Amended in Assembly September 10, 2015

Amended in Assembly September 4, 2015

Amended in Assembly August 24, 2015

Senate BillNo. 102


Introduced by Committee on Budget and Fiscal Review

January 9, 2015


An act to amend Sections 11555, 11556, 11565.5, 19825.5, 22866, and 100505 of the Government Code, to amend Section 1233.10 of the Penal Code,begin delete andend deletebegin insert to add Sections 75200.2 and 75200.3 to the Public Resources Code,end insert to amend Sections 17138.3 and 24308.7 of the Revenue and Taxation Code, and to add Item 4170-101-3098 to Section 2.00 of the Budget Act of 2015, relating to state government, and making an appropriation therefor, to take effect immediately, bill related to the budget.

LEGISLATIVE COUNSEL’S DIGEST

SB 102, as amended, Committee on Budget and Fiscal Review. State government.

(1) Existing law provides for the salaries of the chairperson and commissioners of the Board of Parole Hearings and the chairperson and members of the Occupational Safety and Health Appeals Board, and limits increases to those salaries by, among other restrictions, prohibiting a salary increase exceeding the percentage of the general increase in the salary rates and ranges for classifications provided during that fiscal year for state employees designated as managerial.

This bill would instead authorize the Department of Human Resources to set and adjust, as needed, the annual compensation of these state officers based on specified factors. The bill would prohibit compensation for these state officers from exceeding 125% of the compensation recommended to be paid to the Governor by the California Citizens Compensation Commission, and would require the department to notify the Legislature of the compensation level implemented within 30 days of the effective date of the proposed compensation adjustment.

(2) The Public Employees’ Medical and Hospital Care Act requires, among other things, the Board of Administration of the Public Employees’ Retirement System to report to the Legislature and the Director of Finance, on November 1, 2015, and annually thereafter, on specific components of the health benefits program.

This bill would remove the requirement for the board to report on November 1, 2015, and instead require the board to report beginning on November 1, 2016, and annually thereafter.

(3) Existing law established the California Health Benefit Exchange to be governed by an executive board consisting of 5 members who are residents of California. Existing law requires the board to establish and use a competitive process to select participating carriers and any other contractors, and exempts any contract entered into pursuant to these provisions from the State Contract Act.

This bill would make a nonsubstantive change to this provision.

(4) Existing law requires a county board of supervisors, upon an agreement to accept specified funding, to develop and administer a competitive grant program in collaboration with the county’s Community Corrections Partnership to fund community recidivism and crime reduction services. Existing law allocates funding to counties from the Budget Act of 2015 pursuant to a specified allocation schedule for this purpose and requires the board of supervisors to grant the funds to community recidivism and crime reduction service providers, as defined. Based on the population of the county, existing law limits the maximum amount of funds that may be awarded to a service provider to between $10,000 and $100,000, and further limits the total amount of grants that may be awarded to a single provider by all counties to $100,000.

This bill would make the above-specified limitation on the maximum amount that may be awarded to a service provider applicable to each Budget Act allocation.

begin insert

(5) The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act authorizes the state board to include the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board from the auction or sale of allowances as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund (the fund) and available for appropriation by the Legislature for purposes related to greenhouse gas reduction.

end insert
begin insert

Existing law continuously appropriates 60% of the annual proceeds of the fund for transit, affordable housing, sustainable communities, and high-speed rail purposes. Existing law, as part of the continuous appropriation from the fund, requires the Strategic Growth Council to develop and administer the Affordable Housing and Sustainable Communities Program to reduce greenhouse gas emissions through projects that implement land use, housing, transportation, and agricultural land preservation practices to support infill and compact development and that support other related and coordinated public policy objectives.

end insert
begin insert

This bill would authorize the council to designate a state agency or department to administer the Affordable Housing and Sustainable Communities Program for the disbursement of grants and loans to support the planning and development of sustainable communities. The bill also would authorize the moneys continuously appropriated to the council from the fund to be used by the designated state agency or department for support and local assistance costs.

end insert
begin delete

(5)

end delete

begin insert(6)end insert The Personal Income Tax Law and the Corporation Tax Law provide for various exclusions from the calculation of gross income in determining tax liability, and specifically exclude from that calculation, for taxable years beginning on or after July 1, 2015, an amount received as a loan, loan forgiveness, grant, credit, rebate, voucher, or incentive from the California Residential Mitigation Program or the California Earthquake Authority relating to earthquake loss mitigation. These existing laws define “earthquake loss mitigation” as an activity that reduces seismic risks to a residential structure or its contents, or both, and defines a “residential structure” by reference to another law, relating to policies of residential property insurance.

