I

103D CONGRESS

1ST SESSION H. R. 81

To amend the Internal Revenue Code of 1986 to allow individuals to direct

that part or all of their income tax refunds be contributed to a trust

fund established for the relief of domestic and international hunger,

and to establish a commission to oversee the distribution of such contributions.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 5, 1993

Mr. CARR (for himself, Mr. HALL of Ohio, Mr. VENTO, and Mr. EMERSON)

introduced the following bill; which was referred to the Committee on

Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to allow individuals to direct that part or all of their income tax

refunds be contributed to a trust fund established for

the relief of domestic and international hunger, and to

establish a commission to oversee the distribution of

such contributions.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Hunger Emergency

5 Assistance and Relief Trust Act of 1993’’.
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1 SEC. 2. ELECTION OF TAXPAYERS TO DIRECT INCOME TAX

2 REFUNDS TO HUNGER EMERGENCY ASSIST3 ANCE AND RELIEF TRUST.

4 (a) IN GENERAL.—Section 6402 of the Internal Rev5 enue Code of 1986 (relating to authority to make credits

6 or refunds) is amended by redesignating subsections (e),

7 (f), (g), (h), and (i) as subsections (g), (h), (i), (j), and

8 (k), respectively, and by inserting after subsection (d) the

9 following new subsections:

10 ‘‘(e) OFFSET OF AMOUNT OF INCOME TAX REFUND

11 DESIGNATED TO BE PAID OVER TO HUNGER EMERGENCY

12 ASSISTANCE AND RELIEF TRUST.—

13 ‘‘(1) IN GENERAL.—The amount of any over14 payment of income tax to be refunded to the person

15 making the overpayment shall be reduced by the

16 sum designated by the person on the person’s return

17 of tax to be paid over to the Hunger Emergency As18 sistance and Relief Trust.

19 ‘‘(2) NOTICE OF REDUCTION PROVIDED ON RE20 QUEST.—The Secretary shall, on request of any per21 son who designates an amount to be paid over under

22 paragraph (1), notify the person that such amount

23 has been paid over to the Hunger Emergency Assist24 ance and Relief Trust.

25 ‘‘(f) PRIORITIES FOR OFFSET.—Any overpayment by

26 a person shall be reduced pursuant to subsections (c), (d),
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1 and (e), and in that order, before such overpayment is

2 credited to the future liability for tax of such person pur3 suant to subsection (b).’’

4 (b) CONFORMING AMENDMENTS.—

5 (1) Subsection (a) of section 6402 of the Inter6 nal Revenue Code of 1986 is amended by striking

7 ‘‘(c) and (d),’’ and inserting ‘‘(c), (d), and (e),’’.

8 (2) Subsection (c) of such section is amended

9 by striking the last sentence.

10 (3) Paragraph (2) of subsection (d) of such sec11 tion is amended—

12 (A) by striking the first sentence, and

13 (B) by amending the heading of such para14 graph to read as follows:

15 ‘‘(2) APPLICATION OF OVERPAYMENT AGAINST

16 MULTIPLE DEBTS.—’’.

17 SEC. 3. ESTABLISHMENT OF HUNGER EMERGENCY ASSIST18 ANCE AND RELIEF TRUST.

19 (a) IN GENERAL.—Subchapter A of chapter 98 of the

20 Internal Revenue Code of 1986 (relating to establishment

21 of trust funds) is amended by adding at the end the follow22 ing new section:
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1 ‘‘SEC. 9511. HUNGER EMERGENCY ASSISTANCE AND RELIEF

2 TRUST.

3 ‘‘(a) IN GENERAL.—There is established in the

4 Treasury of the United States a trust fund to be known

5 as the ‘Hunger Emergency Assistance and Relief Trust’,

6 consisting of such amounts as may be transferred or cred7 ited to the Hunger Emergency Assistance and Relief

8 Trust as provided in this section or section 9602(b).

9 ‘‘(b) TRANSFERS TO HUNGER EMERGENCY ASSIST10 ANCE AND RELIEF TRUST OF AMOUNTS DESIGNATED TO

11 THE TRUST BY TAXPAYERS.—The Secretary shall, from

12 time to time, transfer to the trust an amount equal to

13 the sum of the amounts by which overpayments of tax are

14 reduced under section 6402(e).

