Senate Bill sb0442c2

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    Florida Senate - 2001                     CS for CS for SB 442

    By the Committees on Comprehensive Planning, Local and
    Military Affairs; Regulated Industries; and Senators Latvala,
    Brown-Waite, Pruitt, Cowin, Posey, Carlton, Saunders,
    Campbell, Lee, Wasserman Schultz, Sullivan, Dyer, Burt,
    (Additional Sponsors on Last Printed Page)

    316-1571-01

  1                      A bill to be entitled

  2         An act relating to the Florida Mobile Home Act;

  3         amending s. 723.003, F.S.; defining the term

  4         "proportionate share"; amending s. 723.011,

  5         F.S.; requiring the division to maintain

  6         specified records; requiring that copies be

  7         provided within a specified time after written

  8         request; amending s. 723.012, F.S.; revising

  9         provisions relating to statements in a

10         prospectus; amending s. 723.037, F.S.; revising

11         procedures for committee meetings that

12         determine the status of changes in lot rentals;

13         amending s. 723.061, F.S.; revising timeframes

14         for giving notice of changes in lot rental

15         amounts and use of mobile home parks; creating

16         s. 723.0611, F.S.; creating the Florida Mobile

17         Home Relocation Corporation; providing for a

18         board of directors; authorizing the board to

19         borrow from private finance sources; creating

20         s. 723.0612, F.S.; providing for the payment of

21         relocation expenses if a mobile home owner is

22         required to move due to a change in use of the

23         park; providing certain exceptions; specifying

24         procedures for payments upon approval of the

25         corporation; providing a penalty; providing an

26         effective date.

27

28  Be It Enacted by the Legislature of the State of Florida:

29

30         Section 1.  Present subsections (11), (12), (13), and

31  (14) of section 723.003, Florida Statutes, are redesignated as

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  1  subsections (12), (13), (14), and (15), respectively, and a

  2  new subsection (11) is added to that section, to read:

  3         723.003  Definitions.--As used in this chapter, the

  4  following words and terms have the following meanings unless

  5  clearly indicated otherwise:

  6         (11)  The term "proportionate share" as used in

  7  subsection (10) means an amount calculated by dividing equally

  8  among the affected developed lots in the park the total costs

  9  for the necessary and actual direct costs and impact or hookup

10  fees incurred for governmentally mandated capital improvements

11  serving the recreational and common areas and all affected

12  developed lots in the park.

13         Section 2.  Subsection (1) of section 723.011, Florida

14  Statutes, is amended to read:

15         723.011  Disclosure prior to rental of a mobile home

16  lot; prospectus, filing, approval.--

17         (1)(a)  In a mobile home park containing 26 or more

18  lots, the park owner shall file a prospectus with the

19  division.  Prior to entering into an enforceable rental

20  agreement for a mobile home lot, the park owner shall deliver

21  to the homeowner a prospectus approved by the division.  This

22  subsection does shall not be construed to invalidate those lot

23  rental agreements for which an approved prospectus was

24  required to be delivered and which was delivered on or before

25  July 1, 1986, if the mobile home park owner had:

26         1.  Filed a prospectus with the division prior to

27  entering into the lot rental agreement;

28         2.  Made a good faith effort to correct deficiencies

29  cited by the division by responding within the time limit set

30  by the division, if one was set; and

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  1         3.  Delivered the approved prospectus to the mobile

  2  home owner within 45 days of approval by the division.

  3

  4  This paragraph does shall not preclude the finding that a lot

  5  rental agreement is invalid on other grounds and does shall

  6  not be construed to limit any rights of a mobile home owner or

  7  to preclude a mobile home owner from seeking any remedies

  8  allowed by this chapter, including a determination that the

  9  lot rental agreement or any part thereof is unreasonable.

10         (b)  The division shall determine whether the proposed

11  prospectus or offering circular is adequate to meet the

12  requirements of this chapter and shall notify the park owner

13  by mail, within 45 days after of receipt of the document, that

14  the division has found that either approved the prospectus or

15  offering circular is adequate or has found specified

16  deficiencies.  If In the event the division does not make

17  either finding approve the prospectus or advise the park owner

18  of deficiencies within 45 days, the prospectus shall be deemed

19  to have been found adequate be approved.

