Schools and Libraries (E-Rate) Program Frequently Used Terms

PROGRAM BASICS UNIVERSAL SERVICE FUND (USF) FEDERAL ACTS, ORDERS, AND Money collected from NOTICES E-RATE PROGRAM telecommunications companies The common term used in place of the and dedicated to fulfilling the goals CHILDREN’S INTERNET PROTECTION Schools and Libraries Program. The of universal service. Under the ACT (CIPA) E-rate Program provides discounts authority of the 1996 Telecom Act, A law that mandates certain to schools and libraries for eligible the FCC created the USF as well as internet safety policy and filtering products and services. the Universal Service Administrative requirements for recipients of E-rate Program discounts for services other FUNDING YEAR (FY) Company (USAC), the organization than telecommunications services. The funding year is a time during charged with administering which program support is being universal service. Companies E-RATE MODERNIZATION ORDER provided. The FY begins July 1 and make contributions to universal The FCC Report and Order that ends June 30 of the following calendar service based on revenues from modernized the E-rate Program and year. providing international and interstate focused on high-speed broadband telecommunications services. connectivity to schools and libraries NEWS BRIEF (FCC14-99). A weekly newsletter that provides TOOLS AND SYSTEMS up-to-date program information, EVERY STUDENT SUCCEEDS ACT including important dates, tips DATA RETRIEVAL TOOL (DRT) The Every Student Succeeds Act, 20 regarding the application process, and A web-based USAC tool used to access U.S.C. Section §7801(19) and (45), other breaking news. information related to applications, provides the statutory definition of funding commitments, and elementary and secondary schools. SCHOOLS AND LIBRARIES disbursements. PROGRAM (SL) LOWEST CORRESPONDING One of the four universal service E-CERTIFICATION (E-CERT) PRICE (LCP) programs administered by USAC. Process that allows applicants to The lowest price that a service certify and submit forms online, provider charges to non- residential UNIVERSAL SERVICE eliminating the need for a paper form customers who are similarly situated Universal service is the principle that with an original signature. to a particular E-rate Program all Americans should have access to applicant (school, library, or communications services. Universal E-FILE consortium) for similar services. service is also the name of a fund and USAC’s online forms submission the category of FCC programs and tool, available at https:// forms. LIBRARY SERVICES AND policies to implement this principle. universalservice.org. TECHNOLOGY ACT (LSTA) The LTSA, 20 U.S.C. Section 9121 et UNIVERSAL SERVICE E-RATE PRODUCTIVITY CENTER seq., (1996) provides the statutory ADMINISTRATIVE COMPANY (USAC) (EPC) definition of a library. An independent, not-for- profit EPC is the account and application corporation created by the FCC in management portal for the Schools NOTICE OF PROPOSED RULE 1997 to administer the four universal and Libraries (E-rate) Program. MAKING (NPRM) service programs which help Applicants, consultants, and service An announcement issued by the FCC provide communities across the providers participating in the E-rate to detail proposed changes to FCC country with access to affordable Program use this tool to manage rules and policies and seek public telecommunications services. program processes and to submit comment on the changes. questions. PUBLIC NOTICE (PN) OPEN DATA A notice issued by the FCC to notify Open Data sets are available for the the public of an action taken, a change E-rate Program including information made, or an upcoming event. about FCC Form 470, FCC Form 471, entities, and annexes.

