--Nay.

Rules Committee record vote No. 187

    Date: April 26, 2006.
    Measure: H.R. 4975, Lobbying Accountability and 
Transparency Act of 2006.
    Motion by: Mrs. Slaughter.
    Summary of motion: To strike the language in the rule that 
waives all points of order against the amendments made in order 
under the rule.
    Results: Defeated 2 to 9.
    Vote by Members: Diaz-Balart--Nay; Hastings (WA)--Nay; 
Sessions--Nay; Putnam--Nay; Capito--Nay; Cole--Nay; Bishop--
Nay; Gingrey--Nay; Slaughter--Yea; McGovern--Yea; Dreier--Nay.

Rules Committee record vote No. 188

    Date: April 26, 2006.
    Measure: H.R. 4975, Lobbying Accountability and 
Transparency Act of 2006.
    Motion by: Mr. Lincoln Diaz-Balart.
    Summary of motion: To report the rule.
    Results: Defeated 9 to 2.
    Vote by Members: Diaz-Balart--Yea; Hastings (WA)--Yea; 
Sessions--Yea; Putnam--Yea; Capito--Yea; Cole--Yea; Bishop--
Yea; Gingrey--Yea; Slaughter--Nay; McGovern--Nay; Dreier--Yea.

PART A--SUMMARY OF THE AMENDMENT MODIFYING THE RULES COMMITTEE PRINT OF 
                APRIL 21, 2006 TO BE CONSIDERED ADOPTED

    Strikes Section 107 of the bill, regarding a GAO study of 
employment contracts of lobbyists.

              PART B--SUMMARY OF AMENDMENTS MADE IN ORDER

    1. Gohmert (TX): Strikes the current section 106 and 
inserts an ascending civil penalty structure for each 
subsequent offense. For example, for a second offense the 
offender could be subject to a fine of not more than 
$250,000.00. It also adds ``corruptly and with intent to evade 
the law'' to the intent element of the civil penalty. (10 
minutes)
    2. Castle (DE)/Gerlach (PA): Requires that lobbyists be 
held liable for offering gifts that violate the gift ban. A 
lobbyist who knowingly offers a gift to a U.S. Representative, 
Delegate, Resident Commissioner, or their employee that is in 
violation of the gift ban, would be subject to a civil fine of 
up to $50,000. (10 minutes)
    3. Lungren (CA)/Miller (CA)/Hastings (WA)/Berman (CA)/Cole 
(OK): Modifies section 301 to place a moratorium on privately-
funded official travel unless the Committee on Standards of 
Official conduct issues a certification that the gift of travel 
complies with all House rules and standards of conduct. The 
Committee is not permitted to issue that certification until it 
reports its recommendations on changes to rule XXV to the 
Committee on Rules, which must occur not later than June 15, 
2006. The Committee is permitted to issue the certification 
before June 15 if 2/3 of the committee vote to do so. The 
Standards Committee must review public reports on privately 
funded travel and consider those items in the base bill. 
Section 302 is modified to direct the Committee on Standards to 
report to the Committee on Rules on recommended changes to rule 
XXV with respect to gifts, and consider factors similar to 
those in the base bill. (10 minutes)
    4. Sodrel (IN)/McGovern (MA)/Davis (KY): Amends Sec. 502 to 
add a voluntary ethics training program for Members within 100 
days of being sworn in to Congress. The status of the Members 
completing and not completing the course within the time frame 
will be posted on the website for the House Committee on 
Standards of Official Conduct and in the Congressional Record. 
(10 minutes)
    5. Jackson-Lee (TX): Modifies the extent to which pensions 
can be withheld from the spouse and family. (10 minutes)
    6. Gingrey (GA): Extends the prohibition on converting 
campaign dollars for personal use currently applicable to 
campaign committees to Leadership PACs. Leadership PAC is 
defined in this amendment as a political committee which is 
directly or indirectly established, maintained, or controlled 
by a candidate for Federal office or an individual holding 
Federal office. (10 minutes)
    7. Wolf (VA): Prohibits former ambassadors and CIA station 
chiefs from acting as an agent of the foreign nation where they 
were stationed for five years after their service as ambassador 
or station chief is completed. (10 minutes)
    8. Castle (DE): Requires that all registered lobbyists 
complete a mandatory 8-hours of ethics training each Congress. 
Ethics training would include the code of conduct and 
disclosure requirements applicable to Members, officers, and 
employees of the House, including rules relating to acceptance 
of gifts (including travel and meals), and financial disclosure 
requirements under the Ethics in Government Act of 1978. Any 
registered lobbyist failing to complete ethics training each 
Congress would be subject to penalties. (10 minutes)
    9. Flake (AZ): Clarifies the application of criminal 
bribery and illegal gratuities statutes with regard to 
earmarks. Specifically, it prohibits a person from directly or 
indirectly, corruptly giving, offering, or promising anything 
of value to any public official with the intent to influence 
any official act relating to an earmark. Also prohibits a 
public official from corruptly demanding, seeking, receiving, 
accepting, or agreeing to receive or accept anything of value 
in return for influence in the performance of an official act 
relating to an earmark. (10 minutes)

