HomeMy WebLinkAbout1333ORDINANCE NO. 1333 (1998 SERIES)
AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO
AMENDING THE ELECTION REGULATIONS OF
MUNICIPAL CODE CHAPTER 2.40
BE IT ORDAINED by the City Council of the City of San Luis Obispo as
follows:
SECTION 1. Chapter 2.40, Election Campaign Regulations, is revised as per attached
Exhibit A.
SECTION 2. A summary of this ordinance, approved by the City Attorney,
together with the ayes and noes, shall be published at least five (5) days prior to its final
passage in the Telegram- Tribune, a newspaper published and circulated in this city, and
the same shall go into effect at the expiration of thirty (30) days after its said final
passage. A copy of the full text of this ordinance shall be one file in the Office of the
City clerk and after the date following introduction and passage to print, and shall be
available to any interested member of the public.
INTRODUCED AND PASSED TO PRINT by the Council of the City of San
Luis Obispo at a meeting held on the 3`d day of March, 1998, on motion of- council Member Romero
seconded by Council Member §fld file following roll call vote:
AYES: Council Members Romero, Roalman, Smith, Williams, Mayor Settle
NOES: None
ABSENT: None
Mayor Allen K. Settle
ATTEST:
APPROVED • • C U
o g-
City At omey
01333
Chapter 2.40
ELECTION CAMPAIGN REGULATIONS*
*Ch. 2.40 formerly consisted of § §2.40.010 - 2.40.130 and was derived from prior code, § §2800 - 2812, as
amended by Ord. 1067 § 1, 1986. The chapter was completely revised to read as set out in § §2.40.010 - 2.40.160 by
Ord. 1191 §1, 1991, as updated by Ord. 1254 §1, 1994.
Sections:
2.40.010
Title.
2.40.020
Purpose and intent.
2.40.030
Definitions.
2.40.040
Campaign treasurer - Appointment required - Compliance
with provisions required.
2.40.050
Contributions.
2.40.055
Independent expenditures.
2.40.060
Election campaign accounts.
2.40.070
Campaign statements.
2.40.080
Responsibilities of City Clerk.
2.40.090
Criminal misdemeanor actions.
2.40.100
Civil actions.
2.40.110
Injunctive relief.
2.40.120
Cost of litigation.
2.40.130
Disqualification.
2.40.140
Construction of provisions.
2.40.150
Council study committee.
2.40.160
Expiration of provisions.
2.40.020
Purpose and intent.
A. It is the purpose and intent of this chapter:
1. To promote integrity, honesty and fairness in municipal election campaigns;
2. To ensure a level of discussion of public issues adequate for a viable campaign by providing
voters with the information necessary to make an assessment of each candidate or measure
before voting;
3. To require public disclosure of campaign contributions and expenditures, including but not
limited to those made in support of or in opposition to candidates or measures in municipal
elections;
4. To place realistic and enforceable limits on the amounts persons may contribute in municipal
election campaigns;
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5. To ensure that funds contributed to a campaign committee are used solely for campaign
purposes; and
6. To provide full and fair enforcement of all the provisions of this chapter.
B. By enacting this chapter, the council does not intend to deprive or restrict any citizen of the
exercise of rights guaranteed under the United States Constitution and the California
Constitution. (Ord. 1254 § 1 Ex. A (part), 1994: Ord. 1191 § 1 (part), 1991)
2.40.030 Definitions.
The following words or phrases shall have the meanings as indicated in this section when used in
this chapter:
A. "Campaign statement" means a report, made on a form prescribed and supplied by the City
Clerk, which provides the information required by this chapter of candidates and committees.
Each campaign disclosure statement shall reflect all contributions received and expenditures
made through the closing date specified in Section 2.40.070.
B. "Campaign treasurer" means the duly appointed representative responsible for financial
accounting and reporting as required by this chapter. There shall be only one campaign
treasurer at a time for each campaign committee.
C. "Candidate" means any individual listed on the ballot for election to or recall from any city
office, or who has otherwise taken action to seek such election to city office.
