I 

116TH CONGRESS 

1ST SESSION H. R. 1615 

To transfer the responsibility of verifying small business concerns owned 

and controlled by veterans or service-disabled veterans to the Small 

Business Administration, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 7, 2019 

Mr. KELLY of Mississippi (for himself, Mr. CHABOT, Mr. STAUBER, Miss 

GONZA ́LEZ-COLO ́N of Puerto Rico, Mr. FITZPATRICK, Mr. BERGMAN, Ms. 

KUSTER of New Hampshire, Mr. WATKINS, Mrs. RADEWAGEN, Ms. 

VELA ́ZQUEZ, Mr. DAVID P. ROE of Tennessee, Mr. DUNN, Mr. BANKS, 

Mr. CURTIS, Mr. BALDERSON, Mr. BURCHETT, Mr. CROW, Mr. 

HAGEDORN, Mr. BILIRAKIS, Mr. JOYCE of Pennsylvania, and Mr. STIVERS) introduced the following bill; which was referred to the Committee 

on Small Business, and in addition to the Committee on Veterans’ Affairs, for a period to be subsequently determined by the Speaker, in each 

case for consideration of such provisions as fall within the jurisdiction of 

the committee concerned 

A BILL 

To transfer the responsibility of verifying small business concerns owned and controlled by veterans or service-disabled veterans to the Small Business Administration, 

and for other purposes. 

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


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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘Verification Alignment and Service-disabled Business 

4 Adjustment Act’’ or the ‘‘VA–SBA Act’’. 

5 (b) TABLE OF CONTENTS.—The table of contents for 

6 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Transfer date. 

Sec. 3. Amendment to and transfer of veteran-owned and service-disabled veteran-owned business database. 

Sec. 4. Dollar threshold for sole source awards to small business concern owned 

and controlled by service-disabled veterans. 

Sec. 5. Additional requirement for database. 

Sec. 6. Procurement program for small business concerns owned and controlled 

by service-disabled veterans. 

Sec. 7. Certification for small business concerns owned and controlled by veterans. 

Sec. 8. Status of self-certified small business concerns owned and controlled by 

service-disabled veterans and veterans. 

Sec. 9. Transfer of the Center for Verification and Evaluation of the Department of Veterans Affairs to the Small Business Administration. 

Sec. 10. Report. 

7 SEC. 2. TRANSFER DATE. 

8 For purposes of this Act, the term ‘‘transfer date’’ 

9 means the date that is 2 years after the date of enactment 

10 of this Act, except that such date may be extended an un11 limited number of times by a period of not more than 6 

12 months if the Administrator of the Small Business Admin13 istration and the Secretary of Veterans Affairs jointly 

14 issue a notice to Congress and the Law Revision Counsel 

15 of the House of Representatives containing— 

16 (1) a certification that such extension is nec17 essary; 


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1 (2) the rationale for and the length of such ex2 tension; and 

3 (3) a plan to comply with the requirements of 

4 this Act within the timeframe of the extension. 

5 SEC. 3. AMENDMENT TO AND TRANSFER OF VETERAN6 OWNED AND SERVICE-DISABLED VETERAN7 OWNED BUSINESS DATABASE. 

8 (a) AMENDMENT OF VETERAN-OWNED AND SERV9 ICE-DISABLED VETERAN-OWNED BUSINESS DATA10 BASE.—Effective on the transfer date, section 8127 of 

11 title 38, United States Code, is amended— 

12 (1) in subsection (e)— 

13 (A) by striking ‘‘the Secretary’’ and insert14 ing ‘‘the Administrator’’; and 

15 (B) by striking ‘‘subsection (f)’’ and insert16 ing ‘‘section 36 of the Small Business Act’’; 

17 (2) in subsection (f)— 

18 (A) by striking ‘‘the Secretary’’ each place 

19 such term appears, other than under paragraph 

20 (7) and in the last place such term appears 

21 under paragraph (2)(A), and inserting ‘‘the Ad22 ministrator’’; 