PART A--TEXT OF AMENDMENT MODIFYING THE RULES COMMITTEE PRINT OF APRIL 
                   21, 2006 TO BE CONSIDERED ADOPTED

    Strike section 107.

                PART B--TEXT OF AMENDMENTS MADE IN ORDER

 1. An Amendment To Be Offered by Representative Gohmert of Texas, or 
              His Designee, To Be Debatable for 10 Minutes

  Strike section 106 and insert the following:

SEC. 106. INCREASED PENALTY FOR FAILURE TO COMPLY WITH LOBBYING 
                    DISCLOSURE REQUIREMENTS.

  Section 7 of the Act (2 U.S.C. 1606) is amended--
          (1) by striking ``Whoever'' and inserting
  ``(a) In General.--Whoever'';
          (2) by inserting ``, corruptly, and with the intent 
        to evade the law'' after ``knowingly'';
          (3) by striking ``knowing'';
          (4) by striking ``of not more than'' and all that 
        follows through the end and inserting ``as provided in 
        subsection (b).''; and
          (5) by adding at the end the following:
  ``(b) Penalty.--The civil fine under subsection (a) shall be 
the following, depending on the extent and gravity of the 
violation:
          ``(1) For the first offense, not more than $100,000.
          ``(2) For the second offense, not more than $250,000.
          ``(3) For the third offense, not more than $500,000.
          ``(4) For the fourth or any subsequent offense, not 
        more than $1,000,000.''.
                              ----------                              


2. An Amendment To Be Offered by Representative Castle of Delaware, or 
              His Designee, To Be Debatable for 10 Minutes

  Insert the following after section 106 and redesignate the 
succeeding section accordingly:

SEC. 107. PENALTIES FOR OFFERING GIFTS.

  Section 7 of the Act (2 U.S.C. 1606), as amended by section 
106, is amended by adding at the end the following:
  ``(c) Penalties for Offering Gifts.--
          ``(1) In general.--Any person who is--
                  ``(A) a lobbyist registered under this Act,
                  ``(B) a lobbyist who is an employee of an 
                organization registered under this Act, or
                  ``(C) the client of any such lobbyist or 
                organization,

        and who offers to a covered legislative branch official 
        of the House of Representatives any gift, knowing that 
        such gift violates the rules of the House of 
        Representatives, shall, upon proof thereof by a 
        preponderance of the evidence, be subject to a civil 
        fine of not more than $50,000.
          ``(2) Definition.--In this subsection, the term 
        `covered legislative branch official of the House of 
        Representatives' means--
                  ``(A) a Representative in, or Delegate or 
                Resident Commissioner to, the Congress; and
                  ``(B) an employee of, or any other individual 
                functioning in the capacity of an employee of--
                          ``(i) an individual described in 
                        subparagraph (A);
                          ``(ii) a committee of the House of 
                        Representatives;
                          ``(iii) the leadership staff of the 
                        House of Representatives;
                          ``(iv) a joint committee of Congress; 
                        or
                          ``(v) a working group or caucus 
                        organized to provide legislative 
                        services to individuals described in 
                        subparagraph (A).''.
                              ----------                              


3. An Amendment To Be Offered by Representative Lungren of California, 
            or His Designee, To Be Debatable for 10 Minutes

  Section 301 is amended to read as follows:

SEC. 301 PRE-CERTIFICATION OF PRIVATELY FUNDED TRAVEL.

