| 1 | 1 | | 1.1 A bill for an act |
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| 2 | 2 | | 1.2 relating to taxation; property; establishing a homestead market value exclusion |
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| 3 | 3 | | 1.3 for property owned by persons 65 years or older and retired; amending Minnesota |
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| 4 | 4 | | 1.4 Statutes 2024, sections 273.121, subdivision 1; 273.13, by adding a subdivision; |
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| 5 | 5 | | 1.5 276.04, subdivision 2. |
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| 6 | 6 | | 1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: |
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| 7 | 7 | | 1.7 Section 1. Minnesota Statutes 2024, section 273.121, subdivision 1, is amended to read: |
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| 8 | 8 | | 1.8 Subdivision 1.Notice.Any county assessor or city assessor having the powers of a |
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| 9 | 9 | | 1.9county assessor, valuing or classifying taxable real property shall in each year notify those |
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| 10 | 10 | | 1.10persons whose property is to be included on the assessment roll that year if the person's |
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| 11 | 11 | | 1.11address is known to the assessor, otherwise the occupant of the property. The notice shall |
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| 12 | 12 | | 1.12be in writing and shall be sent by ordinary mail at least ten days before the meeting of the |
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| 13 | 13 | | 1.13local board of appeal and equalization under section 274.01 or the review process established |
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| 14 | 14 | | 1.14under section 274.13, subdivision 1c. Upon written request by the owner of the property, |
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| 15 | 15 | | 1.15the assessor may send the notice in electronic form or by electronic mail instead of on paper |
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| 16 | 16 | | 1.16or by ordinary mail. It shall contain: (1) the market value for the current and prior assessment; |
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| 17 | 17 | | 1.17(2) any value reduction resulting from an exclusion under section 273.13, subdivision 35 |
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| 18 | 18 | | 1.18or 36; (3) the market value subject to taxation after subtracting the amount of any qualifying |
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| 19 | 19 | | 1.19improvements for the current assessment; (3) (4) the classification of the property for the |
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| 20 | 20 | | 1.20current and prior assessment; (4) (5) the assessor's office address; and (5) (6) the dates, |
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| 21 | 21 | | 1.21places, and times set for the meetings of the local board of appeal and equalization, the |
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| 22 | 22 | | 1.22review process established under section 274.13, subdivision 1c, and the county board of |
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| 23 | 23 | | 1.23appeal and equalization. If the classification of the property has changed between the current |
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| 24 | 24 | | 1.24and prior assessments, a specific note to that effect shall be prominently listed on the |
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| 25 | 25 | | 1Section 1. |
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| 26 | 26 | | REVISOR MS/DG 25-0238801/29/25 |
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| 27 | 27 | | State of Minnesota |
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| 28 | 28 | | This Document can be made available |
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| 29 | 29 | | in alternative formats upon request |
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| 30 | 30 | | HOUSE OF REPRESENTATIVES |
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| 31 | 31 | | H. F. No. 436 |
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| 32 | 32 | | NINETY-FOURTH SESSION |
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| 33 | 33 | | Authored by Franson02/13/2025 |
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| 34 | 34 | | The bill was read for the first time and referred to the Veterans and Military Affairs Division 2.1statement. The commissioner of revenue shall specify the form of the notice. The assessor |
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| 35 | 35 | | 2.2shall attach to the assessment roll a statement that the notices required by this section have |
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| 36 | 36 | | 2.3been mailed. Any assessor who is not provided sufficient funds from the assessor's governing |
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| 37 | 37 | | 2.4body to provide such notices, may make application to the commissioner of revenue to |
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| 38 | 38 | | 2.5finance such notices. The commissioner of revenue shall conduct an investigation and, if |
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| 39 | 39 | | 2.6satisfied that the assessor does not have the necessary funds, issue a certification to the |
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| 40 | 40 | | 2.7commissioner of management and budget of the amount necessary to provide such notices. |
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| 41 | 41 | | 2.8The commissioner of management and budget shall issue a payment for such amount and |
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| 42 | 42 | | 2.9shall deduct such amount from any state payment to such county or municipality. The |
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| 43 | 43 | | 2.10necessary funds to make such payments are hereby appropriated. Failure to receive the |
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| 44 | 44 | | 2.11notice shall in no way affect the validity of the assessment, the resulting tax, the procedures |
