1507460 (Migration)
[2016] AATA 4700
•29 November 2016
1507460 (Migration) [2016] AATA 4700 (29 November 2016)
DECISION RECORD
DIVISION:Migration & Refugee Division
APPLICANT: Indian Grocery House
CASE NUMBER: 1507460
DIBP REFERENCE(S): BCC2015/1098576
MEMBER:Jennifer Ciantar
DATE:29 November 2016
PLACE OF DECISION: Sydney
DECISION:The Tribunal affirms the decision not to approve the nomination.
Statement made on 29 November 2016 at 4:19pm
STATEMENT OF DECISION AND REASONS
APPLICATION FOR REVIEW
This is an application for review of a decision made by a delegate of the Minister for Immigration on 25 May 2015 to refuse to approve the applicant’s nomination under s.140GB of the Migration Act 1958 (the Act) and r.2.72 of the Migration Regulations 1994 (the Regulations).
The applicant applied for approval on 13 April 2015. A nomination of an occupation for a Subclass 457 visa is made under s.140GB of the Act and r.2.73 of the Regulations. Regulations 2.72(3) to (12) prescribe the criteria that must be satisfied for the Minister to approve a nomination by a person. These criteria are extracted in the attachment to this decision. For nomination applications made from 23 November 2013, additional criteria are specified in s.140GBA.
The delegate decided not to approve the nomination on the basis that the applicant did not satisfy r.2.72(10)(f) because the delegate was not satisfied that the position of Corporate Services Manager associated with the nominated occupation is genuine.
The applicant represented by Mrs Ruchi Ruchi appeared before the Tribunal on 12 October 2016 to give evidence and present arguments. The Tribunal also received oral evidence from Mr Guravalia Praveen, the owner of the business and husband of Mrs Ruchi Ruchi.
The applicant was represented in relation to the review.
For the following reasons, the Tribunal has decided to affirm the decision under review to refuse the nomination.
CONSIDERATION OF CLAIMS AND EVIDENCE
The issue in the present case is whether the applicant meets the criteria for approval of the nomination. The Tribunal must approve the nomination if the applicable requirements in r.2.72 and, for nomination applications made from 23 November 2013, s.140GBA have been met: s.140GB(2).
Position must be genuine
Regulation 2.72(10)(f) requires that the position associated with the nominated occupation is genuine.
The Tribunal discussed with the applicant the following ANZSCO definition of Corporate Services Manager. The Tribunal has had regard to the position described in the ANZSCO dictionary, set out below. The Tribunal is not bound by that description but accepts that a corporate services manager position would involve the type of duties outlined, such as duties focussed on planning, organising, directing, controlling and coordinating the overall administration of organisations. This is a Skill Level 1 occupation, located in the Major Group of Managers.
According to ANZSCO the tasks of a Corporate Services Manager include:
oproviding high level administrative, strategic planning and operational support, research and advice to senior management on administrative matters such as staff management, financial planning, facility management and information services
odeveloping and managing the organisation's administrative, financial, physical and staff resources
odeveloping and implementing administrative, financial and operational procedural statements and guidelines for use by staff in the organisation
oanalysing complex resource management issues and initiatives that affect the organisation, and preparing associated reports, correspondence and submissions
oproviding information and support for the preparation of financial reports and budgets
oleading, managing and developing administrative staff to ensure smooth business operations and the provision of accurate and timely information
orepresenting the organisation in negotiations, and at conventions, seminars, public hearings and forums, and promoting existing and new programs and policies
The Tribunal asked the applicant to explain the role of the nominated position in the business. The applicant provided a job description for the position which has the title business manager:
·Planning and implementing company policies;
·Prepare and present reports and analysis to company directors;
·Source and train staff for key roles within the company;
·Source and negotiate products and pricing with suppliers;
·Implement cost cutting and increase profitability measures;
·Develop and implement administrative tools for smoother business operations;
·Achieve all financial targets set by the company;
·Plan and implement new marketing ideas to generate additional business for the company;
·Responsible for day to day relationship with key members of company and suppliers;
·Responsible for setting KPIs for other key members of the company.
The applicant was represented by Mrs Ruchi and Mr Praveen. Mr Praveen stated that the position is required because the business is expanding and the turnover last year was approximately $1.3 million. Originally the business operated one shop in St Leonards but has since opened another shop in Chatswood, which is now doing very well and has double the turnover of the St Leonard’s store. The nominated position is required because of the business’ expansion and plans for further expansion. Mr Praveen stated that he is currently looking for warehouse accommodation. The St Leonard’s store employs 2 retail assistants and the Chatswood store should employ 3 retail assistants but currently only has 2 employees.