23 (B) in paragraph (2)— 


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1 (i) in subparagraph (A), by striking 

2 ‘‘to access’’ and inserting ‘‘to obtain from 

3 the Secretary of Veterans Affairs’’; and 

4 (ii) by striking subparagraph (B) and 

5 inserting the following: 

6 ‘‘(B) For purposes of this subsection— 

7 ‘‘(i) the Secretary of Veterans Affairs 

8 shall— 

9 ‘‘(I) verify an individual’s status as a 

10 veteran or a service-disabled veteran; and 

11 ‘‘(II) establish a system to permit the 

12 Administrator to access, but not alter, 

13 such verification; and 

14 ‘‘(ii) the Administrator shall verify— 

15 ‘‘(I) the status of a business concern 

16 as a small business concern; and 

17 ‘‘(II) the ownership and control of 

18 such business concern. 

19 ‘‘(C) If the Administrator receives an applica20 tion from an individual with respect to a business 

21 concern for inclusion in the database, but the indi22 vidual’s status as a veteran or service-disabled vet23 eran, the business concern’s status as a small busi24 ness concern, or the ownership and control of such 

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1 graph (B), the Administrator may not include the 

2 business concern in the database maintained by the 

3 Administrator.’’; 

4 (C) by striking paragraphs (4) and (7); 

5 (D) by redesignating paragraphs (5) and 

6 (6) as paragraphs (4) and (5), respectively, and 

7 redesignating paragraph (8) as paragraph (6); 

8 and 

9 (E) in paragraph (6), as so redesignated— 

10 (i) in subparagraph (B)(ii)— 

11 (I) by amending subclause (I) to 

12 read as follows: 

13 ‘‘(I) the Secretary of Veterans Affairs or 

14 the Administrator; or’’; and 

15 (II) in subclause (II), by striking 

16 ‘‘the contracting officer of the Depart17 ment’’ and inserting ‘‘the applicable 

18 contracting officer’’; and 

19 (ii) by striking subparagraph (C); 

20 (3) by redesignating subsection (k) (relating to 

21 definitions) as subsection (l); 

22 (4) by inserting after subsection (j) (relating to 

23 annual reports) the following: 

24 ‘‘(k) ANNUAL TRANSFER FOR CERTIFICATION

25 COSTS.—For each fiscal year, the Secretary of Veterans 


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1 Affairs shall reimburse the Administrator in an amount 

2 necessary to cover any cost incurred by the Administrator 

3 for certifying small business concerns owned and con4 trolled by veterans that do not qualify as small business 

5 concerns owned and controlled by service-disabled veterans 

6 for the Secretary for purposes of this section and section 

7 8128. The Administrator is authorized to accept such re8 imbursement. The amount of any such reimbursement 

9 shall be determined jointly by the Secretary and the Ad10 ministrator and shall be provided from fees collected by 

11 the Secretary under multiple-award schedule contracts. 

12 Any disagreement about the amount shall be resolved by 

13 the Director of the Office of Management and Budget.’’; 

14 and 

15 (5) in subsection (k) (relating to definitions), as 

16 so redesignated, by adding at the end the following: 

17 ‘‘(4) The term ‘Administrator’ means the Ad18 ministrator of the Small Business Administration.’’. 

19 (b) TRANSFER OF REQUIREMENTS RELATING TO

20 DATABASE TO THE SMALL BUSINESS ACT.—Effective on 

21 the transfer date, subsection (f) of section 8127 of title 

22 38, United States Code (as amended by subsection (a)), 

23 is transferred to section 36 of the Small Business Act (15 

24 U.S.C. 657f), inserted so as to appear after subsection (e). 


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1 (c) CONFORMING AMENDMENTS.—The following 

2 amendments shall take effect on the transfer date: 

3 (1) SMALL BUSINESS ACT.—Section 

4 3(q)(2)(C)(i)(III) of the Small Business Act (15 

5 U.S.C. 632(q)(2)(C)(i)(III)) is amended by striking 

6 ‘‘section 8127(f) of title 38, United States Code’’ 

7 and inserting ‘‘section 36’’. 