D. "Committee" means any person or combination of persons which directly or indirectly
receives contributions or makes expenditures or contributions for the purpose of expressly
advocating the election or defeat of a clearly identified candidate(s) or for supporting or
opposing the passage of any measure(s). Committees shall be in one of two categories:
1. "Recipient committee" — One which receives contributions totaling one hundred dollars or
more in a calendar year; or
2. "Independent expenditure committee" — one which makes independent expenditures totaling
one hundred dollars or more in a calendar year but not to or at the behest of a candidate or
committee.
E. "Contribution ":
1. The term "contribution" includes the following:
a. A payment, loan, forgiveness of a loan, payment of a loan by a third party, or an
enforceable promise to make a payment except to the extent that full and adequate
consideration is received, unless it is clear from the surrounding circumstances that it is
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not made for campaign purposes. An expenditure made at the behest of a candidate or
committee is a contribution to the candidate or committee, unless full and adequate
consideration is received for making the expenditure.
b. Money or property contributed by the candidate, as well as discounts or rebates granted
by television and radio stations and newspapers which are not extended on an equal
basis to all candidates for the same office.
c. The purchase of ticket(s) for events such as dinners, luncheons, rallies and similar f ind-
raising events. Contribution reporting requirements shall apply when the total
accumulative ticket purchases by any one person exceed the limitations set forth in
subsection C3 of Section 2.40.050.
d. Nonmonetary contributions such as art objects, furniture, and similar items of value, or
anything of value transferred from one committee to another.
e. The payment of compensation by any person for the personal services or expenses of any
other person, if such services are rendered, or expenses incurred on behalf of a candidate
or committee without payment of full and adequate consideration by the candidate or
committee.
f. Funds or professional services donated to assist in election - related, litigation.
2. The term "contribution" does not include:
a. Amounts received pursuant to an enforceable promise to the extent such amounts have
been previously reported as a contribution. However, the fact that such amounts have
been received shall be indicated in the appropriate campaign statement.
b. A payment made by an occupant of a home or office for costs related to any meeting or
fund- raising event held in the occupant's home or office if the costs for the meeting or
fund- raising events are two hundred fifty dollars or less.
Notwithstanding the definition of "contribution" as set out in this subsection, the term does
not include volunteer personal services or payments made by any individual for personal
travel expenses, if such payments are made voluntarily without any understanding or
agreement which shall be, directly or indirectly, repaid to the person.
F. "Election" means any general, special or recall municipal election of the City of San Luis
Obispo.
G. "Expenditure" means a payment, forgiveness of a loan, payment of a loan by a third party, or
an enforceable promise to make payment, unless it is clear from the surrounding circumstances
that it is not made for political purposes. When expenses are incurred to support election-
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related litigation, they are considered expenditures. An expenditure is made on the date the
payment is made or on the date consideration, if any, is received, whichever is earlier.
H. "Immediate family" means a candidate's or elected officeholder's spouse and dependent
children.
I. "Independent expenditure" means an expenditure made by any person in connection with a
communication which expressly advocates the election or defeat of a clearly identified
candidate(s) or the qualification, passage, or defeat of a clearly identified measure(s) or taken
as a whole and in context, unambiguously urges a particular result in an election but which is
not made to or at the behest of the affected candidate or committee. (Government Code Section
82031.)
J. "Measure" means any charter amendment or other proposition which is submitted to a popular
vote at any municipal election by the City Council, or which is submitted or is intended to be
submitted to a popular vote at a municipal election by initiative, referendum or recall procedure
whether or not it qualifies for the ballot.
K. "Person" means an individual, proprietorship, firm, partnership, joint venture, labor union,
syndicate, business trust, company, corporation, association, committee (including both
controlled and independent committees), and any other organization or group of persons acting
in concert. (Ord. 1254 § 1 Ex. A (part), 1994: Ord. 1191 § 1 (part), 1991)
2.40.040 Campaign treasurer - Appointment required - Compliance with provisions required.
A. Each candidate and/or each committee shall appoint a campaign treasurer. A candidate may
serve as the campaign treasurer for his/her campaign or for his/her committee.