The Tribunal asked the applicant to explain the duties of the nominated position taking into account the duties of a corporate services manager as detailed in the ANZSCO guide. Mr Praveen stated that they require a corporate services manager who knows suppliers, primarily in India, speaks the language and can negotiate lower prices for the products to be imported. The business has many local competitors and needs to have an advantage by offering lower prices of products that appeal to the customers of the business. The market is very price sensitive.
The nominated position would involve financial planning because the nominee would know the products, their quality and their costs, and part of the role would be to explain the costs and the origin of products to the staff who can then convey this information to the different demographic groups that purchase the products from the business. The nominated position would also provide the staff with training about the products and their origins, and would identify and source appropriate products for different demographic groups. For example, there are many types of Basmati rice produced in different locations and the nominee would identify which brands appealed to which demographic groups. Although a local sales representative can give advice about local products, a local sales representative cannot advise on where in India the products can be purchased and sourced.
The senior staff to whom the corporate services manager would report would be Mr Praveen and Mrs Ruchi and the corporate services manager could advise on strategies for future growth including business development and marketing. As the business intends to expand, the position would be responsible for current and future staff in regard to providing training and management. The manager would visit the different stores and would draw up the rosters for the staff. Currently, if a staff member is ill, Mr Praveen has to cover for that person. Although he is the manager of the business he often ends up having to perform administrative jobs.
Mr Praveen also stated that the business has been approached to supply local restaurants but there are concerns about the price of the products. However, he wants to develop a “business to business” model so that he can provide other businesses with large quantities of bulky items, for example, a pallet of rice. He is also interested in developing franchise opportunities but at this point he has only had time to have preliminary discussions with friends. Franchise opportunities might be developed once the business is operating three or four stores.
The tribunal again referred to the ANZSCO descriptor and asked about tasks associated with complex resource management. Mr Praveen stated that the nominated position would also conduct stock takes, particularly of expensive products. Duties would also include reviewing CCTV camera footage to observe how the staff had received products when suppliers make deliveries. The position would also involve analysing and generating reports on a daily basis using software which provides information about the day’s sales and other information such as which products are selling better and which products need to be ordered or supplied to which stores. The nominated position would also have some responsibility for developing budgets. The corporate services manager would also be required to approach suppliers and negotiate prices and therefore the nominee would require good negotiation skills.
Mr Praveen stated that the Department had asked for an organisation chart. At this time, the organisation consists of himself and Mrs Ruchi in senior roles although Mrs Ruchi has been at home following the birth of their second child. As noted, the St Leonard’s store has two employees as does the Chatswood store although a third employee is required at the Chatswood store. Mr Praveen stated that the nominated position would not be that of the store manager as the current store staff perform most of these duties. The nominated position would visit the stores and the warehouse, and relieve Mr Praveen of this responsibility so that he can play a larger role in managing the business and implementing the strategies including investing in new products. His role would operate at a higher level to that of the nominated position as the nominee would take over many of the duties which Mr Praveen currently carries. However, the nominee would also have a detailed knowledge of the Indian market in order for the business to be able to import cheaper products.
The Tribunal referred to the statement of duties provided with the visa application. When asked about the company policies that the nominated position would implement, Mr Praveen said that for example, the Indian Diwali festival occurs on 30 October and it is important to investigate what products are required including updating the available products to include products that are sold in India. Currently, he is giving the store staff advice about how to place products in the stores that are relevant to the festival. The nominee would also carry out some market research and provide reports and feedback about how sales and profit can be increased. Currently, staff often send Mr Praveen text messages requesting the supply of additional items and the nominee would be able to coordinate and plan what products each store needs.
Mr Praveen stated that he has previously worked as a store manager and in his experience it is often necessary to work outside of the job description depending upon the current priorities. The tribunal put to the applicants that many of the proposed duties seem to be similar to those of a retail manager although there is also an element of the duties of an importer/exporter. Mr Praveen stated that he is familiar with the work of importers and he does not believe that these people have the skills he requires for the management of the stores and the warehouse. With some assistance from the corporate services manager position, Mr Praveen anticipates that he would perform the import tasks himself.
Mr Praveen stated that the nominee is his sister-in-law as she is married to his brother. Although she is trained as a teacher, she works with her brother and her father who are familiar with the grain industry. The Tribunal indicated that one of the requirements for a subclass 457 visa is that the visa applicant has the skills, qualifications and employment background necessary for the nominated position.
