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First Substitute H.B. 223

Representative Gage Froerer proposes the following substitute bill:


             1     
ALCOHOLIC BEVERAGE CONTROL ACT AND

             2     
LICENSES

             3     
2010 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Gage Froerer

             6     
Senate Sponsor: ____________

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill modifies the Alcoholic Beverage Control Act to address the number of certain
             11      licenses the Alcoholic Beverage Control Commission may issue.
             12      Highlighted Provisions:
             13          This bill:
             14          .    modifies the restriction on the number of restaurant liquor licenses that may be
             15      issued;
             16          .    modifies the restriction on the number of limited restaurant licenses that may be
             17      issued;
             18          .    modifies the restriction on the number of tavern on-premise beer licenses that may
             19      be issued; and
             20          .    makes technical and conforming amendments.
             21      Monies Appropriated in this Bill:
             22          None
             23      Other Special Clauses:
             24          None
             25      Utah Code Sections Affected:


             26      AMENDS:
             27          32A-4-101, as last amended by Laws of Utah 2009, Chapter 383
             28          32A-4-302, as last amended by Laws of Utah 2009, Chapter 383
             29          32A-10-201, as last amended by Laws of Utah 2009, Chapter 383
             30     
             31      Be it enacted by the Legislature of the state of Utah:
             32          Section 1. Section 32A-4-101 is amended to read:
             33           32A-4-101. Commission's power to grant licenses -- Limitations.
             34          (1) Before a restaurant may sell or allow the consumption of liquor on its premises, it
             35      shall first obtain a license from the commission as provided in this part.
             36          (2) The commission may grant restaurant liquor licenses for the purpose of establishing
             37      restaurant liquor outlets at places and in numbers it considers proper for the storage, sale, and
             38      consumption of liquor on premises operated as public restaurants.
             39          (3) (a) Subject to the other provisions of this Subsection (3) and Subsection
             40      32A-4a-201 (2), the total number of restaurant liquor licenses may not at any time aggregate
             41      more than that number determined by dividing the population of the state by [5,200] 5,000.
             42          (b) For purposes of this Subsection (3), population shall be determined by:
             43          (i) the most recent United States decennial or special census; or
             44          (ii) another population determination made by the United States or state governments.
             45          (c) (i) The commission may grant seasonal restaurant liquor licenses established in
             46      areas the commission considers necessary.
             47          (ii) A seasonal restaurant liquor license shall be for a period of six consecutive months.
             48          (iii) A restaurant liquor license granted for operation during a summer time period is
             49      known as a "Seasonal A" restaurant liquor license. The period of operation for a "Seasonal A"
             50      restaurant liquor license shall:
             51          (A) begin on May 1; and
             52          (B) end on October 31.
             53          (iv) A restaurant liquor license granted for operation during a winter time period is
             54      known as a "Seasonal B" restaurant liquor license. The period of operation for a "Seasonal B"
             55      restaurant liquor license shall:
             56          (A) begin on November 1; and


             57          (B) end on April 30.
             58          (v) In determining the number of restaurant liquor licenses that the commission may
             59      issue under this section:
             60          (A) a seasonal license is counted as one-half of one restaurant liquor license; and
             61          (B) each "Seasonal A" license shall be paired with a "Seasonal B" license.
             62          (d) (i) If the location, design, and construction of a hotel may require more than one
             63      restaurant liquor sales location within the hotel to serve the public convenience, the
             64      commission may authorize the sale of liquor at as many as three restaurant locations within the
             65      hotel under one restaurant liquor license if:
             66          (A) the hotel has a minimum of 150 guest rooms; and
             67          (B) all locations under the restaurant liquor license are:
             68          (I) within the same hotel facility; and
             69          (II) on premises that are managed or operated and owned or leased by the licensee.
             70          (ii) A facility other than a hotel shall have a separate restaurant liquor license for each
             71      restaurant where liquor is sold.
             72          (4) (a) Except as otherwise provided in this Subsection (4), the premises of a restaurant
             73      liquor license may not be established:
             74          (i) within 600 feet of a community location, as measured by the method in Subsection
             75      (4)(f); or
             76          (ii) within 200 feet of a community location, measured in a straight line from the
             77      nearest entrance of the proposed outlet to the nearest property boundary of the community
             78      location.
             79          (b) With respect to the establishment of a restaurant liquor license, the commission
             80      may authorize a variance to reduce the proximity requirement of Subsection (4)(a)(i) if:
             81          (i) the local authority grants its written consent to the variance;
             82          (ii) the commission finds that alternative locations for establishing a restaurant liquor
             83      license in the community are limited;
             84          (iii) a public hearing is held in the city, town, or county, and where practical in the
             85      neighborhood concerned;
             86          (iv) after giving full consideration to all of the attending circumstances and the policies
             87      stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the