Page 1 of 7 ©2019 Universal Service Administrative Company. All rights reserved. usac.org/sl ROLES WITHIN AND AROUND COMMISSION ELIGIBLE ENTITY THE PROGRAM The short name for the Federal An entity that meets the requirements Communications Commission (FCC). for eligibility to participate in the 498 COMPANY OFFICER See “FCC.” program. The officer of a service provider company who is authorized to certify COMMON CARRIER FCC FORM 498 COMPANY OFFICER that data set forth in the FCC Form An organization recognized by a See “498 Company Officer.” 498 is true, accurate, and complete. regulatory authority (such as a state FCC FORM 498 DELEGATED The 498 Company Officer would public utility commission) to provide USERS telecommunications services to all typically be president, vice president See “delegated users.” of operations, vice president of requesting parties, or an organization finance, comptroller, treasurer, or a that holds itself out to provide such FCC FORM 498 GENERAL comparable person. services generally to the public for a fee. CONTACT See “General Contact.” 499 COMPANY OFFICER CONSORTIUM A person who occupies a position A consortium (plural consortia) is a FEDERAL COMMUNICATIONS specified in the corporate by-laws (or group of entities that apply together COMMISSION (FCC) partnership agreement), and would for funding. The U.S. government agency that typically be president, vice president regulates interstate and international CONSULTANT for operations, vice president for communications and oversees the A company or individual (non- finance, comptroller, treasurer, or a universal service fund. employee of the entity) selected to comparable position. perform certain activities related to the GOVERNMENT ACCOUNTABILITY ACCOUNT ADMINISTRATOR application process on behalf of the OFFICE (GAO) An EPC user who can manage users, applicant or service provider for a fee. An agency that studies and reports on permissions, and related entities for an A Letter of Agency (LOA) or consultant the programs and expenditures of the organization such as a school, library, agreement must be in place before the federal government. It studies how the service provider, or consulting firm. consultant undertakes these activities. federal government spends tax payer dollars, evaluates federal programs, ADMINISTRATIVE AUTHORITY CONTRIBUTOR audits expenditures and issues legal A company that, based on the revenue The relevant authority with opinions. responsibility for administration of reported on the FCC Forms 499-A/Q, is the eligible school or library who required to pay contributions directly GENERAL CONTACT must certify the status of the entity’s to the universal service fund. The employee of a service provider compliance with the Children’s company who filled out the FCC Form DELEGATED USERS Internet Protection Act (CIPA) in order 498. The employee(s) of a service provider to receive universal service support. company authorized to enter and GENERAL FINANCIAL CONTACT APPLICANT modify company information on FCC A person who is authorized by the The entity applying for universal Forms 498 and 499 through the E-File applicant to retrieve the FCC Form 498 service support. In the Schools and application. information and obtain access to EPC. Libraries Program the entity is a They are able to complete but not EDUCATIONAL SERVICE school, library, consortium, or other certify updates to the FCC Form 498. AGENCY (ESA) eligible entity that files program forms. A regional public multi-service HEAD START BILLED ENTITY agency authorized by state statute A comprehensive child development The entity that receives the bill and to develop, manage, and provide program that serves preschool-age pays for the supported service. A services or programs to its component children and their families. Head Start Billed Entity may be different from the school districts. In some states, facilities in some states are eligible for physical location being supported. ESAs are called Educational Service E-rate Program funding. Units (ESUs), Local Educational BOARD OF DIRECTORS INTERNET SERVICE PROVIDER Agencies (LEAs), Board of Cooperative USAC Board of Directors (ISP) Educational Services (BOCES), or other A company that provides internet similar designations. CLIENT SERVICE BUREAU (CSB) access service (also referred to as a A helpline available to assist service provider). applicants and service providers. You can call CSB toll free at (888) 203-8100.

Page 2 of 7 ©2019 Universal Service Administrative Company. All rights reserved. usac.org/sl OFFICE OF MANAGEMENT AND CORESID PERSONAL IDENTIFICATION BUDGET (OMB) A 10-digit number that the FCC assigns NUMBER (PIN) Part of the Executive Office of the to a business or individual that A code assigned to a specific President, OMB reviews and approves registers with the FCC. It is associated authorized person at a specific billed FCC forms that are used by universal with an entity’s Taxpayer Identification entity to allow online form certification service contributors and universal Number (TIN) and is required before (see e-certification). service program participants, filing FCC Forms 499-A/Q. SERVICE PROVIDER IDENTIFICATION contributors and service providers. FCC REGISTRATION NUMBER NUMBER (SPIN) PREPARER (FCCRN) A unique number that USAC assigns to The employee of company that filed See “CORESID.” each service provider once that service an FCC Form 499-A/Q. provider has submitted the FCC Form FSCS CODES 498 to USAC. SCHOOL OR LIBRARY OFFICIAL An identifying code for