HomeMy WebLinkAboutOrdinance 712ORDINANCE NO. 712
• CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
AN ORDINANCE AMENDING THE INDEX AND TABLE OF CONTENTS OF THE
MOUNDS VIEW MUNICIPAL CODE, AMENDING THE TABLE OF CONTENTS OF
TITLE 500, BUSINESS LICENSE REGULATIONS, AND ADDING A NEW CHAPTER
516, ENTITLED "PAWNSHOPS"
THE CITY OF MOUNDS VIEW ORDAINS:
SECTION 1: The Mounds View Municipal Code Index is amended by
alphabetically inserting the following underlined text:
Pawnshops ..............................................................................................516
SECTION 2: The Mounds View Municipal Code Table of Contents is amended by
inserting the following underlined text:
i Pawnshops ..............................................................................................516
SECTION 3: The Table of Contents for Title 500, Business License Regulations,
is amended by inserting the following underlined text:
Pawnshops ..............................................................................................516
SECTION 4: Anew Chapter 516 entitled "Pawnshops" is hereby added to
Title 500, Business License Regulations:
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• CHAPTER 516
PAWNSHOPS
SECTION:
516.01: Purpose
516.02: Definitions
516.03:
516.04:
516.05:
516.06:
516.07:
516.08:
516.09:
516.10:
516.11:
516.12:
516.13:
516.14:
License Required
Application for License
Investigation by Police Department
Term of License and Renewals
License Fees
Billable Transaction Fees
Bond Requirement
Ineligible Persons and Locations
General License Requirements
Alarm System Requirement
Suspension or Revocation of License
Prohibited Acts
516.15: Adoption of State Statute by Reference
516.16: Separability
516.01 PURPOSE: The Citv Council of the Citv of Mounds View finds that
pawnbroker regulation is appropriate because such activities provide an opportunity
for the commission of crimes and their concealment because such businesses have
the ability to receive and transfer stolen property easily and quickly. The City Council
also finds that consumer protection regulation of such activities is warranted
because customers of such businesses freauently seek their services during times
of desperate financial circumstances.
To help the Citv of Mounds View to better regulate current and future sawn
businesses, decrease and stabilize costs associated with the regulation of the pawn
industry, and increase identification of criminal activities in the pawn industry
through the timely collection and sharing of pawn transaction information, this
chapter also implements and establishes the reauired use of the Automated Pawn
System (APS).
516.02 DEFINITIONS: As used in this Chapter, the following words and terms
shall have the meanings as follows:
ACCEPTABLE IDENTIFICATION: Acceptable forms of identification are a current
valid Minnesota driver's license. a current valid Minnesota identification card, or a
current valid photo driver's license or identification card issued by another state or
province of Canada.
AUTOMATED PAWN SYSTEM (APS): A computerized data collection system that
mandates the collection of data and digitized images via modem for the purpose of
regulation and review of licensed pawn dealers by city officials and authorized
subscribers.
BILLABLE TRANSACTIONS: Every reportable transaction conducted by a
pawnbroker, except renewals, redemptions, or extensions of existing pawns on
items previously reported and continuously in the licensee's possession.
CONSIGNMENT: Acting as a sales agent for another, selling another person's
goods without having to first purchase said goods.
ISSUING AUTHORITY: The City of Mounds View.
ITEM CONTAINING PRECIOUS METAL: An item made in whole or in part of metal and
containing more than one percent (1%) by weight of silver, gold or platinum.
MANAGER: A person or persons designated by the licensee to operate and
supervise the pawnshop under the provisions of this Chapter.
MINOR: Any natural person under the age of eighteen (18) years.
PAWNBROKER: A person engaged in whole or in part in the business of lending
money on the security of pledged goods left in pawn, or in the business of purchasing
tangible personal property to be left in pawn on the condition that it may be redeemed
or repurchased by the seller for a fixed price within a, fixed period of time. The
following are exempt from the definition of pawnbroker .any bank regulated by the
state of Minnesota, the comptroller of the currency of the United States, the Federal
Deposit Insurance Corporation, the board of governors of the Federal Reserve system,
or any other federal or state authority and their affiliates; any bank or savings and loan
whose deposits or accounts are eligible for insurance by the Federal Deposit
Insurance Corporation or any successor to it and all affiliates of those banks and
savings and loan associations; any state or federally chartered credit union; any
industrial loan and thrift company or regulated lender subject to licensing and
regulation by the department of commerce.