This bill would remove the reference to a loan from the listing of excluded items, and revise the definition of “residential structure” to also include a residential building of not fewer than 2, but nor more than 10, dwelling units.

begin delete

(6)

end delete

begin insert(7)end insert The bill would make an appropriation from the State Department of Public Health Licensing and Certification Program Fund of $400,000 to the Long-Term Care Ombudsman Program for the purposes of Program 3900-Supportive Services, as specified in the Budget Act of 2015.

begin delete

(7)

end delete

begin insert(8)end insert This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

Vote: majority. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P4    1

SECTION 1.  

Section 11555 of the Government Code is
2amended to read:

3

11555.  

(a) Effective January 1, 1988, an annual salary of
4seventy-one thousand five hundred eighty-seven dollars ($71,587)
5shall be paid to the following:

6(1) Chairperson of the Board of Parole Hearings.

7(2) Chairperson of the Occupational Safety and Health Appeals
8Board.

9(b) The annual compensation provided by this section shall be
10increased in any fiscal year in which a general salary increase is
11provided for state employees. The amount of the increase provided
12by this section shall be comparable to, but shall not exceed, the
13percentage of the general salary increases provided for state
14employees during that fiscal year.

15(c) Notwithstanding subdivision (b), any salary increase is
16subject to Section 19825.5.

17

SEC. 2.  

Section 11556 of the Government Code is amended
18to read:

19

11556.  

(a) Effective January 1, 1988, an annual salary of
20sixty-nine thousand seventy-six dollars ($69,076) shall be paid to
21each of the following:

22(1) Commissioner of the Board of Parole Hearings.

23(2) Member of the Occupational Safety and Health Appeals
24Board.

25(b) The annual compensation provided by this section shall be
26increased in any fiscal year in which a general salary increase is
27provided for state employees. The amount of the increase provided
P5    1by this section shall be comparable to, but shall not exceed, the
2percentage of the general salary increases provided for state
3employees during that fiscal year.

4(c) Notwithstanding subdivision (b), any salary increase is
5subject to Section 19825.5.

6

SEC. 3.  

Section 11565.5 of the Government Code is amended
7to read:

8

11565.5.  

Notwithstanding Sections 11553, 11553.5, 11563.7,
9and 11564, with respect to any salary increase made after January
101, 1997, for nonelected members of state boards and commissions
11specified in Sections 11553, 11553.5, 11563.7, and 11564, the
12annual compensation provided by these sections shall not
13automatically increase but may be increased in any fiscal year in
14which there is a general increase in the salary ranges and rates for
15state civil service classifications. The amount of the increase, as
16determined by the Department of Human Resources and subject
17to the appropriation of funds by the Legislature in the annual
18Budget Act, shall not exceed the percentage of the general increase
19in the salary rates and ranges for classifications provided during
20that fiscal year for state employees designated as managerial.

21

SEC. 4.  

Section 19825.5 of the Government Code is amended
22to read:

23

19825.5.  

(a) Notwithstanding Sections 11550, 11552, 11554,
2411555, and 11556, the department shall set and adjust, as needed,
25the annual compensation of the officers and employees listed in
26Sections 11550, 11552, 11554, 11555, and 11556.

27(b) When setting or adjusting the annual compensation of the
28employees described in subdivision (a), the department shall
29consider the size and scope of the organization, compensation paid
30to other similar positions in other public jurisdictions, the scope
31of responsibility of the position, the need to avoid salary
32compaction, and other factors appropriate to the determination of
33compensation necessary to recruit and retain qualified employees
34in leadership positions for the state. The compensation shall not
35exceed 125 percent (125%) of the compensation recommended to
36be paid to the Governor of the State of California by the California
37Citizens Compensation Commission.