public A person who occupies a position libraries issued by the Federal- SPIN – FCC FORM 498 of authority for the applicant State Cooperative System (FSCS), a See “FCC Form 498” or “Service (typically a superintendent, assistant cooperative program between the Provider Identification Number.” superintendent, principal, assistant federal government and the states. STUDY AREA CODE (SAC) principal, library director, assistant FSCS data on public libraries is A unique number that USAC assigns to library director, county administrator, received from The Institute of Museum eligible telecommunication carriers district administrator, or state and Library Services (IMLS). that uniquely identifies that company education department or state library FUNDING REQUEST NUMBER based on its service area. Companies lead). Must be authorized to certify (FRN) A unique number that USAC must have at least one SAC per state in that the information provided in assigns to each funding request in an which they operate, but can have more the FCC Form 498 is true, accurate, FCC Form 471. than one SAC within a state if they and complete. This role cannot be have more than one service area. assigned to a consultant. LETTER OF AGENCY (LOA) A Letter of Agency (LOA) authorizes ELIGIBLE SERVICES SERVICE PROVIDER a consortium leader to apply for A company that participates in the program support on behalf of each BASIC MAINTENANCE OF Schools and Libraries Program consortium member or a consultant to INTERNAL CONNECTIONS and provides telecommunications conduct specified activities on behalf (BMIC) A Category Two service type or internet services, equipment, of an applicant or service provider. on the Eligible Services List. Basic hardware, or software. Maintenance of Internal Connections NCES CODES services cover the repair and upkeep TELECOMMUNICATIONS An identification code for public CARRIER of eligible products. schools issued by the National Center Common carrier, as defined by for Education Statistics (NCES), the BUNDLED SERVICES COST the FCC, is an entity that provides primary federal entity for collecting ALLOCATION telecommunications service including and analyzing data related to Beginning with FY2015, E-rate Program inter exchange carriers, wireless education. Private schools may also recipients must cost allocate non- carriers, and competitive local request NCES codes. ancillary ineligible components that exchange carriers (also referred to as are bundled with eligible products or service providers). NON-INSTRUCTIONAL services, such as netbooks bundled FACILITY (NIF) with internet access, including TERMS TO KNOW BEFORE A school building without classrooms those components that previously APPLYING or a library building without public would have fallen within the scope areas. Examples of school NIFs include BILLED ENTITY NUMBER (BEN) of components not requiring cost administrative buildings, bus barns, A unique number assigned by USAC allocation as described in the 2010 and cafeteria facilities. Examples of to each billed entity (school, library, or Clarification Order. consortium) that pays for services. library NIFs include administrative buildings, bookmobile garages, and CONSULTANT REGISTRATION interlibrary loan facilities. NUMBER (CRN) A unique eight-digit identification number assigned by USAC to consultants. Page 3 of 7 ©2019 Universal Service Administrative Company. All rights reserved. usac.org/sl CATEGORY ONE SERVICES ELIGIBLE SERVICES LIST (ESL) DISCOUNTS Services used to connect broadband An FCC-released annual list of the or internet to eligible locations, products and services approved for ALTERNATIVE DISCOUNT MECHANISMS or services that provide the basic funding by the FCC under the Schools Schools that choose not to use the conduit access to the internet. Data and Libraries Program. National School Lunch Program Transmission Services and Internet INTERNAL CONNECTIONS (NSLP) participation numbers to Access are Category One services. A Category Two service type on calculate their E-rate Program CATEGORY TWO SERVICES the Eligible Services List. Internal discounts may use certain federally- Internal connections services needed Connections services are eligible approved alternative mechanisms to enable high-speed broadband products, such as routers, switches, instead. These alternative discount connectivity and broadband internal hubs, and wiring. mechanisms cannot be less stringent connections components. Category Eligible products are located at the than the same measure of poverty Two includes local area networks/ applicant site and must be considered established for the NSLP. wireless local area networks (LAN/ a necessity to transport information CATEGORY TWO BUDGET wireless LAN), internal connections to classrooms or publicly accessible Applicants applying for Category Two components, basic maintenance of areas of a library. services in FY2015 or FY2016 will be internal connections components, and LOCAL AREA NETWORK (LAN) able to request discounts up to $150 managed internal broadband services. A data* network that provides per student pre-discount per school, DATA TRANSMISSION SERVICES connections generally within an up to $2.30 per square foot AND/OR INTERNET ACCESS eligible school or library to other pre-discount per library ($5.00 per A Category One service type on locations within the school or library. square foot for certain urban libraries) the Eligible Services List. Includes over a five-year period. There is a broadband connectivity and basic *The voice and