          (a) Acceptance of Privately Funded Travel.--
        Notwithstanding clause 5 of rule XXV of the Rules of 
        the House of Representatives, no Member, Delegate, 
        Resident Commissioner, officer, or employee of the 
        House may accept a gift of travel related to his 
        official duties (including any transportation, lodging, 
        and meals during such travel) from any private source 
        unless the private source first obtains a certification 
        in writing from the Committee on Standards of Official 
        Conduct that the gift of travel complies with all House 
        rules and standards of conduct.
          (b) Review and Recommendations.--(1) The Committee on 
        Standards of Official Conduct may not issue any such 
        certification until it reports its recommendations on 
        changes to rule XXV to the Committee on Rules unless 
        two-thirds of the Members of the Committee, present and 
        voting in the affirmative, vote to issue such 
        certification. The Committee on Standards of Official 
        Conduct shall report its recommendations to the 
        Committee on Rules not later than June 15, 2006.
          (2) In developing such recommendations, the Committee 
        on Standards of Official Conduct shall--
          (A) survey public reports of registered lobbyist and 
        registered foreign agent-related private travel, as 
        well as public reports of late or inaccurate disclosure 
        of private travel, and
          (B) consider--
                  (i) The ability of the current provisions of 
                rule XXV regarding travel to protect the House, 
                its Members, officers, and employees, from the 
                appearance of impropriety.
                  (ii) With respect to the allowance for 
                privately-funded travel contained in clause 
                5(b) of rule XXV--
                          (I) the degree to which the 
                        privately-funded travel meets the 
                        representational needs of the House, 
                        its Members, officers, and employees;
                          (II) whether certain entities should 
                        or should not be permitted to fund the 
                        travel of the Members, officers, and 
                        employees of the House, what sources of 
                        funding may be permissible, and what 
                        other individuals may participate in 
                        that travel; and
                          (III) the adequacy of the current 
                        system of approval and disclosure of 
                        such travel.
          Section 302 is amended to read as follows:

SEC. 302 RECOMMENDATIONS FROM THE COMMITTEE ON STANDARDS OF OFFICIAL 
                    CONDUCT ON GIFTS.

          The Committee on Standards of Official Conduct shall 
        report its recommendations on changes to rule XXV of 
        the Rules of the House of Representatives regarding the 
        exceptions to the limitation on the acceptance of gifts 
        contained in clause 5(a) of that rule to the Committee 
        on Rules. In developing its recommendations, the 
        Committee on Standards of Official Conduct shall 
        consider the following:
                              ----------                              


 4. An Amendment To Be Offered by Representative Sodrel of Indiana, or 
              His Designee, To Be Debatable for 10 Minutes

  Amend section 502(b) to read as follows:
  (b) Ethics Training for Members, Delegates, and the Resident 
Commissioner.--Clause 3 of rule XI of the Rules of the House of 
Representatives is amended by inserting at the end:
  ``(s)(1) The committee shall establish a program of regular 
ethics training for Members, Delegates, and the Resident 
Commissioner similar to the program established in paragraph 
(r).
  ``(2) The committee shall publish a list of Members who have 
and have not completed such ethics training within the first 
one hundred calendar days after being sworn-in during each 
Congress. The committee shall update this list with the names 
of Members who complete the training after the deadline with 
the date on which the training was completed.
  ``(3) Publication of the list of Members who have and have 
not completed the ethics training shall be made available on 
the official website of the committee and published in the 
Congressional Record.''.
                              ----------                              


 5. An Amendment To Be Offered by Representative Jackson Lee of Texas, 
            or Her Designee, To Be Debatable for 10 Minutes

  In subsection (o)(4)(B)(i) of section 8332 of title 5, United 
States Code, as added by section 601(a) of the bill, strike ``, 
but only to the extent'' and all that follows through 
``circumstances''.
  In subsection (l)(4)(B)(i) of section 8411 of title 5, United 
States Code, as added by section 601(b) of the bill, strike ``, 
but only to the extent'' and all that follows through 
``circumstances''.
                              ----------                              


6. An Amendment To Be Offered by Representative Gingrey of Georgia, or 
              His Designee, To Be Debatable for 10 Minutes

  Add at the end the following:

                       TITLE VII--LEADERSHIP PACS

SEC. 701. RESTRICTIONS ON DISPOSITION OF FUNDS BY LEADERSHIP PACS.

