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Administrative law (De Leon and de leon, jr.

, 2010)

CH.3: POWERS AND FUNCTIONS OF ADMINISTRATIVE otherwise set aside in an appropriate case by a competent
AGENCIES court.

A. IN GENERAL Meaning of administrative power or function:

Function – that which one is bound to do or which it is The term AP or AF is a convenient rather than a technical
one’s business to do. term.

Power – the means by which a function is fulfilled. An AP is said to be any power not explicitly allocated in the
Constitution, although in its nature, legislative, executive,
Sources: or judicial.

 Constitution Includes:
 Statute creating it
- powers which may be invested in agencies other
NOTE: Failure to exercise powers granted to than the legislature without delegating legislative
administrative agencies does not forfeit or extinguish such powers;
powers. - powers which may be vested in agencies other
that courts without infringing upon the judicial
Scope: power; and
- functions which may not be imposed upon a
1. Express and implied powers member of the judiciary.
Jurisdiction and powers of AAs are measured and limited, Most important AF is the exercise of judgment and
by the Constitution or law creating them, to those discretion which statues have vested in the administrative
conferred expressly or by necessary or fair implication. agency. In the exercise of quasi-judicial functions, ABs
must not be too dogmatic as to restrict themselves to
HOWEVER, statues conferring powers on AAs must be
literal interpretation of words and phrases. A complete
liberally construed to enable them to discharge their
and wholistic view is needed to render a just and equitable
assigned duties in accordance with the legislative purpose.
judgment.
An AA has ONLY such powers as are expressly granted to it
Classification of powers:
by law, but it has ALSO such powers as are necessarily
implied in the exercise of its express powers. As to nature:
 Where a general power is conferred or duly 1. investigatory
enjoined by law, every particular power necessary 2. quasi-legislative or rule-making
for the exercise of one or the performance of 3. quasi-judicial or adjudicatory
another is also conferred.
As to degree of subjective choice:
2. Inherent powers
1. Discretional
An AA has no inherent power.
Discretion – the power of right conferred upon them
NOTE: Sometimes, implied powers are referred to as by law of acting officially under certain circumstances,
inherent. according to the dictates of their own judgment and
conscience, and not controlled by the judgment or
3. Quasi-judicial powers conscience of others.
Unless expressly empowered, AAs are bereft of quasi- Essence is that the person exercising it may choose
judicial powers. The extent to which an AA may exercise which of several courses will be followed.
given judicial powers depends largely, if not wholly, on the
statute empowering such agency. HOWEVER, they have in 2. Ministerial
their favor the presumption of regularity in the
performance of official function. A ministerial duty is one in respect to which nothing is
left to discretion. It is a simple, definite duty arising
Nature of powers: under the conditions admitted or proved to exist, and
imposed by law.
In general, the jurisdiction of AOs and AAs is special and
limited. HOWEVER, the powers conferred must be A ministerial act is one performed in response to a
commensurate with the duties to be performed and the duty which has been positively imposed by law and its
purposes to be lawfully effected. Powers of ABs have been performance required at a time and in a manner or
held broad and plenary within their fields, and only in upon conditions specifically designated, the duty to
cases of manifest abuse may a court interfere. perform under the conditions specified not being
dependent upon the officer’s judgment or discretion.
NOTES: Persons dealing with AOs or AAs must take notice
of their authority to act, and are charged with the
knowledge of any and all limitations on their power.
B. INVESTIGATORY POWERS

A govt. agency must respect the presumption of Investigatory powers in general:


constitutionality and legality of a statute/regulation, until
such is repealed or amended by the legislature, or
Administrative law (De Leon and de leon, jr., 2010)

Investigatory or inquisitorial powers include the power of A party in an administrative inquiry may or may not be
an AB to inspect the records and premises, and investigate assisted by counsel, irrespective of the nature of the
the activities of persons or entities coming under its charges and of the respondent’s capacity to represent
jurisdiction, or to secure, or to require the disclosure of himself, and no duty rests on such body to furnish the
information by means of accounts, records, reports, person being investigated with counsel.
statements, testimony of witnesses, production of
documents, or otherwise. Right to counsel not always imperative because such
inquiries are conducted merely to determine whether
Test to determine whether an AB is exercising judicial there are facts that merit disciplinary measure against
functions or merely investigatory functions: erring public officers and employees.

