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HOYT: CASINO COMPACT IS ILLEGAL - 9/20/2002

Buffalo Legislator Urges Interior Department to Reject Pact

Assemblymember Sam Hoyt (D-Buffalo, Grand Island) today released a letter he sent to the United States Interior Department (DOI) urging rejection of New York’s gambling casino compact with the Seneca Nation. Hoyt claimed that the compact is illegal and thus in violation of DOI’s criteria for approving such a compact.

Hoyt said, “Unfortunately, the fate of the casino compact is out of the hands of the people of Western New York, who never had a chance to have a say. Perhaps because the compact was created in secrecy and never received the type of scrutiny it warranted, its provisions are not only illegal, but could result in the State of New York, Buffalo and Niagara Falls ultimately receiving no revenue from the proposed casinos.”

Hoyt's letter argued that the compact was illegal for several reasons among which included:

Hoyt's letter also detailed other technical violations.

Hoyt, along with Assemblymember William Parment (D-Jamestown), who wrote a similar letter, have requested a meeting with DOI Secretary Gail Norton to plead their case in person.

Sam Hoyt represents the 144th Assembly District, which includes the likely location of one of the proposed Seneca Casinos.


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SENECAS PLAN TO START WORK TODAY ON SITE OF THEIR CASINO

Tom Precious, Buffalo News, 9/18/2002

ALBANY - A week after giving a tour of its planned casino development to a prospective billionaire investor from Malaysia, the Seneca Nation of Indians today will formally begin work to transform the Niagara Falls Convention Center into a Las Vegas-style gambling facility. Officials said Tuesday the Senecas are going ahead even though the federal government is weeks, if not months, away from deciding the plan's fate. The work also comes before the property's ownership has even been transferred from the state to the Senecas.

The Senecas and Pataki administration, which signed the casino deal, tasted victory in court Tuesday in Albany, where a state judge refused to block the two sides from signing papers transferring the title of the convention center from the state's Empire State Development Corp. to the Senecas.

The property transfer, along with $24 million in existing debt on the facility, is expected by next week.

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State Supreme Court Judge Joseph Teresi denied a request from a group representing religious, business and legislative interests that the transfer of the convention center not take place before the U.S. Department of the Interior decides if the casino plan abides by federal law. State lawyers on Tuesday told Teresi that the land transfer would be signed, but held in a a type of escrow until the federal government issues its ruling.

But Teresi did leave a window open to the group - which includes a Buffalo-area minister and a state lawmaker from Jamestown ruling it could return to the court and seek to block the transfer after the Senecas and Pataki administration sign the ownership paperwork. Teresi ordered the state to appear before him Oct. 4 to explain why the transfer should not be halted.

The process of federal approval has formally begun, Seneca officials said Tuesday.

Beth Kelly, a Seneca spokeswoman, said the tribe last Tuesday submitted the compact signed by Seneca President Cyrus Schindler and Pataki to the Interior Department.

The Senecas believe they have a special "fast-track" status and should get a decision from Washington within 60 days. Critics, however, say the Niagara Falls site is not a part of Seneca aboriginal land and, therefore, the casino plan must go through a much longer deliberation process.

The Pataki administration said Tuesday there are no guarantees that Washington will be giving special fast-track consideration to the Seneca casino plan.

Officials with the U.S. Bureau of Indian Affairs did not return calls for comment.

Casino critics say the Pataki administration and Senecas are wrong to begin building the casino before the federal government makes a decision.

"I think it's absolutely absurd for the state to permit this to occur before anyone knows if this will ultimately be legal," said Cornelius Murray, an Albany lawyer representing the group that is suing to overturn the 2001 law that permits a massive expansion of gambling by Indian tribes, racetracks and the state lottery.

"It makes me wonder whether the deal is a foregone conclusion," Murray said of the Justice Department application by the Senecas and the state.

Kelly said the Senecas expect to sign the ownership transfer papers with the state for the Niagara Falls Convention Center within the next day or two. The Pataki administration said the Senecas and the state have mutually agreed to extend the terms of the compact - which calls for transfer of the convention center to the Senecas within 30 days after Pataki and Schindler signed the document - until Monday.