  (a) Restrictions.--Section 313 of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 439a) is amended--
          (1) by redesignating subsection (b) as subsection 
        (c); and
          (2) by inserting after subsection (a) the following 
        new subsection:
  ``(b) Use of Funds by Leadership PACs.--
          ``(1) Uses permitted.--The funds of a leadership PAC 
        may be used by the leadership PAC--
                  ``(A) for otherwise authorized expenditures 
                in connection with campaigns for election for 
                Federal office;
                  ``(B) for charitable contributions described 
                in section 170(c) of the Internal Revenue Code 
                of 1986; or
                  ``(C) for transfers to a national, State, or 
                local committee of a political party (subject 
                to the applicable limitations of this Act).
          ``(2) Leadership pac defined.--In this subsection, 
        the term `leadership PAC' means a political committee 
        which is directly or indirectly established, 
        maintained, or controlled by a candidate for election 
        for Federal office or an individual holding Federal 
        office but is not an authorized committee of the 
        candidate or individual, except that such term does not 
        include any political committee of a political 
        party.''.
  (b) Conforming Amendment Regarding Conversion of Funds to 
Personal Use.--Section 313(c) of such Act (2 U.S.C. 439a(c)), 
as redesignated by subsection (a), is amended by inserting 
after ``subsection (a)'' the following: ``or funds of a 
leadership PAC described in subsection (b)''.
  (c) Effective Date.--The amendments made by this section 
shall apply with respect to elections occurring after December 
2006.
                              ----------                              


 7. An Amendment To Be Offered by Representative Wolf of Virginia, or 
              His Designee, To Be Debatable for 10 Minutes

At the end of the bill, add the following new title:

TITLE VII--RESTRICTIONS RELATING TO AMBASSADORS AND INTELLIGENCE CHIEFS

SEC. 701. RESTRICTION ON AMBASSADOR OR INTELLIGENCE CHIEF FROM ACTING 
                    AS AGENT OF A FOREIGN PRINCIPAL.

  Section 207(f) of title 18, United States Code, is amended--
          (1) by redesignating paragraph (3) as paragraph (4); 
        and
          (2) by inserting after paragraph (2) the following 
        new paragraph:
          ``(3) Additional restriction for ambassadors and 
        intelligence chiefs.--
                  ``(A) Restriction.--In addition to any other 
                restriction, a person who is--
                          ``(i) a United States Ambassador to a 
                        foreign country, or
                          ``(ii) the head of intelligence 
                        activities for an element of the 
                        intelligence community (as defined in 
                        section 3(4) of the National Security 
                        Act of 1947 (50 U.S.C. 401a(4)) with 
                        respect to a foreign country,
                  shall not, within 5 years after leaving such 
                position, act as an agent of a foreign 
                principal (as defined in section 1 of the 
                Foreign Agents Registration Act of 1938, as 
                amended (22 U.S.C. 611)), with respect to that 
                foreign country.
                  ``(B) Injunctive remedy; jurisdiction of 
                district court.--Whenever in the judgment of 
                the Attorney General any person is engaged in 
                or about to engage in any acts which constitute 
                or will constitute a violation of subparagraph 
                (A), or otherwise is in violation of that 
                subparagraph, the Attorney General may make 
                application to the appropriate United States 
                district court for an order enjoining such 
                acts, or for an order requiring compliance with 
                that subparagraph. The district court shall 
                have jurisdiction and authority to issue a 
                temporary or permanent injunction, restraining 
                order, or any other order that it considers 
                proper.''.
                              ----------                              


8. An Amendment To Be Offered by Representative Castle of Delaware, or 
              His Designee, To Be Debatable for 10 Minutes

  Add at the end of the bill the following:

                TITLE VII--ETHICS TRAINING FOR LOBBYISTS

SEC. 701. ETHICS TRAINING FOR LOBBYISTS.

  (a) Training Course.--During each Congress, the Committee on 
Standards of Official Conduct of the House of Representatives 
shall provide an 8-hour ethics training course to persons 
registered as lobbyists under the Lobbying Disclosure Act of 
1995.
  (b) Contents of Course.--Training under subsection (a) shall 
cover information on the code of conduct and disclosure 
requirements applicable to Members, officers, and employees of 
the House of Representatives, including rules relating to 
acceptance of gifts (including travel and meals), and financial 
disclosure requirements under the Ethics in Government Act of 
1978.
  (c) Penalties for Failure to Complete Training.--Any person 
who is registered or required to register as a lobbyist under 
the Lobbying Disclosure Act of 1995 and who fails to complete 
the training course under subsection (a) at least once during 
each Congress shall be subject to the penalties under section 7 
of that Act to the same extent as a failure to comply with any 
provision of that Act.
                              ----------                              


 9. An Amendment To Be Offered by Representative Flake of Arizona, or 
              His Designee, To Be Debatable for 10 Minutes

  Add at the end of the bill the following:

                  TITLE VII--MISCELLANEOUS PROVISIONS

SEC. 701. BRIBERY.

  Section 201(a)(3) of title 18, United States Code, is amended 
by inserting ``including an earmark as defined in section 
501(d) of the Lobbying Accountability and Transparency Act of 
2006,'' after ``controversy,''.

                                  
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