- If the only purpose for investigation is to evaluate 2. Exclusionary rule in custodial investigation NOT
evidence submitted before it based on the facts applicable.
and circumstances presented to it, and if the
agency is not authorized to make a final
pronouncement affecting the parties, then there is C. RULE-MAKING POWERS
an absence of judicial discretion and judgment.
In general:
NOTES: This is conferred on practically all AAs. It is the
distinctive function which sets them apart from the court. 1. Nature

As SOLE power - Some AAs exist solely to secure and What may be granted to an AA is rule-making power to
provide info, and sometimes, to make recommendations. implement the law it is entrusted to enforce.

As AID to other powers – It is used to inform AAs of 2. Necessity


particular situations to determine whether they should
take further action; useful in rule-making or adjudicatory Impractical for lawmakers to provide general regulation
functions. for various AAs

Investigation is indispensable to prosecution. Subordinate legislation is permitted to adapt to the


increasing complexity of modern life and variety of public
The power of investigation consists in gathering, functions.
organizing, and analyzing evidence.
3. Conditions
Scope and extent of investigative powers:
Valid exception to non-delegation of legislative power
Investigative powers must be exercised within the limits provided two conditions concur:
prescribed and bear a reasonable and legitimate
relationship to the general powers granted. - Statute is COMPLETE in itself, setting forth the
policy to be executed by the agency; and
- Statute fixes a STANDARD, mapping out the
1. Initiation of Investigation (on a complaint or on its boundaries of the agency’s authority to which it
motion) must conform.
2. Conduct of Investigation
4. Binding force and effect
Usually private; so conducted that harmful publicity
will not be used in lieu of sanctions provided by law A valid rule/regulation duly promulgated by an AA has the
force and effect of law and is binding on the agency and on
3. Inspection and Examination all those dealing with the agency.
4. Requirements as to accounts, records, reports, or
statements 5. Prospective application
5. Requiring attendance of witnesses, giving of
testimony, and production of evidence Unless intent to the contrary is made manifest either by
express terms of the statute or by necessary implication.
Not inherent to AAs; usually conferred by statute even
for purposes not quasi-judicial. Legislation on the admin level:

Compulsion exerted through judicial process. The rule-making power of an AA (the power to make
implementing or interpretative R or R) is legislative in
6. Hearing (NOT necessary part of investigation) character and results in delegated legislation.
7. Contempt Proceedings
- Rule-making is legislation in the admin level
May punish for contempt, but such power may be (legislation within the confines of the granting
exercised only through a statutory grant of power statute, as required by the Consti); also called
admin legislation, delegated legislation,
8. Application of technical rules of procedure and ordinance-making, and quasi-legislation.
evidence (NOT strictly applied)
The power conferred upon an AA to issue or promulgate R
Right to counsel in administrative investigations: or R necessary to carry out its functions has been held to
be an adequate source of authority to delegate a particular
1. Hearing NOT part of criminal prosecution. function.

Limitations on the rule-making power:


Administrative law (De Leon and de leon, jr., 2010)

