Emergency Farm Relief Act of 2006 - Directs the Secretary of Agriculture to provide financial assistance for: (1) crop disaster assistance for qualifying quantity or quality losses for the 2005 or 2006 crop due to weather or related conditions (including disease, insects, and delayed harvest; (2) livestock assistance for 2005 and 2006 disaster-caused losses; (3) livestock indemnity payments for 2005 and 2006 disaster-caused losses (including wildfires, hurricanes, floods, and anthrax); (4) ewe lamb replacement and retention; (5) sugar beet disaster assistance for crop year 2005; (6) sugarcane growers in Hawaii through a payment to an agricultural transportation cooperative in Hawaii; (7) flooded crop and grazing land in the Devils Lake basin, the McHugh, Lake Laretta, and Rose Lake closed drainage areas, North Dakota; and (8) bovine tuberculosis indemnification.
Directs the Secretary to make grants to state agriculture departments or comparable agencies in qualified states for direct economic loss payments to eligible small businesses.
Directs the Secretary to use specified funds to carry out emergency measures under: (1) the emergency watershed protection program; (2) the emergency conservation program, including wildfire recovery efforts; and (3) the environmental quality incentives program, including wildfire recovery efforts.
Directs the Secretary to use specified funds to hire additional state and county Farm Service Agency personnel to expedite the delivery of agricultural disaster and economic assistance.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 3991 Introduced in Senate (IS)]
109th CONGRESS
2d Session
S. 3991
To provide emergency agricultural disaster assistance, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 28, 2006
Mr. Conrad (for himself, Mr. Nelson of Nebraska, Mr. Hagel, Mr. Dorgan,
Mr. Salazar, Mr. Coleman, Mr. Baucus, Mr. Johnson, Mr. Burns, Mr.
Harkin, Ms. Cantwell, Mrs. Clinton, Mr. Schumer, Mr. Inouye, Mr. Thune,
Mr. Durbin, Mr. Obama, and Mr. Reid) introduced the following bill;
which was read twice and referred to the Committee on Agriculture,
Nutrition, and Forestry
_______________________________________________________________________
A BILL
To provide emergency agricultural disaster assistance, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Emergency Farm
Relief Act of 2006''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
TITLE I--AGRICULTURAL PRODUCTION LOSSES
Sec. 101. Crop disaster assistance.
Sec. 102. Livestock assistance.
Sec. 103. Flooded crop and grazing land.
Sec. 104. Sugar beet disaster assistance.
Sec. 105. Bovine tuberculosis herd indemnification.
Sec. 106. Reduction in payments.
TITLE II--SMALL BUSINESS ECONOMIC LOSS GRANT PROGRAM
Sec. 201. Small business economic loss grant program.
TITLE III--CONSERVATION
Sec. 301. Emergency conservation program.
Sec. 302. Emergency watershed protection program.
Sec. 303. Environmental quality incentives program.
TITLE IV--FARM SERVICE AGENCY
Sec. 401. Funding for additional personnel.
TITLE V--MISCELLANEOUS
Sec. 501. Funding.
Sec. 502. Regulations.
TITLE VI--EMERGENCY DESIGNATION
Sec. 601. Emergency designation.
SEC. 2. DEFINITIONS.
In this Act:
(1) Additional coverage.--The term ``additional coverage''
has the meaning given the term in section 502(b)(1) of the
Federal Crop Insurance Act (7 U.S.C. 1502(b)(1)).
(2) Disaster county.--The term ``disaster county'' means--
(A) a county included in the geographic area
covered by a natural disaster declaration; and
(B) each county contiguous to a county described in
subparagraph (A).
(3) Hurricane-affected county.--The term ``hurricane-
affected county'' means--
(A) a county included in the geographic area
covered by a natural disaster declaration related to
Hurricane Katrina, Hurricane Rita, Hurricane Wilma, or
a related condition; and
(B) each county contiguous to a county described in
subparagraph (A).
(4) Insurable commodity.--The term ``insurable commodity''
means an agricultural commodity (excluding livestock) for which
the producers on a farm are eligible to obtain a policy or plan
of insurance under the Federal Crop Insurance Act (7 U.S.C.