20         (c)1.  Filings for mobile home parks in which lots have

21  not been offered for lease prior to June 4, 1984, shall be

22  accompanied by a filing fee of $10 per lot offered for lease

23  by the park owner; however, the fee shall not be less than

24  $100.

25         2.  Filings for mobile home parks in which lots have

26  been offered for lease prior to the effective date of this

27  chapter shall be accompanied by a filing fee as follows:

28         a.  For a park in which there are 26-50 lots: $100.

29         b.  For a park in which there are 51-100 lots: $150.

30         c.  For a park in which there are 101-150 lots: $200.

31         d.  For a park in which there are 151-200 lots: $250.

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  1         e.  For a park in which there are 201 or more lots:

  2  $300.

  3         (d)  The division shall maintain copies of each

  4  prospectus and all amendments to each prospectus which are

  5  considered adequate by the division. The division shall

  6  provide copies of documents requested in writing under this

  7  subsection within 10 days after the written request is

  8  received.

  9         Section 3.  Subsection (1) of section 723.012, Florida

10  Statutes, is amended to read:

11         723.012  Prospectus or offering circular.--The

12  prospectus or offering circular, which is required to be

13  provided by s. 723.011, must contain the following

14  information:

15         (1)  The front cover or the first page must contain

16  only:

17         (a)  The name of the mobile home park.

18         (b)  The following statements in conspicuous type:

19         1.  THIS PROSPECTUS CONTAINS VERY IMPORTANT INFORMATION

20  REGARDING YOUR LEGAL RIGHTS AND YOUR FINANCIAL OBLIGATIONS IN

21  LEASING A MOBILE HOME LOT. MAKE SURE THAT YOU READ THE ENTIRE

22  DOCUMENT AND SEEK LEGAL ADVICE IF YOU HAVE ANY QUESTIONS

23  REGARDING THE INFORMATION SET FORTH IN THIS DOCUMENT (OFFERING

24  CIRCULAR) CONTAINS IMPORTANT MATTERS TO BE CONSIDERED IN

25  LEASING A MOBILE HOME LOT.

26         2.  THE STATEMENTS CONTAINED HEREIN ARE ONLY SUMMARY IN

27  NATURE.  A PROSPECTIVE LESSEE SHOULD REFER TO ALL REFERENCES,

28  ALL EXHIBITS HERETO, THE CONTRACT DOCUMENTS, AND SALES

29  MATERIALS.

30         3.  ORAL REPRESENTATIONS SHOULD NOT BE RELIED UPON AS

31  CORRECTLY STATING THE REPRESENTATIONS OF THE PARK OWNER OR

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  1  OPERATOR.  REFER TO THIS PROSPECTUS (OFFERING CIRCULAR) AND

  2  ITS EXHIBITS FOR CORRECT REPRESENTATIONS.

  3         4.  UPON DELIVERY OF THE PROSPECTUS TO A PROSPECTIVE

  4  LESSEE, THE RENTAL AGREEMENT IS VOIDABLE BY THE LESSEE FOR A

  5  PERIOD OF 15 DAYS.

  6         Section 4.  Subsection (4) and paragraph (a) of

  7  subsection (5) of section 723.037, Florida Statutes, are

  8  amended to read:

  9         723.037  Lot rental increases; reduction in services or

10  utilities; change in rules and regulations; mediation.--

11         (4)(a)  A committee, not to exceed five in number,

12  designated by a majority of the affected mobile home owners or

13  by the board of directors of the homeowners' association, if

14  applicable, and the park owner shall meet, at a mutually

15  convenient time and place within 30 days after receipt by the

16  homeowners of the notice of change, to discuss the reasons for

17  the increase in lot rental amount, reduction in services or

18  utilities, or change in rules and regulations.

19         (b)  At the meeting, the park owner or subdivision

20  developer shall in good faith disclose and explain all

21  material factors resulting in the decision to increase the lot

22  rental amount, reduce services or utilities, or change rules

23  and regulations, including how those factors justify the

24  specific change proposed. The park owner or subdivision

25  developer may not limit the discussion of the reasons for the

26  change to generalities only, such as, but not limited to,

27  increases in operational costs, changes in economic

28  conditions, or rents charged by comparable mobile home parks.

29  For example, if the reason for an increase in lot rental

30  amount is an increase in operational costs, the park owner

31  must disclose the item or items which have increased, the

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  1  amount of the increase, any similar item or items which have

  2  decreased, and the amount of the decrease. If an increase is

  3  based upon the lot rental amount charged by comparable mobile

  4  home parks, the park owner shall disclose, and provide in

  5  writing to the committee at or before the meeting, the name,

  6  address, lot rental amount, and any other relevant factors

  7  relied upon by the park owner such as, facilities, services,

  8  and amenities concerning the comparable mobile home parks

  9  relied upon by the park owner. The park owner shall prepare a

10  written summary of the material factors and retain a copy for

11  3 years. The park owner shall provide the committee a copy of

12  the summary at or before the meeting.

13         (c)  If the committee disagrees with a park owner's lot

14  rental amount increase based upon comparable mobile home

15  parks, the committee shall disclose to the park owner the

16  name, address, lot rental amount, and any other relevant

17  factors relied upon by the committee such as, facilities,

18  services, and amenities concerning the comparable mobile home

19  parks. The committee shall provide to the park owner the

20  disclosure, in writing, within 15 days after the meeting with

21  the park owner, together with a request for a second meeting.

22         (d)  The committee and the park owner may mutually

23  agree, in writing, to extend or continue any meetings required

24  by this section.

25         (e)  Either party may prepare and use additional

26  information to support its position during or subsequent to

27  the meetings required by this section.

28         (5)(a)  Within 30 days after the date of the last

29  scheduled meeting date described in subsection (4), the

30  homeowners may petition the division to initiate mediation of

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  1  the dispute pursuant to s. 723.038 if a majority of the

  2  affected homeowners have designated, in writing, that:

  3         1.  The rental increase is unreasonable;

  4         2.  The rental increase has made the lot rental amount

  5  unreasonable;

  6         3.  The decrease in services or utilities is not

  7  accompanied by a corresponding decrease in rent or is

  8  otherwise unreasonable; or

  9         4.  The change in the rules and regulations is

10  unreasonable.

11         Section 5.  Section 723.061, Florida Statutes, is

12  amended to read:

13         723.061  Eviction; grounds, proceedings.--

14         (1)  A mobile home park owner may evict a mobile home

15  owner or a mobile home only on one or more of the grounds

16  provided in this section.

17         (a)  Nonpayment of lot rental amount.  If a mobile home

18  owner fails to pay the lot rental amount when due and if the

19  default continues for 5 days after delivery of a written

20  demand by the mobile home park owner for payment of the lot

21  rental amount, the park owner may terminate the tenancy.

22  However, if the mobile home owner pays the lot rental amount

23  due, including any late charges, court costs, and attorney's

24  fees, the court may, for good cause, deny the order of

25  eviction, provided such nonpayment has not occurred more than

26  twice.

27         (b)  Conviction of a violation of a federal or state

28  law or local ordinance, which violation may be deemed

29  detrimental to the health, safety, or welfare of other

30  residents of the mobile home park.

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  1         (c)  Violation of a park rule or regulation, the rental

  2  agreement, or this chapter.

  3         1.  For the first violation of any properly promulgated

  4  rule or regulation, rental agreement provision, or this

  5  chapter which is found by any court having jurisdiction

  6  thereof to have been an act which endangered the life, health,

  7  safety, or property of the park residents or the peaceful

  8  enjoyment of the mobile home park by its residents, the mobile

  9  home park owner may terminate the rental agreement, and the

10  mobile home owner will have 7 days from the date that the

11  notice is delivered to vacate the premises.

12         2.  For a second violation of the same properly

13  promulgated rule or regulation, rental agreement provision, or

14  this chapter within 12 months, the mobile home park owner may

15  terminate the tenancy if she or he has given the mobile home

16  owner written notice within 30 days of the first violation,

17  which notice specified the actions of the mobile home owner

18  which caused the violation and gave the mobile home owner 7

19  days to correct the noncompliance. The mobile home owner must

20  have received written notice of the ground upon which she or

21  he is to be evicted at least 30 days prior to the date on

22  which she or he is required to vacate.  A second violation of

23  a properly promulgated rule or regulation, rental agreement

24  provision, or this chapter within 12 months of the first

25  violation is unequivocally a ground for eviction, and it is

26  not a defense to any eviction proceeding that a violation has

27  been cured after the second violation.  Violation of a rule or

28  regulation, rental agreement provision, or this chapter after

29  the passage of 1 year from the first violation of the same

30  rule or regulation, rental agreement provision, or this

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  1  chapter does not constitute a ground for eviction under this

  2  section.

  3

  4  No properly promulgated rule or regulation may be arbitrarily

  5  applied and used as a ground for eviction.

  6         (d)  Change in use of the land comprising the mobile

  7  home park, or the portion thereof from which mobile homes are

  8  to be evicted, from mobile home lot rentals to some other use,

  9  provided all tenants affected are given at least 6 month's 1

10  year's notice of the projected change of use and of their need

11  to secure other accommodations. The park owner may not give a

12  notice of increase in lot rental amount 90 days before giving

13  notice of a change in land use.

14         (e)  Failure of the purchaser of a mobile home situated

15  in the mobile home park to be qualified as, and to obtain

16  approval to become, a tenant, if such approval is required by

17  a properly promulgated rule.

18         (2)  In the event of eviction for change of land use,

19  homeowners must object to the change in land use by

20  petitioning for administrative or judicial remedies within 90

21  days of the date of the notice or they will be barred from

22  taking any subsequent action to contest the change in land

23  use. This provision shall not be construed to prevent any

24  homeowner from objecting to a zoning change at any time.

25         (a)  Within 90 days from the time the park owner gives

26  the 1-year notice, she or he shall notify the homeowner of her

27  or his election to either buy the mobile home, relocate the

28  mobile home to another park owned by the park owner, or pay to

29  relocate the mobile home to another mobile home park, as

30  follows:

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  1         1.  Pay as damages the actual cost, including setup

  2  fees, to move an evicted mobile home, with comparable and any

  3  required appurtenances, to a comparable mobile home park

  4  within a 50-mile radius of the mobile home park or other

  5  distance agreed upon by the park owner and mobile home owner.

  6  Since the amount of damages that a homeowner will suffer due

  7  to the change in land use by the park owner cannot be easily

  8  estimated and would be difficult and expensive to determine,

  9  it is the intent of the Legislature that the payment contained

10  herein be considered in the nature of liquidated damages and

11  not a penalty.  It is the intent of the Legislature that the

12  liquidated damages to which the mobile home owner is entitled

13  be limited to the damages defined in this subparagraph only

14  for so long as this subsection remains in effect. The

15  liquidated damages apply only to the harm incurred by the

16  homeowner for having to relocate, and this provision shall not

17  preclude incidental damages that might occur in relocating the

18  mobile home;

19         2.  Purchase the mobile home and all appurtenances

20  thereto at a value to be determined as follows:

21         a.  A mutually agreed upon appraiser will assess the

22  book value of the mobile home and cash value of all

23  appurtenances thereto and the market value of the mobile home

24  as situated immediately prior to the notice of change in land

25  use.  Any nationally recognized publication for valuation of

26  mobile and manufactured homes shall be used as a guide for

27  determining such value.

28         b.  The homeowner will be entitled to the book value of

29  the mobile home and cash value of the appurtenances.