The Senecas defended the decision to move ahead with obtaining the convention center and beginning work there while the federal decision is pending.

"If they wait until they have approval, then every day the casino is not open it is costing them tens of thousands if not hundreds of thousands of dollars in revenues. That's the main impetus," Kelly said of a push to have the casino ready soon after the Interior Department rules.

Kelly said the Senecas realize they are taking "a certain amount of risk" on a project that has not yet been OK'd. "They're not thumbing their nose at the federal government in any way, but they are taking the steps within their power in order to maximize their ability to take advantage of this opportunity," she said.

Kelly said the Senecas will not open the casino until the federal government approves the arrangement.

Suzanne Morris, a Pataki spokeswoman, said the administration believes "the real estate transfer is not contingent upon the Department of Interior approval of the gaming compact." She could not immediately say what would happen to the land transfer if the casino deal is rejected by Washington.

An Arizona lawyer active in halting other Indian casino deals and who has been monitoring the Seneca developments said Pataki is treading in dangerous legal territory by moving ahead without federal approval.

"The governor is ceding away the land of New York State. He is giving away the state of New York, and that's not part of his constitutional job description," said Alexis Johnson.

The Senecas have talked of spending upwards of $100 million to have the convention center ready to open in January.

e-mail: tprecious@buffnews.com

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LAFALCE LETTER TO SECRETARY NORTON OF THE INTERIOR, 8/03/02

In this letter, LaFalce stresses that the land-application for casinos under the Seneca Nation Settlement Act is nothing more than a subterfuge to bypass the legitimate review process. He urges the Secretary to deny the application and have the Senecas reapply under the IGRA (Indian Gaming Regulatory Act).

Read LaFalce Letter to the Department of the Interior


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SAM HOYT'S PRESS RELEASE OF 8/16/02

Assemblymember Sam Hoyt (D-Buffalo, Grand Island), long opposed to establishing a gambling casino in Buffalo today released a letter he sent to Governor Pataki pressing him on several key questions demanding answers before the signing of a casino compact with the Seneca Nation.

Hoyt said, "Much mystery surrounds the deal Governor Pataki is about to agree to. The compact he is prepared to sign is not the same one the Senecas barely passed earlier this year. Perhaps the version he plans to sign answers some of the nagging questions that have yet to go away. At the heart of the questions I’m pressing the Governor to answer is a key concept: how can this deal possibly be good for Buffalo?"

Hoyt’s letter addressed several issues including, but not limited to the following:

  1. How does the Governor reconcile his claims that a Buffalo casino will serve to boost economic development with the results of his 1996 study establishing that a casino will result in thousands of existing jobs lost and, depending on what type of casino is built, a net loss of jobs?
  2. Since the land for the casino will irreversibly be given to the Senecas who can do whatever they want with it, how will Buffalo businesses compete with tax-free Seneca businesses such a restaurants, gas stations, entertainment venues and retail stores?
  3. Who will pay for municipal services, and how will the unique arrangement work whereby the Senecas are expected to provide their own police and fire protection?
  4. Since neither the law passed by the Legislature, nor the compact approved by the Senecas specifies what the state’s revenue share will be after 14 years or what the city’s share will be at all, how do we know what the share will be?
  5. Why does the compact limit the city’s, state’s and public’s ability to check the casino’s books?

Hoyt concluded, "Governor Pataki may think that by signing this thing quickly voters won’t know what hit them before Election Day. My hope is to let him know that somebody’s watching. If stopping this casino is not possible, perhaps at least getting some of these questions answered is a more modest goal."

Sam Hoyt represents the 144th Assembly District which includes Buffalo and Grand Island.

Read Sam Hoyt's Letter to the Governor


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'SILENT ADDICTION' OF TEEN GAMBLING AIRED

Cintia Furtado, Buffalo News, 7/20/2002


In 1997, a young Long Island man, depressed over owing more than $6,000 in gambling debts, was shot to death by two police officers after he repeatedly threatened them with a handgun that turned out to be a toy.

Local experts on teenage gambling fear the coming of casino gambling to Western New York may result in more young people in that same kind of desperate situation.