1. It may not make R&R which are inconsistent with 1. Resemble judicial adjudication
the provis of the Consti or a statute.
2. It may not amend, alter, modify, supplant, enlarge They are those which purport to do no more than interpret
or expand, restrict or limit the provis or coverage the statute being administered. They have validity in
of the statute. judicial proceedings only to the extent that they correctly
3. It cannot engraft additional requirements not construe the statute.
covered by the statute.
4. In case of discrepancy between the basic law and 2. Entitled to great weight and respect
R or R, the basic law prevails because the latter
Nevertheless, while interpretations of an AB ordinarily
cannot go beyond the terms and provis of the
control the construction of the courts, they are not
basic law.
conclusive. They are at best advisory.
5. An R or R should be uniform in operation,
reasonable, and not unfair or discriminatory. Legislative and interpretative rules distinguished
Rules, regulations, and orders or rulings: 1. Power to create new law
The R&R on an admin body or officer usually comprise LR are in the nature of subordinate legislation; products of
those actions of such body or officer in which the the power to create new and additional legal provisions
legislative element predominates in that they establish a that have the effect of law, while IR are the product of
pattern of conduct thereafter to be followed. interpretation of previously existing law.
Regulations may be used in the sense of “rules” or only in 2. Need for express delegation
the sense of “interpretative regulation.”
LR may be issued only under express delegation of the law,
The term ruling is used to signify an interpretation or an while IR may be issued as a necessary incident of the
application of a rule or statute to a particular situation. administration of a regulatory statute.
They are actions in which there is more of the judicial
function. 3. Presence of statutory sanction
Kinds of rule-making powers LR may or may not have statutory sanction; IR none.
1. Supplementary or detailed legislation 4. Binding force and effect
Rule-making by reason of particular delegation of Valid legislative rules have the same force and effect as
authority valid statutes. IR are always subject to judicial
determination that they are erroneous, even when their
2. Interpretative legislation issuance is authorized by statute.
Rule-making by the construction and interpretation of a 5. Consequence of wrong construction
statute being administered
No vested right can be acquired on a wrong construction of
3. Contingent legislation or determination the law by AOs and such wrong interpretation does not
place the government in estoppels to correct or overrule
Under delegated power, whether a statute shall go into
the same.
effect
Contingent rules and regulations
Kinds of rules and regulations
Congress may provide that a law shall take effect upon the
1. Discretionary or legislative
happening of future specified contingencies leaving to
2. Interpretative
some other person or body the power to determine when
3. Contingent
the specified contingency has arisen.
4. Procedural
5. Internal or penal Procedural rules
Legislative rules and regulations Refers to those describing the methods by which the
agency will carry out its appointed functions.
1. A form of subordinate legislation
Practical Necessity of Rule-Making Power
Can be used only in virtue of statutory delegation; when
valid, they are accorded the force and effect of law 1. Regulation of highly complex and changing
immediately upon going into effect. conditions
AA acts in a legislative capacity, supplementing the statute,
2. Gradual change in regulatory role of Congress
filling in the details, or “making the law”.
Complexity of conditions resulted in regulatory role of
2. Characteristics
Congress, i.e. provide only general principles of regulation,
a. The statute has delegated power to the agency
and to devolve upon admin authorities the task of applying
to adopt the rule; and
those general principles.
b. It provides that the rule shall, if within the
delegated power, have authoritative force. Considered as not violative of due process as long as
cardinal rights of the parties affected are observed.
Interpretative rules and regulations
Administrative law (De Leon and de leon, jr., 2010)

3. Inability of legislative bodies to anticipate 2. W it passes the completeness test AND


future situations the sufficient standard test
3. W it doesn’t violate any of the limitations
Which is why statutes are couched in general terms. (infra.)

Special advantages of the rule-making power Determination of validity of rules (questions to be


asked)
1. Freed from concern with details, the legislature
can concentrate its attention upon the enactment 1. Legislative rule
of the fundamentals of policy, and is thus
strengthened as the representative organ of W the rule relates to the subject matter on which power
govt. to legislate has been delegated;
2. Additional time to investigate how AAs have
concretized and enforced its policies. W the rule conforms to the standards prescribed in the
3. If a difficulty concerns details rather than basic delegatory statute; and
policy, easier to correct mistakes and meet
changing conditions. W the rule is invalid on constitutional grounds.
4. Administrator need not have to choose bet.
2. Interpretative rule
defeating the central purpose of the statute by
trying to work the unworkable, and evading the W the rule correctly interprets the statute/ W the rule
letter of the law. amounts to an attempt to exercise legislative powers not
5. The administrator is the one who, by constantly delegated.
rubbing elbows with his particular problems, can,
by trial and error, work out the specific TESTS applied in determining validity of rules
regulations best calculated to attain the
statutory objective. 1. A rule is invalid if it exceeds the authority
6. In working out the specifics of policy, a conferred to it.
bureaucracy is, ideally, subject to political 2. A rule is invalid if it conflicts with the governing
responsibility with respect to discretionary statute.
matters, and to professional responsibility with 3. A rule is void if it extends or modifies the statute.
respect to technical matters. 4. A rule is void if it has no reasonable relationship
7. If discretion in particular matters is untrammeled, to the statutory purpose.
it is more liable to abuse than if statutory 5. Courts will set aside rules deemed
generalities are made more specific and concrete unconstitutional, arbitrary, or unreasonable.
before they are applied to individual situations.
8. Interpretative regulations are a means to Requirements of reasonableness
increasing the certainty of the law, especially if
the statute provides that no crim/civ liability shall 1. Bear reasonable relation to the purpose sought to
apply to any act done or omitted in GF in be accomplished
conformity with such interpretation, 2. Supported by good reasons
notwithstanding that, after such act/omission, 3. Free from constitutional infirmities or charge of
such interpretations are held invalid by the courts. arbitrariness
9. Contingent legislation furnished a means by
which a policy can be blocked out by the NOTE:
legislature.
A liberal implementation is justified if their rigid
Requisites for validity of admin rules and regulations enforcement will result in deprivation of legal rights.