video components minimum (floor) of $9,200.00 per conduit access to the internet. This of a LAN are not eligible for E-rate school or library. does not include charges for content, discounts. equipment purchases, or other COMMUNITY ELIGIBILITY services beyond basic conduit access MANAGED INTERNAL BROADBAND OPTION (CEO) to the internet. This service type also SERVICES (MIBS) See “Community Eligibility Provision covers lit or dark fiber and, in special A category of service on the Eligible (CEP).” Services List. These services are circumstances, self-provisioning of COMMUNITY ELIGIBILITY provided by a third party for the dark fiber. PROVISION (CEP) operation, management, and An alternative provision to the DEMARCATION OR DEMARC monitoring of internal connections normal requirements for annual A demarcation refers to the point components. E-rate support is limited determinations of eligibility for free where a service provider’s network to eligible expenses or portions of and reduced price meals under the ends and where an applicant’s local expenses that directly support and National School Lunch Program. area network (LAN) begins. are necessary for the broadband Schools must have at least 40 percent connectivity within schools and DIRECT CONNECTIONS of their students directly certified to libraries. Direct connections allow rural schools qualify for CEP. and libraries to share access to high- MANAGED WI-FI DISCOUNT CALCULATIONS speed broadband services. See “Managed Internal Broadband Discounts in the program can be found Services (MIBS)” DISTRICT WIDE DISCOUNT in the discount matrix, by using the RATES WIDE AREA NETWORK (WAN) percentage of students eligible for the Starting with FY2015, all funding A data* network that provides National School Lunch Program or an requests for any school or connections from within an eligible equivalent measure of poverty and combination of schools within a school or library to other locations the rural or urban status of the school school district qualify for a single beyond the school or library. district or library system. school-district-wide discount rate. NATIONAL SCHOOL LUNCH *The voice and video components ELIGIBLE SERVICES PROGRAM (NSLP) of a WAN are not eligible for E-rate Products and services that are eligible This federal program provides school discounts. for universal service support. lunches to eligible students at a free or reduced rate.

Page 4 of 7 ©2019 Universal Service Administrative Company. All rights reserved. usac.org/sl NON-DISCOUNT PORTION FCC FORM 474 (SPI) The Service FCC FORM 500 The non-discount portion (also called Provider Invoice Form is an FCC form The Funding Commitment Adjustment non- discount share) is the applicant’s that service providers submit to Request Form is filed by schools and share of the cost of the eligible E-rate request reimbursement for discounted libraries to notify USAC of reductions Program products and services, i.e., eligible services already provided to or cancellations of approved FRNs the cost to be paid by the applicant to the schools or libraries on their and/or changes to reported Service after the E-rate Program discount is customer bills. Start Dates or Contract Expiration applied. Dates, to request a service delivery FCC FORM 479 extension for non-recurring services, URBAN/ RURAL STATUS The Certification by Administrative or to notify USAC of an allowable Every school or library in the United Authority to Billed Entity of equipment transfer. States is located in either a rural or an Compliance with the Children’s urban area, based on U.S. Census data. Internet Protection Act Form is an FUNDING COMMITMENT DECISION FCC form that consortium members LETTER (FCDL) PROGRAM FORMS AND (the administrative authority for A letter that contains USAC’s funding CORRESPONDING LETTERS CIPA purposes) submit to their decisions on an applicant’s funding BEAR NOTIFICATION LETTER consortium leader to certify that requests. they are in compliance with the A BEAR(FCC Form 472) Notification RECEIPT ACKNOWLEDGMENT Children’s Internet Protection Act. Letter is sent to the service provider LETTER (RAL) After all FCC Forms 479 are collected, and the applicant after a BEAR form A RAL is issued by USAC to both the the consortium leader can accurately has been processed by USAC. applicant and service provider to complete the FCC Form 486. FCC FORM 470 indicate that a filed FCC Form 471 has The Description of Services Requested FCC FORM 486 been certified before the close of the and Certification Form is an FCC form The Receipt of Service Confirmation filing window. and Children’s Internet Protection Act that schools and libraries complete SPAC– FCC FORM 473 Certification Form is an FCC form that to request services and establish See “FCC Form 473.” eligibility. schools and libraries file to inform USAC that services have begun, and of SPI – FCC FORM 474 FCC FORM 471 their CIPA compliance. See “FCC Form 474.” The Services Ordered and Certification Form is an FCC form that schools and FCC FORM 486 APPLICATION PREPARATION libraries use to report services ordered NOTIFICATION LETTER AND REVIEW and discounts requested for those This letter is issued by both the services. applicant and service provider to 28-DAY WAITING PERIOD indicate that an FCC Form 486 has The minimum time period an FCC FORM 472 (BEAR) been successfully processed. applicant is required to wait after The Billed Entity Applicant posting the FCC Form 470 before FCC FORM 498 Reimbursement Form is an FCC form entering into any contract