1501 et seq.).
(5) Livestock.--The term ``livestock'' includes--
(A) cattle (including dairy cattle);
(B) bison;
(C) sheep;
(D) swine; and
(E) other livestock, as determined by the
Secretary.
(6) Natural disaster declaration.--The term ``natural
disaster declaration'' means a natural disaster declared by the
Secretary during calendar year 2005 or 2006 under section
321(a) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1961(a)).
(7) Noninsurable commodity.--The term ``noninsurable
commodity'' means a crop for which the producers on a farm are
eligible to obtain assistance under section 196 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333).
(8) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
TITLE I--AGRICULTURAL PRODUCTION LOSSES
SEC. 101. CROP DISASTER ASSISTANCE.
(a) In General.--The Secretary shall use such sums as are necessary
of funds of the Commodity Credit Corporation to make emergency
financial assistance authorized under this section available to
producers on a farm that have incurred qualifying losses described in
subsection (c).
(b) Administration.--
(1) In general.--Except as provided in paragraph (2), the
Secretary shall make assistance available under this section in
the same manner as provided under section 815 of the
Agriculture, Rural Development, Food and Drug Administration
and Related Agencies Appropriations Act, 2001 (Public Law 106-
387; 114 Stat. 1549A-55), including using the same loss
thresholds for quantity and economic losses as were used in
administering that section, except that the payment rate shall
be 50 percent of the established price, instead of 65 percent.
(2) Noninsured producers.--For producers on a farm that
were eligible to acquire crop insurance for the applicable
production loss and failed to do so or failed to submit an
application for the noninsured assistance program for the loss,
the Secretary shall make assistance in accordance with
paragraph (1), except that the payment rate shall be 35 percent
of the established price, instead of 50 percent.
(c) Qualifying Losses.--Assistance under this section shall be made
available to producers on farms, other than producers of sugar beets,
that incurred qualifying quantity or quality losses for the 2005 or
2006 crop due to damaging weather or any related condition (including
losses due to crop diseases, insects, and delayed harvest), as
determined by the Secretary.
(d) Quality Losses.--
(1) In general.--In addition to any payment received under
subsection (b), the Secretary shall use such sums as are
necessary of funds of the Commodity Credit Corporation to make
payments to producers on a farm described in subsection (a)
that incurred a quality loss for the 2005 or 2006 crop, or
both, of a commodity in an amount equal to the product obtained
by multiplying--
(A) the payment quantity determined under paragraph
(2);
(B)(i) in the case of an insurable commodity, the
coverage level elected by the insured under the policy
or plan of insurance under the Federal Crop Insurance
Act (7 U.S.C. 1501 et seq.); or
(ii) in the case of a noninsurable commodity, the
applicable coverage level for the payment quantity
determined under paragraph (2); by
(C) 50 percent of the payment rate determined under
paragraph (3).
(2) Payment quantity.--For the purpose of paragraph (1)(A),
the payment quantity for quality losses for a crop of a
commodity on a farm shall equal the lesser of--
(A) the actual production of the crop affected by a
quality loss of the commodity on the farm; or
(B)(i) in the case of an insurable commodity, the
actual production history for the commodity by the
producers on the farm under the Federal Crop Insurance
Act (7 U.S.C. 1501 et seq.); or
(ii) in the case of a noninsurable commodity, the
established yield for the crop for the producers on the
farm under section 196 of the Federal Agriculture
Improvement and Reform Act of 1996 (7 U.S.C. 7333).
(3) Payment rate.--
(A) In general.--For the purpose of paragraph
(1)(B), the payment rate for quality losses for a crop
of a commodity on a farm shall be equal to the
difference between (as determined by the applicable
State committee of the Farm Service Agency)--
(i) the per unit market value that the
units of the crop affected by the quality loss
would have had if the crop had not suffered a
quality loss; and
(ii) the per unit market value of the units
of the crop affected by the quality loss.
