HomeMy WebLinkAbout142 - 01/15/2013 - REPEALING AND REENACTING CHAPTER 15, ARTICLE XVI OF THE CITY CODE IN ACCORDANCE WITH A VOTER APPROVE ORDINANCE NO. 142, 2012
OF THE COUNCIL OF THE CITY OF FORT COLLINS
REPEALING AND REENACTING CHAPTER 15, ARTICLE XVI
OF THE CODE OF THE CITY OF FORT COLLINS
IN ACCORDANCE WITH A VOTER APPROVED CITIZEN-INITIATED
ORDINANCE GOVERNING THE LICENSING, NUMBER, LOCATION
AND OPERATION OF MEDICAL MARIJUANA BUSINESSES
WHEREAS, in 2010 and 2011, the City Council adopted a series of ordinances
establishing and revising a comprehensive system for licensing and regulating medical marijuana
businesses in the City; and
WHEREAS, a majority of the registered electors of the City that cast votes in the
November 1, 2011 City election approved a citizen-initiated ordinance banning medical
marijuana businesses in the City limits, with the ban to take effect 90 days after the date of
certification of the results of the election; and
WHEREAS, on November 16, 2011, the results of the City's special election were
certified; and
WHEREAS, under the citizen-initiated ordinance, the date of certification established the
date by which all medical marijuana businesses were required to cease operation within the City
as February 14, 2012, at midnight; and
WHEREAS, Article 11, Section 9 of the City Charter requires that all permanent
ordinances of the City be codified; and
WHEREAS, accordingly, on February 21, 2012, the City Council repealed and reenacted
Chapter 15, Article XVI of the Code, consistent with the wishes of the registered electors; and
WHEREAS, at the November 6, 2012 City election, a majority of the registered electors
of the City that cast votes approved another citizen-initiated ordinance that reinstated medical
marijuana businesses in the City, with the new ordinance to take effect upon certification of the
election results, no later than November 26, 2012; and
WHEREAS, in accordance with Article 11, Section 9 of the City Charter, staff
recommends that the City Council repeal and reenact Chapter 15, Article XVI of the Code,
consistent with the wishes of the registered electors.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
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Section 1. That Sections 15-450 through 15-452 of Article XVI, Chapter 15 of the
Code of the City of Fort Collins are hereby repealed and the following sections are reenacted to
read as follows:
ARTICLE XVI
MEDICAL MARIJUANA
DIVISION 1. IN GENERAL
Sec. 15-450. Purpose
The purpose of this Article is to implement the provisions of Article 43.3 of
Title 12, C.R.S., known as the Colorado Medical Marijuana Code.
Sec. 15-451. Incorporation of state law.
The provisions of the Colorado Medical Marijuana Code, and any rules and
regulations promulgated thereunder, are incorporated herein by reference except
to the extent that more restrictive or additional regulations are set forth in this
Article.
Sec. 15-452. Definitions.
(a) The following words, terms and phrases, when used in this Article, shall have
the meanings ascribed to them in this Section:
Applicant shall mean any person or entity who has submitted an application for a
license or renewal of a license issued pursuant to this Article. If the applicant is an
entity and not a natural Person, applicant shall include all persons who are the
members, managers, officers, directors and shareholders of such entity
Colorado Medical Marijuana Code shall mean Title 12, Article 43.3 of the
Colorado Revised Statutes and any rules or regulations promulgated thereunder.
Cultivation or cultivate shall mean the process by which a person grows a
marijuana plant.
Financial interest shall mean any ownership interest, including, without
limitation, a membership, directorship or officership; or any creditor interest,
whether or not such interest is evidenced by any written document.
License shall mean a document issued by the City officially authorizing an
applicant to operate a medical marijuana business pursuant to this Article.
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Licensee shall mean the person to whom a license has been issued pursuant to this
Article.
Medical marijuana business or business shall mean a medical marijuana center,
optional premises cultivation operation, or medical marijuana-infused products
manufacturer as defined in the Colorado Medical Marijuana Code.