8 (2) TITLE 38.—Section 8128 of title 38, United 

9 States Code, is amended by striking ‘‘section 

10 8127(f) of this title’’ and inserting ‘‘section 36 of 

11 the Small Business Act’’. 

12 SEC. 4. DOLLAR THRESHOLD FOR SOLE SOURCE AWARDS 

13 TO SMALL BUSINESS CONCERN OWNED AND 

14 CONTROLLED BY SERVICE-DISABLED VET15 ERANS. 

16 (a) SMALL BUSINESS ACT.—Effective on the transfer 

17 date, section 36(c) of the Small Business Act, as redesig18 nated by section 6(a)(2), is amended— 

19 (1) by striking the first dollar figure and insert20 ing ‘‘$7,000,000’’; and 

21 (2) by striking the second dollar figure and in22 serting ‘‘$5,000,000’’. 

23 (b) TITLE 38.—Effective on the transfer date, para24 graph (2) of section 8127(c) of title 38, United States 

25 Code, is amended to read as follows: 


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1 ‘‘(2) the anticipated award price of the contract 

2 will not exceed the amount described under section 

3 36(c) of the Small Business Act; and’’. 

4 SEC. 5. ADDITIONAL REQUIREMENT FOR DATABASE. 

5 (a) ADMINISTRATION ACCESS TO DATABASE BEFORE

6 THE TRANSFER DATE.—During the period between the 

7 date of the enactment of this Act and the transfer date, 

8 the Secretary of Veterans Affairs shall provide the Admin9 istrator of the Small Business Administration with access 

10 to the contents of the database described under section 

11 8127(f) of title 38, United States Code. 

12 (b) RULE OF CONSTRUCTION.—Nothing in this Act 

13 or the amendments made by this Act may be construed 

14 as prohibiting the Administrator of the Small Business 

15 Administration from combining the contents of the data16 base described under section 8127(f) of title 38, United 

17 States Code, with other databases maintained by the Ad18 ministration. 

19 (c) RECOGNITION OF THE ISSUANCE OF JOINT REG20 ULATIONS.—The date specified under section 1832(e) of 

21 the National Defense Authorization Act for Fiscal Year 

22 2017 (15 U.S.C. 632 note) shall be deemed to be October 

23 1, 2018. 


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1 SEC. 6. PROCUREMENT PROGRAM FOR SMALL BUSINESS 

2 CONCERNS OWNED AND CONTROLLED BY 

3 SERVICE-DISABLED VETERANS. 

4 (a) PROCUREMENT PROGRAM FOR SMALL BUSINESS

5 CONCERNS OWNED AND CONTROLLED BY SERVICE-DIS6 ABLED VETERANS.—Section 36 of the Small Business Act 

7 (15 U.S.C. 657f) is amended— 

8 (1) by striking subsections (d) and (e); 

9 (2) by redesignating subsections (a), (b), and 

10 (c) as subsections (c), (d), and (e) respectively; 

11 (3) by inserting before subsection (c), as so re12 designated, the following: 

13 ‘‘(a) CONTRACTING OFFICER DEFINED.—For pur14 poses of this section, the term ‘contracting officer’ has the 

15 meaning given such term in section 2101 of title 41, 

16 United States Code. 

17 ‘‘(b) CERTIFICATION OF SMALL BUSINESS CON18 CERNS OWNED AND CONTROLLED BY SERVICE-DISABLED

19 VETERANS.—With respect to a procurement program or 

20 preference established under this Act or any other Federal 

21 law applicable to small business concerns owned and con22 trolled by service-disabled veterans, the Administrator 

23 shall— 

24 ‘‘(1) certify the status of the concern as a 

25 ‘small business concern owned and controlled by 

26 service-disabled veterans’; and 


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1 ‘‘(2) require the periodic recertification of such 

2 status.’’; 

3 (4) in subsection (d), as so redesignated, by 

4 striking ‘‘and that the award can be made at a fair 

5 market price’’ and inserting ‘‘, that the award can 

6 be made at a fair market price, and if each concern 

7 is certified by the Administrator as a small business 

8 concern owned and controlled by service-disabled 

9 veterans’’; and 

10 (5) by adding at the end the following: 

11 ‘‘(g) CERTIFICATION REQUIREMENT.—Notwith12 standing subsection (c), a contracting officer may only 

13 award a sole source contract to a small business concern 

14 owned and controlled by service-disabled veterans or a 

15 contract on the basis of competition restricted to small 

16 business concerns owned and controlled by service-disabled 

17 veterans if such a concern is certified by the Administrator 

18 as a small business concern owned and controlled by serv19 ice-disabled veterans. 

20 ‘‘(h) ENFORCEMENT; PENALTIES.— 

21 ‘‘(1) VERIFICATION OF ELIGIBILITY.—In car22 rying out this section, the Administrator shall estab23 lish procedures relating to— 

24 ‘‘(A) the filing, investigation, and disposi25 tion by the Administration of any challenge to 


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1 the eligibility of a small business concern to re2 ceive assistance under this section (including a 

3 challenge, filed by an interested party, relating 

4 to the veracity of a certification made or infor5 mation provided to the Administration by a 

6 small business concern under subsection (b)); 

7 and 

8 ‘‘(B) verification by the Administrator of 

9 the accuracy of any certification made or infor10 mation provided to the Administration by a 

11 small business concern under subsection (b). 

12 ‘‘(2) EXAMINATIONS.— 

13 ‘‘(A) EXAMINATION OF APPLICANTS.—The 

14 procedures established under paragraph (1) 

15 shall provide for a program of examinations by 

16 the Administrator of any small business concern 

17 making a certification or providing information 

18 to the Administrator under subsection (b), to 

19 determine the veracity of any statements or in20 formation provided as part of such certification 

21 or otherwise provided under subsection (b). 

22 ‘‘(B) EXAMINATION OF CERTIFIED CON23 CERNS.—The procedures established under 

24 paragraph (1) shall provide for the examination 

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1 cerns certified under subsection (b), or of any 

2 small business concern that the Administrator 

3 believes poses a particular risk or with respect 

4 to which the Administrator receives specific and 

5 credible information alleging that the small 

6 business concern no longer meets eligibility re7 quirements to be certified as a small business 

8 concern owned and controlled by service-dis9 abled veterans. 

10 ‘‘(3) PENALTIES.—In addition to the penalties 

11 described in section 16(d), any small business con12 cern that is determined by the Administrator to have 

13 misrepresented the status of that concern as a small 

14 business concern owned and controlled by service15 disabled veterans for purposes of subsection (b), 

16 shall be subject to— 

17 ‘‘(A) section 1001 of title 18, United 

18 States Code; 

19 ‘‘(B) sections 3729 through 3733 of title 

20 31, United States Code; and 

21 ‘‘(C) section 8127(g) of title 38, United 

22 States Code. 

23 ‘‘(i) PROVISION OF DATA.—Upon the request of the 

24 Administrator, the head of any Federal department or 

25 agency shall promptly provide to the Administrator such 


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1 information as the Administrator determines to be nec2 essary to carry out subsection (b) or to be able to certify 

3 the status of the concern as a small business concern 

4 owned and controlled by veterans under section 36A.’’. 

5 (b) PENALTIES FOR MISREPRESENTATION.—Section 

6 16 of the Small Business Act (15 U.S.C. 645) is amend7 ed— 

8 (1) in subsection (d)(1)— 

9 (A) by striking ‘‘,, a’’ and inserting ‘‘, a 

10 ‘small business concern owned and controlled by 

11 service-disabled veterans’, a ‘small business con12 cern owned and controlled by veterans’, a’’; and 

13 (B) in paragraph (A), by striking ‘‘9, 15, 

14 or 31’’ and inserting ‘‘8, 9, 15, 31, 36, or 

15 36A’’; and 

16 (2) in subsection (e), by striking ‘‘,, a’’ and in17 serting ‘‘, a ‘small business concern owned and con18 trolled by service-disabled veterans’, a ‘small busi19 ness concern owned and controlled by veterans’, a’’. 

20 SEC. 7. CERTIFICATION FOR SMALL BUSINESS CONCERNS 

21 OWNED AND CONTROLLED BY VETERANS. 

22 The Small Business Act (15 U.S.C. 631 et seq.) is 

23 amended by inserting after section 36 the following new 

24 section: 


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1 ‘‘SEC. 36A. CERTIFICATION OF SMALL BUSINESS CONCERNS 

2 OWNED AND CONTROLLED BY VETERANS. 

3 ‘‘(a) IN GENERAL.—With respect to the program es4 tablished under section 8127 of title 38, United States 

5 Code, the Administrator shall— 

6 ‘‘(1) certify the status of the concern as a 

7 ‘small business concern owned and controlled by vet8 erans’; and 

9 ‘‘(2) require the periodic recertification of such 

10 status. 

11 ‘‘(b) ENFORCEMENT; PENALTIES.— 

12 ‘‘(1) VERIFICATION OF ELIGIBILITY.—In car13 rying out this section, the Administrator shall estab14 lish procedures relating to— 

15 ‘‘(A) the filing, investigation, and disposi16 tion by the Administration of any challenge to 

17 the eligibility of a small business concern to re18 ceive assistance under this section (including a 

19 challenge, filed by an interested party, relating 

20 to the veracity of a certification made or infor21 mation provided to the Administration by a 

22 small business concern under subsection (a)); 

23 and 

24 ‘‘(B) verification by the Administrator of 

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1 mation provided to the Administration by a 

2 small business concern under subsection (a). 

3 ‘‘(2) EXAMINATION OF APPLICANTS.—The pro4 cedures established under paragraph (1) shall pro5 vide for a program of examinations by the Adminis6 trator of any small business concern making a cer7 tification or providing information to the Adminis8 trator under subsection (a), to determine the verac9 ity of any statements or information provided as 

10 part of such certification or otherwise provided 

11 under subsection (a). 

12 ‘‘(3) PENALTIES.—In addition to the penalties 

13 described in section 16(d), any small business con14 cern that is determined by the Administrator to have 

15 misrepresented the status of that concern as a small 

16 business concern owned and controlled by veterans 

17 for purposes of subsection (a), shall be subject to— 

18 ‘‘(A) section 1001 of title 18, United 

19 States Code; 

20 ‘‘(B) sections 3729 through 3733 of title 

21 31, United States Code; and 

22 ‘‘(C) section 8127(g) of title 38, United 

23 States Code.’’. 


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1 SEC. 8. STATUS OF SELF-CERTIFIED SMALL BUSINESS CON2 CERNS OWNED AND CONTROLLED BY SERV3 ICE-DISABLED VETERANS AND VETERANS. 

4 (a) IN GENERAL.—Notwithstanding any other provi5 sion of law, any small business concern that self-certified 

6 as a small business concern owned and controlled by vet7 erans or a small business concern owned and controlled 

8 by service-disabled veterans shall— 

9 (1) if the concern files a certification applica10 tion with the Administrator of the Small Business 

11 Administration before the end of the 1-year period 

12 beginning on the transfer date, maintain such self13 certification until the Administrator makes a deter14 mination with respect to such certification; and 

15 (2) if the concern does not file such a certifi16 cation application before the end of the 1-year pe17 riod beginning on the transfer date, lose, at the end 

18 of such 1-year period, any self-certification of the 

19 concern as a small business concern owned and con20 trolled by service-disabled veterans. 

21 (b) NON-APPLICABILITY TO DEPARTMENT OF VET22 ERANS AFFAIRS.—Subsection (a) shall not apply to par23 ticipation in contracts (including subcontracts) with the 

24 Department of Veterans Affairs. 

25 (c) NOTICE.—The Administrator shall notify any 

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1 ness concern owned and controlled by veterans or a small 

2 business concern owned and controlled by service-disabled 

3 veterans about the requirements of the Verification Align4 ment and Service-disabled Business Adjustment Act, in5 cluding the transfer date and any extension of such trans6 fer date made pursuant to section 2, and make such notice 

7 publicly available, on— 

8 (1) the date of the enactment of this Act; and 

9 (2) the date on which an extension described 

10 under section 2 is approved. 

11 SEC. 9. TRANSFER OF THE CENTER FOR VERIFICATION 

12 AND EVALUATION OF THE DEPARTMENT OF 

13 VETERANS AFFAIRS TO THE SMALL BUSI14 NESS ADMINISTRATION. 

15 (a) ABOLISHMENT.—The Center for Verification and 

16 Evaluation of the Department of Veterans Affairs defined 

17 under section 74.1 of title 38, Code of Federal Regula18 tions, is abolished effective on the transfer date. 

19 (b) TRANSFER OF FUNCTIONS.—All functions that, 

20 immediately before the effective date of this section, were 

21 functions of the Center for Verification and Evaluation 

22 shall— 

23 (1) on the date of enactment of this Act, be 

24 functions of both the Center for Verification and 

25 Evaluation and the Small Business Administration, 


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1 except that the Small Business Administration shall 

2 not have any authority to carry out any verification 

3 functions of the Center for Verification and Evalua4 tion; and 

5 (2) on the transfer date, be functions of the 

6 Small Business Administration. 

7 (c) TRANSFER OF ASSETS.—So much of the per8 sonnel, property, records, and unexpended balances of ap9 propriations, allocations, and other funds employed, used, 

10 held, available, or to be made available in connection with 

11 a function transferred under this section shall be available 

12 to the Small Business Administration at such time or 

13 times as the President directs for use in connection with 

14 the functions transferred. 

15 (d) REFERENCES.—Any reference in any other Fed16 eral law, Executive order, rule, regulation, or delegation 

17 of authority, or any document of or pertaining to a func18 tion of the Center for Verification and Evaluation that is 

19 transferred under this section is deemed, after the transfer 

20 date, to refer to the Small Business Administration. 

21 SEC. 10. REPORT. 

22 Not later than the end of the 1-year period beginning 

23 on the date of the enactment of this Act, and every 6 

24 months thereafter until the transfer date, the Adminis25 trator of the Small Business Administration and Secretary 


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1 of Veterans Affairs shall jointly issue a report to the Com2 mittees on Appropriations, Small Business, and Veterans’ 

3 Affairs of the House of Representatives and the Commit4 tees on Appropriations, Small Business and Entrepreneur5 ship, and Veterans’ Affairs of the Senate on the planning 

6 for the transfer of functions and property required under 

7 this Act and the amendments made by this Act on the 

8 transfer date. Such report shall include— 

9 (1) whether and how the verification database 

10 and operations of the Center for Verification and 

11 Evaluation of the Department of Veterans Affairs 

12 will be incorporated into the existing certification 

13 database of the Small Business Administration; 

14 (2) projections for the numbers and timing, in 

15 terms of fiscal year, of— 

16 (A) already verified concerns that will 

17 come up for recertification; and 

18 (B) self-certified concerns that are ex19 pected to apply for certification; 

20 (3) an explanation of how outreach to veteran 

21 service organizations, the service-disabled veteran22 owned and veteran-owned small business community, 

23 and other stakeholders will be conducted; and 


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1 (4) other pertinent information determined by 

2 the Administrator and the Secretary. 

Æ 


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