             88      restaurant liquor license would not be detrimental to the public health, peace, safety, and
             89      welfare of the community; and
             90          (v) (A) the community location governing authority gives its written consent to the
             91      variance; or
             92          (B) when written consent is not given by the community location governing authority,
             93      the commission finds that the applicant has established that:
             94          (I) there is substantial unmet public demand to consume alcohol in a public setting
             95      within the geographic boundary of the local authority in which the restaurant is to be located;
             96          (II) there is no reasonably viable alternative for satisfying substantial unmet demand
             97      described in Subsection (4)(b)(v)(B)(I) other than through the establishment of a restaurant
             98      liquor license; and
             99          (III) there is no reasonably viable alternative location within the geographic boundary
             100      of the local authority in which the restaurant is to be located for establishing a restaurant liquor
             101      license to satisfy the unmet demand described in Subsection (4)(b)(v)(B)(I).
             102          (c) With respect to the establishment of a restaurant liquor license, the commission
             103      may authorize a variance that reduces the proximity requirement of Subsection (4)(a)(ii) if:
             104          (i) the community location at issue is:
             105          (A) a public library; or
             106          (B) a public park;
             107          (ii) the local authority grants its written consent to the variance;
             108          (iii) the commission finds that alternative locations for establishing a restaurant liquor
             109      license in the community are limited;
             110          (iv) a public hearing is held in the city, town, or county, and where practical in the
             111      neighborhood concerned;
             112          (v) after giving full consideration to all of the attending circumstances and the policies
             113      stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
             114      restaurant liquor license would not be detrimental to the public health, peace, safety, and
             115      welfare of the community; and
             116          (vi) (A) the community location governing authority gives its written consent to the
             117      variance; or
             118          (B) when written consent is not given by the community location governing authority,


             119      the commission finds that the applicant has established that:
             120          (I) there is substantial unmet public demand to consume alcohol in a public setting
             121      within the geographic boundary of the local authority in which the restaurant is to be located;
             122          (II) there is no reasonably viable alternative for satisfying substantial unmet demand
             123      described in Subsection (4)(c)(vi)(B)(I) other than through the establishment of a restaurant
             124      liquor license; and
             125          (III) there is no reasonably viable alternative location within the geographic boundary
             126      of the local authority in which the restaurant is to be located for establishing a restaurant liquor
             127      license to satisfy the unmet demand described in Subsection (4)(c)(vi)(B)(I).
             128          (d) With respect to the premises of a restaurant liquor license granted by the
             129      commission that undergoes a change of ownership, the commission may waive or vary the
             130      proximity requirements of Subsection (4)(a) in considering whether to grant a restaurant liquor
             131      license to the new owner of the premises if:
             132          (i) (A) the premises previously received a variance reducing the proximity requirement
             133      of Subsection (4)(a)(i); or
             134          (B) the premises received a variance reducing the proximity requirement of Subsection
             135      (4)(a)(ii) on or before May 4, 2008; or
             136          (ii) a variance from proximity requirements was otherwise allowed under this title.
             137          (e) With respect to the premises of a restaurant liquor license granted by the
             138      commission that undergoes a change of ownership, the commission shall waive or vary the
             139      proximity requirements of Subsection (4)(a) in considering whether to grant a restaurant liquor
             140      license to the new owner of the premises if:
             141          (i) when a restaurant liquor license was granted to a previous owner, the premises met
             142      the proximity requirements of Subsection (4)(a);
             143          (ii) the premises has had a restaurant liquor license at all times since the restaurant
             144      liquor license described in Subsection (4)(e)(i) was granted without a variance; and
             145          (iii) the community location located within the proximity requirements of Subsection
             146      (4)(a) after the day on which the restaurant liquor license described in Subsection (4)(e)(i) was
             147      granted.
             148          (f) The 600 foot limitation described in Subsection (4)(a)(i) is measured from the
             149      nearest entrance of the outlet by following the shortest route of ordinary pedestrian travel to the