PAWNSHOP: The licensed location in which a pawnbroker conducts business.
PERSON: One or more natural persons; a partnership, including a limited
partnership; a corporation, including a foreign, domestic or nonprofit corporation, a
trust, a political subdivision of the state; or any other business organization.
PRECIOUS METAL DEALER: Except as exempted by MN Statutes Section 325F.732
Subd 2, any natural person, partnership or corporation engaging in the business of
buying, selling or pawning secondhand items containing precious metal, including,
but not limited to, lewelry, watches, eating utensils, candlesticks, and religious and
decorative objects.
PRECIOUS METALS: m an ilv r
e s S e ,gold or platinum.
REDEMPTION PERIOD: The date by which an item of property that has been pawned
must be redeemed by the pledger without risk that the item will be sold. Such date
must be a day on which the pawnbroker or precious metal dealer is open for regular
business.
REPORTABLE TRANSACTION: Every transaction conducted by a pawnbroker in
which merchandise is received through a pawn or purchase, or in which a pawn is
renewed, extended, or for which a unique transaction number or identifier is
generated by their point of sale software, is reportable, except:
A. The bulk purchase of new or used merchandise from a merchant. manufacturer
or wholesaler having an established permanent place of business, and the retail
sale of said merchandise, provided the pawnbroker must maintain a record of
such purchase which describes each item, and must mark each item in a manner
which relates it to that transaction record.
B. Retail and wholesale sales of merchandise originally received by pawn or
purchase, and for which all applicable hold and/or redemption periods have
expired.
516.03 LICENSE REQUIRED: No person shall exercise, carry on or be engaged
in the trade or business of pawnbroker within the city unless such person is
currently licensed in accordance with this chapter to be a pawnbroker. Pawnbrokers
shall also maintain and display at all times a current and valid Precious Metal Dealer
License issued by Ramsey County.
516.04 APPLICATION FOR LICENSE: Every application for license under this
chapter, whether for a natural person, partnership, corporation or other organization,
shall be made on a form supplied by the City and shall contain all information as
required on that form by law.
Subd. 1. All applications for a license under this chapter shall be signed and sworn
to under oath or affirmation by applicant. If the application is that of a natural
person, it shall be signed and sworn to by such person; if that of a
corporation, by an officer thereof; if that of a partnership, by one of the
general partners; and if that of an unincorporated association, by the manager
or managing officer thereof.
Subd. 2. Any falsification on a license application shall result in the denial of a
license.
Subd. 3. No Pawnbroker License will be issued, renewed or transferred without a
public hearing conducted by the City Council after a notice has been
published in the official City newspaper at least ten (10) days in advance of
the hearing.
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516.05 INVESTIGATION BY POLICE DEPARTMENT:
Subd. 1. Investigation and Report: All applications shall be referred to the police
department for verification and investigation of the facts set forth in the
application. The police department shall make a written report and
recommendation to the City Council as to approval or denial of the license.
The City Council may order and conduct such additional investigation that it
deems necessary.
Subd. 2. Cost of Investigation: An investigation fee shall be collected with each
application for a Pawnshop license to cover the expense of any investigation needed
to assure compliance with this chapter. The investigation fee is estat~lished by
resolution of the City Council. If the investigation and verification process is
conducted outside the state of Minnesota, additional fees may be required.
_Subd. 3. When a licensee places a manager in charge of the business, or if the
named manager(s) in charge of a licensed business changes, the licensee
must complete and submit the appropriate investigation application within
fourteen (14) days. The manager shall be subject to the investigation required
herein and to payment of the investigation fee required by this chapter, which
shall be paid in advance. The designation of a new manager shall not cause
the license to become invalid before a decision is rendered, provided proper
notice and application are made by the applicant. A proposed new manager
shall be referred to as the interim manager. In the event an interim manager is
rejected, the licensee shall designate another interim manager and make the
required application within fourteen (14) days of the decision. If a proposed
manager is rejected, the decision may be appealed to the city council by filing
a written notice of appeal with the city clerk/administrator within ten (10) days
after being notified of the resection.