38(c) The department shall notify the Legislature of the
39compensation level implemented for any of the employees
P6    1described in subdivision (a) within 30 days of the effective date
2of the proposed compensation adjustment.

3

SEC. 5.  

Section 22866 of the Government Code is amended
4to read:

5

22866.  

(a) The board shall report to the Legislature and the
6Director of Finance on or before November 1, 2016, and annually
7thereafter, regarding the health benefits program. The report shall
8include, but not be limited to the following:

9(1) General overview of the health benefits program, including,
10but not limited to, the following:

11(A) Description of health plans and benefits provided, including
12essential and nonessential benefits as required by state and federal
13law, member expected out-of-pocket expenses, and actuarial value
14by metal tier as defined by the federal Patient Protection and
15Affordable Care Act (Public Law 111-148), as amended by the
16federal Health Care and Education Reconciliation Act of 2010
17(Public Law 111-152).

18(B) Geographic coverage.

19(C) Historic enrollment information by basic and Medicare
20plans, by state and contract agencies, by active and retired
21membership, and by subscriber and dependent tier.

22(D) Historic expenditures by basic and Medicare plans, by state
23and contract agencies, by active and retired membership, and by
24subscriber and dependent tier.

25(2) Reconciliation of premium increases or decreases from the
26prior plan year, and the reasons for those changes.

27(A) Description of benefit design and benefit changes, including
28prescription drug coverage, by plan. The description shall detail
29whether benefit changes were required by statutory mandate,
30federal law, or an exercise of the board’s discretion, the costs or
31savings of the benefit change, and the impact of how the changes
32fit into a broader strategy.

33(B) Discussion of risk.

34(C) Description of medical trend changes in aggregate service
35categories for each plan. The aggregate service categories used
36shall include the standard categories of information collected by
37the board, consisting of the following: inpatient, emergency room,
38ambulatory surgery, office, ambulatory radiology, ambulatory lab,
39mental health and substance abuse, other professional,
40prescriptions, and all other service categories.

P7    1(D) Reconciliation of past year premiums against actual
2enrollments, revenues, and accounts receivables.

3(3) Overall member health as reflected by data on chronic
4conditions.

5(4) The impact of federal subsidies or contributions to the health
6care of members, including Medicare Part A, Part B, Part C, or
7Part D, low-income subsidies, or other federal program.

8(5) The cost of benefits beyond Medicare contained in the
9board’s Medicare supplemental plans.

10(6) A description of plan quality performance and member
11satisfaction, including, but not limited to, the following:

12(A) The Healthcare Effectiveness Data and Information Set,
13referred to as HEDIS.

14(B) The Medicare star rating for Medicare supplemental plans.

15(C) The degree of satisfaction of members and annuitants with
16the health benefit plans and with the quality of the care provided,
17to the extent the board surveys participants.

18(D) The level of accessibility to preferred providers for rural
19members who do not have access to health maintenance
20organizations.

21(E) Other applicable quality measurements collected by the
22board as part of the board’s health plan contracts.

23(7) A description of risk assessment and risk mitigation policy
24related to the board’s self-funded and flex-funded plan offerings,
25including, but not limited to the following:

26(A) Reserve levels and their adequacy to mitigate plan risk.

27(B) The expected change in reserve levels and the factors leading
28to this change.

29(C) Policies to reduce excess reserves or rebuild inadequate
30reserves.

31(D) Decisions to lower premiums with excess reserves.

32(E) The use of reinsurance and other alternatives to maintaining
33reserves.

34(8) Description and reconciliation of administrative
35expenditures, including, but not limited to, the following:

36(A) Organization and staffing levels, including salaries, wages,
37and benefits.

38(B) Operating expenses and equipment expenditure items,
39including, but not limited to, internal and external consulting and
40intradepartmental transfers.

P8    1(C) Funding sources.

2(D) Investment strategies, historic investment performance, and
3expected investment returns of the Public Employees’ Contingency
4Reserve Fund and the Public Employees’ Health Care Fund.

5(9) Changes in strategic direction and major policy initiatives.

6(b) A report submitted pursuant to subdivision (a) shall be
7provided in compliance with Section 9795.

8

SEC. 6.  

Section 100505 of the Government Code is amended
9to read:

10

100505.  