Medical marijuana paraphernalia or paraphernalia shall mean devices,
contrivances, instruments and paraphernalia for inhaling or otherwise consuming
medical marijuana, including, but not limited to, rolling papers, related tools,
water pipes and vaporizers.
Minor patient shall mean a patient less than eighteen (18) years of age.
Place of worship or religious assembly shall mean a building containing a hall,
auditorium or other suitable room used for the purpose of conducting religious
services or meetings of the occupants of such structure.
(b) In addition to the definitions contained in Subsection.(a) of this Section, other
terms used in this Article shall have the meaning ascribed to them in Article
XVIII, Section 14 of the Colorado Constitution or the Colorado Medical
Marijuana Code, and such definitions are hereby incorporated into this Article by
this reference.
Secs. 15-453-15-460. Reserved.
DIVISION 2. MEDICAL MARIJUANA LICENSING AUTHORITY
Sec. 15-461. Creation.
There shall be and is hereby created a Medical Marijuana Licensing Authority,
hereafter referred to in this Article as the "Authority".
Sec. 15-462. Composition.
The Authority shall be a person appointed by the City Manager.
Sec. 15-463. Functions.
(a) The Authority shall have the duty and authority pursuant to the Colorado
Medical Marijuana Code and this Article to grant or refuse licenses; to grant or
refuse transfers of ownership or location of the license; and levy penalties against
licensees in the manner provided by law.
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(b) The Authority shall have all the powers of a Local Licensing Authority as set
forth in the Colorado Medical Marijuana Code.
(c) The Authority shall have the power to promulgate rules and regulations
concerning the procedures for hearings before the Authority.
(d) The Authority shall have the power to require any applicant or licensee to
furnish any relevant information required by the Authority.
(e) The Authority shall have the power to administer oaths and issue subpoenas to
require the presence of persons and the production of papers, books and records at
any hearing which the Authority is authorized to conduct. Any such subpoena
shall be served in the same manner as a subpoena issued by the District Court of
the State.
Sees. 15-464-15-470. Reserved.
DIVISION 3. LICENSES, PEES, REGULATIONS AND PROCEDURES
Sec. 15-471. License required.
It shall be unlawful for any person to establish or operate a medical marijuana
business in the City without first having obtained from the City and the State a
license for each facility to be operated in connection with such business. Such
license shall be kept current at all times, and the failure to maintain a current
license shall constitute a violation of this Section.
Sec. 15-472. Requirements of application for license; payment of application
fee; denial of license.
(a) A person seeking a license pursuant to the Colorado Medical Marijuana Code
and the provisions of this Article shall submit an application to the City on forms
provided by the State and City. At the time of application, each applicant shall
pay a nonrefundable application fee to defray the costs incurred by the City for
background investigations and inspection of the proposed premises, as well as any
other costs associated with the processing of the application. In addition, the
applicant shall present a suitable form of identification.
The applicant shall also provide the following information on a form approved by,
or acceptable to, the Authority, which information may be required for the
applicant, the proposed manager of the medical marijuana business, and all
persons having a financial interest in the medical marijuana business that is the
subject of the application or, if the applicant is an entity, having a financial
interest in the entity:
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(1) name, address, date of birth;
(2) an acknowledgment and consent that the City may conduct a background
investigation, including a criminal history check and that the City will be entitled
to full and complete disclosure of all financial records of the medical marijuana
business, including records of deposit, withdrawals, balances and loans;
(3) if the applicant is a business entity, information regarding the entity,
including, without limitation, the name and address of the entity, its legal status,
and proof of registration with, or a certificate of good standing from, the Colorado
Secretary of State, as applicable;
(4) if the applicant is not the owner of the proposed licensed premises, a notarized
statement from the owner of such property authorizing the use of the property for
a medical marijuana business;
(5) a copy of any deed reflecting the applicant's ownership of, or lease reflecting
the right of the applicant to possess, the proposed licensed premises;
(6) evidence of a valid City and state sales tax license for the business;
•(7) a "to scale" diagram of the proposed licensed premises, no larger than 11" x
17", showing, without limitation, building layout, all entry ways and exits to the
proposed licensed premises, loading zones and all areas in which medical
marijuana will be stored, grown, manufactured or dispensed;
(8) a comprehensive business operation plan for the medical marijuana business
which shall contain, at a minimum, the following:
a. a security plan meeting the requirements of§ 15-479 of this Article,
b. a description of all products to be sold,
c. a plan for exterior signage that is in compliance with all applicable
requirements of this Code and the Land Use Code, including photographs and/or
illustrations of proposed signage; and
(9) any additional information that the City Manager reasonably determines to be
necessary in connection with the investigation and review of the application.
