0001| SENATE BILL 327
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0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0003| INTRODUCED BY
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0004| BEN D. ALTAMIRANO
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0005|
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0006|
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0007|
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0008| FOR THE LEGISLATIVE FINANCE COMMITTEE
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0009|
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0010| AN ACT
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0011| RELATING TO PUBLIC EMPLOYEES; AUTHORIZING INCENTIVE AWARDS FOR
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0012| EMPLOYEES WHOSE INVESTMENT EXPERTISE SIGNIFICANTLY CONTRIBUTES
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0013| TO INCREASED EARNINGS FROM INVESTMENT OF PUBLIC FUNDS;
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0014| REQUIRING A WRITTEN INCENTIVE AWARD POLICY; AMENDING A SECTION
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0015| OF THE NMSA 1978.
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0016|
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0017| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0018| Section 1. Section 10-7-12 NMSA 1978 (being Laws 1986,
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0019| Chapter 39, Section 1) is amended to read:
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0020| "10-7-12. GOVERNMENT COST SAVINGS OR INCREASED RETURNS
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0021| INCENTIVE AWARD.--
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0022| A. As used in this section:
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0023| (1) "actual cost savings" means realized, not
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0024| projected, cost savings substantiated by documentation;
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0025| (2) "award" means a government cost savings
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0001| incentive award;
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0002| (3) "economy" includes maximizing the
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0003| purchasing value of public funds;
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0004| (4) "efficiency" includes a significant
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0005| reduction in paperwork and the elimination of unnecessary
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0006| rules, regulations and procedures; [and]
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0007| (5) "increased returns" means earnings from
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0008| the investment of public funds that outperform generally
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0009| accepted market indexes for the same or similar types of
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0010| investments; and
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0011| [(5)] (6) "state agency" means any office,
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0012| department, institution, school district, board, commission,
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0013| court, district attorney, council or committee of state
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0014| government which receives appropriations and is authorized
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0015| expenditures pursuant to a general appropriation act.
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0016| B. A state agency may establish a policy to
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0017| provide an award to any employee whose [accomplishment or
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written suggestion beyond the scope of his responsibility]
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0019| extra effort contributes to the efficiency, economy or
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0020| improvement of agency operations and results in actual cost
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0021| savings to the agency or whose investment expertise
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0022| significantly contributes to increased returns from the
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0023| investment of public funds. Any policy established pursuant to
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0024| this subsection shall:
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0025| (1) be in writing;
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0001| (2) provide the amount of the award that
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0002| employees will receive if they achieve certain benchmarks; and
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0003| (3) be approved for legal sufficiency by the
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0004| attorney general.
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0005| C. An award pursuant to this section shall:
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0006| (1) be paid only from [actual cost savings]
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0007| the operating budget of the agency making the award;
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0008| (2) be paid only on the payday immediately
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0009| following the first full pay period succeeding the award or
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0010| immediately prior to separation or transfer from the agency;
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0011| and
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0012| (3) be paid one time [based on actual cost
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savings] in an amount determined in the agency's policy, not
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0014| to exceed the lesser of:
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0015| (a) [two thousand dollars ($2,000)]
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0016| three thousand dollars ($3,000); or
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0017| (b) an amount equal to ten percent of
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0018| the actual cost savings or increased returns attributable to
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0019| the employee in the twelve-month period immediately preceding
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0020| the award or a lesser period preceding the award, if
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0021| appropriate.
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0022| D. Documentation substantiating awards pursuant to
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0023| this section shall be submitted to the state personnel board
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0024| which shall, as necessary or appropriate, prescribe regulations
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0025| and review proposed awards made under this section and
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0001| procedures used in making the awards to verify the cost savings
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0002| for which the awards were made.
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0003| E. The state personnel board shall report by
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0004| September 1 of each year to the legislative finance committee
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0005| all awards paid and savings realized under this [act]
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0006| section."
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0008|
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0009|
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0010| FORTY-THIRD LEGISLATURE
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0011| FIRST SESSION, 1997 SB 327/a
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0012|
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0013|
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0014| February 21, 1997
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0015|
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0016| Mr. President:
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0017|
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0018| Your PUBLIC AFFAIRS COMMITTEE, to whom has been
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0019| referred
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0020|
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0021| SENATE BILL 327
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0022|
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0023| has had it under consideration and reports same with
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0024| recommendation that it DO PASS, amended as follows:
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0025|
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0001| 1. On page 2, line 2, after "the" insert "earnings from the
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0002| investment or".
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0003|
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0004| 2. On page 2, lines 17 and 18, strike "extra effort
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0005| contributes" and insert in lieu thereof "demonstrated exceptional
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0006| efforts, accomplishments or documented suggestions contribute".
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0007|
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0008| 3. On page 2, line 19, after "agency" insert "or
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0009| significant economic gain for state government".
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0010|
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0011| 4. On page 2, line 23, after the semicolon insert "and".
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0012|
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0013| 5. On page 2, line 25, strike "; and" and insert in lieu
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0014| thereof a period, and on page 3, strike all of lines 1 and 2.
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0015|
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0016| 6. On page 3, line 5, before "operating" insert "current
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0017| fiscal year" and before the semicolon insert "upon approval of
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0018| the secretary of finance and administration".,
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0009|
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0010| and thence referred to the FINANCE COMMITTEE.
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0011|
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0012| Respectfully submitted,
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0013|
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0014|
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0015|
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0016|
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0017| __________________________________
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0018| Shannon Robinson, Chairman
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0019|
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0020|
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0021|
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0022| Adopted_______________________ Not
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0023| Adopted_______________________
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0024| (Chief Clerk) (Chief Clerk)
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0025|
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0001|
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0002| Date ________________________
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0003|
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0004|
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0005| The roll call vote was 5 For 0 Against
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0006| Yes: 5
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0007| No: 0
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0008| Excused: Adair, Garcia, Vernon, Smith
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0009| Absent: None
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0013|
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0014|
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0015| S0327PA1 .117203.2
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0016|
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0017|
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0018|
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0019|
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0020|
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0021| FORTY-THIRD LEGISLATURE
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0022| FIRST SESSION, 1997
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0023|
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0024|
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0025| February 26, 1997
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0001|
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0002| Mr. President:
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0003|
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0004| Your FINANCE COMMITTEE, to whom has been referred
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0005|
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0006| SENATE BILL 327, as amended
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0007|
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0008| has had it under consideration and reports same with
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0009| recommendation that it DO PASS.
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0010|
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0011| Respectfully submitted,
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0012|
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0013|
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0014|
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0015|
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0016| __________________________________
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0017| Ben D. Altamirano, Chairman
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0018|
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0019|
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0020|
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0021| Adopted_______________________ Not
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0022| Adopted_______________________
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0023| (Chief Clerk) (Chief Clerk)
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0024|
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0025|
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0001|
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0002| Date ________________________
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0003|
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0004|
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0005| The roll call vote was 7 For 0 Against
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0006| Yes: 7
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0007| No: None
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0008| Excused: Aragon, Campos, Lyons, McKibben
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0009| Absent: None
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0010|
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0011|
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0012| S0327FC1
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