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AN ACT
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relating to the payment of the child support obligation of a |
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deceased child support obligor. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subsection (a), Section 154.006, Family Code, is |
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amended to read as follows: |
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(a) Unless otherwise agreed in writing or expressly |
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provided in the order or as provided by Subsection (b), the child |
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support order terminates on: |
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(1) the marriage of the child; |
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(2) the removal of the child's disabilities for |
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general purposes; |
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(3) the death of[:
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[(A)] the child; [or
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[(B) a parent ordered to pay child support; or] |
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(4) a finding by a court that the child: |
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(A) is 18 years of age or older; and |
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(B) has failed to comply with the enrollment or |
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attendance requirements described by Section 154.002(a); or |
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(5) if the child enlists in the armed forces of the |
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United States, the date on which the child begins active service as |
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defined by 10 U.S.C. Section 101. |
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SECTION 2. Subchapter A, Chapter 154, Family Code, is |
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amended by adding Sections 154.015 and 154.016 to read as follows: |
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Sec. 154.015. ACCELERATION OF UNPAID CHILD SUPPORT |
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OBLIGATION. (a) In this section, "estate" has the meaning |
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assigned by Section 3, Texas Probate Code. |
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(b) If the child support obligor dies before the child |
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support obligation terminates, the remaining unpaid balance of the |
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child support obligation becomes payable on the date the obligor |
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dies. |
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(c) For purposes of this section, the court of continuing |
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jurisdiction shall determine the amount of the unpaid child support |
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obligation for each child of the deceased obligor. In determining |
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the amount of the unpaid child support obligation, the court shall |
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consider all relevant factors, including: |
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(1) the present value of the total amount of monthly |
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periodic child support payments that would become due between the |
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month in which the obligor dies and the month in which the child |
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turns 18 years of age, based on the amount of the periodic monthly |
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child support payments under the child support order in effect on |
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the date of the obligor's death; |
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(2) the present value of the total amount of health |
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insurance premiums payable for the benefit of the child from the |
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month in which the obligor dies until the month in which the child |
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turns 18 years of age, based on the cost of health insurance for the |
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child ordered to be paid on the date of the obligor's death; |
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(3) in the case of a disabled child under 18 years of |
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age or an adult disabled child, an amount to be determined by the |
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court under Section 154.306; |
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(4) the nature and amount of any benefit to which the |
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child would be entitled as a result of the obligor's death, |
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including life insurance proceeds, annuity payments, trust |
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distributions, social security death benefits, and retirement |
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survivor benefits; and |
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(5) any other financial resource available for the |
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support of the child. |
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(d) If, after considering all relevant factors, the court |
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finds that the child support obligation has been satisfied, the |
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court shall render an order terminating the child support |
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obligation. If the court finds that the child support obligation is |
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not satisfied, the court shall render a judgment in favor of the |
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obligee, for the benefit of the child, in the amount of the unpaid |
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child support obligation determined under Subsection (c). The |
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order must designate the obligee as constructive trustee, for the |
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benefit of the child, of any money received in satisfaction of the |
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judgment. |
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(e) The obligee has a claim, on behalf of the child, against |
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the deceased obligor's estate for the unpaid child support |
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obligation determined under Subsection (c). The obligee may |
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present the claim in the manner provided by the Texas Probate Code. |
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(f) If money paid to the obligee for the benefit of the child |
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exceeds the amount of the unpaid child support obligation remaining |
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at the time of the obligor's death, the obligee shall hold the |
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excess amount as constructive trustee for the benefit of the |
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deceased obligor's estate until the obligee delivers the excess |
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amount to the legal representative of the deceased obligor's |
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estate. |
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Sec. 154.016. PROVISION OF SUPPORT IN EVENT OF DEATH OF |
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PARENT. (a) The court may order a child support obligor to obtain |
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and maintain a life insurance policy, including a decreasing term |
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life insurance policy, that will establish an insurance-funded |
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trust or an annuity payable to the obligee for the benefit of the |