30         c.  The homeowner will also be entitled to the

31  following portion of the difference between the book value and

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  1  cash value of the appurtenances and the market value of the

  2  mobile home.  If the homeowner has resided in the mobile home

  3  at the time of notice of land use change by the park owner:

  4         0 years up to 5 years........................40 percent

  5         5 years up to 15 years.......................60 percent

  6         15 years up to 20 years.....................80 percent 

  7         20 years or more............................100 percent

  8         d.  The homeowner who has become a resident of the park

  9  within 0-5 years of the notice of change in land use shall be

10  entitled, in addition to the compensation set forth above, to

11  60 percent of the difference between the book value and the

12  market value of the mobile home.

13         e.  Between the date of the appraisals referred to in

14  this subsection and the delivery of title and possession of

15  the mobile home and all appurtenances thereto to the park

16  owner, the mobile home and the appurtenances shall be

17  maintained by the homeowner in the condition existing on the

18  date of the appraisals, ordinary wear and tear excepted; or

19         3.  Reach a mutually agreed to settlement between the

20  park owner and the homeowner.

21         (b)  Either the mobile home owner or the park owner may

22  apply to the circuit court in the county where the mobile home

23  lot is located for purposes of selecting an appraiser to

24  determine the value of the mobile home and appurtenances or

25  for resolution of any other dispute arising under this

26  subsection.

27         (c)  In any dispute in a circuit court regarding the

28  value of the mobile home as appraised pursuant to this

29  subsection, the court shall determine the amount to be

30  deposited into the registry of the court as will fully secure

31  and fully compensate the homeowner as ultimately determined by

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  1  the final judgment.  The court shall fix the time within which

  2  and the terms upon which the homeowner shall be required to

  3  surrender possession and title to the park owner. The order of

  4  the court shall not become effective unless the deposit of the

  5  required sum is made in the registry of the court.

  6         (3)(d)  The provisions of s. 723.083 shall not be

  7  applicable to any park where the provisions of this subsection

  8  apply.

  9         (4)(3)  A mobile home park owner applying for the

10  removal of a mobile home owner or a mobile home, or both,

11  shall file, in the county court in the county where the mobile

12  home lot is situated, a complaint describing the lot and

13  stating the facts that authorize the removal of the mobile

14  home owner and the mobile home.  The park owner is entitled to

15  the summary procedure provided in s. 51.011, and the court

16  shall advance the cause on the calendar.

17         (5)(4)  Any notice required by this section must be in

18  writing, and must be posted on the premises and sent to the

19  mobile home owner by certified or registered mail, return

20  receipt requested, addressed to the mobile home owner at her

21  or his last known address.  Delivery of the mailed notice

22  shall be deemed given 5 days after the date of postmark.

23         Section 6.  Section 723.0611, Florida Statutes, is

24  created to read:

25         723.0611  Florida Mobile Home Relocation

26  Corporation.--There is created the Florida Mobile Home

27  Relocation Corporation. The corporation shall be administered

28  by a board of directors made up of six members, three members

29  appointed by the largest nonprofit association representing

30  mobile home owners in this state and three members appointed

31  by the largest nonprofit association representing the

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  1  manufactured housing industry in this state. The corporation

  2  may borrow from private finance sources in order to meet the

  3  demands of the relocation program established in s. 723.0612.

  4         Section 7.  Section 723.0612, Florida Statutes, is

  5  created to read:

  6         723.0612  Change in land use; relocation expenses;

  7  payments by park owner.--

  8         (1)  If a mobile home owner is required to move due to

  9  a change in use of the park as set forth in 723.061(1)(d) and

10  the mobile home owner complies with the requirements of this

11  section, the mobile home owner is entitled to payment from the

12  Mobile Home Relocation Corporation as follows:

13         (a)  The amount of actual moving expenses of relocating

14  the mobile home to a new location within a 50-mile radius of

15  the vacated park, or the amount of $5,000 for a single-section

16  mobile home, or $10,000 for a multisection home, whichever is

17  less.

18         (b)  Moving expenses include the cost of taking down,

19  moving, and setting up the mobile home in a new location.

20         (2)  Except as provided in subsection (3), upon the

21  occurrence of a change in use, the park owner shall pay to the

22  corporation $2,000 for each single-section home and $2,500 for

23  each multisection home for which a homeowner has made

24  application for payment of moving expenses.