with a The Service Provider and Billed Entity that schools and libraries submit to service provider. USAC after paying for services in full, Identification Number and General to request reimbursement for the Contact Information Form issued ALLOWABLE CONTRACT DATE (ACD) discount on those services. to collect contact, remittance, and payment information from service The Allowable Vendor Selection/ FCC FORM 473 (SPAC) providers and applicants receiving Contract Date is the earliest date on The Service Provider Annual universal service support. Service which an applicant can sign a contract Certification Form is an FCC form that providers must fill out this form to for contracted services or enter into an service providers file annually to certify participate in any of the universal arrangement for tariffed (T) or month- that they will comply with program service programs. As of July 1, 2016, to-month (MTM) services with a service rules and guidelines. applicants who choose the Billed provider. This must be filed before USAC will pay Entity Applicant Reimbursement BID invoices. (BEAR) payment method will need to A response from a service provider file this form to receive an (bidder) to a request for services. ID number (498 ID) for reimbursement payments.

Page 5 of 7 ©2019 Universal Service Administrative Company. All rights reserved. usac.org/sl COMPETITIVE BIDDING MINI-BID SELECTIVE REVIEW INFORMATION PROCESS An evaluation process used by REQUEST (SRIR) The process conducted by an applicants when a state files an FCC The request for information sent to applicant to select a service provider Form 470 and signs state master applicants when they have been and order products and/or services. contracts with more than one service chosen for Selective Review. This process must be a fair and open provider. The applicant must evaluate SERVICE END DATE competitive procurement. all eligible state master contracts and The date that services will end for an demonstrate why the service provider CONTRACT AWARD DATE (CAD) FRN. USAC may adjust this date if a it chooses is the most cost-effective The date the contract is awarded to program violation is identified or a solution. the service provider. deadline is missed. MINISTERIAL AND CLERICAL CONTRACT EXPIRATION DATE (CED) ERRORS SERVICE START DATE The date the contract between the Sometimes known as M&C errors, The date that services will start for applicant and service provider ends. these are errors applicants make on an FRN. USAC may adjust this date if a program violation is identified or a CORRECTIVE SPIN CHANGE FCC Forms 470 or 471 that can be deadline is missed. A change to the SPIN featured on corrected after the forms are certified. one or more FRNs that corrects a PRICING TRANSPARENCY STATE MASTER CONTRACT (SMC) data entry error, reflects a merger or Provides greater visibility into pricing A contract that is competitively acquisition, or fixes some other type of and technology choices by applicants. bid and implemented by a state error. It is not the result of a change to Information and pricing regarding government which can be used by the actual service provider. the specific services and equipment eligible entities within the state to procure products or services, or both. EVALUATION purchased by schools and libraries A mechanism for assessing and shall be publicly available on USAC’s STATE REPLACEMENT CONTRACT choosing a service provider from website. A state master contract, filed pursuant incoming bids. Note that the price PROGRAM INTEGRITY to a state-filed FCC Form 470, which of the eligible products and services ASSURANCE (PIA) can replace an existing state master must be included as a factor in the The compliance review process of FCC contract that expires before the end of evaluation and that factor must be Forms 471 that must be completed the upcoming funding year. weighted more heavily than any other before funding commitments are single factor. WAVE made by USAC. This term is used for a group of FCC FORM 471 FILING WINDOW REQUEST FOR PROPOSAL (RFP) funding commitment notifications that The period generally between mid- A form of solicitation for products USAC issues to applicants and service January and mid-March (prior to or services that provides detailed providers on a given date. Waves are the start of the funding year) when information regarding those products usually issued weekly. forms filed are treated as having been or services and any additional details received on the same day and are POST COMMITMENT AND necessary for potential bidders to considered for funding before any PROGRAM VIOLATIONS respond. Program applicants may other forms filed after the window issue RFPs in addition to filing the FCC 1ST DEMAND LETTER closes. Form 470. The initial letter sent by USAC to LEGALLY BINDING AGREEMENT recover funds from applicants or SELECTIVE REVIEW A written offer from a service provider service providers who have committed A separate component of the and acceptance from the applicant program rule violations. Program Integrity Assurance (PIA) that includes all the material terms review process that follows up on 2ND DEMAND LETTER and conditions and is legally binding. certifications that applicants make A follow-up letter to a 1st Demand on their FCC Forms 471 about the Letter sent by USAC in an attempt competitive bidding process and the to recover funds from applicants or necessary resources to make effective service providers who have committed use of requested services. program rule violations.