B. Each campaign treasurer shall be responsible for complying with the requirements of Title 9
of the California Government Code in addition to complying with the provisions of this
chapter. (Ord. 1254 § 1 Ex. A (part), 1994: Ord. 1191 § 1 (part), 1991)
2.40.050 Contributions.
A. Transmittal to Campaign Treasurer. All persons who receive contributions on behalf of a
candidate or committee shall transmit the contributions in full to the campaign treasurer
promptly, together with a list showing the name and address of each contributor and the
amount of the contribution, subject to the exceptions provided in this section.
B. Refusal to Accept. A candidate or a campaign treasurer shall have full authority to refuse and
to return any contribution offered, provided the contribution is returned within fourteen days
of receipt.
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C. Prohibitions.
No person other than a candidate or the candidate's immediate family members shall make,
and no person or campaign treasurer shall solicit or accept, any contribution which will
cause the total amount contributed by such person with respect to a single election in
support of, or in opposition to, such candidate, including contributions to all committees
supporting or opposing such candidate, to exceed one hundred dollars.
2. The above contribution limitations do not apply to committees formed primarily to support
or oppose the qualification or passage of a ballot measure. Ballot measure committees may
not make contributions to candidates or committees which make contributions to
candidates.
3. No person shall make a contribution for any other person under an assumed name or under
the name of any other person.
4. No candidate nor any committee shall retain any amount of twenty -five dollars or more
from one person or source without obtaining the name and address of that contributor. Any
anonymous contribution of twenty -five dollars or more shall be forwarded to the City Clerk
and deposited in the city's treasury.
5. For the purposes of this section, a contribution shall be deemed received at the time of
actual receipt by the campaign treasurer.
6. No person, candidate or candidate's committee shall make or accept any contribution of
twenty -five dollars or more after five p.m., Monday, eight days preceding the day of
election, except that candidate and /or a candidate's immediate family shall be permitted to
make additional contributions to the candidate or to the candidate's committee.
7. Any contribution of one thousand dollars or more from a single source which is made to or
received by a committee primarily formed to support or oppose a ballot measure during the
sixteen days immediately preceding the election at which the measure is being voted upon
must be reported to the City Clerk within twenty -four hours of the time it is received or
contributed. Any contribution of one hundred dollars or more from a single source which
is made to or received by a committee primarily formed to support or oppose a ballot
measure during the eight days preceding the election at which the measure is being voted
upon must be reported to the City Clerk within twenty -four hours. Late contribution reports
must be filed by telegram, mailgram, guaranteed overnight delivery service, or personal
delivery (not by regular mail).
8. No person shall deduct or withhold any amount or percentage from any contribution. Any
compensation provided to any person for solicitation, collection or other service shall be
treated as an election expenditure item.
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D. Aggregation of Contributions.
1. For the purposes of this section, contributions received from a husband and wife shall be
treated as if received one -half from each unless otherwise designated by the contributor.
2. Contributions made by two or more entities must be combined if the same person, or a
majority of the same person, directs or controls the contributions.
Contributions made by entities in a parent - subsidiary relationship and business entities with
the same controlling owner (more than fifty percent) must be combined unless the entities
act completely independently in their decisions to make contributions. A parent - subsidiary
relationship exists when one entity owns more than fifty percent of another business entity.
(Ord. 1254 § 1 Ex. A (part), 1994: Ord. 1191 § 1 (part), 1991)
2.40.055 Independent expenditures.
A. Contribution Limitations. Any person who makes independent expenditures supporting or
opposing a candidate(s) shall not accept any contribution in excess of the amounts set forth in
Section 2.40.050.C.
B. Reproduction of Materials. Any person who reproduces, broadcasts or distributes any material
which is drafted, printed, prepared or previously broadcast by a candidate(s) or a committee
controlled by such candidate shall report such an expenditure as a nonmonetary contribution
to such candidate or committee.
C. Identification of Expenditures. Any person who makes independent expenditures for or
against a candidate shall indicate clearly on any material published, displayed, distributed, or
broadcast, the name of the person and the fact that the material was paid for by that person.