             150      community location.
             151          (5) (a) Nothing in this section prevents the commission from considering the proximity
             152      of any educational, religious, and recreational facility, or any other relevant factor in reaching a
             153      decision on a proposed location.
             154          (b) For purposes of this Subsection (5), "educational facility" includes:
             155          (i) a nursery school;
             156          (ii) an infant day care center; and
             157          (iii) a trade and technical school.
             158          Section 2. Section 32A-4-302 is amended to read:
             159           32A-4-302. Commission's power to grant licenses -- Limitations.
             160          (1) A restaurant wanting to sell and allow the consumption of only wine, heavy beer,
             161      and beer on its premises, but not spirituous liquor or a flavored malt beverage, shall obtain a
             162      limited restaurant license from the commission as provided in this part before selling or
             163      allowing the consumption of wine, heavy beer, or beer on its premises.
             164          (2) (a) Subject to the other provisions of this section and Subsection 32A-4a-201 (2),
             165      the commission may grant limited restaurant licenses for the purpose of establishing limited
             166      restaurant outlets at places and in numbers the commission considers proper for the storage,
             167      sale, and consumption of wine, heavy beer, and beer on premises operated as public
             168      restaurants.
             169          (b) The total number of limited restaurant licenses granted under this part may not at
             170      any time aggregate more than that number determined by dividing the population of the state
             171      by [9,300] 8,700.
             172          (c) For purposes of this Subsection (2), population shall be determined by:
             173          (i) the most recent United States decennial or special census; or
             174          (ii) another population determination made by the United States or state governments.
             175          (3) (a) (i) The commission may grant seasonal limited restaurant licenses established in
             176      areas the commission considers necessary.
             177          (ii) A seasonal limited restaurant license shall be for a period of six consecutive
             178      months.
             179          (b) (i) A limited restaurant license granted for operation during a summer time period
             180      is known as a "Seasonal A" limited restaurant license. The period of operation for a "Seasonal


             181      A" limited restaurant license shall:
             182          (A) begin on May 1; and
             183          (B) end on October 31.
             184          (ii) A limited restaurant license granted for operation during a winter time period is
             185      known as a "Seasonal B" limited restaurant license. The period of operation for a "Seasonal B"
             186      limited restaurant license shall:
             187          (A) begin on November 1; and
             188          (B) end on April 30.
             189          (iii) In determining the number of limited restaurant licenses that the commission may
             190      grant under this section:
             191          (A) a seasonal limited restaurant license is counted as one-half of one limited
             192      restaurant license; and
             193          (B) each "Seasonal A" limited restaurant license shall be paired with a "Seasonal B"
             194      limited restaurant license.
             195          (c) If the location, design, and construction of a hotel may require more than one
             196      limited restaurant sales location within the hotel to serve the public convenience, the
             197      commission may authorize the sale of wine, heavy beer, and beer at as many as three limited
             198      restaurant locations within the hotel under one limited restaurant license if:
             199          (i) the hotel has a minimum of 150 guest rooms; and
             200          (ii) all locations under the limited restaurant license are:
             201          (A) within the same hotel facility; and
             202          (B) on premises that are:
             203          (I) managed or operated by the limited restaurant licensee; and
             204          (II) owned or leased by the limited restaurant licensee.
             205          (d) A facility other than a hotel shall have a separate limited restaurant license for each
             206      restaurant where wine, heavy beer, and beer are sold.
             207          (4) (a) Except as otherwise provided in this Subsection (4), the premises of a limited
             208      restaurant license may not be established:
             209          (i) within 600 feet of a community location, as measured by the method in Subsection
             210      (4)(f); or
             211          (ii) within 200 feet of a community location, measured in a straight line from the