(a) The board shall establish and use a competitive
11process to select participating carriers and any other contractors
12under this title. Any contract entered into pursuant to this title shall
13be exempt from Part 2 (commencing with Section 10100) of
14Division 2 of the Public Contract Code, and shall be exempt from
15the review or approval of any division of the Department of General
16Services. The board shall adopt a Health Benefit Exchange
17Contracting Manual incorporating procurement and contracting
18policies and procedures that shall be followed by the Exchange.
19The policies and procedures in the manual shall be substantially
20similar to the provisions contained in the State Contracting Manual.

21(b) The adoption, amendment, or repeal of a regulation by the
22board to implement this section, including the adoption of a manual
23pursuant to subdivision (a) and any procurement process conducted
24by the Exchange in accordance with the manual, is exempt from
25the rulemaking provisions of the Administrative Procedure Act
26(Chapter 3.5 (commencing with Section 11340) of Part 1 of
27Division 3 of Title 2).

28

SEC. 7.  

Section 1233.10 of the Penal Code is amended to read:

29

1233.10.  

(a) Upon agreement to accept funding from the
30Recidivism Reduction Fund, created in Section 1233.9, a county
31board of supervisors, in collaboration with the county’s Community
32Corrections Partnership, shall develop, administer, and collect and
33submit data to the Board of State and Community Corrections
34regarding a competitive grant program intended to fund community
35recidivism and crime reduction services, including, but not limited
36to, delinquency prevention, homelessness prevention, and reentry
37services.

38(1) Commencing with the 2014-15 fiscal year, the funding shall
39be allocated to counties by the State Controller’s Office from Item
P9    15227-101-3259 of Section 2.00 of the Budget Act of 2014
2according to the following schedule:


3

 

Alameda$  250,000
Alpine$   10,000
Amador$   10,000
Butte$   50,000
Calaveras$   10,000
Colusa$   10,000
Contra Costa$  250,000
Del Norte$   10,000
El Dorado$   50,000
Fresno$  250,000
Glenn$   10,000
Humboldt$   50,000
Imperial$   50,000
Inyo$   10,000
Kern$  250,000
Kings$   50,000
Lake$   25,000
Lassen$   10,000
Los Angeles$ 1,600,000
Madera$   50,000
Marin$   50,000
Mariposa$   10,000
Mendocino$   25,000
Merced$   50,000
Modoc$   10,000
Mono$   10,000
Monterey$  100,000
Napa$   50,000
Nevada$   25,000
Orange$  500,000
Placer$   50,000
Plumas$   10,000
Riverside$  500,000
Sacramento$  250,000
San Benito$   25,000
San Bernardino$  500,000
San Diego$  500,000
San Francisco$  250,000
San Joaquin$  250,000
San Luis Obispo$   50,000
San Mateo$  250,000
Santa Barbara$  100,000
Santa Clara$  500,000
Santa Cruz$   50,000
Shasta$   50,000
Sierra$   10,000
Siskiyou$   10,000
Solano$  100,000
Sonoma$  100,000
Stanislaus$  100,000
Sutter$   25,000
Tehama$   25,000
Trinity$   10,000
Tulare$  100,000
Tuolumne$   25,000
Ventura$  250,000
Yolo$   50,000
Yuba$   25,000
P10  2227P10   6

 

23(2) Commencing with the 2015-16 fiscal year, the funding shall
24be allocated to counties by the State Controller’s Office from Item
255227-101-3259 of Section 2.00 of the Budget Act of 2015
26according to the following schedule:

 