(b) All medical marijuana businesses shall obtain other required permits of
licenses related to the operation of the medical marijuana business, including,
without limitation, any development approvals or building permits required by
this Code and the Land Use Code.
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(c) Upon receipt of a completed application, the City Manager may circulate the
application to all affected service areas and departments of the City to determine
whether the application is in full compliance with all applicable laws, rules and
regulations.
(d) The City may, prior to issuance of the license, perform an inspection of the
proposed licensed premises to determine compliance with any applicable
requirements of this Article or other provisions of this Code or the Land Use
Code.
Sec. 15-473. Denial of application.
The Authority may deny any application that does not meet the requirements of
the Colorado Medical Marijuana Code or this Article. The Authority may deny
any application that contains any false, misleading or incomplete information.
Sec. 15-474. Persons prohibited as licensees.
No license shall be issued to, held by, or renewed by any of the following:
(1) any natural person who has been released within the ten (10) years
immediately preceding the application from any form of incarceration or court-
ordered supervision, including a deferred sentence, resulting from a conviction of
any felony or any crime which under the laws of the State would be a felony; or
any crime of which fraud or intent to defraud was an element, whether in the State
or elsewhere; or any felonious crime of violence, whether in the State or
elsewhere;
(2) any entity whose directors, shareholders, members, partners or any other
person with a financial interest in the entity, have been convicted of any of the .
offenses set forth in Paragraph (1) above;
(3) any applicant who has made a false, misleading or fraudulent statement, or
who has intentionally omitted pertinent information, on his or her application for
a license;
Sec. 15-475. Location and Selection Criteria.
(a) No medical marijuana center shall be issued a license if, at the time of
application for such license, the proposed location is:
(1) within one thousand (1,000) feet of any private or public preschool,
elementary, secondary, vocational or trade school, college or university;
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(2) within one thousand (1,000) feet of any public playground;
(3) within five hundred (500) feet of:
a. any child care center,
b. any place of worship or religious assembly,
c. any public park, pool, or recreation facility,
e. any juvenile or adult halfway house, correctional facility or substance abuse
rehabilitation or treatment center, or
(4) within the boundaries of any R-U-L, U-E, R-F, R-L, L-M-N, M-M- N, N-C-
L,N-C-M, N-C-B or H-M-N residential zone district;
(5) in a residential unit, except as permitted under Section 3.8.3 of the Land Use
Code.
(b) The location criteria contained in subsection (a) of this Section shall apply to
all proposed changes in the location of an existing license.
(c) The distances described in Subsection (a) above shall be computed by direct
measurement in a straight line from the nearest property line of the land used for
the purposes stated in Paragraphs (a)(1), (a)(2) and (a)(3) above to the nearest
portion of the building or unit in which the medical marijuana center is located.
(d) No medical marijuana center shall be issued a license if, at the time of
application for such license, there is more than one Fort Collins Medical
Marijuana Center License per 500 registered medical marijuana patients in
Larimer county according to the Colorado Department of Public Health and
Environment. This subsection (d) shall not affect renewals.
(e) Subsection (a) shall not apply to a business that received a Fort Collins
Medical Marijuana Center License prior to November 1", 2011, if the business is
proposed to be located on the same parcel they were licensed to operate on prior
to November 1", 2011, and the business applies for a license pursuant to this Code
within 90 days of the application being made publicly available. The intent of this
subsection (e) is to permit previously licensed medical marijuana centers to apply
for and receive a license regardless of the location criteria of this Section.