(B) Factors.--In determining the payment rate for
quality losses for a crop of a commodity on a farm, the
applicable State committee of the Farm Service Agency
shall take into account--
(i) the average local market quality
discounts that purchasers applied to the
commodity during the first 2 months following
the normal harvest period for the commodity;
(ii) the loan rate and repayment rate
established for the commodity under the
marketing loan program established for the
commodity under subtitle B of title I of the
Farm Security and Rural Investment Act of 2002
(7 U.S.C. 7931 et seq.);
(iii) the market value of the commodity if
sold into a secondary market; and
(iv) other factors determined appropriate
by the committee.
(4) Eligibility.--
(A) In general.--For producers on a farm to be
eligible to obtain a payment for a quality loss for a
crop under this subsection--
(i) the amount obtained by multiplying the
per unit loss determined under paragraph (1) by
the number of units affected by the quality
loss shall be reduced by the amount of any
indemnification received by the producers on
the farm for quality loss adjustment for the
commodity under a policy or plan of insurance
under the Federal Crop Insurance Act (7 U.S.C.
1501 et seq.); and
(ii) the remainder shall be at least 25
percent of the value that all affected
production of the crop would have had if the
crop had not suffered a quality loss.
(B) Ineligibility.--If the amount of a quality loss
payment for a commodity for the producers on a farm
determined under this paragraph is equal to or less
than zero, the producers on the farm shall be
ineligible for assistance for the commodity under this
subsection.
(5) Eligible production.--The Secretary shall carry out
this subsection in a fair and equitable manner for all eligible
production, including the production of fruits and vegetables,
other specialty crops, and field crops.
(e) Timing.--
(1) In general.--Subject to paragraph (2), the Secretary
shall make payments to producers on a farm for a crop under
this section not later than 60 days after the date the
producers on the farm submit to the Secretary a completed
application for the payments.
(2) Interest.--If the Secretary does not make payments to
the producers on a farm by the date described in paragraph (1),
the Secretary shall pay to the producers on a farm interest on
the payments at a rate equal to the current (as of the sign-up
deadline established by the Secretary) market yield on
outstanding, marketable obligations of the United States with
maturities of 30 years.
SEC. 102. LIVESTOCK ASSISTANCE.
(a) Livestock Compensation Program.--
(1) Use of commodity credit corporation funds.--Effective
beginning on the date of enactment of this Act, the Secretary
shall use funds of the Commodity Credit Corporation to carry
out the 2002 Livestock Compensation Program announced by the
Secretary on October 10, 2002 (67 Fed. Reg. 63070), to provide
compensation for livestock losses during calendar years 2005
and 2006 for losses due to a disaster, as determined by the
Secretary, except that the payment rate shall be 75 percent of
the payment rate established for the 2002 Livestock
Compensation Program.
(2) Eligible applicants.--In carrying out the program
described in paragraph (1), the Secretary shall provide
assistance to any applicant for livestock losses during
calendar year 2005 or 2006, or both, that--
(A)(i) conducts a livestock operation that is
located in a disaster county, including any applicant
conducting a livestock operation with eligible
livestock (within the meaning of the livestock
assistance program under section 101(b) of division B
of Public Law 108-324 (118 Stat. 1234)); or
(ii) produces an animal described in section
10806(a)(1) of the Farm Security and Rural Investment
Act of 2002 (21 U.S.C. 321d(a)(1));
(B) demonstrates to the Secretary that the
applicant suffered a material loss of pasture or hay
production, or experienced substantially increased feed
costs, due to damaging weather or a related condition
during the calendar year, as determined by the
Secretary; and
(C) meets all other eligibility requirements
established by the Secretary for the program.
(3) Mitigation.--In determining the eligibility for or
amount of payments for which a producer is eligible under the
livestock compensation program, the Secretary shall not
penalize a producer that takes actions (recognizing disaster
conditions) that reduce the average number of livestock the
producer owned for grazing during the production year for which
assistance is being provided.
(b) Livestock Indemnity Payments.--
(1) In general.--The Secretary shall use such sums as are
necessary of funds of the Commodity Credit Corporation to make
livestock indemnity payments to producers on farms that have
incurred livestock losses during calendar years 2005 and 2006
for losses that occurred prior to the date of enactment of this
Act (including wildfire disaster losses in the State of Texas
and other States) due to a disaster, as determined by the
Secretary, including losses due to hurricanes, floods, anthrax,
and wildfires.