APPEAL An appeal is a request to reconsider a USAC decision. Page 6 of 7 ©2019 Universal Service Administrative Company. All rights reserved. usac.org/sl AUDIT INVOICE EXTENSION RECOVERY OF IMPROPERLY A review of documentation and A single, one- time 120-day extension DISBURSED FUNDS (RIDF) resources that verify the state of of the deadline to submit an invoice An RIDF is required when there has compliance with program rules. – FCC Form 472 (BEAR Form) or FCC been a COMAD but funds have already Form 474 (SPI Form). The extension been disbursed in excess of the revised BENEFICIARY AND CONTRIBUTOR must be requested on or before the commitment amount. AUDIT PROGRAM (BCAP) invoice deadline Run by USAC, and carried out by RED LIGHT RULE auditors trained in universal service INVOICE STATUS REPORT (ISR) A requirement that the FCC withhold and program audit requirements, A USAC-generated report sent to action on an application, payment, these audits of beneficiaries and service providers upon receipt of the and/or other requests for benefits contributors serve to identify service provider’s invoices. The report when the universal service program noncompliance with program rules identifies which invoice line items participant is delinquent in non-tax and amounts of recoverable funds. were accepted and denied. debts owed to the FCC or other federal OPERATIONAL SPIN CHANGE governmental agencies. COMMITMENT ADJUSTMENT A change to the SPIN featured on one (COMAD) RED LIGHT STATUS or more FRNs made as a result of a The process by which a funding An entity is considered in Red Light change to the actual service provider. commitment is reduced because of status when the Red Light Rule goes program rule violations. into effect (the entity is delinquent). OPERATIONAL SPIN CHANGE USAC will not make any disbursements COMMITMENT ADJUSTMENT A change to the SPIN featured on one until the delinquency has been LETTER (CAL) or more FRNs made as a result of a satisfied or payment arrangements are This letter notifies both the applicant change to the actual service provider. made. and the service provider of a COMAD. It contains a Funding Commitment PAYMENT QUALITY ASSURANCE REMAND Report which lists the Funding Request (PQA) PROGRAM Action taken by the FCC to return Numbers(FRNs) affected by the A USAC program which assesses applications to USAC for further COMAD. specific payments made to review. beneficiaries in all four programs to DETAILED AUDIT FINDING SERVICE SUBSTITUTION determine if these payments were WORKSHEET (DAF) A change in the products and/or made in accordance with FCC rules. A worksheet that contains background services originally requested in an Using results of these assessments, information and notes the basis of an FRN. USAC calculates estimates of improper exception during an audit. payment rates and provides this WHISTLE BLOWER ALERT/ DOCUMENT RETENTION information to the FCC. “ CODE 9 CALL” Applicants and service providers must This hotline allows members of the QUARTERLY DISBURSEMENT retain documentation related to the public to report suspected violations REPORT application for, receipt, and delivery of program rules to USAC. These A report issued by USAC to the of discounted services for at least 10 reports can be made anonymously applicant detailing all invoicing activity years from the last date of service and toll free by calling (888) 203-8100. (BEARs and SPIs) for all funding years delivery. that occurred during the previous INVOICE quarter. A statement or document that REVISED FUNDING COMMITMENT (1) service providers submit to USAC DECISION LETTER (RFCDL) after they have provided or completed A letter issued by USAC to applicants service to the applicant or and service providers when changes to (2) applicants submit to USAC after a funding commitment occur, usually they have paid for services in full. as the result of a successful appeal. Invoices are submitted using an FCC Form 474 (service providers) or an FCC Form 472 (applicants).

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