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| 45 | 45 | | 2.12of any board of review or equalization, or the enforcement of delinquent taxes by statutory |
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| 46 | 46 | | 2.13means. |
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| 47 | 47 | | 2.14 EFFECTIVE DATE.This section is effective beginning with property taxes payable |
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| 48 | 48 | | 2.15in 2026. |
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| 49 | 49 | | 2.16 Sec. 2. Minnesota Statutes 2024, section 273.13, is amended by adding a subdivision to |
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| 50 | 50 | | 2.17read: |
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| 51 | 51 | | 2.18 Subd. 36.Homestead of persons 65 years or older and retired.(a) All of the market |
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| 52 | 52 | | 2.19value of property owned by a person 65 years of age or older is excluded in determining |
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| 53 | 53 | | 2.20the property's taxable market value. To qualify for exclusion under this subdivision, the |
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| 54 | 54 | | 2.21property must meet the following criteria: |
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| 55 | 55 | | 2.22 (1) the property is classified as 1a or 1b under subdivision 22 or is the portion of an |
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| 56 | 56 | | 2.23agricultural homestead under subdivision 23 consisting of the house, garage, and immediately |
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| 57 | 57 | | 2.24surrounding one acre of land; and |
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| 58 | 58 | | 2.25 (2) the property is owned and occupied as a homestead by a person 65 years of age or |
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| 59 | 59 | | 2.26older who is retired. In the case of a married couple, at least one spouse must be 65 years |
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| 60 | 60 | | 2.27of age or older and the other spouse must be at least 62 years of age. The property may be |
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| 61 | 61 | | 2.28titled in the name of one spouse or both spouses or titled in another way that permits the |
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| 62 | 62 | | 2.29property to have homestead status. |
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| 63 | 63 | | 2.30 (b) A property qualifying for a valuation exclusion under this subdivision is not eligible |
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| 64 | 64 | | 2.31for the market value exclusion under subdivision 35, property tax credits under this chapter, |
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| 65 | 65 | | 2.32a property tax refund under chapter 290A, or the senior citizens' property tax deferral program |
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| 66 | 66 | | 2.33under chapter 290B. |
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| 67 | 67 | | 2Sec. 2. |
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| 68 | 68 | | REVISOR MS/DG 25-0238801/29/25 3.1 (c) To qualify for a valuation exclusion under this subdivision, a property owner must |
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| 69 | 69 | | 3.2apply to the assessor by December 31 of the first assessment year for which the exclusion |
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| 70 | 70 | | 3.3is sought. Eligible properties must continue to receive the valuation exclusion for subsequent |
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| 71 | 71 | | 3.4taxes payable years until one of the following occurs: (1) the property is sold or transferred; |
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| 72 | 72 | | 3.5(2) the death of all qualifying homeowners; or (3) the property no longer qualifies as a |
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| 73 | 73 | | 3.6homestead. |
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| 74 | 74 | | 3.7 EFFECTIVE DATE.This section is effective beginning with property taxes payable |
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| 75 | 75 | | 3.8in 2026. |
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| 76 | 76 | | 3.9 Sec. 3. Minnesota Statutes 2024, section 276.04, subdivision 2, is amended to read: |
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| 77 | 77 | | 3.10 Subd. 2.Contents of tax statements.(a) The treasurer shall provide for the printing of |
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| 78 | 78 | | 3.11the tax statements. The commissioner of revenue shall prescribe the form of the property |
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| 79 | 79 | | 3.12tax statement and its contents. The tax statement must not state or imply that property tax |
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| 80 | 80 | | 3.13credits are paid by the state of Minnesota. The statement must contain a tabulated statement |
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| 81 | 81 | | 3.14of the dollar amount due to each taxing authority and the amount of the state tax from the |
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| 82 | 82 | | 3.15parcel of real property for which a particular tax statement is prepared. The dollar amounts |
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| 83 | 83 | | 3.16attributable to the county, the state tax, the voter approved school tax, the other local school |
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| 84 | 84 | | 3.17tax, the township or municipality, and the total of the metropolitan special taxing districts |
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| 85 | 85 | | 3.18as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated. The |
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| 86 | 86 | | 3.19amounts due all other special taxing districts, if any, may be aggregated except that any |
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| 87 | 87 | | 3.20levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin, |
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| 88 | 88 | | 3.21Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate line directly |