(2) Payment rates.--Indemnity payments to a producer on a
farm under paragraph (1) shall be made at a rate of not less
than 30 percent of the market value of the applicable livestock
on the day before the date of death of the livestock, as
determined by the Secretary.
(c) Ewe Lamb Replacement and Retention.--
(1) In general.--The Secretary shall use $13,000,000 of
funds of the Commodity Credit Corporation to make payments
under the Ewe Lamb Replacement and Retention Payment Program
under part 784 of title 7, Code of Federal Regulations (or a
successor regulation) for each qualifying ewe lamb retained or
purchased during the period beginning on January 1, 2006, and
ending on December 31, 2006.
(2) Ineligibility for other assistance.--A producer that
receives assistance under this subsection shall not be eligible
to receive assistance under subsection (a).
SEC. 103. FLOODED CROP AND GRAZING LAND.
(a) In General.--The Secretary shall compensate eligible owners of
flooded crop and grazing land in--
(1) the Devils Lake basin; and
(2) the McHugh, Lake Laretta, and Rose Lake closed drainage
areas of the State of North Dakota.
(b) Eligibility.--
(1) In general.--To be eligible to receive compensation
under this section, an owner shall own land described in
subsection (a) that, during the 2 crop years preceding receipt
of compensation, was rendered incapable of use for the
production of an agricultural commodity or for grazing purposes
(in a manner consistent with the historical use of the land) as
the result of flooding, as determined by the Secretary.
(2) Inclusions.--Land described in paragraph (1) shall
include--
(A) land that has been flooded;
(B) land that has been rendered inaccessible due to
flooding; and
(C) a reasonable buffer strip adjoining the flooded
land, as determined by the Secretary.
(3) Administration.--The Secretary may establish--
(A) reasonable minimum acreage levels for
individual parcels of land for which owners may receive
compensation under this section; and
(B) the location and area of adjoining flooded land
for which owners may receive compensation under this
section.
(c) Sign-Up.--The Secretary shall establish a sign-up program for
eligible owners to apply for compensation from the Secretary under this
section.
(d) Compensation Payments.--
(1) In general.--Subject to paragraphs (2) and (3), the
rate of an annual compensation payment under this section shall
be equal to 90 percent of the average annual per acre rental
payment rate (at the time of entry into the contract) for
comparable crop or grazing land that has not been flooded and
remains in production in the county where the flooded land is
located, as determined by the Secretary.
(2) Reduction.--An annual compensation payment under this
section shall be reduced by the amount of any conservation
program rental payments or Federal agricultural commodity
program payments received by the owner for the land during any
crop year for which compensation is received under this
section.
(3) Exclusion.--During any year in which an owner receives
compensation for flooded land under this section, the owner
shall not be eligible to participate in or receive benefits for
the flooded land under--
(A) the Federal crop insurance program established
under the Federal Crop Insurance Act (7 U.S.C. 1501 et
seq.);
(B) the noninsured crop assistance program
established under section 196 of the Federal
Agriculture Improvement and Reform Act of 1996 (7
U.S.C. 7333); or
(C) any Federal agricultural crop disaster
assistance program.
(e) Relationship to Agricultural Commodity Programs.--The
Secretary, by regulation, shall provide for the preservation of
cropland base, allotment history, and payment yields applicable to land
described in subsection (a) that was rendered incapable of use for the
production of an agricultural commodity or for grazing purposes as the
result of flooding.
(f) Use of Land.--
(1) In general.--An owner that receives compensation under
this section for flooded land shall take such actions as are
necessary to not degrade any wildlife habitat on the land that
has naturally developed as a result of the flooding.
(2) Recreational activities.--To encourage owners that
receive compensation for flooded land to allow public access to
and use of the land for recreational activities, as determined
by the Secretary, the Secretary may--
(A) offer an eligible owner additional
compensation; and
(B) provide compensation for additional acreage
under this section.
(g) Funding.--
(1) In general.--The Secretary shall use $6,000,000 of
funds of the Commodity Credit Corporation to carry out this
section.