Every person shall comply with all of the requirements imposed on candidates and committees
by this chapter, including both contributions to, and expenditures. by, such person. (Ord. 1254
§ 1 Ex. A (part), 1994)
2.40.060 Election campaign accounts.
A. Candidate Intention Statement and the Campaign Bank Account.
Candidate Intention Statement. Any individual who intends to be a candidate for a city
elective office must file a statement of intention to run for office prior to soliciting or
receiving any contribution or loan. Form 501 (Candidate Intention) is used to comply with
this requirement, and is filed with the Fair Political Practices Commission. A copy shall be
filed with the City Clerk.
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2. Candidate Campaign Bank Account. In addition to filing the candidate intention statement,
an individual who plans to run for a city elective office must set up a campaign bank
account at a financial institution located in San Luis Obispo. Within ten days of opening the
account, the candidate must file Form 502 (Campaign Bank Account) with the fair political
practices commission. A copy shall be filed with the City Clerk.
3. City ballot measure committees must set up a campaign bank account at a financial
institution within the City of San Luis Obispo.
B. Statement of Organization. For each campaign bank account into which contributions totaling
one thousand dollars are received (including the candidate's personal funds) or within ten days
of receiving contributions of one thousand dollars or more, a recipient committee statement of
organization (Form 410) must be filed with the state. A copy shall be filed with the City
Clerk. If a recipient committee qualifies during the sixteen days prior to an election, it must
file, by telegram, facsimile or personal delivery within twenty -four hours of qualifying as a
committee, the information required to be reported in the statement of organization. This form
shall be filed with the City Clerk.
C. Deposit of Contributions. All campaign contributions accepted by a campaign treasurer shall
be deposited into the election campaign account by the campaign treasurer or his/her
authorized agent.
D. Expenditures. Campaign expenditures shall be made only by checks drawn against the
election campaign account by the campaign treasurer or authorized agent, except that a
candidate or committee may establish one petty cash account.
1. No more than one hundred dollars may be in the petty cash fund at any one time, and no
expenditures totaling twenty -five dollars or more may be made from a petty cash account.
The petty cash account may be used only for expenses associated with the candidate's
election to the specific office for which the petty cash account was established.
2. Petty cash or funds in the election campaign account shall not be considered for any
purpose to be personal funds of a candidate, campaign treasurer or any other person.
E. Access to Records by City Clerk. The City Clerk shall have full access at all reasonable hours
to the bank's records concerning all election campaign accounts.
F. Disbursement of Unexpended Campaign Funds. If, following the election, the final campaign
statement for any committee discloses an unexpended campaign surplus, the campaign
treasurer shall disburse the whole of the surplus to the city and /or a nonprofit charitable
(qualified for federal income tax exemption) organization of the campaign treasurer's choice.
This shall be done no later than the state's third campaign disclosure statement deadline.
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G. Closing of Account. Following the election and no later than the state's third campaign
disclosure statement deadline, the campaign treasurer shall close the election campaign
account and file a second city campaign statement (Form 101 or 102) with the City Clerk.
State Form 415 or 416 is required if the campaign account totals one thousand dollars or more
and is filed with the Secretary of State (a copy shall be filed with the City Clerk) verifying the
closure and listing of donees of all disbursements authorized by subsection E of this section,
and the dollar amounts given to each donee.
Provided however, should litigation arise as a result of the conduct of the campaign, either
during the campaign period or after the conclusion of the campaign, the account may be kept
open until such litigation is finally concluded. Within forty -five days of such conclusion, a
final campaign statement shall be filed with the City Clerk.
H. Retention of Records. The campaign treasurer shall retain all campaign statements and all
other records required by this chapter for a period of four years after the election. (Ord. 1254 §
1 Ex. A (part), 1994: Ord. 1191 § 1 (part), 1991)
2.40.070 Campaign statements.
A. Required Filing Schedule. Every campaign treasurer, upon receiving or expending one
hundred dollars or more, shall file with the City Clerk campaign disclosure statements
according to the following schedule:
1. State campaign disclosure statements shall be filed as required by the provisions of Title 9
of the California Government Code.