Alameda$  125,000
Alpine$    5,000
Amador$    5,000
Butte$   25,000
Calaveras$    5,000
Colusa$    5,000
Contra Costa$  125,000
Del Norte$    5,000
El Dorado$   25,000
Fresno$  125,000
Glenn$    5,000
Humboldt$   25,000
Imperial$   25,000
Inyo$    5,000
Kern$  125,000
Kings$   25,000
Lake$   12,500
Lassen$    5,000
Los Angeles$  800,000
Madera$   25,000
Marin$   25,000
Mariposa$    5,000
Mendocino$   12,500
Merced$   25,000
Modoc$    5,000
Mono$    5,000
Monterey$   50,000
Napa$   25,000
Nevada$   12,500
Orange$  250,000
Placer$   25,000
Plumas$    5,000
Riverside$  250,000
Sacramento$  125,000
San Benito$   12,500
San Bernardino$  250,000
San Diego$  250,000
San Francisco$  125,000
San Joaquin$  125,000
San Luis Obispo$   25,000
San Mateo$  125,000
Santa Barbara$   50,000
Santa Clara$  250,000
Santa Cruz$   25,000
Shasta$   25,000
Sierra$    5,000
Siskiyou$    5,000
Solano$   50,000
Sonoma$   50,000
Stanislaus$   50,000
Sutter$   12,500
Tehama$   12,500
Trinity$    5,000
Tulare$   50,000
Tuolumne$   12,500
Ventura$  125,000
Yolo$   25,000
Yuba$   12,500
P10   6

 

7(b) For purposes of this section, “community recidivism and
8crime reduction service provider” means a nongovernmental entity
9or a consortium or coalition of nongovernmental entities, that
10provides community recidivism and crime reduction services, as
11described in paragraph (2) of subdivision (c), to persons who have
12been released from the state prison, a county jail, a juvenile
13 detention facility, who are under the supervision of a parole or
14probation department, or any other person at risk of becoming
15involved in criminal activities.

16(c) (1) A community recidivism and crime reduction service
17provider shall have a demonstrated history of providing services,
18as described in paragraph (2), to the target population during the
19five years immediately prior to the application for a grant awarded
20pursuant to this section.

21(2) A community recidivism and crime reduction service
22provider shall provide services that are designed to enable persons
23to whom the services are provided to refrain from engaging in
24crime, reconnect with their family members, and contribute to their
25communities. Community recidivism and crime reduction services
26may include all of the following:

27(A) Self-help groups.

28(B) Individual or group assistance with basic life skills.

29(C) Mentoring programs.

30(D) Academic and educational services, including, but not
31limited to, services to enable the recipient to earn his or her high
32school diploma.

33(E) Job training skills and employment.

34(F) Truancy prevention programs.

35(G) Literacy programs.

36(H) Any other service that advances community recidivism and
37crime reduction efforts, as identified by the county board of
38supervisors and the Community Corrections Partnership.

39(I) Individual or group assistance with referrals for any of the
40following:

P13   1(i) Mental and physical health assessments.

2(ii) Counseling services.

3(iii) Education and vocational programs.

4(iv) Employment opportunities.

5(v) Alcohol and drug treatment.

6(vi) Health, wellness, fitness, and nutrition programs and
7services.

8(vii) Personal finance and consumer skills programs and
9services.

10(viii) Other personal growth and development programs to
11 reduce recidivism.

12(ix) Housing assistance.

13(d) Pursuant to this section and upon agreement to accept
14funding from the Recidivism Reduction Fund, the board of
15supervisors, in collaboration with the county’s Community
16Corrections Partnership, shall grant funds allocated to the county,
17as described in subdivision (a), to community recidivism and crime
18reduction service providers based on the needs of their community.

19(e) (1) The amount awarded to each community recidivism and
20crime reduction service provider by a county shall be based on the
21population of the county, as projected by the Department of
22Finance, and shall not exceed the following for each Budget Act
23allocation:

24(A) One hundred thousand dollars ($100,000) in a county with
25a population of over 4,000,000 people.

26(B) Fifty thousand dollars ($50,000) in a county with a
27population of 700,000 or more people but less than 4,000,000
28people.

29(C) Twenty-five thousand dollars ($25,000) in a county with a
30population of 400,000 or more people but less than 700,000 people.

31(D) Ten thousand dollars ($10,000) in a county with a population
32of less than 400,000 people.

33(2) The total amount of grants awarded to a single community
34recidivism and crime reduction service provider by all counties
35pursuant to this section shall not exceed one hundred thousand
36dollars ($100,000) per Budget Act allocation.

37(f) The board of supervisors, in collaboration with the county’s
38 Community Corrections Partnership, shall establish minimum
39requirements, funding criteria, and procedures for the counties to
40award grants consistent with the criteria established in this section.