15 ‘‘(c) EXPENDITURES FROM HUNGER EMERGENCY

16 ASSISTANCE AND RELIEF TRUST.—Amounts in the Hun17 ger Emergency Assistance and Relief Trust shall be made

18 available to qualified hunger relief services organizations

19 (as defined in section 9052(a)) as provided in section

20 9051.’’

21 (b) CLERICAL AMENDMENT.—The table of sections

22 for subchapter A of chapter 98 of such Code is amended

23 by adding at the end the following new item:

‘‘Sec. 9511. Hunger Emergency Assistance and Relief Trust.’’
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1 SEC. 4. DISTRIBUTION OF HUNGER RELIEF FUNDS.

2 (a) IN GENERAL.—Subtitle H of the Internal Reve3 nue Code of 1986 (relating to financing of presidential

4 election campaigns) is amended by adding at the end the

5 following new chapter:

6 CHAPTER 97—DISTRIBUTION OF HUNGER

7 RELIEF FUNDS

‘‘SUBCHAPTER A. Distribution of funds.

‘‘SUBCHAPTER B. Hunger Commission.

8 ‘‘Subchapter A—Distribution of Funds

‘‘Sec. 9051. Payments to hunger relief services organizations.

‘‘Sec. 9052. Definitions.

‘‘Sec. 9053. Repayments.

‘‘Sec. 9054. Prohibited acts.

‘‘Sec. 9055. Authority of Hunger Commission to inform State attorney general of possible State law violations.

‘‘Sec. 9056. Reports to Congress; regulations.

9 ‘‘SEC. 9051. PAYMENTS TO HUNGER RELIEF SERVICES OR10 GANIZATIONS.

11 ‘‘(a) AUTHORIZED BY HUNGER COMMISSION.—On

12 receipt of an authorization from the Hunger Commission

13 under section 9062(a) for payment to a qualified hunger

14 relief services organization, the Secretary shall pay to the

15 organization out of the Hunger Emergency Assistance and

16 Relief Trust established by section 9511 the amount au17 thorized by the Commission to be paid.

18 ‘‘(b) USE OF PAYMENTS.—

19 ‘‘(1) UNDER CONTROL OF PAYEE.—Amounts

20 paid to any qualified hunger relief services organiza-
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1 tion under section 9511(c) (relating to expenditures

2 from Hunger Emergency Assistance and Relief

3 Trust) shall, subject to paragraph (2), be under the

4 control of the organization.

5 ‘‘(2) LIMITATION ON ADMINISTRATIVE EX6 PENSES.—An organization shall not use more than

7 10 percent of the sum of any amount paid to it

8 under section 9511(c) and any contribution made by

9 it to match such paid amount, for administrative ex10 penses.

11 ‘‘(c) NO ENTITLEMENT CREATED BY THIS CHAP12 TER.—Nothing in this chapter shall be construed to create

13 any entitlement to any payment under this chapter.

14 ‘‘SEC. 9052. DEFINITIONS.

15 ‘‘(a) QUALIFIED HUNGER RELIEF SERVICES ORGA16 NIZATION.—For purposes of this chapter, the term ‘quali17 fied hunger relief services organization’ means any organi18 zation which—

19 ‘‘(1) is described in section 501(c)(3),

20 ‘‘(2) is exempt from Federal income taxation

21 under section 501(a),

22 ‘‘(3) is recognized under the laws of the State

23 in which it is organized and the laws of the State

24 in which it maintains its principal place of business,
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1 as a charitable organization which has as its prin2 cipal purpose the relief of hunger,