2. A city campaign statement (Form 101 or 102) shall be filed no later than 12:00 noon,
Tuesday, one week before the election. The closing date of this statement shall be five p.m.,
Monday, eight days before the election.
B. Contents.
1. Each state campaign statement filed shall contain the information required under the
provisions of Title 9 of the California Government Code.
2. The city campaign statement (Form 101 or 102) shall consist of:
a. The name, address and amount of the contribution for each person who contributes
twenty -five dollars or more.
b. The total amount received from all persons who each contribute less than twenty -five
dollars.
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c. The name and address of each person expending twenty -five dollars or more if
qualifying as an independent expenditure committee.
d. The total expenditures made by each committee.
C. Filing. Each document required to be filed in this chapter shall be filed with the City Clerk
during business hours, and elsewhere as may be required by Title 9 of the California
Government Code.
D. Filing Fees. Filing fees, if any, shall be established by council resolution.
E. Publication. On the Saturday preceding the election, the City Clerk shall publish in a
newspaper of general circulation within the city the following information for each
committee:
1. Total receipts;
2. Total expenditures;
3. Contributions; the name of each person contributing twenty -five dollars or more with the
amount contributed;
4. The name of each person(s) expending twenty -five dollars or more if filing as an
independent expenditure committee;
5. A statement, if necessary, that a candidate and /or committee has failed to comply by the
required deadline with the campaign statement requirements pursuant to [this] Section
2.40.070. (Ord. 1254 § 1 Ex. A (part), 1994: Ord. 1191 § 1 (part), 1991)
2.40.080 Responsibilities of City Clerk.
A. Duties. In addition to any other duties required of the City Clerk under this chapter, the City
Clerk shall:
1. Prescribe and furnish, without charge, appropriate forms for all campaign statements,
documents and reports required to be filed by this chapter;
2. Determine whether required statements and declarations have been filed and, if so, whether
they conform on their face with the requirements of this chapter;
3. Promptly notify all persons who have failed to file a statement in the form and at the time
required by this chapter;
4. Report, in writing, apparent violations of this chapter to the City Attorney;
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5. Place a timely advertisement(s) in a newspaper of general circulation advising the public
that a person(s) supporting or opposing a candidate(s) or a measure(s) through newspaper
or other advertisements may be subject to city reporting requirements;
6. Compile and maintain a current list of all filed statements pertaining to each reporting
committee;
7. Provide an appropriate form, and prescribe a date for submission, which allows any
candidate to file a four hundred word ballot statement of qualifications and/or description
of his/her stand on issues.
Such statement shall be on a form provided by the City Clerk in accordance with any other
provision as set forth by Elections Code Section 13306 et seq.
B. Additional Help or Services. The City Clerk is authorized and directed to hire part-time help,
contract for services, purchase supplies as the City Clerk deems necessary to carry out the
additional duties imposed on the City Clerk's office by this chapter. Within ninety days after
each election, the City Clerk shall provide the council with a detailed report of the total direct
and indirect labor, materials and other costs incurred by the City Clerk's office in performing
such additional duties. (Ord. 1254 § 1 Ex. A (part), 1994: Ord. 1191 § 1 (part), 1991)
2.40.090 Criminal misdemeanor actions.
Any person who violates any provision of this chapter is guilty of a misdemeanor. Any person
who causes any other person to violate any provision of this chapter, or who aids and abets any
other person in the violation of any provision of this chapter, shall be liable under the provisions
of this section. (Ord. 1254 § 1 Ex. A (part), 1994: Ord. 1191 § 1 (part), 1991)
2.40.100 Civil actions.
A. Any person who intentionally or negligently violates any provision of this chapter shall be
liable in a civil action brought by the City Attorney or by a person residing within the city for
an amount not more than three times the amount of the unlawful contribution or expenditure.
B. If any person files an original city campaign disclosure statement after any deadline imposed
by this chapter, he or she shall pay, in addition to any other penalties provided for under this
chapter, the sum of one hundred dollars per day after the deadline until the statement or report
is filed. Liability may not be enforced if on an impartial basis the filing officer determines that
the late filing was not willful and that enforcement of the liability will not further the purposes
of this act [chapter]. Liability shall not be waived if the first city pre - election campaign
statement is not filed within five days, and the second and final city campaign statement is not
10
filed within ten days of the deadline after filing officer has sent specific written notice of the
filing requirement.