(2) Pro-rated payments.--In a case in which the amount made
available under paragraph (1) for a fiscal year is insufficient
to compensate all eligible owners under this section, the
Secretary shall pro-rate payments for that fiscal year on a per
acre basis.
SEC. 104. SUGAR BEET DISASTER ASSISTANCE.
(a) In General.--The Secretary shall use $24,000,000 of funds of
the Commodity Credit Corporation to provide assistance to sugar beet
producers that suffered production losses (including quality losses)
for the 2005 crop year.
(b) Requirement.--The Secretary shall make payments under
subsection (a) in the same manner as payments were made under section
208 of the Agricultural Assistance Act of 2003 (Public Law 108-7; 117
Stat. 544), including using the same indemnity benefits as were used in
carrying out that section.
(c) Hawaii.--The Secretary shall use $6,000,000 of funds of the
Commodity Credit Corporation to assist sugarcane growers in Hawaii by
making a payment in that amount to an agricultural transportation
cooperative in Hawaii, the members of which are eligible to obtain a
loan under section 156(a) of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7272(a)).
SEC. 105. BOVINE TUBERCULOSIS HERD INDEMNIFICATION.
The Secretary shall use $2,000,000 of funds of the Commodity Credit
Corporation to indemnify producers that suffered losses to herds of
cattle due to bovine tuberculosis during calendar year 2005.
SEC. 106. REDUCTION IN PAYMENTS.
The amount of any payment for which a producer is eligible under
this title shall be reduced by any amount received by the producer for
the same loss or any similar loss under--
(1) the Department of Defense, Emergency Supplemental
Appropriations to Address Hurricanes in the Gulf of Mexico, and
Pandemic Influenza Act, 2006 (Public Law 109-148; 119 Stat.
2680);
(2) an agricultural disaster assistance provision contained
in the announcement of the Secretary on January 26, 2006, or
August 29, 2006;
(3) the Emergency Supplemental Appropriations Act for
Defense, the Global War on Terror, and Hurricane Recovery, 2006
(Public Law 109-234; 120 Stat. 418); or
(4) the Livestock Assistance Grant Program announced by the
Secretary on August 29, 2006.
TITLE II--SMALL BUSINESS ECONOMIC LOSS GRANT PROGRAM
SEC. 201. SMALL BUSINESS ECONOMIC LOSS GRANT PROGRAM.
(a) Definition of Qualified State.--In this section, the term
``qualified State'' means a State in which at least 50 percent of the
counties of the State were declared to be primary agricultural disaster
areas by the Secretary in at least 2 of crop years 2004, 2005, and
2006.
(b) Grants to Qualified States.--
(1) In general.--The Secretary shall use $300,000,000 of
funds of the Commodity Credit Corporation to make grants to
State departments of agriculture or comparable State agencies
in qualified States.
(2) Amount.--
(A) In general.--Subject to subparagraph (B), the
Secretary shall allocate grants among qualified States
described in paragraph (1) based on the average value
of agricultural sector production in the qualified
State, determined as a percentage of the gross domestic
product of the qualified State.
(B) Minimum amount.--The minimum amount of a grant
under this subsection shall be $3,000,000.
(3) Requirement.--To be eligible to receive a grant under
this subsection, a qualified State shall agree to carry out an
expedited disaster assistance program to provide direct
payments to qualified small businesses in accordance with
subsection (c).
(c) Direct Payments to Qualified Small Businesses.--
(1) In general.--In carrying out an expedited disaster
assistance program described in subsection (b)(3), a qualified
State shall provide direct payments to eligible small
businesses in the qualified State that suffered material
economic losses in at least 2 of crop years 2004, 2005, and
2006 as a direct result of weather-related agricultural losses
to the crop or livestock production sectors of the qualified
State, as determined by the Secretary.