516.06 TERM OF LICENSE AND RENEWALS:
Subd. 1 Term: Licenses expire annually on December 31. The license fee will be
prorated in thirty (30) day increments for licenses issued after June 30.
Subd. 2. Renewal: A license under this section will not be renewed if the City
Council determines that the licensee has failed to comply with the provisions
of this chapter in a preceding license year or if there would be sufficient
grounds not to issue a license in the first instance.
516.07 LICENSE FEES: To defray administrative and other costs of processing
applications for Pawnshop licenses, a nonrefundable fee shall be paid at the time an
application is filed with the City. The minimum fee shall be established by resolution
approved by the City Council.
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516.08 BILLABLE TRANSACTION FEES: Licensees shall pav a
monthly transaction fee on all billable transactions. The minimum fee shall be
established by resolution approved by the City Council. Such fee shall be due and
• payable within thirty (30) days. Failure to timely pav the billable transaction fee shall
constitute a violation of this chapter.
516.09 BOND REQUIREMENT: At the time of filing an application for a license,
the applicant shall file a bond in the amount of ten thousand dollars ($10,000.00) with
the City. The bond, with a duly licensed surety company as surety thereon, must be
approved as to form by the city attorney. The bond must be conditioned on the
licensee observing all ordinances of the City and all laws relating to the business of
pawnbroker or precious metal dealer, and the licensee accounting for and delivering
to any person legally entitled thereto any articles which may have come into the
possession of the licensee as pawnbroker, or in lieu thereof such licensee paving
the person or persons the reasonable value thereof. The bond shall contain a
provision that it may not be canceled without thirty (30) days advance written notice
to the licensing authority.
516.10 INELIGIBLE PERSONS AND LOCATIONS:
Subd. 1. Ineligible Persons: No licenses under this chapter shall be issued to an
applicant who is a natural person, general or managing partner, manager,
proprietor or agent if such applicant:
a. Is a minor at the time the application is filed;
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b. Has been convicted of any offense related to the occupation licensed or
involving moral turpitude;
c. Is not a citizen of the United States or a resident alien:
d. Is not of good moral character or repute;
e. Has misrepresented or falsified information on the license application:
f. Holds an intoxicating liquor license under this code;
g. Has had a pawnbroker or precious metal dealer license revoked elsewhere;
or
h. Other good and sufficient reason at the sole discretion of the City Council.
Subd. 2. Ineligible Locations: The following locations shall be ineligible for licenses
under this chapter:
a. No license shall be granted or renewed for operation on any property on
which taxes, assessments or other financial claims of the state, county,
school district or city are due, delinquent or unpaid.
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b. No license shall be granted or renewed if the property on which the
business is to be conducted is owned or controlled by a person who is
ineligible for a license.
c. The property is not properly zoned.
d. A location within one thousand (1,000) feet of an existing pawnshop.
e. No license shall be granted for a premises in excess of 5,000 square feet.
Subd. 3. Multiple Brokers Or Dealers Prohibited: No license shat! be issued for
multiple pawnbrokers at one location.
516.11 GENERAL LICENSE REQUIREMENTS:
Subd. 1. Record Keeping: All licensees shall utilize the Automated Pawn System
(APS) for the creation, maintenance, and storage of transactional records
regarding licensed activities. At the time of a receipt of an item of property,
whether purchased or pawned, the pawnbroker shall immediately record, on
computer disc or if the computer is temporarily unavailable in a book or
journal which has page numbers that are preprinted and in an indelible ink,
the following information:
a. Description Of Item: An accurate description of the item of property
including, but not limited to, any trademark, identification number, serial
number model number, brand, brand name or other identifying mark on such
item;
b. Date And Time: The date and time the item of property was received by the
licensee, and the unique alpha and/or numeric transaction identifier that
distinguishes it from all other transactions in the licensee's records.