C. If two or more persons are responsible for any violation, they shall be jointly and severally
liable.
D. Any person, before filing a civil action pursuant to this section, shall first file with the City
Attorney a written request for the City Attorney to commence the action. The request shall
contain a statement of the grounds for believing a cause of action exists. The City Attorney
shall respond within ten days after receipt of the request indicating whether he or she intends
to file a civil action. If the City Attorney indicates in the affirmative and files a suit within
thirty days thereafter, no other action may be brought unless the action by the City Attorney is
dismissed without prejudice.
E. In determining the amount of liability, the court may take into account the seriousness of the
violation and the degree of culpability of the defendant. If a judgment is entered against the
defendant or defendants in an action, the plaintiff shall receive fifty percent of the amount
recovered. The remaining fifty percent shall be deposited into the city treasury. In an action
brought by the City Attorney, the entire amount shall be paid to the city treasury.
F. No civil action alleging a violation of any provision of this chapter shall be filed more than
four years after the date the violation occurred. (Ord. 1254 § 1 Ex. A (part), 1994: Ord. 1191 §
1 (part), 1991)
2.40.110 Injunctive relief.
Any person residing in the city, including the City Attorney, may sue for injunctive relief to
enjoin violations or to compel compliance with the provisions of this chapter. (Ord. 1254 § 1 Ex.
A (part), 1994: Ord. 1191 § 1 (part), 1991)
2.40.120 Cost of litigation.
The court may award to a plaintiff or defendant who prevails in any action authorized by this
chapter, his or her costs of litigation, including reasonable attorneys' fees; provided however, no
costs of litigation or attorneys' fees shall be awarded against the city. (Ord. 1254 § 1 Ex. A
(part), 1994: Ord. 1191 § 1 (part), 1991)
2.40.130 Disqualification.
In addition to any other penalties prescribed by law, if an official receives a contribution in
violation of this Chapter 2.40, the official shall not be permitted to make, participate in making
or in any way attempt to use his or her official position to influence a governmental decision in
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which the contributor has a financial interest. The provisions of Government Code Section 87100
et seq. and the regulations of the Fair Political Practices Commission shall apply to
interpretations of this section. (Ord. 1254 § 1 Ex. A (part), 1994: Ord. 1191 § 1 (part), 1991)
2.40.140 Construction of provisions.
A. This chapter shall be in addition to all other city and state laws applicable to municipal
elections. Unless the contrary is stated or clearly appears from the context, the definitions and
terms set forth in Title 9 of the California Government Code shall govern the interpretations of
terms used in this chapter. This chapter shall be construed liberally in order to effectuate its
purposes.
B. If any provision of this chapter, or the application thereof to any person or circumstance, is
held invalid, the validity of the remainder of the chapter and the applicability of such
provision to other persons and circumstances shall not be affected thereby. (Ord. 1254 § 1 Ex.
A (part), 1994: Ord. 1191 § 1 (part), 1991)
2.40.150 Council study committee.
Appointment. At least nine months prior to the expiration of this chapter, the council shall
appoint a committee of at least five citizens to study the efficacy of this chapter. The committee
shall complete its deliberations and report its findings to the City Council on or before January
31, 2002. (Ord. 1254 § 1 Ex. A (part), 1994: Ord. 1191 § 1 (part), 1991)
2.40.160 Expiration of provisions.
Unless readopted, this chapter shall expire on June 30, 2002. (Ord. 1254 § 1 Ex. A (part), 1994:
Ord. 1191 § 1 (part), 1991)
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Ordinance No. 1333 (1998 Series)
FINALLY PASSED this 17' day of March, 1998, on motion of Council
Member Romero, seconded by Council Member Williams, and on the following roll call
vote:
AYES: Council Members Romero, Williams, Roalman, Smith and Mayor Settle
NOES: None
ABSENT: None
Mayor Allen K. �ettle
ATTEST:
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