"Awareness and education about the problem will enhance the quality of life of the community, because every day teenagers are more and more seduced to gamble," said Dr. Robert Schulman, head of pediatrics at Buffalo General Hospital. Schulman helped conduct a program Friday on teen gambling for employees of Children's Hospital.

Renee C. Wert, director of the Gambling Recovery Program at Jewish Family Service, said teens should not gamble because they often are just too young to think clearly about their behavior.

A recent study showed that 86 percent of the state's teens have gambled at least once in their lives and 75 percent have done so within the past year, even though all forms of gambling are illegal for teens. The study also found that teen problem gamblers are more likely to use alcohol, tobacco and marijuana and to have gotten into trouble as a result.

"Kids have been exposed to gambling like no generation in the past. It has been more socially acceptable, and there are more opportunities available such as card games, sporting events, Off-Track Betting and instant scratch-off tickets," Wert said.

"People are now aware that when you go to the store, there are signs warning people that they will have to show ID to purchase alcohol and cigarettes, but there are no signs for lottery tickets. Teenagers should be 18 years old to gamble, and the same goes for (Off-Track Betting)," she said.

Wert said family influence is an important factor in whether teens will be tempted to gamble because the first gambling experiences usually involve friends and family -- and come at an average age of 12.

She said parents should be aware of the possible symptoms of teenage gambling addiction. These include showing excessive interest in sports -- meaning the teen blows up when a game's results were not what he had hoped -- spending a lot of money on sports magazines and using gambling language.

Other warning signs are calling 900-exchange numbers for results of games before they appear in the news; receiving phone calls from strangers, who could be bookies; and talking about becoming professional gamblers, Wert said.

"Teenage gambling is a very silent addiction, and the more health professionals know how to recognize the symptoms, it will help addict teens in risk and their family to go into treatment," said Barbara Traver, an addictions specialist. "Today's kids were born in a time when the lottery was born, and it is morally acceptable, so they cannot make the distinction."

Internet pop-up ads and junk mail are easy ways for teens to gamble at home using their parents' credit cards. Though Internet gambling is illegal in the United States, it has been estimated as a $1.6 billion business in 2000 and projected to grow to $5 billion by next year.

"I think it is frightening that there are many opportunities for teenagers to gamble in our society," said Dr. Frederick C. Morin III, chairman of pediatrics at Children's.

Wert said gambling should be considered an addiction, with money the drug. Parents, he said, should be aware of the problem and not be afraid to use group treatment such as a 12-step program.

e-mail: cfurtado@buffnews.com

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SENECA TREASURER IS ANTI-CASINO

John F. Bonfatti, Buffalo News, 7/13/2002

The treasurer of the Seneca Nation of Indians said Friday he will not authorize the use of tribal funds for buying land in Buffalo or Niagara Falls or for pursuing a casino in either of those cities.

In announcing his decision in a news release, Arnold Cooper, who is a candidate for Seneca Nation president in the November elections, once again criticized current President Cyrus M. Schindler Jr. and tribal councillor Barry Snyder for pushing a plan for casinos in Buffalo and Niagara Falls. "President Schindler and the Council have recklessly spent our money to pursue what some Senecas apparently want -- a Class III casino," Cooper said in the statement. "But Gov. Pataki's failure to accept the propos ed c ompact makes it clear that this is simply not going to happen."

In a referendum May 14, Senecas voted, 1,077-976, to pursue two casinos, and tribal leaders had worked out an 800-page compact with the state to allow the casinos.

But Pataki has not signed off on the compact because it does not contain protections that would allow for union organizing of casino employees.

Schindler and other tribal leaders announced last month they wouldn't wait for the governor's signature and would buy land in Niagara Falls with the idea of having a temporary casino open by the end of the year.

Cooper criticized Schindler and the council for spending "nearly $2 million of the nation's money to pursue their casino deal. Those funds could have been used to help the Seneca people, such as the construction of new recreation facilities for our youth or the expansion of medical services for our seniors."

Asked to comment, Schindler said he hadn't seen Cooper's news release and wouldn't comment on it until he had.