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child that will satisfy the support obligation under the child |
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support order in the event of the obligor's death. |
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(b) In determining the nature and extent of the obligation |
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to provide for the support of the child in the event of the death of |
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the obligor, the court shall consider all relevant factors, |
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including: |
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(1) the present value of the total amount of monthly |
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periodic child support payments from the date the child support |
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order is rendered until the month in which the child turns 18 years |
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of age, based on the amount of the periodic monthly child support |
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payment under the child support order; |
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(2) the present value of the total amount of health |
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insurance premiums payable for the benefit of the child from the |
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date the child support order is rendered until the month in which |
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the child turns 18 years of age, based on the cost of health |
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insurance for the child ordered to be paid; and |
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(3) in the case of a disabled child under 18 years of |
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age or an adult disabled child, an amount to be determined by the |
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court under Section 154.306. |
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(c) The court may, on its own motion or on a motion of the |
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obligee, require the child support obligor to provide proof |
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satisfactory to the court verifying compliance with the order |
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rendered under this section. |
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SECTION 3. Section 322, Texas Probate Code, is amended to |
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read as follows: |
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Sec. 322. CLASSIFICATION OF CLAIMS AGAINST ESTATES OF |
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DECEDENT. Claims against an estate of a decedent shall be |
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classified and have priority of payment, as follows: |
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Class 1. Funeral expenses and expenses of last sickness for |
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a reasonable amount to be approved by the court, not to exceed a |
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total of Fifteen Thousand Dollars, with any excess to be classified |
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and paid as other unsecured claims. |
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Class 2. Expenses of administration and expenses incurred |
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in the preservation, safekeeping, and management of the estate, |
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including fees and expenses awarded under Section 243 of this code, |
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and unpaid expenses of administration awarded in a guardianship of |
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the decedent. |
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Class 3. Secured claims for money under Section 306(a)(1), |
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including tax liens, so far as the same can be paid out of the |
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proceeds of the property subject to such mortgage or other lien, and |
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when more than one mortgage, lien, or security interest shall exist |
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upon the same property, they shall be paid in order of their |
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priority. |
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Class 4. Claims for the principal amount of and accrued |
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interest on delinquent child support and child support arrearages |
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that have been confirmed and reduced to money judgment, as |
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determined under Subchapter F, Chapter 157, Family Code, and claims |
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for unpaid child support obligations under Section 154.015, Family |
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Code. |
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Class 5. Claims for taxes, penalties, and interest due |
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under Title 2, Tax Code; Chapter 8, Title 132, Revised Statutes; |
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Section 81.111, Natural Resources Code; the Municipal Sales and Use |
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Tax Act (Chapter 321, Tax Code); Section 451.404, Transportation |
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Code; or Subchapter I, Chapter 452, Transportation Code. |
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Class 6. Claims for the cost of confinement established by |
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the institutional division of the Texas Department of Criminal |
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Justice under Section 501.017, Government Code. |
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Class 7. Claims for repayment of medical assistance |
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payments made by the state under Chapter 32, Human Resources Code, |
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to or for the benefit of the decedent. |
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Class 8. All other claims. |
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SECTION 4. (a) Except as provided by Subsection (b) of |
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this section, the changes in law made in this Act by the amendment |
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of Subsection (a), Section 154.006 and the addition of Section |
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154.016, Family Code, apply to an order for child support issued |
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before, on, or after the effective date of this Act. |
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(b) The changes in law made in this Act by the addition of |
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Section 154.015, Family Code, and the amendment of Section 322, |
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Texas Probate Code, apply only to the estate of a decedent who dies |
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on or after the effective date of this Act. The estate of a decedent |
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who dies before the effective date of this Act is governed by the |
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law in effect on the date of the decedent's death, and the former |
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law is continued in effect for that purpose. |
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SECTION 5. This Act takes effect September 1, 2007. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 617 passed the Senate on |
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April 26, 2007, by the following vote: Yeas 31, Nays 0; and that |
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the Senate concurred in House amendment on May 25, 2007, by the |
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following vote: Yeas 30, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 617 passed the House, with |
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amendment, on May 23, 2007, by the following vote: Yeas 144, |
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Nays 0, two present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |