Assembly Bill No. 597–Committee on Ways and Means

March 17, 1999

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Referred to Committee on Ways and Means

 

SUMMARY—Revises provisions regarding school facilities. (BDR 34-1574)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: No.

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

 

AN ACT relating to governmental administration; providing in skeleton form for the revision of provisions governing the construction and financing of school facilities; creating the fund to stabilize the state distributive school account; creating a fund to assist school districts in financing capital improvements; revising provisions governing the review of plans for school facilities; increasing the tax on transient lodging and the real property transfer tax for the support of capital projects of school districts; revising provisions governing the issuance of bonds by the board of trustees of a school district without an election; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

1-1 Section 1. Chapter 387 of NRS is hereby amended by adding thereto

1-2 the provisions set forth as sections 1.5, 2 and 3 of this act.

1-3 Sec. 1.5. 1. The fund to stabilize the state distributive school

1-4 account is hereby created as a special revenue fund, to be administered

1-5 by the superintendent of public instruction.

1-6 2. All money in the state distributive school account that would

1-7 otherwise revert to the state general fund at the end of a fiscal biennium

1-8 must be deposited by the state treasurer in the fund to stabilize the state

1-9 distributive school account. Except as otherwise provided in subsection 4,

1-10 the money in the fund may only be used to cover a shortfall in the state

1-11 distributive school account.

1-12 3. The money in the fund to stabilize the state distributive school

1-13 account must be invested as the money in other state funds is invested.

1-14 The superintendent of public instruction may accept gifts and grants

1-15 from any source for deposit in the fund.

2-1 4. All interest and income earned on the money in the fund to

2-2 stabilize the state distributive school account must be deposited in the

2-3 fund to assist school districts in financing capital improvements created

2-4 pursuant to section 2 of this act.

2-5 5. Claims against the fund to stabilize the state distributive school

2-6 account must be paid as other claims against the state are paid.

2-7 Sec. 2. 1. The fund to assist school districts in financing capital

2-8 improvements is hereby created in the state treasury, to be administered

2-9 by the superintendent of public instruction. All money received and held

2-10 by the state treasurer for the purpose of the fund must be deposited in the

2-11 fund.

2-12 2. The superintendent of public instruction may accept gifts and

2-13 grants from any source for deposit in the fund.

2-14 3. The money in the fund must be invested as the money in other

2-15 state funds is invested. All interest and income earned on the money in

2-16 the fund must be credited to the fund.

2-17 4. Claims against the fund must be paid as other claims against the

2-18 state are paid.

2-19 Sec. 3. 1. The board of trustees of a school district may apply to

2-20 the department for a grant of money from the fund created pursuant to

2-21 section 2 of this act on a form provided by the department. The

2-22 application must be accompanied by proof that the school district has

2-23 committed matching money for the capital improvement project.

2-24 2. The department shall approve an application if the school district

2-25 has committed matching money for the project in an amount that the

2-26 department determines is sufficient pursuant to the criteria adopted by

2-27 the department pursuant to subsection 3. The department shall make

2-28 allocations from the fund based upon the need of each school district

2-29 whose application is approved.

2-30 3. The department shall adopt regulations that prescribe the:

2-31 (a) Annual deadline for submission of an application to the

2-32 department by a school district that desires to receive a grant of money

2-33 from the fund; and

2-34 (b) Criteria for determining the amount of matching money that must

2-35 be committed by a school district to be eligible for a grant of money from

2-36 the fund.

2-37 Sec. 4. NRS 393.110 is hereby amended to read as follows:

2-38 393.110 1. Except as otherwise provided in subsection 2:

2-39 (a) Unless standard plans, designs and specifications are to be used as

2-40 provided in NRS 385.125, before letting any contract or contracts for the

2-41 erection of any new school building, the board of trustees of a school

2-42 district shall submit plans, designs and specifications therefor to and obtain

3-1 the written approval of the plans, designs and specifications by the state

3-2 public works board. The state public works board is authorized to charge

3-3 and collect, and the board of trustees is authorized to pay, a reasonable fee

3-4 for the payment of any costs incurred by the state public works board in

3-5 securing the approval of qualified architects or engineers of the plans,

3-6 designs and specifications submitted by the board of trustees in compliance

3-7 with the provisions of this paragraph. The state public works board shall

3-8 review the plans, designs and specifications not later than 60 days after

3-9 receipt from the school district.

3-10 (b) Before letting any contract or contracts for any addition to or

3-11 alteration of an existing school building which involves structural systems,

3-12 or exiting, sanitary or fire protection facilities, the board of trustees of a

3-13 school district shall submit plans, designs and specifications therefor to and

3-14 obtain the written approval of the plans, designs and specifications by the

3-15 state public works board. The state public works board is authorized to

3-16 charge and collect, and the board of trustees is authorized to pay, a

3-17 reasonable fee for the payment of any costs incurred by the state public

3-18 works board in securing the approval of qualified architects or engineers of

3-19 the plans, designs and specifications submitted by the board of trustees in

3-20 compliance with the provisions of this paragraph. The state public works

3-21 board shall review the plans, designs and specifications not later than 60

3-22 days after receipt from the school district.

3-23 The state public works board shall ensure that all plans, designs and

3-24 specifications that it reviews pursuant to this section comply with all

3-25 applicable requirements of the Americans with Disabilities Act of 1990 , [(]

3-26 42 U.S.C. §§ 12101 to 12213, inclusive . [).]

3-27 2. Upon the request of a board of trustees of a school district, or its

3-28 designated representative, the state public works board may waive the

3-29 requirements specified in subsection 1 and delegate its powers and duties

3-30 thereunder to the district.

3-31 3. If the state public works board waives the requirements of

3-32 subsection 1 and delegates its powers and duties thereunder to a school

3-33 district, the school district shall submit a copy of its final plans, designs and

3-34 specifications for any project to which that section applies to the building

3-35 and planning department of the appropriate city or county before

3-36 completion of the project. The building and planning department shall

3-37 review the plans, designs and specifications not later than 60 days after

3-38 receipt from the school district.

3-39 4. No contract for any of the purposes specified in subsection 1 made

3-40 by a board of trustees of a school district contrary to the provisions of this

3-41 section is valid, nor [shall] may any public money be paid for erecting,

3-42 adding to or altering any school building in contravention of this section.

4-1 Sec. 5. NRS 244.3352 is hereby amended to read as follows:

4-2 244.3352 1. The board of county commissioners [:

4-3 (a) In a county whose population is 400,000 or more,] in each county

4-4 shall impose a tax at a rate of 2 percent [; and

4-5 (b) In a county whose population is less than 400,000, shall impose a tax

4-6 at the rate of 1 percent,] of the gross receipts from the rental of transient

4-7 lodging in that county upon all persons in the business of providing

4-8 lodging. This tax must be imposed by the board of county commissioners in

4-9 each county, regardless of the existence or nonexistence of any other

4-10 license fee or tax imposed on the revenues from the rental of transient

4-11 lodging. The ordinance imposing the tax must include a schedule for the

4-12 payment of the tax and the provisions of subsection 4.

4-13 2. The tax imposed pursuant to subsection 1 must be collected and

4-14 administered pursuant to NRS 244.335.

4-15 3. The tax imposed pursuant to subsection 1 may be collected from the

4-16 paying guests and may be shown as an addition to the charge for the rental

4-17 of transient lodging. The person providing the transient lodging is liable to

4-18 the county for the tax whether or not it is actually collected from the paying

4-19 guest.

4-20 4. If the tax imposed pursuant to subsection 1 is not paid within the

4-21 time set forth in the schedule for payment, the county shall charge and

4-22 collect in addition to the tax:

4-23 (a) A penalty of not more than 10 percent of the amount due, exclusive

4-24 of interest, or an administrative fee established by the board of county

4-25 commissioners, whichever is greater; and

4-26 (b) Interest on the amount due at the rate of not more than 1.5 percent

4-27 per month or fraction thereof from the date on which the tax became due

4-28 until the date of payment.

4-29 5. As used in this section, "gross receipts from the rental of transient

4-30 lodging" does not include the tax imposed and collected from paying guests

4-31 pursuant to this section or NRS 268.096.

4-32 Sec. 6. NRS 244.3354 is hereby amended to read as follows:

4-33 244.3354 The proceeds of the tax imposed pursuant to NRS 244.3352

4-34 and any applicable penalty or interest must be distributed as follows:

4-35 1. [In a county whose population is 400,000 or more:

4-36 (a)] Three-eighths of the first 1 percent of the proceeds must be paid to

4-37 the department of taxation for deposit with the state treasurer for credit to

4-38 the fund for the promotion of tourism.

4-39 [(b)] 2. The remaining proceeds must be transmitted to the county

4-40 treasurer for deposit in the county school district’s fund for capital projects

4-41 established pursuant to NRS 387.328, to be held and expended in the same

4-42 manner as other money deposited in that fund.

4-43 [2. In a county whose population is less than 400,000:

5-1 (a) Three-eighths must be paid to the department of taxation for deposit

5-2 with the state treasurer for credit to the fund for the promotion of tourism.

5-3 (b) Five-eighths must be deposited with the county fair and recreation

5-4 board created pursuant to NRS 244A.599 or, if no such board is created,

5-5 with the board of county commissioners, to be used to advertise the

5-6 resources of that county related to tourism, including available

5-7 accommodations, transportation, entertainment, natural resources and

5-8 climate, and to promote special events related thereto.]

5-9 Sec. 7. NRS 244.3359 is hereby amended to read as follows:

5-10 244.3359 1. A county whose population is 400,000 or more shall not

5-11 impose a new tax on the rental of transient lodging or increase the rate of an

5-12 existing tax on the rental of transient lodging after March 25, 1991, except

5-13 pursuant to NRS 244.3351 and 244.3352.

5-14 2. [A] Except as otherwise provided in subsection 3, a county whose

5-15 population is 100,000 or more but less than 400,000 shall not impose a new

5-16 tax on the rental of transient lodging or increase the rate of an existing tax

5-17 on the rental of transient lodging after March 25, 1991.

5-18 3. The legislature hereby declares that the limitation imposed by

5-19 subsection 2 will not be repealed or amended except to allow the

5-20 imposition of an increase in such a tax for [the] :

5-21 (a) The promotion of tourism [or for the] ;

5-22 (b) The support of a school district’s fund for capital projects

5-23 established pursuant to NRS 387.328; or

5-24 (c) The construction or operation of tourism facilities by a convention

5-25 and visitors authority.

5-26 Sec. 8. NRS 268.096 is hereby amended to read as follows:

5-27 268.096 1. The city council or other governing body of each

5-28 incorporated city [:

5-29 (a) In a county whose population is 400,000 or more,] shall impose a tax

5-30 at a rate of 2 percent [; and

5-31 (b) In a county whose population is less than 400,000, shall impose a tax

5-32 at the rate of 1 percent,] of the gross receipts from the rental of transient

5-33 lodging in that city upon all persons in the business of providing lodging.

5-34 This tax must be imposed by the city council or other governing body of

5-35 each incorporated city, regardless of the existence or nonexistence of any

5-36 other license fee or tax imposed on the revenues from the rental of transient

5-37 lodging. The ordinance imposing the tax must include a schedule for the

5-38 payment of the tax and the provisions of subsection 4.

5-39 2. The tax imposed pursuant to subsection 1 must be collected and

5-40 administered pursuant to NRS 268.095.

5-41 3. The tax imposed pursuant to subsection 1 may be collected from the

5-42 paying guests and may be shown as an addition to the charge for the rental

6-1 of transient lodging. The person providing the transient lodging is liable to

6-2 the city for the tax whether or not it is actually collected from the paying

6-3 guest.

6-4 4. If the tax imposed pursuant to subsection 1 is not paid within the

6-5 time set forth in the schedule for payment, the city shall charge and collect

6-6 in addition to the tax:

6-7 (a) A penalty of not more than 10 percent of the amount due, exclusive

6-8 of interest, or an administrative fee established by the governing body,

6-9 whichever is greater; and

6-10 (b) Interest on the amount due at the rate of not more than 1.5 percent

6-11 per month or fraction thereof from the date on which the tax became due

6-12 until the date of payment.

6-13 5. As used in this section, "gross receipts from the rental of transient

6-14 lodging" does not include the tax imposed or collected from paying guests

6-15 pursuant to this section or NRS 244.3352.

6-16 Sec. 9. NRS 268.0962 is hereby amended to read as follows:

6-17 268.0962 The proceeds of the tax imposed pursuant to NRS 268.096

6-18 and any applicable penalty or interest must be distributed as follows:

6-19 1. [In a county whose population is 400,000 or more:

6-20 (a)] Three-eighths of the first 1 percent of the proceeds must be paid to

6-21 the department of taxation for deposit with the state treasurer for credit to

6-22 the fund for the promotion of tourism.

6-23 [(b)] 2. The remaining proceeds must be transmitted to the county

6-24 treasurer for deposit in the county school district’s fund for capital projects

6-25 established pursuant to NRS 387.328, to be held and expended in the same

6-26 manner as other money deposited in that fund.

6-27 [2. In a county whose population is less than 400,000:

6-28 (a) Three-eighths must be paid to the department of taxation for deposit

6-29 with the state treasurer for credit to the fund for the promotion of tourism.

6-30 (b) Five-eighths must be deposited with the county fair and recreation

6-31 board created pursuant to NRS 244A.599 or, if no such board is created,

6-32 with the city council or other governing body of the incorporated city, to be

6-33 used to advertise the resources of that county or incorporated city related to

6-34 tourism, including available accommodations, transportation,

6-35 entertainment, natural resources and climate, and to promote special events

6-36 related thereto.]

6-37 Sec. 10. NRS 268.0968 is hereby amended to read as follows:

6-38 268.0968 1. Except as otherwise provided in NRS 268.096 and

6-39 268.801 to 268.808, inclusive, a city located in a county whose population

6-40 is 400,000 or more shall not impose a new tax on the rental of transient

6-41 lodging or increase the rate of an existing tax on the rental of transient

6-42 lodging after March 25, 1991.

7-1 2. Except as otherwise provided in subsection 3 and NRS 268.096 and

7-2 268.7845, a city located in a county whose population is 100,000 or more

7-3 but less than 400,000 shall not impose a new tax on the rental of transient

7-4 lodging or increase the rate of an existing tax on the rental of transient

7-5 lodging after March 25, 1991.

7-6 3. The legislature hereby declares that the limitation imposed by

7-7 subsection 2 will not be repealed or amended except to allow the

7-8 imposition of an increase in such a tax for:

7-9 (a) The promotion of tourism;

7-10 (b) The support of a school district’s fund for capital projects

7-11 established pursuant to NRS 387.328;

7-12 (c) The construction or operation of tourism facilities by a convention

7-13 and visitors authority; or

7-14 [(c)] (d) The acquisition, establishment, construction or expansion of

7-15 one or more railroad grade separation projects.

7-16 Sec. 11. Chapter 278 of NRS is hereby amended by adding thereto a

7-17 new section to read as follows:

7-18 A governing body shall not require a school district to make an

7-19 improvement or pay the costs associated with an improvement if the

7-20 improvement is located more than 100 feet from the edge of the property

7-21 owned by the school district.

7-22 Sec. 12. NRS 350.020 is hereby amended to read as follows:

7-23 350.020 1. Except as otherwise provided by subsections 3 and 4, if a

7-24 municipality proposes to issue or incur general obligations, the proposal

7-25 must be submitted to the electors of the municipality at a special election

7-26 called for that purpose or the next general municipal election or general

7-27 state election.

7-28 2. Such a special election may be held:

7-29 (a) At any time if the governing body of the municipality determines, by

7-30 a unanimous vote, that an emergency exists; or

7-31 (b) On the first Tuesday after the first Monday in June of an odd-

7-32 numbered year.

7-33 The determination made by the governing body is conclusive unless it is

7-34 shown that the governing body acted with fraud or a gross abuse of

7-35 discretion. An action to challenge the determination made by the governing

7-36 body must be commenced within 15 days after the governing body’s

7-37 determination is final. As used in this subsection, "emergency" means any

7-38 occurrence or combination of occurrences which requires immediate action

7-39 by the governing body of the municipality to prevent or mitigate a

7-40 substantial financial loss to the municipality or to enable the governing

7-41 body to provide an essential service to the residents of the municipality.

7-42 3. If payment of a general obligation of the municipality is additionally

7-43 secured by a pledge of gross or net revenue of a project to be financed by

8-1 its issue, and the governing body determines, by an affirmative vote of two-

8-2 thirds of the members elected to the governing body, that the pledged

8-3 revenue will at least equal the amount required in each year for the payment

8-4 of interest and principal, without regard to any option reserved by the

8-5 municipality for early redemption, the municipality may, after a public

8-6 hearing, incur this general obligation without an election unless, within 60

8-7 days after publication of a resolution of intent to issue the bonds, a petition

8-8 is presented to the governing body signed by not less than 5 percent of the

8-9 registered voters of the municipality who together with any corporate

8-10 petitioners own not less than 2 percent in assessed value of the taxable

8-11 property of the municipality. Any member elected to the governing body

8-12 whose authority to vote is limited by charter, statute or otherwise may vote

8-13 on the determination required to be made by the governing body pursuant

8-14 to this subsection. The determination by the governing body becomes

8-15 conclusive on the last day for filing the petition. For the purpose of this

8-16 subsection, the number of registered voters must be determined as of the

8-17 close of registration for the last preceding general election and assessed

8-18 values must be determined from the next preceding final assessment roll.

8-19 An authorized corporate officer may sign such a petition whether or not he

8-20 is a registered voter. The resolution of intent need not be published in full,

8-21 but the publication must include the amount of the obligation and the

8-22 purpose for which it is to be incurred. Notice of the public hearing must be

8-23 published at least 10 days before the day of the hearing. The publications

8-24 must be made once in a newspaper of general circulation in the

8-25 municipality. When published, the notice of the public hearing must be at

8-26 least as large as 5 inches high by 4 inches wide.

8-27 4. [Until June 30, 2008, the] The board of trustees of a school district

8-28 may issue general obligation bonds which are not expected to result in an

8-29 increase in the existing property tax levy for the payment of bonds of the

8-30 school district without holding an election for each issuance of the bonds if

8-31 the qualified electors approve a question submitted by the board of trustees

8-32 that authorizes issuance of bonds [in such a manner.] for a period of 10

8-33 years after the date of approval by the voters. If the question is approved,

8-34 the board of trustees of the school district may issue the bonds [,] for a

8-35 period of 10 years after the date of approval by the voters, after obtaining

8-36 the approval of the debt management commission in the county in which

8-37 the school district is located and, in a county whose population is 100,000

8-38 or more, the approval of the oversight panel for school facilities established

8-39 pursuant to NRS 393.092 in that county, if the board of trustees of the

8-40 school district finds that the existing tax for debt service will at least equal

8-41 the amount required to pay the principal and interest on the outstanding

8-42 general obligations of the school district and the general obligations

8-43 proposed to be issued. The finding made by the board of trustees is

9-1 conclusive in the absence of fraud or gross abuse of discretion. As used in

9-2 this subsection, "general obligations" does not include medium-term

9-3 obligations issued pursuant to NRS 350.085 to 350.095, inclusive.

9-4 5. At the time of issuance of bonds authorized pursuant to subsection 4,

9-5 the board of trustees shall establish a reserve account in its debt service

9-6 fund for payment of the outstanding bonds of the school district. The

9-7 reserve account must be established and maintained in an amount at least

9-8 equal to the lesser of the amount of principal and interest payments due on

9-9 all of the outstanding bonds of the school district in the next fiscal year or

9-10 10 percent of the outstanding principal amount of the outstanding bonds of

9-11 the school district. If the amount in the reserve account falls below the

9-12 amount required by this subsection:

9-13 (a) The board of trustees shall not issue additional bonds pursuant to

9-14 subsection 4 until the reserve account is restored to the level required by

9-15 this subsection; and

9-16 (b) The board of trustees shall apply all of the taxes levied by the school

9-17 district for payment of bonds of the school district that are not needed for

9-18 payment of the principal and interest on bonds of the school district in the

9-19 current fiscal year to restore the reserve account to the level required

9-20 pursuant to this subsection.