3 ‘‘(4) has been in existence for at least 2 years,

4 ‘‘(5) uses not more than 22 percent of its an5 nual budget for administrative costs and evidences

6 such use in its annual report,

7 ‘‘(6) satisfies the Commission that the organi8 zation has developed, and is able to implement, a

9 hunger relief plan,

10 ‘‘(7) agrees in writing to obtain and furnish to

11 the Commission such information or evidence as the

12 Commission may request concerning the operations

13 of the organization,

14 ‘‘(8) agrees in writing to keep and furnish to

15 the Commission such records, books, and other in16 formation as the Commission may request, and

17 ‘‘(9) agrees, on request of the Commission, to

18 be audited and examined by the Commission, and to

19 pay any amounts required to be paid under section

20 9053.

21 ‘‘(b) HUNGER RELIEF PLAN.—For purposes of this

22 chapter, the term ‘hunger relief plan’ means a plan for

23 the amelioration or alleviation of actual or threatened star24 vation or severe malnutrition of individuals.
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1 ‘‘(c) COMMISSION.—For purposes of this chapter, the

2 term ‘Commission’ means the Hunger Commission estab3 lished by section 9061.

4 ‘‘SEC. 9053. REPAYMENTS.

5 ‘‘(a) IN GENERAL.—If the Commission determines

6 that any organization receiving any amount under section

7 9511(c) has engaged in any prohibited act described in

8 section 9054—

9 ‘‘(1) the Commission shall notify the organiza10 tion of the act and the amounts (if any) involved,

11 ‘‘(2) the organization shall pay to the Secretary

12 of the Treasury an amount equal to the amounts (if

13 any) involved, and

14 ‘‘(3) the Commission may direct the Secretary

15 of the Treasury to deny the organization exemption

16 from taxation under section 501(a) only for taxable

17 years after the taxable year during which the prohib18 ited act occurred.

19 ‘‘(b) DEPOSIT OF REPAYMENTS.—Any payment re20 ceived by the Secretary of the Treasury under subsection

21 (a)(2) shall be deposited in the Hunger Emergency Assist22 ance and Relief Trust.
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1 ‘‘SEC. 9054. PROHIBITED ACTS.

2 ‘‘It shall be unlawful for any organization which is

3 paid any amount under section 9511(c) in respect of a

4 hunger relief plan to do any of the following acts:

5 ‘‘(1) FAIL TO MATCH PAYMENT.—Fail to make

6 a matching contribution to the hunger relief plan in

7 an amount equal to such paid amount.

8 ‘‘(2) FAIL TO PROPERLY USE PAYMENT.—Fail

9 to use such paid amount and the matching contribu10 tion in connection with the hunger relief plan in re11 spect of which such amount is paid.

12 ‘‘(3) INCUR EXCESSIVE ADMINISTRATIVE EX13 PENSES.—Use more than 10 percent of any such

14 paid amount or more than 10 percent of any match15 ing contribution during any calendar year for admin16 istrative expenses.

17 ‘‘(4) NOT COMPLY WITH CERTAIN COMMISSION

18 REQUESTS.—Fail to comply with any request by the

19 Commission described in paragraph (7), (8), or (9)

20 of section 9052(a).

21 ‘‘SEC. 9055. AUTHORITY OF HUNGER COMMISSION TO IN22 FORM STATE ATTORNEY GENERAL OF POS23 SIBLE STATE LAW VIOLATIONS.

24 ‘‘The Commission may furnish the Attorney General

25 of the State in which any organization receiving amounts

26 under this chapter is organized or maintains its principal
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1 place of business any information received by the Commis2 sion indicating that the organization may be in violation

3 of State law.

4 ‘‘SEC. 9056. REPORTS TO CONGRESS; REGULATIONS.