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| 89 | 89 | | 3.22under the appropriate county's levy. If the county levy under this paragraph includes an |
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| 90 | 90 | | 3.23amount for a lake improvement district as defined under sections 103B.501 to 103B.581, |
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| 91 | 91 | | 3.24the amount attributable for that purpose must be separately stated from the remaining county |
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| 92 | 92 | | 3.25levy amount. In the case of Ramsey County, if the county levy under this paragraph includes |
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| 93 | 93 | | 3.26an amount for public library service under section 134.07, the amount attributable for that |
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| 94 | 94 | | 3.27purpose may be separated from the remaining county levy amount. The amount of the tax |
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| 95 | 95 | | 3.28on homesteads qualifying under the senior citizens' property tax deferral program under |
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| 96 | 96 | | 3.29chapter 290B is the total amount of property tax before subtraction of the deferred property |
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| 97 | 97 | | 3.30tax amount. The amount of the tax on contamination value imposed under sections 270.91 |
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| 98 | 98 | | 3.31to 270.98, if any, must also be separately stated. The dollar amounts, including the dollar |
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| 99 | 99 | | 3.32amount of any special assessments, may be rounded to the nearest even whole dollar. For |
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| 100 | 100 | | 3.33purposes of this section whole odd-numbered dollars may be adjusted to the next higher |
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| 101 | 101 | | 3.34even-numbered dollar. |
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| 102 | 102 | | 3Sec. 3. |
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| 103 | 103 | | REVISOR MS/DG 25-0238801/29/25 4.1 (b) The property tax statements for manufactured homes and sectional structures taxed |
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| 104 | 104 | | 4.2as personal property shall contain the same information that is required on the tax statements |
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| 105 | 105 | | 4.3for real property. |
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| 106 | 106 | | 4.4 (c) Real and personal property tax statements must contain the following information |
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| 107 | 107 | | 4.5in the order given in this paragraph. The information must contain the current year tax |
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| 108 | 108 | | 4.6information in the right column with the corresponding information for the previous year |
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| 109 | 109 | | 4.7in a column on the left: |
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| 110 | 110 | | 4.8 (1) the property's estimated market value under section 273.11, subdivision 1; |
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| 111 | 111 | | 4.9 (2) the property's homestead market value exclusion under section 273.13, subdivision |
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| 112 | 112 | | 4.1035 or 36; |
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| 113 | 113 | | 4.11 (3) the property's taxable market value under section 272.03, subdivision 15; |
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| 114 | 114 | | 4.12 (4) the property's gross tax, before credits; |
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| 115 | 115 | | 4.13 (5) for agricultural properties, the credits under sections 273.1384 and 273.1387; |
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| 116 | 116 | | 4.14 (6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135; |
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| 117 | 117 | | 4.15273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of credit |
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| 118 | 118 | | 4.16received under section 273.135 must be separately stated and identified as "taconite tax |
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| 119 | 119 | | 4.17relief"; and |
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| 120 | 120 | | 4.18 (7) the net tax payable in the manner required in paragraph (a). |
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| 121 | 121 | | 4.19 (d) If the county uses envelopes for mailing property tax statements and if the county |
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| 122 | 122 | | 4.20agrees, a taxing district may include a notice with the property tax statement notifying |
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| 123 | 123 | | 4.21taxpayers when the taxing district will begin its budget deliberations for the current year, |
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| 124 | 124 | | 4.22and encouraging taxpayers to attend the hearings. If the county allows notices to be included |
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| 125 | 125 | | 4.23in the envelope containing the property tax statement, and if more than one taxing district |
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| 126 | 126 | | 4.24relative to a given property decides to include a notice with the tax statement, the county |
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| 127 | 127 | | 4.25treasurer or auditor must coordinate the process and may combine the information on a |
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| 128 | 128 | | 4.26single announcement. |
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| 129 | 129 | | 4.27 EFFECTIVE DATE.This section is effective beginning with property taxes payable |
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| 130 | 130 | | 4.28in 2026. |
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| 131 | 131 | | 4Sec. 3. |
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| 132 | 132 | | REVISOR MS/DG 25-0238801/29/25 |
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