             212      nearest entrance of the proposed outlet to the nearest property boundary of the community
             213      location.
             214          (b) With respect to the establishment of a limited restaurant license, the commission
             215      may authorize a variance to reduce the proximity requirement of Subsection (4)(a)(i) if:
             216          (i) the local authority grants its written consent to the variance;
             217          (ii) the commission finds that alternative locations for establishing a limited restaurant
             218      license in the community are limited;
             219          (iii) a public hearing is held in the city, town, or county, and where practical in the
             220      neighborhood concerned;
             221          (iv) after giving full consideration to all of the attending circumstances and the policies
             222      stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
             223      license would not be detrimental to the public health, peace, safety, and welfare of the
             224      community; and
             225          (v) (A) the community location governing authority gives its written consent to the
             226      variance; or
             227          (B) when written consent is not given by the community location governing authority,
             228      the commission finds that the applicant has established that:
             229          (I) there is substantial unmet public demand to consume alcohol in a public setting
             230      within the geographic boundary of the local authority in which the limited restaurant licensee is
             231      to be located;
             232          (II) there is no reasonably viable alternative for satisfying substantial unmet demand
             233      described in Subsection (4)(b)(v)(B)(I) other than through the establishment of a limited
             234      restaurant license; and
             235          (III) there is no reasonably viable alternative location within the geographic boundary
             236      of the local authority in which the limited restaurant licensee is to be located for establishing a
             237      limited restaurant license to satisfy the unmet demand described in Subsection (4)(b)(v)(B)(I).
             238          (c) With respect to the establishment of a limited restaurant license, the commission
             239      may authorize a variance that reduces the proximity requirement of Subsection (4)(a)(ii) if:
             240          (i) the community location at issue is:
             241          (A) a public library; or
             242          (B) a public park;


             243          (ii) the local authority grants its written consent to the variance;
             244          (iii) the commission finds that alternative locations for establishing a limited restaurant
             245      license in the community are limited;
             246          (iv) a public hearing is held in the city, town, or county, and where practical in the
             247      neighborhood concerned;
             248          (v) after giving full consideration to all of the attending circumstances and the policies
             249      stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
             250      limited restaurant license would not be detrimental to the public health, peace, safety, and
             251      welfare of the community; and
             252          (vi) (A) the community location governing authority gives its written consent to the
             253      variance; or
             254          (B) when written consent is not given by the community location governing authority,
             255      the commission finds that the applicant has established that:
             256          (I) there is substantial unmet public demand to consume alcohol in a public setting
             257      within the geographic boundary of the local authority in which the limited restaurant licensee is
             258      to be located;
             259          (II) there is no reasonably viable alternative for satisfying substantial unmet demand
             260      described in Subsection (4)(c)(vi)(B)(I) other than through the establishment of a limited
             261      restaurant license; and
             262          (III) there is no reasonably viable alternative location within the geographic boundary
             263      of the local authority in which the limited restaurant licensee is to be located for establishing a
             264      limited restaurant license to satisfy the unmet demand described in Subsection (4)(c)(vi)(B)(I).
             265          (d) With respect to the premises of a limited restaurant license granted by the
             266      commission that undergoes a change of ownership, the commission may waive or vary the
             267      proximity requirements of Subsection (4)(a) in considering whether to grant a limited
             268      restaurant license to the new owner of the premises if:
             269          (i) (A) the premises previously received a variance reducing the proximity requirement
             270      of Subsection (4)(a)(i); or
             271          (B) the premises received a variance reducing the proximity requirement of Subsection
             272      (4)(a)(ii) on or before May 4, 2008; or
             273          (ii) a variance from proximity requirements was otherwise allowed under this title.