Transaction identifiers must be assigned consecutively:
c. Description Of Person: The name, address, residence phone number, date
of birth, and accurate description including: sex, height, weight, race, color of
eves and color of hair of the person from whom the item of property was
received;
d. Identification Number: The identification number and state or nation of
issue from any of the following forms of identification of the person from
whom the item of property was received:
(1) A valid driver's license;
(2) A valid state or national picture identification.
e. Price: The price of the item paid and whether the item was purchased or
pawned;
• f. Fees: A list of all fees and char es that the transaction ma be sub'ect to•
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g. Statement: A signed statement from the person from whom the item of
rp operty is received that there are no liens on the item, that it is not stolen and
that the person has the right to sell it.
h. Photograph or Video Recording: The licensee must take a color photograph
or color video recording of each customer involved in a billable transaction
and every item pawned or sold that does not have a unique serial or
identification number permanently engraved or affixed.
(1) Photo Provisions: The photograph taken must be at least two
inches (2") in length by two inches (2") in width and must be
maintained in such a manner that the photograph can be readily
matched and correlated with all other records of the transaction to
which they relate. Such photographs must be available to the chief of
police, or the chiefs designee, upon request. The maior portion of the
photograph must include an identifiable front facial close up of the
person who pawned or sold the item. Items photographed must be
accurately depicted. The licensee must inform the person that he or she
is being photographed by displaying a sign of sufficient size in a
conspicuous place on the premises.
(2) Video Provisions: If a video photograph is taken, the video
camera must zoom in on the person pawnina or selling the item so as
. to include an identifiable close up of that person's face. Items
photographed by video must be accurately depicted. Video
photographs must be electronically referenced by time and date so then
can be readily matched and correlated with all other records of the
transaction to which they relate. The licensee shall display a sign of
sufficient size in a conspicuous place on the premises informing
patrons that all transactions are video-recorded. The licensee must
keep the exposed videotape for four (4) months, and furnish it to the
police department upon request.
(3) Digitized Photographs: Digital images shall be provided in a format
specified by the issuing authority, electronically cross referenced to the
reportable transaction with which they are associated.
i. Renewals, Extensions And Redemptions: For renewals, extensions and
redemptions, the licensee shall provide the original transaction identifier, the
date of the current transaction, the type of transaction, interest charges
accrued, and any amount paid for the transaction or the article. When an
article of purchased or forfeited property is sold or disposed of by a licensee
the records shall contain an account of such sale with the date, the amount
for which the article was sold, and the full name, current address, and
telephone number of the person to whom sold.
Subd. 2. Inspection Of Records: The pawnbroker shall make available the
information required in subdivision 1 of this section at all reasonable times for
inspection by the police department or other representatives of the licensing
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Subd. 3. Retention of Records. The pawnbroker shall retain the information
required in this section for at least five (5) years.
Subd. 4 Daily Reports To Police Are Required: The pawnbroker shall submit daily to
the police department all information required by this section regarding every
reportable transaction by transferring it from their computer to the Automated
Pawn System. All required records must be transmitted completely and
accurately after the close of business each day in accordance with standards
and procedures established by the issuing authority using procedures that
address security concerns of the licensees and the issuing authority. The
licensee must display a sign of sufficient size, in a conspicuous place in the
premises, which informs all patrons that all transactions are reported to the
police department daily.
Subd. 5. Data Transfer Failures:
a. If a licensee is unable to successfully transfer the required reports by
electronic means, the licensee must provide the police department printed
copies of all reportable transactions along with the videotape(s) for that date,
by twelve o'clock (12:00) noon the next business day;
b. If the problem is determined to be in the licensee's system and is not
corrected by the close of the first business day following the failure, the
licensee must provide the required reports and shall be charged a fifty dollar
~~50.00) reporting failure penalty, daily, until the error is corrected; or
c. If the problem is determined to be outside the licensees system, the
licensee must provide the required reports and resubmit all such transaction
electronically when the error is corrected.
d. If a licensee is unable to capture, digitize or transmit diaital ahotoaraahs
required by this chapter, the licensee must immediately take all required
photographs with a still camera, cross reference the photographs to the
correct transaction, and make the pictures available to the police department
upon request.
e. Regardless of the cause or origin of the technical problems that prevented
the licensee from uploading their reportable transactions. upon correction of
the problem, the licensee shall upload every reportable transaction from every
business day the problem had existed.
f. The police department may at their discretion, upon presentation of
extenuating circumstances by the licensee, delay the implementation of the
daily reporting penalty imposed by this section.