5 ‘‘(a) REPORTS.—On or before June 1, 1989, and an6 nually thereafter, the Commission shall submit to the Se7 lect Committee on Hunger of the House of Representa8 tives, the Committee on Appropriations of the House of

9 Representatives, and the Committee on Appropriations of

10 the Senate, a report containing a detailed accounting of

11 funds authorized to be paid from the Hunger Emergency

12 Assistance and Relief Trust.

13 ‘‘(b) REGULATIONS.—The Commission may prescribe

14 such regulations concerning the conduct of examinations

15 and audits, and the keeping and submission of records,

16 books, and other information, as it deems necessary to

17 carry out the functions and duties imposed on it by this

18 Chapter.

19 ‘‘Subchapter B—Hunger Commission

‘‘Sec. 9061. Establishment.

‘‘Sec. 9062. Duties.

‘‘Sec. 9063. Membership.

‘‘Sec. 9064. Term of office.

‘‘Sec. 9065. Compensation of Commission members.

‘‘Sec. 9066. Powers.

‘‘Sec. 9067. Director and staff of Commission.

‘‘Sec. 9068. Rules governing Commission meetings.

‘‘Sec. 9069. Authorization of appropriations.
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1 ‘‘SEC. 9061. ESTABLISHSMENT.

2 ‘‘There is established a commission to be known as

3 the Hunger Commission.

4 ‘‘SEC. 9062. DUTIES.

5 ‘‘(a) DISTRIBUTION OF FUNDS TO QUALIFIED HUN6 GER RELIEF SERVICES ORGANIZATIONS.—

7 ‘‘(1) MATCHING GRANTS.—The Commission

8 shall direct the Secretary of the Treasury to pay

9 from the Hunger Emergency Assistance and Relief

10 Trust any amount the Commission deems appro11 priate, to any qualified hunger relief services organi12 zation for the purpose of providing hunger relief

13 services under a hunger relief plan, if the organiza14 tion agrees to, and demonstrates to the Commission

15 the capacity to, contribute an amount for such pur16 pose equal to the amount to be paid to the organiza17 tion.

18 ‘‘(2) LIMITATION.—The Commission may not

19 direct under subsection (a) the payment of more

20 than $100,000 to a single organization in a single

21 fiscal year.

22 ‘‘(b) FUNDS TO BE DISTRIBUTED WITHIN 180

23 DAYS.—Within 180 days after the date any amount is re24 ceived in the Hunger Emergency Assistance and Relief

25 Trust, the Commission shall authorize the payment of
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1 such amount to 1 or more qualified hunger relief services

2 organizations.

3 ‘‘(c) AT LEAST 50 PERCENT OF FUNDS TO BE USED

4 FOR DOMESTIC HUNGER RELIEF.—At least 50 percent of

5 amounts received into the Hunger Emergency Assistance

6 and Relief Trust during any calendar year shall be paid

7 to qualified hunger relief services organizations for the

8 purpose of providing hunger relief services in the United

9 States (or bearing administrative expenses associated with

10 the provision of such services). To the extent practical,

11 the Commission shall assure that both rural and urban

12 areas of the United States receive a fair proportion of the

13 hunger relief services provided in the United States under

14 this chapter.

15 ‘‘SEC. 9063. MEMBERSHIP.

16 ‘‘(a) 5 MEMBERS.—The Commission shall consist of

17 5 members.

18 ‘‘(b) APPOINTMENT.—

19 ‘‘(1) PRESIDENT APPOINTS 4.—During Janu20 ary 1989, the President shall appoint 4 Commission

21 members. 2 appointees shall be from the Democratic

22 Party and the other 2 appointees shall be from the

23 Republican Party.

24 ‘‘(2) PRESIDENTIAL APPOINTEES APPOINT

25 CHAIR.—The 4 Commission members appointed
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1 under paragraph (1) shall appoint another individual

2 to be the Chair of the Commission.

3 ‘‘(c) VACANCIES.—A vacancy in the Commission shall

4 be filled in the manner in which the original appointment

5 was made.

6 ‘‘SEC. 9064. TERM OF OFFICE.