             274          (e) With respect to the premises of a limited restaurant license granted by the
             275      commission that undergoes a change of ownership, the commission shall waive or vary the
             276      proximity requirements of Subsection (4)(a) in considering whether to grant a limited
             277      restaurant license to the new owner of the premises if:
             278          (i) when a limited restaurant license was granted to a previous owner, the premises met
             279      the proximity requirements of Subsection (4)(a);
             280          (ii) the premises has had a limited restaurant license at all times since the limited
             281      restaurant license described in Subsection (4)(e)(i) was granted without a variance; and
             282          (iii) the community location located within the proximity requirements of Subsection
             283      (4)(a) after the day on which the limited restaurant license described in Subsection (4)(e)(i) was
             284      granted.
             285          (f) The 600 foot limitation as described in Subsection (4)(a)(i) is measured from the
             286      nearest entrance of the outlet by following the shortest route of ordinary pedestrian travel to the
             287      property boundary of the community location.
             288          (5) (a) Nothing in this section prevents the commission from considering the proximity
             289      of any educational, religious, and recreational facility, or any other relevant factor in reaching a
             290      decision on a proposed location.
             291          (b) For purposes of this Subsection (5), "educational facility" includes:
             292          (i) a nursery school;
             293          (ii) an infant day care center; and
             294          (iii) a trade and technical school.
             295          Section 3. Section 32A-10-201 is amended to read:
             296           32A-10-201. Commission's power to grant licenses -- Limitations.
             297          (1) Before an establishment may sell beer at retail for on-premise consumption, it shall
             298      first obtain:
             299          (a) an on-premise beer retailer license from the commission as provided in this part;
             300      and
             301          (b) (i) a license issued by the local authority, as provided in Section 32A-10-101 , to
             302      sell beer at retail for on-premise consumption; or
             303          (ii) other written consent of the local authority to sell beer at retail for on-premise
             304      consumption.


             305          (2) (a) Subject to the requirements of this section and Subsection 32A-4a-201 (2), the
             306      commission may grant on-premise beer retailer licenses for the purpose of establishing
             307      on-premise beer retailer outlets at places and in numbers as it considers proper for the storage,
             308      sale, and consumption of beer on premises operated as on-premise beer retailer outlets.
             309          (b) Notwithstanding Subsection (2)(a), the total number of on-premise beer retailer
             310      licenses that are taverns may not at any time aggregate more than that number determined by
             311      dividing the population of the state by [30,500] 53,400.
             312          (c) For purposes of this Subsection (2), the population of the state shall be determined
             313      by:
             314          (i) the most recent United States decennial special census; or
             315          (ii) another population determination made by the United States or state governments.
             316          (d) (i) The commission may issue seasonal licenses for taverns established in areas the
             317      commission considers necessary.
             318          (ii) A seasonal license for taverns shall be for a period of six consecutive months.
             319          (iii) An on-premise beer retailer license for a tavern issued for operation during a
             320      summer time period is known as a "Seasonal A" on-premise beer retailer license for a tavern.
             321      The period of operation for a "Seasonal A" on-premise beer retailer license for a tavern shall:
             322          (A) begin on May 1; and
             323          (B) end on October 31.
             324          (iv) An on-premise beer retailer license for a tavern granted for operation during a
             325      winter time period is known as a "Seasonal B" on-premise beer retailer license for a tavern.
             326      The period of operation for a "Seasonal B" on-premise beer retailer license for a tavern shall:
             327          (A) begin on November 1; and
             328          (B) end on April 30.
             329          (v) In determining the number of tavern licenses that the commission may grant under
             330      this section:
             331          (A) a seasonal on-premise beer retailer license for a tavern is counted as one-half of
             332      one on-premise beer retailer license for a tavern; and
             333          (B) each "Seasonal A" on-premise beer retailer license for a tavern shall be paired with
             334      a "Seasonal B" on-premise beer retailer license for a tavern.
             335          (3) (a) Except as provided in Subsection (3)(b), (c), or (d), the premises of an