25         (3)  A park owner is not required to make the payment

26  prescribed in subsection (2) nor is the homeowner entitled to

27  compensation under subsection (1) when:

28         (a)  The park owner moves a homeowner to another space

29  in the mobile home park or to another mobile home park at the

30  park owner's expense;

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  1         (b)  A homeowner is vacating the premises and has

  2  informed the park owner or manager before the change in use

  3  notice has been given; or

  4         (c)  A homeowner abandons the mobile home as set forth

  5  in subsection (8).

  6         (4)  Except as provided in subsection (8), in order to

  7  obtain payment from the corporation, the homeowner shall

  8  submit to the Florida Mobile Home Relocation Corporation, with

  9  a copy to the mobile home park owner, an application for

10  payment which includes:

11         (a)  A copy of the notice of eviction due to change in

12  land use; and

13         (b)  A contract with a moving or towing contractor for

14  the moving expenses for the mobile home.

15         (5)  The corporation must approve payment within 15

16  days after receipt of the information set forth in subsection

17  (4) or payment is deemed approved. A copy of the approval must

18  be forwarded to the mobile home park owner with an invoice for

19  payment under subsection (2). Upon approval, the corporation

20  shall issue a voucher in the amount of the contract price for

21  relocating the mobile home. The moving contractor may redeem

22  the voucher from the corporation following completion of the

23  relocation and upon approval of the relocation by the

24  homeowner.

25         (6)  Actions by the corporation under this section are

26  not subject to the provisions of chapter 120, but are

27  reviewable only by writ or certiorari in the circuit court in

28  the county in which the claimant resides in the manner and

29  within the time provided by the Florida Rules of Appellate

30  Procedure.

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  1         (7)  This section does not apply to any proceeding in

  2  eminent domain under chapter 73 or chapter 74.

  3         (8)  In lieu of collecting payment from the corporation

  4  as set forth in subsection (1), a mobile home owner may

  5  abandon the mobile home in the mobile home park and collect an

  6  amount equal to one-fourth of the maximum allowable moving

  7  expenses from the corporation as long as the homeowner

  8  delivers to the park owner the current title to the mobile

  9  home duly endorsed by the owner of record and valid releases

10  of all liens shown on the title. If a homeowner chooses this

11  option, the park owner shall make payment to the corporation

12  in an amount equal to one-fourth of the maximum allowable

13  moving expenses.

14         (9)  The corporation is not liable to any person for

15  recovery if it does not have available the money necessary to

16  pay the amounts claimed. If the corporation does not have

17  sufficient funds to pay the claimant, it shall keep a record

18  of the time and date of its determination for payment to a

19  claimant. If money becomes available, the corporation shall

20  pay the claimant whose unpaid claim is the earliest by time

21  and date of determination.

22         (10)  It is unlawful for any person or his or her agent

23  to file any notice, statement, or other document required

24  under this section which is false or contains any material

25  misstatement of fact. Any person who violates this subsection

26  commits a misdemeanor of the second degree, punishable as

27  provided in s. 775.082 or s. 775.083.

28         Section 8.  This act shall take effect July 1, 2001.

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  1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  2                            CS/SB 442

  3

  4  Deletes an annual $1 surcharge levied on mobile home park
    owners for each mobile home offered for lease within a Mobile
  5  Home Park;

  6  Changes the method of payment of relocation expenses to
    displaced mobile home park tenants from receiving payment from
  7  the Mobile Home Relocation Trust Fund to receiving payment
    from the Florida Mobile Home Relocation Corporation; and
  8
    Provides for the creation of the Florida Mobile Home
  9  Relocation Corporation.

10

11

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                         ADDITIONAL SPONSORS
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    Geller, Sebesta, Miller, Mitchell, Constantine, Bronson,
15  Crist, Dawson, King and Sanderson

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17

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22

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24

25

26

27

28

29

30

31

                                  16

CODING: Words stricken are deletions; words underlined are additions.