Instead of the Class III casinos, which would allow most forms of gambling, Cooper said the nation should be expanding its existing Class II gaming facilities, which revolve around bingo.

e-mail: jbonfatti@buffnews.com

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NO SMUDGES IN BUS DRIVER'S PAST

Donna Jackel - Rochester Democrat and Chronicle, July 7, 2002

Police say William John Hovan Jr., 59, gambled for two consecutive days, getting only 3 1/2 hours of sleep, before sliding behind the wheel of the Arrow Line bus and heading east on a seven-hour trip from Niagara Falls to Waterbury, Conn.

The bus swerved erratically and crashed near Exit 45 in Victor, a little over an hour into the trip, crushing passengers beneath it as it rolled down an embankment. Police say Hovan apparently fell asleep at the wheel.

Hovan told police he had won $4,000 his first night gambling at Casino Niagara, only to lose it all later in the weekend.

Forty-four passengers were aboard the bus, including several children. Nearly all 39 surviving passengers sustained injuries.

One of the passengers, Ruth Restituyo, 30, walked up the aisle of the bus and asked Hovan to pull over because he was falling asleep, passengers said. Seconds later, while she was returning to her seat, the crash occurred. She was one of the five who died.

Passengers said several people warned him to stay awake, even telling him to stop if he was sleepy and offering to drive.

Hovan spoke briefly to a reporter in a parking lot in Trumbull, Conn., last week, where he was seated behind the wheel of a black Grand Cherokee, smoking a cigarette. He is in Connecticut while New York State Police complete their investigation. He has not been charged.

Ontario County District Attorney Michael Tantillo said he was awaiting test results and expected the case to go before a grand jury "sometime this month."

Hovan has been suspended from his job without pay.

"I have no comment," he said, adding that he was en route to a doctor's appointment. A jagged line of stitches could be seen on his left forearm. "My lawyer told me not to talk."

Rochester lawyer John Speranza, who is representing Hovan, declined to comment, saying that he has not yet interviewed his client.

Differing views

Interviews about Hovan with people from Connecticut who know him contrast sharply with the recollections of passengers aboard the bus.

Robert Galello, 52, director of the Galello-Luchansky Funeral Home in Stratford, which is near Trumbull, said he and Hovan have been friends for 35 years. The two belong to the same men's organization, Galello said. He declined to name the club but said it is similar to the Rotary.

Galello said he was shocked to learn of the accident.

"It's not for me to judge," said Galello, who said he considers Hovan, whom he calls "Billy," one of his best friends.

"I think it's tragic for him and his family and for the victims' families."

He said Hovan has difficulty expressing his emotions. "That's a shame because he's the sweetest guy," Galello said. "He's a true friend."

As an example of Hovan's considerate nature, he said, "He'd call me up to say hello and say, 'I can see you're busy. It's nice to see you're successful.' "

Galello said he hasn't spoken with Hovan since the accident.

"If he was in front of me right now, I'd hug and kiss him," he said, his eyes tearing up.

A cousin, Veronica Ivanovich of Stratford, described him as an outgoing, courteous boy who was close to his parents.

"I haven't seen him in a long time," Ivanovich said. "He grew up in a nice family and was doted upon by his grandmother. He was a nice kid who was never in any trouble at all."

As a youth, Hovan lived in Bridgeport, Conn., and had a stepsister, Ivanovich said. She doesn't believe he attended college.

Ivanovich said she is not aware that Hovan ever had a gambling problem.

Andre Rivera Jr., 27, one of the passengers injured in the bus accident, saw a different side of Hovan.

"On the way up (to Niagara Falls) he spoke rudely to us," said Rivera, the uncle of Jazmine Santiago, 15, one of those who died in the accident.

On the drive home, Hovan was smoking on the bus, Rivera added. "At one point, he told everyone to shut up. He was on his cell phone," Rivera said.

Clean record

No one in Connecticut provided any evidence that Hovan is a compulsive gambler.

Experts on compulsive gambling say the progressive illness usually affects at least one major area of the addict's life -- his finances, employment or personal relationships.

None of those problems appears to have emerged for Hovan before the accident.

A check of public records shows that Hovan has never filed for bankruptcy or been involved in any other action in federal court. He has not had any judgments or liens against him and never had a lawsuit filed against him in state court. He has not appeared in criminal court in Connecticut or been arrested in his home state.