7 ‘‘(a) 3. YEARS.—Appointment to the Commission

8 shall be for a term of 3 years to begin on January 1, 1989,

9 and every 3rd year thereafter.

10 ‘‘(b) EXCEPTIONS.—

11 ‘‘(1) FILLING OF VACANCY.—Any member ap12 pointed to fill a vacancy occurring before the expira13 tion of the term for which the predecessor for such

14 member was appointed shall be appointed only for

15 the remainder of such term.

16 ‘‘(2) SUCCESSION.—A member may serve after

17 the expiration of the term of office of such member

18 until his successor has taken office.

19 ‘‘SEC. 9065. COMPENSATION OF COMMISSION MEMBERS.

20 ‘‘Commission members shall not receive pay, allow21 ances, or benefits by reason of their service on the

22 Commission.

23 ‘‘SEC. 9066. POWERS.

24 ‘‘(a) HEARINGS.—The Commission, may, in the Unit25 ed States, for the purpose of performing its duties under
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1 this chapter, hold such hearings, sit and act at such times

2 and places, take such testimony, receive such evidence,

3 and conduct such audits of organizations requesting or re4 ceiving funds from the Commission, as the Commission

5 considers appropriate. The Commission may administer

6 oaths or affirmations to witnesses appearing before it.

7 ‘‘(b) OBTAINING OFFICIAL DATA.—The Commission

8 may secure directly from any department or agency of the

9 United States information necessary to enable it to per10 form duties of the Commission under this chapter. On re11 quest of the Chair of the Commission, the head of such

12 department or agency shall furnish such information to

13 the Commission.

14 ‘‘(c) SUBPOENAS.—

15 ‘‘(1) AUTHORITY TO ISSUE SUBPOENAS.—The

16 Commission may issue subpoenas requiring wit17 nesses to attend and testify and to produce evidence

18 relating to any matter under investigation by the

19 Commission. Such witness attendance and produc20 tion of evidence may be required from any place

21 within or without the United States at any des22 ignated place of hearing in the United States.

23 ‘‘(2) GRANT OF IMMUNITY.—An individual may

24 not be prosecuted or subjected to any penalty or for25 feiture by reason of any transaction, matter, or
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1 thing concerning which such individual is compelled

2 to testify or produce evidence, after having claimed

3 the privilege against self-incrimination, except such

4 individual shall not be exempt from prosecution and

5 punishment for perjury committed in so testifying.

6 Excuse from attending and testifying or from pro7 ducing books, records, correspondence, documents,

8 or other evidence in obedience to a subpoena, on the

9 ground that the testimony or evidence required of an

10 individual may tend to incriminate or subject such

11 individual to a penalty or forfeiture shall not be

12 granted to any such individual.

13 ‘‘(3) CONSEQUENCES OF REFUSAL TO OBEY

14 SUBPOENA.—Any individual issued a subpoena

15 under this subsection who refuses to obey such sub16 poena or is guilty of contumacy, may, on application

17 by the Commission, be ordered by any court of the

18 United States in the judicial district in which the

19 hearing is conducted or within which such individual

20 if found, resides, or transacts business, to appear be21 fore the Commission to produce evidence or give tes22 timony relating to any matter under investigation.

23 Such court may punish any failure to obey such

24 order as a contempt of such court.
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1 ‘‘(4) SERVICE OF SUBPOENA.—Any subpoena

2 by the Commission shall be served in the manner

3 provided for the service of subpoenas issued by a

4 United States district court under the Federal Rules

5 of Civil Procedure for the United States district

6 courts.

7 ‘‘(5) SERVICE OF OTHER PROCESS.—Any other

8 process of any court to which application may be

9 made under this subsection shall be served in the ju10 dicial district in which the person required to be

11 served resides or is found.

12 ‘‘(d) GIFTS.—The Commission may accept, use, and

13 dispose of gifts of money, services, or property.