1. The rules and regulations must have been issued Internal rules and regulations
on the authority of law;
They refer to admin R&R issued by a superior admin or
2. Not contrary to law and the Constitution;
executive officer to his subordinates for the proper and
3. Promulgated in accordance with the established
efficient administration of the law.
procedure.
1. Object
NOTE:
Creates no relation except between the official who issues
In certain cases, previous notice and hearing or publication
them and the official who receives them
is necessary to satisfy due process.
For the efficient and economical administration of the
They must be published in full if their purpose is to enforce
affairs of the dept or agency in which they issued in
or implement existing law pursuant to a valid delegation.
accordance with the law governing the subj matter
Grant of Rule-making powers
2. Nature
1. By legislative act
Admin in nature; do not pass beyond the limits of the dept.
2. By implication from powers expressly granted
Creates no rights in 3rd persons.
TESTS TO DETERMINE VALIDITY OF R&R (according to
They are based on, and are the product of, a relationship in
Atty. Gallant Soriano)
which power is the source, and obedience, the object.
1. W it falls under a PERMISSIVE
Penal rules and regulations
DELEGATION (supra. See Ch.4)
Administrative law (De Leon and de leon, jr., 2010)

Those carrying penal or criminal sanctions for violations of


the same. 4. Where rules have the force and effect of law

ABs have the authority to issue admin regulations which When the issuances are of general applicability, pub in OG
are penal in nature where the delegating statute itself or in a newspaper of general circ in the Phil is necessary.
makes the violation of the admin regulation punishable
and provides for its penalty. CA 638 mandates that EOs and Procs of general
applicability must also be published.
1. Requisites for validity
a. The law which authorizes the promulgation of NOTE:
R&R must itself provide for the imposition of Publication is required as a condition precedent to the
a penalty for their violation; effectivity of a law to inform the public of the contents of
b. It must fix or define such penalty; the law or the R&R before their rights and interests are
c. The violation for which the R&R impose a affected by the same. Subsequent pub will not cure the
penalty must be punishable or made a crime defect.
under the law itself; and
d. The R&R must be published in the Official Pub must be in full or it is no pub at all.
Gazette.
5. Where the regulations merely or
2. Nature of power to prescribe penalties
interpretative
The lawmaking body cannot delegate to an AA or AO, the
Need not be published.
power to declare what acts shall constitute a criminal
offense and how it shall be punished.

Legal force and effect of AR&R D. Adjudicatory Powers


1. Legislative R&R of an admin body which are valid Quasi-judicial – a term which applies to the actions,
have the force and effect of law, and are just as discretion, etc of a public admin officers/bodies that are
binding upon all the parties, as if they had been required to investigate facts, or ascertain the existence of
written in the original law itself. facts, hold hearings, draw conclusions from them, as a
a. Valid if duly promulgated or adopted in basis for their official action and to exercise discretion of a
pursuance of properly delegated statutory or judicial nature.
constitutional authority of the agency.
b. Receive statutory force upon going into effect. TEST: It is the nature of the act to be performed, rather
2. Interpretative R&R including admin than the office, board or body which performs it, that
constructions do not have the force of law. determines whether or not it is exercising a judicial or
a. Validity subject to challenges in court quasi-judicial function.
b. Contemporaneous construction, placed upon
the statute by the executive officers whose Generally
duty is to enforce it, is entitled to great weight
and considerations by the courts. This is 1. Involve specific parties
especially true if the admin interpretation has
been observed for a long time without Describe powers and functions which involve the decision
objection. or determination by AAs of the rights, duties, and
c. In general, interpretative rules are considered obligations of specific individuals and persons
impt only where the statute itself is
ambiguous. 2. Involve judicial function exercised by a person
3. Rules prescribing the methods of procedure other than a judge
within an agency have the effects of law, and are
Where a power rests in judgment or discretion, so that it is
binding on both the agency and on the
of judicial nature or character, but does not involve the
respondent.
exercise of functions of a judge, or is conferred upon an
Requirements of notice and hearing, or publication officer other than a judicial officer, it is deemed quasi-
judicial. [Sandoval v. COMELEC, (2000)]
1. Where rules do not apply to named or
specified parties Distinguished from Judicial Power