Subd. 6. Police Order To Hold Property: Whenever the police department notifies
the pawnbroker not to sell an item, the item shall not be sold or removed from
the licensed premises until authorized to be released by the police
department.
Subd. 7. Holding Period Of Pawnbrokers:
a. Anv item pawned to a pawnbroker for which a report to the police is
required under this chapter shall not be sold or otherwise transferred for
ninety (90) days after the date of the pawn. However, an individual may
redeem an item pawned seventy two (72) hours after the item was received on
deposit by the pawnbroker, excluding Sundays and legal holidays.
b. Anv item sold outright to a pawnbroker for which a report to the police is
required under this chapter shall not be sold or otherwise transferred for
thirty (30) days after the date of the initial purchase.
Subd. 8. Receipt: The pawnbroker shall provide a receipt to the seller or pledger
of any item of property received, which shall include:
a. The name, address and phone number of the pawnbroker or precious metal
dealer business.
b. The date on which the pawnbroker or precious metal dealer received the
item.
c. A description of the item received and amount paid to the pledger or seller
in exchange for the item pawned or sold.
d. The signature of the pawnbroker or precious metal dealer or agent.
• e. The last regular business day by which the item must be redeemed by the
pledger without risk that the item will be sold and the amount necessary to
redeem the pawned item on that date.
f. The annual rate of interest charged on pawned items received.
g. The name, address, and signature of the seller or pledger.
Subd. 9. Hours Of Operation: No pawnbroker shall be open for the transaction of
business on any day of the week before eight o'clock (8:00) A.M. or after eight
o'clock (8:00) P.M.
Subd. 10. Minors: The pawnbroker shall not purchase or receive personal property
of any nature on depositor pledge from any minor.
Subd. 11. Inspection Of Items: The pawnbroker shall at all times during the term of
the license allow the police department to enter the premises where the
pawnbroker business is located, for the purpose of inspecting such premises
and inspecting the items, wares and merchandise therein for the purpose of
locating items suspected or alleged to have been stolen or otherwise
improperly disposed of.
Subd. 12. License Display: A license issued under this chapter must be posted in a
conspicuous place in the premises for which it is used. The license issued is
only effective for the compact and contiguous space specified in the approved
license application. Anv additional required county and state licenses shall
be similarly posted.
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Subd. 13. Maintenance Of Order: A licensee under this chapter shall be responsible
for the conduct of the business being oaerated and shall maintain conditions
of order.
Subd. 14. Prohibited Goods: No licensee under this chapter shall accept anv item of
property which contains an altered or obliterated serial number or "operation
identification" number or anv item of property whose serial number has been
removed.
Subd. 15. Payment By Check: Payment of more than two hundred fifty dollars
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x$250.00) by a licensee for anv article deposited, left, purchased, pledged or
pawned shall be made only by a check, draft, or other negotiable or
nonnegotiable instrument that is drawn against funds held by a financial
institution. This policy shall be posted in a conspicuous place in the
premises.
Subd. 16. Storage: All items shall be stored within the licensed premises.
Subd.17. Prohibited Items: Licensee shall not accept for pawn or purchase or offer
for sale firearms or handguns.
Subd.18. signaqe: Licensees shall by adequate signage and separate written notice
inform persons seeking to pawn, pledge, sell, leave, or deposit articles of
property with the licensee of the foregoing requirements:
TO PAWN OR SELL PROPERTY:
• YOU MUST BE AT LEAST 18 YEARS OF AGE
• YOU MUST BE THE TRUE OWNER OF THE PROPERTY
• THE PROPERTY MUST BE FREE OF ALL CLAIMS AND LIENS
• YOU MUST PRESENT VALID PHOTO IDENTIFICATION
• VIOLATION OF ANY OF THESE REQUIREMENTS /S A CRIME.