"He is not known to our department. We've had no contact with him," said Deputy Chief Joseph A. Edwards of the police department in Trumbull, where Hovan has lived for about 29 years.

He's been married to the same woman, Elizabeth M. Hovan, for 35 years.

It is impossible to know for certain, based upon behavior displayed during one weekend, whether someone has a gambling disorder, said Kenneth Conner, an assistant professor in the University of Rochester's psychiatry department who specializes in addiction.

Winning and losing $4,000 in one weekend is noteworthy, Conner said. "That's a tremendous amount of gambling," he said. "Most people, unless they're wealthy, wouldn't get into that kind of money that quickly. It certainly suggests he has a gambling problem, but it's impossible to know without interviewing him or others who know his background."

Like a junkie's high, compulsive gamblers experience a thrill from betting, often needing to wager higher amounts of money to reach the same level of excitement, Conner said.

"It's an urge that is very difficult to manage or relieve," he added.

For Hovan, the urge to gamble at Niagara Falls was apparently so strong that he ignored a federal rule that commercial drivers get at least eight hours of rest before driving.

Sleep deprivation caused him to fall asleep behind the wheel, police said.

Police said Hovan will probably be charged with manslaughter in the deaths of Santiago; Restituyo; Alex Blondet, 16; Maikel Mota, 29; and Eneroliza Polanco, 29.

According to the Connecticut Department of Motor Vehicles, Hovan has held a valid Connecticut commercial driver's license since 1992.

He has received two citations for traffic infractions: one in 2000, for failing to drive in the right-hand lane; and another in March for failing to wear a seat belt. It is unclear whether the March ticket was issued while he was operating a bus, said department spokesman Bill Seymour.

Hovan has worked for Arrow Line since Oct. 8, 1997, said Jennifer Webster, a spokeswoman for Coach USA, Arrow Line's parent company. He's been a bus driver for about 30 years.

The Arrow bus company itself has a satisfactory safety record, according to the Federal Motor Carrier Safety Administration.

Fifty-four of its drivers have been checked over the last two years and one was taken off the road, according to the agency. The company has not had any crashes in the last two years, the agency said.

Longtime resident

Hovan and his wife have no children. They have lived in Trumbull since at least 1973.

The Hovans own a white colonial home, assessed at $265,000, in an upper-middle-class neighborhood. The large homes on Huntington Turnpike lie on one-acre lots and the road is heavily trafficked, which neighbors say makes it difficult to get to know one another. None of Hovan's adjacent neighbors said they knew him.

In a nondescript shopping plaza on Main Street, near the Stratford town green, stands Hovan's Flowers Inc. The small shop was incorporated by Hovan's father, William Hovan Sr., and his uncle, Joseph Hovan, in 1957.

Elizabeth Hovan, who goes by the nickname "Bunnie," now runs the business.

She declined to be interviewed for this story.

Elizabeth Hovan appears to be well-known and respected in Stratford -- and within the florist industry. She is a member of the board of directors of the Connecticut Florists Association and was 1995 Connecticut Florist of the Year. For years, she has decorated the 19-room Connecticut governor's mansion in Hartford at Christmas time.

The Hovans and the families of the victims are not the only ones shaken by the fatal bus crash.

"It's a tragic thing. We're all pretty sick over it," said a 13-year veteran bus driver at Arrow Line, who asked to remain anonymous.

Getting eight hours' rest before driving is a cardinal rule, said the man, who works out of Arrow Line's East Hartford office.

"It's a driver's worst nightmare -- falling asleep behind the wheel and killing someone," he said.

E-mail address: djackel@DemocratandChronicle.com

Includes reporting by Steve Orr and Joseph Spector.

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LAND RULING MAY SNARL SENECAS' CASINO PLANS

Jerry Zremski - Buffalo News, 6/23/2002

WASHINGTON - While dismissing the Seneca Nation's claim to Grand Island last week, a federal judge also might have made it tougher for the tribe to quickly open casinos in Buffalo and Niagara Falls. In his land claim decision, U.S. District Judge Richard J. Arcara questioned whether the Niagara Frontier was really the Senecas' aboriginal land.