14 ‘‘(e) MAILS.—The Commission may use the United

15 States mails in the same manner and under the same con16 ditions as other departments and agencies of the United

17 States.

18 ‘‘(f) STAFF OF FEDERAL AGENCIES.—On request of

19 the Chair of the Commission, the head of any Federal

20 agency is authorized to detail, on a reimbursable basis,

21 any personnel of such agency to the Commission to assist

22 the Commission in carrying out its duties under this chap23 ter.

24 ‘‘(g) ADMINISTRATIVE SUPPORT SERVICES.—The

25 Administrator of General Services shall provide to the
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1 Commission, on a reimbursable basis, such administrative

2 support services as the Chair of the Commission may re3 quest.

4 ‘‘(h) DELEGATION OF AUTHORITY TO MEMBERS AND

5 AGENTS.—The Commission may delegate to any of its

6 members or agents its authority to take any action author7 ized by this section.

8 ‘‘SEC. 9067. DIRECTOR AND STAFF OF COMMISSION.

9 ‘‘(a) DIRECTOR.—The Commission may appoint a

10 Director to be paid at a rate not to exceed the maximum

11 rate of basic pay payable for GS–14 of the General Sched12 ule.

13 ‘‘(b) STAFF.—With the approval of the Commission,

14 the Director may appoint additional personnel subject to

15 the provisions of title 5, United States Code, governing

16 appointments in the competitive service, and such person17 nel shall be paid in accordance with the provisions of chap18 ter 51 and subchapter III of chapter 53 of such title relat19 ing to classification and General Schedule pay rates.

20 ‘‘(c) EXPERTS AND CONSULTANTS.— Subject to such

21 rules as may be prescribed by the Commission, the Direc22 tor may procure temporary and intermittent services

23 under section 3109(b) of title 5, United States Code.
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1 ‘‘SEC. 9068. RULES GOVERNING COMMISSION MEETINGS.

2 ‘‘(a) QUORUM.—The Chair of the Commission and 2

3 other Commission members shall constitute a quorum.

4 ‘‘(b) MEETINGS.—The Commission shall meet not

5 less frequently than quarterly, at the call of a majority

6 of its members, in sessions open to the public.

7 ‘‘(c) VOTING.—The Chair of the Commission shall

8 not have the power to vote at any Commission meeting,

9 except to break a tie.

10 ‘‘SEC. 9069. AUTHORIZATION OF APPROPRIATIONS.

11 ‘‘For administrative expenses, there are authorized to

12 be appropriated to the Commission an amount not to ex13 ceed $150,000 for each fiscal year beginning after Sep14 tember 30, 1988.’’

15 (b) CLERICAL AMENDMENTS.—

16 (1) Subtitle H of the Internal Revenue Code of

17 1986 is amended by amending the heading for such

18 subtitle to read as follows:

19 ‘‘Subtitle H—Financing of Presidential Elec20 tion Campaigns; Distribution of Hunger

21 Relief Funds’’

22 (2) The table of chapters for such subtitle is

23 amended by adding at the end the following new

24 item:

‘‘ CHAPTER 97. Distribution of hunger relief funds.’’
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1 (3) The table of subtitles for such Code is

2 amended by amending the item relating to subtitle

3 H by striking ‘‘campaigns.’’ and inserting ‘‘cam4 paigns; distribution of hunger relief funds.’’.

5 SEC. 5. EFFECTIVE DATES.

6 (a) ELECTION OF TAXPAYERS TO DIRECT INCOME

7 TAX REFUNDS TO HUNGER EMERGENCY ASSISTANCE

8 AND RELIEF TRUST.— The amendments made by section

9 2 shall apply to taxable years beginning after December

10 31, 1988.

11 (b) ESTABLISHMENT OF HUNGER EMERGENCY AS12 SISTANCE AND RELIEF TRUST.—The amendments made

13 by section 3 shall apply to the amounts received after

14 December 31, 1988.

15 (c) DISTRIBUTION OF HUNGER RELIEF FUNDS.—

16 The amendments made by section 4 shall take effect

17 on January 1, 1989.

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