             336      on-premise beer retailer license may not be established:
             337          (i) within 600 feet of a community location, as measured by the method in Subsection
             338      (3)(e); or
             339          (ii) within 200 feet of a community location, measured in a straight line from the
             340      nearest entrance of the proposed outlet to the nearest property boundary of the community
             341      location.
             342          (b) With respect to the establishment of an on-premise beer retailer license, the
             343      commission may authorize a variance to reduce the proximity requirement of Subsection
             344      (3)(a)(i) if:
             345          (i) the local authority grants its written consent to the variance;
             346          (ii) the commission finds that alternative locations for establishing an on-premise beer
             347      retailer license in the community are limited;
             348          (iii) a public hearing is held in the city, town, or county, and where practical, in the
             349      neighborhood concerned;
             350          (iv) after giving full consideration to all of the attending circumstances and the policies
             351      stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
             352      license would not be detrimental to the public health, peace, safety, and welfare of the
             353      community; and
             354          (v) (A) the community location governing authority gives its written consent to the
             355      variance; or
             356          (B) when written consent is not given by the community location governing authority,
             357      the commission finds that the applicant has established that:
             358          (I) there is substantial unmet public demand to consume alcohol in a public setting
             359      within the geographic boundary of the local authority in which the on-premise beer retailer
             360      licensee is to be located;
             361          (II) there is no reasonably viable alternative for satisfying substantial unmet demand
             362      described in Subsection (3)(b)(v)(B)(I) other than through the establishment of an on-premise
             363      beer retailer license; and
             364          (III) there is no reasonably viable alternative location within the geographic boundary
             365      of the local authority in which the on-premise beer retailer licensee is to be located for
             366      establishing an on-premise beer retailer license to satisfy the unmet demand described in


             367      Subsection (3)(b)(v)(B)(I).
             368          (c) With respect to the establishment of an on-premise beer retailer license, the
             369      commission may authorize a variance that reduces the proximity requirement of Subsection
             370      (3)(a)(ii) if:
             371          (i) the community location at issue is:
             372          (A) a public library; or
             373          (B) a public park;
             374          (ii) the local authority grants its written consent to the variance;
             375          (iii) the commission finds that alternative locations for establishing an on-premise beer
             376      retailer license in the community are limited;
             377          (iv) a public hearing is held in the city, town, or county, and where practical in the
             378      neighborhood concerned;
             379          (v) after giving full consideration to all of the attending circumstances and the policies
             380      stated in Subsections 32A-1-104 (3) and (4), the commission determines that establishing the
             381      on-premise beer retailer license would not be detrimental to the public health, peace, safety,
             382      and welfare of the community; and
             383          (vi) (A) the community location governing authority gives its written consent to the
             384      variance; or
             385          (B) when written consent is not given by the community location governing authority,
             386      the commission finds that the applicant has established that:
             387          (I) there is substantial unmet public demand to consume alcohol in a public setting
             388      within the geographic boundary of the local authority in which the on-premise beer retailer
             389      licensee is to be located;
             390          (II) there is no reasonably viable alternative for satisfying substantial unmet demand
             391      described in Subsection (3)(c)(vi)(B)(I) other than through the establishment of an on-premise
             392      beer retailer license; and
             393          (III) there is no reasonably viable alternative location within the geographic boundary
             394      of the local authority in which the on-premise beer retailer licensee is to be located for
             395      establishing an on-premise beer retailer license to satisfy the unmet demand described in
             396      Subsection (3)(c)(vi)(B)(I).
             397          (d) (i) With respect to an on-premise beer retailer license granted by the commission


             398      before July 1, 1991, to an establishment that undergoes a change in ownership after that date,
             399      the commission may waive or vary the proximity requirements of this Subsection (3) in
             400      considering whether to grant an on-premise retailer beer license to the new owner.
             401          (ii) With respect to the premises of an on-premise beer retailer license granted by the
             402      commission that undergoes a change of ownership, the commission may waive or vary the
             403      proximity requirements of Subsection (3)(a) in considering whether to grant an on-premise beer
             404      retailer license to the new owner of the premises if:
             405          (A) (I) the premises previously received a variance from the proximity requirement of
             406      Subsection (3)(a)(i); or
             407          (II) the premises received a variance from the proximity requirement of Subsection
             408      (3)(a)(ii) on or before May 4, 2008; or
             409          (B) a variance from proximity requirements was otherwise allowed under this title.
             410          (e) The 600 foot limitation described in Subsection (3)(a)(i) is measured from the
             411      nearest entrance of the outlet by following the shortest route of ordinary pedestrian travel to the
             412      property boundary of the community location.
             413          (4) (a) Nothing in this section prevents the commission from considering the proximity
             414      of any educational, religious, and recreational facility, or any other relevant factor in reaching a
             415      decision on a proposed location.
             416          (b) For purposes of this Subsection (4), "educational facility" includes:
             417          (i) a nursery school;
             418          (ii) an infant day care center; and
             419          (iii) a trade and technical school.


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