(1) Subsection (d) shall not apply to a business that received a Fort Collins
Medical Marijuana Center License prior to November 1st, 2011, if the business
applies for a license pursuant to this Code within 90 days of the application being
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made publicly available. The intent of this subsection (f) is to permit previously
licensed medical marijuana centers to apply for and receive a license regardless of
the number of medical marijuana center licenses then issued by the City.
Sec. 15-476. Inspection fee.
(a) Upon issuance of a license, and upon renewal thereafter, the licensee shall pay
to the City a fee in an amount determined by the City Manager to be sufficient to
cover the cost of inspections conducted pursuant to this Article.
(b) The inspection fee required under Subsection (a) of this Section shall be due
and payable prior to or upon issuance of each license and upon the renewal of any
such license and shall not be refundable.
Sec. 15-477. Signage and advertising.
All signage and advertising for a medical marijuana center shall comply with all
applicable provisions of this Code and the Land Use Code.
(a) In addition, it shall be unlawful for any licensee to:
a. Use signage or advertising with the word "marijuana" or 'cannabis" or
any other word, phrase or symbol commonly understood to refer to marijuana
unless such word, phrase or symbol is immediately preceded by the word
"medical" in type and font that is at least as readily discernible as all other words,
phrases or symbols;
b. Use advertising materials that is misleading, deceptive, or false or that, as
evidenced by the content of the advertising material or by the medium or the
manner in which the advertising material is disseminated, is designed to appeal to
minors;
C. Advertise in a manner that is inconsistent with the medicinal use of
medical marijuana or use advertisements that promotes medical marijuana for
recreational or any use other than for medicinal purposes;
d. To advertise with sign-waivers or other natural persons standing in public
within one thousand (1,000) feet of the license premise;
e. To advertise any medical marijuana or medical marijuana product in a
publicly visible location within one thousand (1,000) feet of any public park or
recreation center or any school.
(b) The prohibition set forth in subsection (e) shall not apply to:
a. Any sign located upon the building in which a licensed medical marijuana
center is located which exists solely for the purpose of identifying the business
and which otherwise complies with the Land Use Code and this Article; or
b. Any advertising contained solely within a newspaper magazine, or other
periodical or publication distributed through news rack, newsstand or similar
fixed location.
(c) The prohibition's set forth in this Section shall not apply to political
speech or any signage advocating the passage or defeat of a city or state ballot
measure.
(d) Violation of this Section shall result in a $100 fine per day per violation.
Such fine shall be levied on the licensee by the Authority upon the Authority
finding by a preponderance of the evidence a violation of this Section. Repeated
and continuous failure to comply with the requirements of this Section shall be
considered by the Authority in any action relating to the issuance, revocation,
suspension or nonrenewal of a license
Sec. 15-478. Warning signs.
The Authority may require any reasonable warning signs to be posted in a
conspicuous location in each medical marijuana center.
Sec. 15-479. Security requirements.
Security measures at all licensed premises shall comply with the requirements of
the Colorado Medical Marijuana Code and all applicable rules and regulations
promulgated thereunder.
Sec. 15-480. Report of disturbances and unlawful activity.
(a) All licensees and any agent, manager or employee thereof, shall immediately
report to Police Services any disorderly act, conduct or disturbance and any
unlawful activity committed in or on the licensed premises, including, but not
limited to, any unlawful resale of medical marijuana, and shall also immediately
report any such activity in the immediate vicinity of the business.
(b) Each licensee shall post and keep at all times visible to the public in a
conspicuous place on the premises, a sign with a minimum height of fourteen (14)
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inches and a minimum width of eleven (I1) inches with each letter to be a
minimum of one-half(%) inch in height, which shall read as follows:
WARNING:
Fort Collins Police Services must be notified of all disorderly acts, conduct or
disturbances and all unlawful activities which occur on or within
the premises of this licensed establishment.
(c) It shall not be a defense to a prosecution of a licensee under this Section that
the licensee was not personally present on the premises at the time such unlawful
activity, disorderly act, conduct or disturbance was committed; however, no
agent, servant or employee of the licensee shall be personally responsible for
failing to report any disorderly act; conduct or disturbance and any unlawful
activity hereunder if such agent, servant or employee was absent from the
premises at the time such activity was committed.