9-21 6. Any revenue from property taxes in addition to the amount

9-22 required to be deposited in the reserve account pursuant to subsection 5

9-23 may be deposited in the county school district’s fund for capital projects

9-24 established pursuant to NRS 387.328, to be held and expended in the

9-25 same manner as other money deposited in that fund.

9-26 7. A municipality may issue special or medium-term obligations

9-27 without an election.

9-28 Sec. 13. NRS 375.020 is hereby amended to read as follows:

9-29 375.020 1. A tax, at the rate of [:

9-30 (a) In a county whose population is 400,000 or more, $1.25; and

9-31 (b) In a county whose population is less than 400,000, 65 cents,] $1.25

9-32 for each $500 of value or fraction thereof, is hereby imposed on each deed

9-33 by which any lands, tenements or other realty is granted, assigned,

9-34 transferred or otherwise conveyed to, or vested in, another person, if the

9-35 consideration or value of the interest or property conveyed, exclusive of the

9-36 value of any lien or encumbrance remaining on the interest or property at

9-37 the time of sale, exceeds $100.

9-38 2. The amount of tax must be computed on the basis of the value of the

9-39 transferred real property as declared pursuant to NRS 375.060.

9-40 Sec. 14. NRS 375.070 is hereby amended to read as follows:

9-41 375.070 1. The county recorder shall transmit the proceeds of the

9-42 real property transfer tax at the end of each quarter in the following

9-43 manner:

10-1 (a) An amount equal to that portion of the proceeds which is equivalent

10-2 to 10 cents for each $500 of value or fraction thereof must be transmitted to

10-3 the state treasurer who shall deposit that amount in the account for low-

10-4 income housing created pursuant to NRS 319.500.

10-5 (b) [In a county whose population is more than 400,000, an] An amount

10-6 equal to that portion of the proceeds which is equivalent to 60 cents for

10-7 each $500 of value or fraction thereof must be transmitted to the county

10-8 treasurer for deposit in the county school district’s fund for capital projects

10-9 established pursuant to NRS 387.328, to be held and expended in the same

10-10 manner as other money deposited in that fund.

10-11 (c) The remaining proceeds must be transmitted to the state treasurer for

10-12 deposit in the local government tax distribution account created by NRS

10-13 360.660 for credit to the respective accounts of Carson City and each

10-14 county.

10-15 2. In addition to any other authorized use of the proceeds it receives

10-16 pursuant to subsection 1, a county or city may use the proceeds to pay

10-17 expenses related to or incurred for the development of affordable housing

10-18 for families whose income does not exceed 80 percent of the median

10-19 income for families residing in the same county, as that percentage is

10-20 defined by the United States Department of Housing and Urban

10-21 Development. A county or city that uses the proceeds in that manner must

10-22 give priority to the development of affordable housing for persons who are

10-23 disabled or elderly.

10-24 3. The expenses authorized by subsection 2 include, but are not limited

10-25 to:

10-26 (a) The costs to acquire land and developmental rights;

10-27 (b) Related predevelopment expenses;

10-28 (c) The costs to develop the land, including the payment of related

10-29 rebates;

10-30 (d) Contributions toward down payments made for the purchase of

10-31 affordable housing; and

10-32 (e) The creation of related trust funds.

10-33 Sec. 15. Section 31 of chapter 516, Statutes of Nevada 1997, at page

10-34 2470, is hereby amended to read as follows:

10-35 Sec. 31. 1. This section and sections 1 to 7, inclusive, 9, 10,

10-36 22 to 25, inclusive, and 27 to 30, inclusive, of this act, become

10-37 effective upon passage and approval. Sections 22 to 25, inclusive,

10-38 of this act, expire by limitation on June 30, 1999.

10-39 2. Sections 11, 11.5, 13, 14, 14.5, 16, 20 and 21 of this act

10-40 become effective on August 1, 1997.

10-41 3. Sections 8, 12 and 15 of this act become effective on July 1,

10-42 1999.

11-1 4. Sections 17, 18 and 19 of this act become effective on

11-2 October 1, 1997. [The amendatory provisions of sections 17, 18 and

11-3 19 of this act expire by limitation on June 30, 2008.]

11-4 5. Section 26 of this act becomes effective on July 1, 2008.

11-5 Sec. 16. This act becomes effective on July 1, 1999.

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