For the purpose of this Subsection, "adequate signaqe" shall mean at least one
sign of not less than four (4) square feet in surface area, comprised of lettering
of not less than three-quarters (3/4) of an inch in height, posted in a
conspicuous place on the licensed premises.
Subd. 19. Disposition of Articles: When any article is sold or disposed of by the
licensee, the records shall contain an account of such sale with the date
thereof, interest and charges accrued, the amount for which the article was
sold and, in the case of items sold for more than $100.00, the name, address
and telephone number of the purchaser.
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Subd. 20. Managers: In the event the Licensee places a manager or managers in
charge of the operation (subject to the requirements of Section 516.04), the
manager or managers shall work on average a minimum of 80 hours per
month during asix-month time period.
516.12 ALARM SYSTEM REQUIREMENT: An alarm system, professionally
installed and approved by the Police Chief shall be installed at the licensed
premises.
516.13 SUSPENSION OR REVOCATION OF LICENSES:
Subd. 1. Violation: The City Council may suspend or revoke a license issued under
this chapter upon a finding of a violation of:
a. Anv of the provisions of this chapter
b. Any state statute regulating pawnbrokers or precious metal dealers
c. Anv state or local law relating to moral character and repute. Anv
conviction by the pawnbroker or precious metal dealer for theft, receiving
stolen property or any other crime or violation involving stolen property shall
result in the immediate suspension pending a hearing on revocation of any
• license issued hereunder.
Subd. 2 Notice: Hearing: Except in the case of a suspension Wending a hearing on
revocation, a revocation or suspension by the City Council shall be preceded
by written notice to the licensee and a public hearing. The written notice shall
give at least ten (10) days notice of the time and place of the hearing and shall
state the nature of the charges against the pawnbroker or precious metal
dealer. The Council may, without any notice, suspend any license pending a
hearing on revocation for a period not exceeding thirty (30) days. The notice
may be served upon the pawnbroker by United States mail addressed to the
most recent address of the business in the license application.
516.14 PROHIBITED ACTS:
Subd. 1. No pawnbroker licensed upon this chapter shall:
a. Lend money on a pledge at a rate of interest above that allowed by law;
b. Possess stolen goods;
c. Sell pledged goods before the time to redeem has expired;
. d. Make a loan on a pledge to a minor or purchase property from a minor;
e. Accept consignments or sell consigned goods or items.
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f. Keep, possess or operate, or permit the keeping, possession or operation
on the licensed premises of dice, slot machines, roulette wheels,
• punchboards, blackjack tables or pinball machines which return coins or
slugs, chips or tokens of anv kind, which .are redeemable in merchandise or
cash. Gambling of anv kind, except as noted herein, is prohibited. No
gambling equipment authorized under Minnesota Statutes, chapter 349, may
be kept or operated and no raffles may be conducted on the licensed
premises and/or adjoining rooms. The purchase of lottery tickets may take
place on the licensed premises as authorized by the director of the lottery
pursuant to Minnesota Statutes, chapter 349A.
516.15 ADOPTION BY REFERENCE: Minnesota Statutes, Chapter 325J is
hereby adopted by reference. Wherever this chapter is more restrictive than said
statutes, -this chapter will control. Wherever said statutes are more restrictive than
this chapter, said statutes shall control.
516.16 SEPARABILITY: Should any section, clause or other provision of this
chapter be declared by a court of competent jurisdiction to be invalid such decision
shall not effect the validity of the ordinance as a whole or any part other than the
part so declared invalid.
• SECTION 5. This Ordinance becomes effective thirty (30) days after its
publication in the official City newspaper.
Read by the City Council of the City of Mounds View on this 27th day of October,
2003.
Read and passed by the City Council of the City of Mounds View this 10th day of
November, 2003.
ATTEST:
er ayor
9 r ~. 1.
urt Ulrich, City Clerk /Administrator
(SEAL)
APPROVED AS TO FORM:
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ity Atto ne
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