(2) Eligibility.--
(A) In general.--To be eligible to receive a direct
payment under paragraph (1), a small business shall--
(i) have less than $5,000,000 in average
annual gross income from all business
activities, at least 75 percent of which shall
be directly related to production agriculture
or agriculture support industries, as
determined by the Secretary;
(ii) verify the amount of economic loss
attributable to weather-related agricultural
losses using such documentation as the
Secretary and the head of the qualified State
agency may require;
(iii) have suffered losses attributable to
weather-related agricultural disasters that
equal at least 50 percent of the total economic
loss of the small business for each year a
grant is requested; and
(iv) demonstrate that the grant will
materially improve the likelihood the business
will--
(I) recover from the disaster; and
(II) continue to service and
support production agriculture.
(3) Requirements.--A direct payment to small business under
this subsection shall--
(A) be limited to not more than 2 years of
documented losses;
(B) be in an amount of not more than 75 percent of
the documented average economic loss attributable to
weather-related agriculture disasters for each eligible
year in the qualified State; and
(C) not exceed $80,000 per grant per year.
(4) Insufficient funding.--If the grant funds received by a
qualified State agency under subsection (b) are insufficient to
fund the direct payments of the qualified State agency under
this subsection, the qualified State agency may apply a
proportional reduction to all of the direct payments.
TITLE III--CONSERVATION
SEC. 301. EMERGENCY CONSERVATION PROGRAM.
The Secretary shall use an additional $30,000,000 of funds of the
Commodity Credit Corporation to carry out emergency measures, including
wildfire recovery efforts in Montana and other States, identified by
the Administrator of the Farm Service Agency as of the date of
enactment of this Act through the emergency conservation program
established under title IV of the Agricultural Credit Act of 1978 (16
U.S.C. 2201 et seq.).
SEC. 302. EMERGENCY WATERSHED PROTECTION PROGRAM.
The Secretary shall use an additional $70,000,000 of funds of the
Commodity Credit Corporation to carry out emergency measures identified
by the Chief of the Natural Resources Conservation Service as of the
date of enactment of this Act through the emergency watershed
protection program established under section 403 of the Agricultural
Credit Act of 1978 (16 U.S.C. 2203).
SEC. 303. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.
The Secretary shall use an additional $200,000,000 of funds of the
Commodity Credit Corporation to carry out emergency measures identified
by the Secretary through the environmental quality incentives program
established under chapter 4 of subtitle D of title XII of the Food
Security Act of 1985 (16 U.S.C. 3839aa et seq.), of which not less than
$50,000,000 shall be used to carry out wildfire recovery efforts
(including in Montana and other States).
TITLE IV--FARM SERVICE AGENCY
SEC. 401. FUNDING FOR ADDITIONAL PERSONNEL.
The Secretary shall use $20,000,000 of funds of the Commodity
Credit Corporation to hire additional County Farm Service Agency
personnel--
(1) to expedite the implementation of, and delivery under,
the agricultural disaster and economic assistance programs
under this Act; and
(2) as the Secretary determines to be necessary to carry
out other agriculture and disaster assistance programs.
TITLE V--MISCELLANEOUS
SEC. 501. FUNDING.
The Secretary shall use the funds, facilities, and authorities of
the Commodity Credit Corporation to carry out this Act, to remain
available until expended.
SEC. 502. REGULATIONS.
(a) In General.--The Secretary may promulgate such regulations as
are necessary to implement this Act.
(b) Procedure.--The promulgation of the regulations and
administration of this Act shall be made without regard to--
(1) the notice and comment provisions of section 553 of
title 5, United States Code;
(2) the Statement of Policy of the Secretary of Agriculture
effective July 24, 1971 (36 Fed. Reg. 13804), relating to
notices of proposed rulemaking and public participation in
rulemaking; and
(3) chapter 35 of title 44, United States Code (commonly
known as the ``Paperwork Reduction Act'').
(c) Congressional Review of Agency Rulemaking.--In carrying out
this section, the Secretary shall use the authority provided under
section 808 of title 5, United States Code.
TITLE VI--EMERGENCY DESIGNATION
SEC. 601. EMERGENCY DESIGNATION.
The amounts provided under this Act are designated as an emergency
requirement pursuant to section 402 of H. Con. Res. 95 (109th
Congress).
<all>
Introduced in Senate
Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry.
Sponsor introductory remarks on measure. (CR S10565, S10568, S10568-10569, S10569)
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