Where a function, legislative in nature is delegated, the Judicial power is the power to hear, try, and determine all
legislature need not require previous notice or hearing as a sorts of cases at law and equity which are brought before
prerequisite to the act of the AA, since the legis could have the courts. It is the power and authority to make a final,
performed that act without notice or hearing. rather than an initial, determination of what the law is and
adjudicate the respective legal rights or liabilities of the
2. Where rules apply to named or specified contending parties with respect to the matter in
parties controversy

Where rules/rates apply exclusively to a particular party Where the function is primarily administrative and the
and are predicated upon a finding of fact, which fact is power to hear and determine is merely incidental to such
denied by said party, the agency in making such finding of administrative duty, such power is adjudicatory.
fact, performs a quasi-judicial function necessitating
previous notice and hearing. Extent of powers

3. Where requirements prescribed by law 1. Jurisdiction is LIMITED.


Administrative law (De Leon and de leon, jr., 2010)

- Limited delegation of quasi-judicial authority In exercising adjudicatory function, due process


because of the need for special competence and requirements must be observed.
experience in the resolution of questions
Whereas, prior notice and hearing are not essential to the
- Extent of powers depends largely on the enabling validity of rules and regulations promulgated to govern
law. The grant of original jurisdiction on a quasi- future conduct since there is no determination of past
judicial agency is NOT IMPLIED. events or facts that have to be established or ascertained.

2. Split jurisdiction NOT FAVORED. Nature of particular acts

- When an AB or AA is conferred quasi-judicial 1. Licensing, enabling, or approving


functions, all controversies relating to the subject
matter pertaining its specialization are deemed to The action of an AA in granting or denying, or in
be included within its jurisdiction. suspending or revoking, a license/permit/franchise/CPC is
quasi-judicial or administrative NOT JUDICIAL.
3. Grant of particular power must be found in the
law itself. Where a statute empowers an agency to revoke a license
for non-compliance with or violation of agency regulations,
4. General policy of courts to sustain decisions of the admin act is of a judicial nature since it depends upon
AAs the ascertainment of the existence of certain past or
present facts upon which a decision is to be made and
- Doctrine of separation of powers rights and liabilities determined.
- Presumed knowledgeability and expertise in the 2. Fixing rates and charges
laws they are entrusted to enforce
Where the rules are meant to apply to all enterprises of a
- Will not compel or prohibit, unless in cases of given kind throughout the country, they may partake of
grave abuse or excess of jurisdiction legislative character.

Distinguished from investigative power Where the rules and rates imposed apply exclusively to a
particular party, based upon a finding of fact, the function
To INVESTIGATE means to examine, explore, inquire or is quasi-judicial. Prior notice and hearing required. But, an
delve into. Does not involve resolving a controversy AA may be empowered by law to approve provisionally,
involved in the facts inquired into by application of the when demanded by urgent public need, rates of public
laws to the facts established by the inquiry. utilities without a hearing.
To ADJUDICATE means to adjudge, arbitrate, determine, - In any case, the rates must both be non-
rule on, to settle in the exercise of judicial authority. confiscatory and must have been established in
the manner prescribed by the legislature.
Distinguished from rule-making
- The basic requirement of reasonableness
A rule is the product of rule-making, and rule-making is a
comprehends such rates which must not be so low
part of the admin process that resembles a legislature’s
as to be confiscatory, or too high as to be
enactment of statutes.
oppressive. It assumes that the rates are fair to
Adjudication is that part which resembles a court’s both the public utility and the consumer.
decision of a case.
3. Miscellaneous acts
1. Futurity and retrospection
Admin on the one hand, or as judicial in nature or quasi-
Adjudicatory action investigates, declares and enforces judicial, on the other hand
liabilities as they stand on present or past facts and under
Classification of adjudicatory powers
laws supposed to exist.
1. Enabling powers
Rule-making looks to the future and changes existing
conditions by making a new rule to be applied thereafter Usually characterized by the grant or denial of permit or
to all or some part of those subject thereto. authorization
2. Generality and particularity 2. Directing powers
Adjudicatory function applies to named persons or to Illustrated by the corrective powers of public utility
specific situations. commissions, powers of assessment under the revenue
laws, reparations under public utility laws, and awards
Rule-making lays down general regulations that apply to
under workmen’s compensation laws, and powers of
or affect classes of persons or situations.
abstract determination such as definition-valuation,
HOWEVER, even though action is evidences by a rule, it classification, and fact-finding
may still constitute adjudication. (Case in point, a licensing
3. Dispensing powers
board may law down general substantive regulations,
failure to meet such would deny a grant of license.) Exemplified by the authority to exempt from or relax a
general prohibition, or authority to relieve from an
3. Due process of notice and hearing
affirmative duty. Sanctions a deviation from a standard
(whereas licensing power sets or assumes a standard).
Administrative law (De Leon and de leon, jr., 2010)