(d) Failure to comply with the requirements of this Section shall be considered by
the Authority in any action relating to the issuance, revocation, suspension or
nonrenewal of a license.
See. 15-482. Labeling.
All medical marijuana sold or otherwise distributed by the licensee shall be
labeled in a manner that complies with the requirements of the Colorado Medical
Marijuana Code and all applicable rules and regulations promulgated thereunder.
Sec. 15-483. Prohibited acts.
(a) It shall be unlawful for any licensee to permit the consumption of alcohol
beverages, as defined in the Colorado Liquor Code, on the licensed premises.
(b) It shall be unlawful for any licensee holding a medical marijuana center
licensed, or for any agent, manager or employee thereof, to:
(1) sell, give, dispense or otherwise distribute medical marijuana or medical
marijuana paraphernalia from any outdoor location;
(2) sell, give, dispense or otherwise distribute to any patient or primary caregiver
who is not a licensee more than two (2) ounces of any usable form of medical
marijuana (excluding medical marijuana-infused products) within any seven-day
period of time;
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(c) It shall be unlawful for any optional premises cultivation operation to post or
allow to be posted signs or other advertising materials identifying the premises as
being associated with the cultivation or use of medical marijuana.
(d) It shall be unlawful for any medical marijuana-infused products manufacturer
to post or allow to be posted signs or other advertising materials identifying the
premises as being associated with the production or use of medical marijuana.
Sec. 15-484. Visibility of activities; control of emissions.
(a) All activities of medical marijuana businesses, including, without limitation,
cultivating, growing, processing, displaying, manufacturing, selling and storage,
shall be conducted out of public view.
(b)No medical marijuana or paraphernalia shall be displayed or kept in a business
so as to be visible from outside the licensed premises.
(c) Sufficient measures and means of preventing smoke, odors, debris, dust; fluids
and other substances from exiting a medical marijuana business must be provided
at all times. In the event that any odors, debris, dust, fluids or other substances
exit a medical marijuana business, the owner of the subject premises and the
licensee shall be jointly and severally liable for such conditions and shall be
responsible for immediate, full clean-up and correction of such condition. The
licensee shall properly dispose of all such materials, items and other substances in
a safe, sanitary and secure manner and in accordance with all applicable federal,
state and local laws and regulations.
Sec. 15-485. Sales tax.
Each medical marijuana business shall collect and remit City sales and use tax
on all medical marijuana, paraphernalia and other tangible personal property used
or sold at the licensed premises.
Sec. 15-487. Inspection of licensed premises.
During all business hours and other times of apparent activity, all licensed
premises shall be subject to inspection by Police Services and all other City
departments designated by the City Manager for the purpose of investigating and
determining compliance with the provisions of this Article and any other
applicable state and local laws or regulations.
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'See. 15-488. Nonrenewal, suspension or revocation of license.
(a) The Authority may, after notice and hearing, suspend, revoke or refuse to
renew a license for any of the following reasons:
(1) the applicant or licensee, or his or her agent, manager or employee, has
violated, does not meet, or has failed to comply with, any of the terms,
requirements, conditions or provisions of this Article or with any applicable State
or local law or regulation;
(2) the applicant or licensee, or his or her agent, manager or employee, have failed
to comply with any special terms or conditions of its license pursuant to an order
of the State.or local licensing authority, including those terms and conditions that
were established at the time of issuance of the license and those imposed as a
result of any disciplinary proceedings held subsequent to the date of issuance of
the license; or
(3) the medical marijuana business has been operated in a manner that adversely . .
affects the public health, safety or welfare.
(b) Evidence to support a finding under Subsection (a) of this Section may
include, without limitation, a continuing pattern of disorderly conduct, a
continuing pattern of drug-related criminal conduct within the premises of the
medical marijuana business or in the immediate area surrounding such business, a
continuing pattern of criminal conduct directly related to or arising from the
operation of the medical marijuana business, or an ongoing nuisance condition
emanating from or caused by the medical marijuana business. Criminal conduct
shall be limited to the violation of a state or city law or regulation.