P14   1(g) A community recidivism and crime reduction service
2provider that receives a grant under this section shall report to the
3county board of supervisors or the Community Corrections
4Partnership on the number of individuals served and the types of
5services provided, consistent with paragraph (2) of subdivision
6(c). The board of supervisors or the Community Corrections
7Partnership shall report to the Board of State and Community
8Corrections any information received under this subdivision from
9grant recipients.

10(h) Of the total amount granted to a county, up to 5 percent may
11be withheld by the board of supervisors or the Community
12Corrections Partnership for the payment of administrative costs.

13(i) Any funds allocated to a county under this section shall be
14available for expenditure for a period of four years and any
15unexpended funds shall revert to the state General Fund at the end
16of the four-year period.

17begin insert

begin insertSEC. 8.end insert  

end insert

begin insertSection 75200.2 is added to the end insertbegin insertPublic Resources Codeend insertbegin insert,
18to read:end insert

begin insert
19

begin insert75200.2.end insert  

The council may designate a state agency or
20department to administer the program for the disbursement of
21grants and loans to support the planning and development of
22sustainable communities consistent with this part and Section
2339719 of the Health and Safety Code.

end insert
24begin insert

begin insertSEC. 9.end insert  

end insert

begin insertSection 75200.3 is added to the end insertbegin insertPublic Resources Codeend insertbegin insert,
25to read:end insert

begin insert
26

begin insert75200.3.end insert  

Moneys appropriated to the council pursuant to
27Section 39719 of the Health and Safety Code may be used by a
28state agency or department designated by the council pursuant to
29Section 75200.2 for that state agency’s or department’s support
30and local assistance costs.

end insert
31

begin deleteSEC. 8.end delete
32begin insertSEC. 10.end insert  

Section 17138.3 of the Revenue and Taxation Code
33 is amended to read:

34

17138.3.  

(a) For each taxable year beginning on or after July
351, 2015, gross income does not include an amount received as a
36loan forgiveness, grant, credit, rebate, voucher, or other financial
37incentive issued by the California Residential Mitigation Program
38or the California Earthquake Authority to assist a residential
39property owner or occupant with expenses paid, or obligations
40incurred, for earthquake loss mitigation.

P15   1(b) For the purposes of this section, “earthquake loss mitigation”
2means an activity that reduces seismic risks to a residential
3structure or its contents, or both. For purposes of structural seismic
4risk mitigation, a residential structure is either of the following:

5(1) A structure described in subdivision (a) of Section 10087
6of the Insurance Code.

7(2) A residential building of not fewer than 2, but not more than
810, dwelling units.

9

begin deleteSEC. 9.end delete
10begin insertSEC. 11.end insert  

Section 24308.7 of the Revenue and Taxation Code
11 is amended to read:

12

24308.7.  

(a) For each taxable year beginning on or after July
131, 2015, gross income does not include an amount received as a
14loan forgiveness, grant, credit, rebate, voucher, or other financial
15incentive issued by the California Residential Mitigation Program
16or the California Earthquake Authority to assist a residential
17property owner or occupant with expenses paid, or obligations
18incurred, for earthquake loss mitigation.

19(b) For the purposes of this section, “earthquake loss mitigation”
20means an activity that reduces seismic risks to a residential
21structure or its contents, or both. For purposes of structural seismic
22risk mitigation, a residential structure is either of the following:

23(1) A structure described in subdivision (a) of Section 10087
24of the Insurance Code.

25(2) A residential building of not fewer than 2, but not more than
2610, dwelling units.

27

begin deleteSEC. 10.end delete
28begin insertSEC. 12.end insert  

Item 4170-101-3098 is added to Section 2.00 of the
29Budget Act of 2015, and the amount of four hundred thousand
30dollars ($400,000) is hereby appropriated from the State
31Department of Public Health Licensing and Certification Program
32Fund to this item for Program 3900-Supportive Services, for the
33Long-Term Care Ombudsman Program.

34

begin deleteSEC. 11.end delete
35begin insertSEC. 13.end insert  

This act is a bill providing for appropriations related
36to the Budget Bill within the meaning of subdivision (e) of Section
3712 of Article IV of the California Constitution, has been identified
P16   1as related to the budget in the Budget Bill, and shall take effect
2immediately.



O

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