4. Summary powers 1. Need for delegation


- Details beyond the capacity of legislature to
Used to designate admin power to apply compulsion or determine
force against a person or property to effectuate a legal
purpose without a judicial warrant - Matter requires more specialized knowledge and
expertise
AA generally may not themselves enforce their
determinations, at least not by direct and positive action. 2. Requisites for delegation
a. Completeness of the statute making the
5. Equitable powers
delegation; and
CH.4: SEPARTION OF ADMINISTRATIVE AND OTHER - a statute must be complete in itself so that by
POWERS appropriate judicial review and control, any action
taken pursuant to delegated authority may be
Doctrine of Separation of Powers kept within the defined limits of the authority
conferred.
Fundamental principle in a republic government. It obtains
not through express provision but by actual division in the - a statute may be compete when the subject,
Constitution. manner and the extent of its operation are stated
in it such that when it reaches the delegate, the
1. Allocation of governmental powers only thing he will have to do is enforce it.

Governmental powers are divided among the 3 depts and - TEST: W the provision is sufficiently definite and
confined such powers, precluding one branch from certain to enable one to know his rights and
exercising or invading the powers of another. obligations thereunder.
It is the duty of the Legislature to make the law; the
Executive to execute it; and the Judiciary to construe it. b. Presence of a sufficient standard.
- there must be adequate guidelines or limitations
2. Blending of allocated powers
in the law to map out the boundaries of the
Exact delimitation is impossible. delegated authority and prevent the delegation
from running riot.
3. Exclusive exercise of assigned powers
- Standard may be express (prescribed by the law
The TRUE MEANING of the theory of separation of powers itself), or implied (from the policy and purpose of
is that the powers assigned to one department should not the statute considered as a whole, other laws).
be exercised by either of the other depts., and that no dept
ought to possess, directly or indirectly, an overruling - In the delegation of rate-fixing, the only standard
influence or control over the others. is that the rate be reasonable and just.

Doctrine of Non-Delegation of Powers Restriction on grant of judicial power

Based on the maxim potestas delegata non potest delegari Doctrine of separation of powers also operates to restrict
(what has been delegated cannot in turn be delegated). the exercise of judicial functions to AA. However, it is
recognized that some judicial powers may be conferred
Principle: A delegated power constitutes not only a right upon and exercised by AAs without violating the Consti,
but a duty to be performed by the delegate by the provided that it be a restricted one, limited only to the
instrumentality of his own judgment acting immediately efficient administration of the statutes.
upon the matter and not through the intervening mind of
another. A further delegation of such power would
constitute a negation of the duty in violation of the trust
reposed in the delegate mandated to discharge it directly.

Permissible Delegation

1. Tariff powers to the Pres


2. Emergency powers to the Pres
3. To people at large (by way of referendum or
plebiscite)
4. To LGU
5. To admin bodies (subordinate legislation)

Delegation to AAs

What can be delegated is the discretion to determine how


the law may be enforced, not what the law shall be.

When the legislature laid down the fundamentals of a law,


it may delegate to AAs the authority to exercise such
legislative power as is necessary to carry into effect the
general legislative purpose.

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