(c) The Authority shall conduct a review of all licenses at least annually and in
addition to examining the factors enumerated in this subsection, may hold a
hearing on each license at which the general public shall be invited to appear and
provide testimony as to the effects of the license on the surrounding community
and the city at large and the Authority may take such views into consideration
when deciding whether to continue or renew such license.
Sec. 15-489. Violations and penalties.
In addition to the possible denial, suspension, revocation or nonrenewal of a
license under the provisions of this Article, any person, including, but not limited
to, any licensee, manager or employee of a medical marijuana business, or any
customer of such business, who violates any of the provisions of this Article, shall
be guilty of a misdemeanor punishable in accordance with § 1-15 of this Code,
unless a different penalty is provided herein.
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See. 15-490. No City liability; indemnification.
(a) By accepting a license issued pursuant to this Article, the licensee waives and
releases the City, its officers, elected officials, employees, attorneys and agents
from any liability for injuries, damages or liabilities of any kind that result from
any arrest or prosecution of business owners, operators, employees, clients or
customers for a violation of State or federal laws, rules or regulations.
(b) By accepting a license issued pursuant to this Article, all licensees,jointly and
severally if more than one (1). agree to indemnify, defend and hold harmless the
City, its officers, elected officials, employees, attorneys, agents, insurers and self-
insurance pool against all liability, claims and demands on account of any injury,
loss or damage, including, without limitation, claims arising from bodily injury,
personal injury, sickness, disease, death, property loss, or damage, or any other
loss of any kind whatsoever arising out of or in any manner connected with the
operation of the medical marijuana business that is the subject of the license.
Sec. 15-491. Other laws remain applicable.
(a) To the extent the State adopts in the future any additional or stricter law or
regulation governing the sale or distribution of medical marijuana, the additional
or stricter regulation shall control the establishment or operation of any medical
marijuana business in the City. Compliance with any applicable state law or
regulation shall be deemed an additional requirement for issuance or denial of any
license under this Article, and noncompliance with any applicable state law or
regulation shall be grounds for revocation or suspension of any license issued
hereunder.
(b) If the State prohibits the sale or other distribution of marijuana through
medical marijuana centers, any license issued hereunder shall be deemed
immediately revoked by operation of law.
Sec. 15-492. Severability.
If any section, sentence, clause, phrase, word or other provision of this Article is
for any reason held to be unconstitutional or otherwise invalid, such holding shall
not affect the validity of the remaining sections, sentences, clauses, phrases,
words or other provisions of this Article or the validity of this Article as an
entirety, it being the legislative intent that this Article shall stand, notwithstanding
the invalidity of any section, sentence, clause, phrase, word or other provision.
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Sec. 15-493. Administrative regulations; Action by Council.
(a) The City Manager is authorized to promulgate such rules and regulations
as are necessary to effectuate the implementation, administration and enforcement
of this Article.
(b) The City Council shall be permitted to lessen any restriction contained in
this Article.
Section 2. Should the City Council refer this Initiated Ordinance Repeal to the
registered electors of the City at a regular or special municipal election, this Initiated Ordinance
Repeal shall take effect immediately upon certification by the designated election official that a
majority of registered electors voted in favor of this Repeal at such regular or special election.
Section 3. If any section, sentence, clause, phrase, word or other provision of this
Ordinance is for any reason held to be unconstitutional or otherwise invalid, such holding shall
not affect the validity of the remaining sections, sentences, clauses, phrases, words or other
provisions of this Ordinance or the validity of this Ordinance as an entirety, it being the
legislative intent that this Article shall stand, notwithstanding the invalidity of any section,
sentence, clause, phrase, word or other provision
Introduced, considered favorably on first reading, and ordered published this 4th day of
December, A.D. 2012, and to be presented for final passage on the 15th day of January, A.D.
2013.
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City Clerk
Passed and adopted on final reading on the 15th day of January, A.D. 2013.
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