The Senecas assume that it is - and that is the basis for their seeking quick federal approval for their casinos.

"This knocks that approach out of the box," said Rep. John J. LaFalce, D-Town of Tonawanda, a leading opponent of a Buffalo casino.

He suggests that Arcara's land claim decision could force the Senecas to face a time-consuming federal study of the casinos' community impact.

Other lawyers familiar with the casino issue and the Grand Island land claim agreed, saying Arcara raised a new wrinkle that could make federal approval of the casinos more arduous.

At issue is an arcane provision in the law that Congress passed in 1990, renewing land leases in the Seneca-owned City of Salamanca.

That provision allows the tribe to buy "lands within its aboriginal area in the state or situated within or near proximity to reservation land."

State and local governments have 30 days to comment on the removal of such lands from their tax rolls, and then the secretary of the interior has 30 days to determine whether the land acquisition should go forward.

The Senecas plan to rely on that provision to buy land for casinos in Buffalo and Niagara Falls.

Such purchases are usually subject to a much tougher federal review process. But last summer, the Senecas' attorney, Barry Brandon, said, "By law, we are entitled to a very quick turnaround."

But the Senecas are not entitled to a quick turnaround if the casino land is not really in their aboriginal territory.

Many people think it isn't.

In fact, New York State - which has partnered with the Senecas on the casino deal - argued in the Grand Island case that the Niagara Frontier is not the Senecas' aboriginal land.

Citing research by Canadian historian Alex Von Gernet, the state said the Senecas' homeland was 60 to 70 miles to the east, in the Genesee River valley.

Back in the 1600s, a tribe called the Neutrals inhabited what's now the Buffalo metropolitan area. The Senecas slaughtered the Neutrals in 1651, but the state contends that that wasn't enough to turn the area into the Senecas' aboriginal territory.

Courts have defined aboriginal territory as that belonging to tribes since "time immemorial."

"Simply put, the Senecas were not early inhabitants of the Niagara Frontier," the state argued in its brief in the Grand Island case.

In his decision, Arcara essentially agreed with the state's argument.

"Unlike the other Indian land claim cases in New York, this is not a case involving an Indian tribe's ancestral homelands," Arcara wrote. "The Seneca Nation's ancestral homelands were located in the Genesee Valley, not in the Niagara region, and certainly not in the Niagara Islands."

While Arcara's decision doesn't directly apply to the casino matter, it could have a huge indirect impact in one of two ways.

Impact of court ruling

First, the Department of the Interior might be more reluctant to rubber-stamp the casino land transfer after Arcara's decision.

"With this tossed in, the Department of the Interior would have to be crazy to do that," LaFalce said.

Second, if the feds do quickly approve the land transfer, the Arcara decision gives opponents of gambling more ammunition to take to court to fight the casinos.

"Historically this has been treated as aboriginal land," said Jennifer Coleman, an attorney who fought the Salamanca lease deal in court.

But if it's not, she said, "it throws the statute wide open."

Neither Brandon nor Arlinda Locklear, the Senecas' land claim lawyer, returned calls seeking comment on the matter.

Other sources said the Senecas might have alternative arguments that would allow them to get a quick federal approval. For one thing, the law approving the lease deal includes that vague phrase allowing the Senecas to quickly buy land "situated within or in near proximity to former reservation land."

The Senecas could argue that that phrase gives them the right to buy land in Erie and Niagara counties, on the theory that it's in "near proximity" to its reservations.

Then again, if the Department of the Interior or the courts rule that the Senecas can't get the land transfers quickly approved under the Salamanca law, the tribe would have to take the much slower approach included in the Indian Gaming Regulatory Act.

Public opposition a factor

Under that law, a tribe must prove that an off-reservation casino would be in the best interest of the tribe and would not be detrimental to the surrounding community. Getting such approval can take years.

Public opposition would play a much stronger role under that more stringent review process. And there is substantial opposition in Erie County: A Buffalo News poll recently showed that more than half of Erie County residents oppose an Indian-run casino in Buffalo.

In contrast, Niagara County residents supported such a casino there.

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