The Tribunal put to the applicant that it has concerns about whether the proposed duties are consistent with those of a corporate services manager, which is a higher-level position. The Tribunal also put to the applicant that the proposed salary of $55,000 per annum also suggests that the proposed position is not at the level of a corporate services manager. The applicant stated that he has spoken to a number of colleagues and he is of the view that the entry-level salary for the position would be $40,000-$45,000. A corporate services manager with 10 years’ experience would expect to be paid between $60,000 and $70,000. Mr Praveen stated that he would conduct regular reviews of the nominee to ensure that she was paid appropriately and potentially she could be paid more.
Consideration
The Tribunal acknowledges that the business has expanded and now operates 2 stores with plans to open a warehouse and more stores, and the turnover has increased to $1.3m. However, the Tribunal is not satisfied that the proposed duties of the position associated with the nominated occupation are those of a corporate services manager and that the position of corporate services manager is genuine.
The Tribunal has considered the evidence provided about the duties of the nominated position and accepts that the duties would include sourcing products and negotiating lower prices for the products to be imported primarily from India and the oversight of the management of the 2 stores. The duties also include explaining the costs and the origin of products to the staff and providing them with training about the products. The Tribunal accepts that the nominated position would have some responsibility for developing budgets and financial planning because the nominee would be required to approach suppliers and negotiate prices. The nominated position would also do some market research, investigate what products are required including updating the available products to include products that are sold in India and take over the applicant’s role in training the staff in product placement and targeting events such as festivals. The nominee would also provide reports and feedback to the business owners about how sales and profit can be increased including what items should be purchased for sale and how to improve competitiveness. However, the owner, Mr Parveen stated that he would be responsible for the strategic planning and that he is more likely to have duties that could be classified as those of an importer.
Although the applicant claims that the nominated position is not a store manager, the applicant also stated that currently he has to relieve store staff if there is illness and the nominee would take over this function and also be responsible for the rosters, observe staff when they accept delivery of supplies and be responsible for ensuring stores have adequate stocks. The nominated position would visit the stores and the warehouse, and would coordinate and plan what products each store needs and provide information to management about sales. The nominated position would also identify and source appropriate products for different demographic groups and train the staff.
Having considered all the evidence, the Tribunal is of the view that the majority of the proposed duties of the position concern the day to day management of the 2 stores, albeit in a supervisory role, and sourcing and negotiating the supply of products from India. as well, the position would respond to requests from the stores for products and be responsible for stocktake, monitor and train staff about the products and their placement in the stores and relieve sales staff when necessary, research the needs of different demographic groups of customers and roster the staff. Taking into account the size and nature of the business, 2 retail stores with 5 retail staff, the Tribunal is not satisfied that duties related to leading, managing and developing retail staff in the company are at the skill level of a corporate services manager.
The Tribunal accepts that the duties of the proposed position also include providing accurate and timely information to the owners about sales and supplies, and for the preparation of financial reports and budgets. The Tribunal also accepts that the position could involve assisting in the proposed plans for business development with the owners although at this time the plans concern taking on warehouse space and possibly opening other stores. Plans about franchises are very preliminary. However, the Tribunal is not persuaded that these duties are at the requisite skill level. The applicant did not provide examples of management reports or financial planning reports which need to be prepared for senior management of the company apart from saying that the nominee would have some responsibility for budgeting and negotiating cheaper prices with suppliers. The applicant also did not provide any examples of duties that require the analysis of complex resource management issues and initiatives that affect the organisation, and the preparation of associated reports, correspondence and submissions.
In conclusion, having considered the evidence and the size and scope of the business operations, the Tribunal does not accept that the duties of the nominated position involve providing high-level administrative, strategic planning and operational support, or planning, organising directing, controlling and coordinating the overall administration of the business. The Tribunal is not satisfied that the position associated with the nominated occupation is genuine.
For these reasons the requirements of r.2.72(10)(f) are not met.
For the reasons given above, the Tribunal is not satisfied that the applicant meets the applicable criteria for the nomination to be approved. Accordingly, the decision under review must be affirmed.
DECISION
The Tribunal affirms the decision not to approve the nomination.
Jennifer Ciantar
MemberATTACHMENT - EXTRACTS FROM THE MIGRATION REGULATIONS 1994
2.72 Criteria for approval of nomination — Subclass 457…
(1)This regulation applies to a person who is:
(a)a standard business sponsor; or
(b)a party to a work agreement (other than a Minister);
who, under paragraph 140GB (1) (b) of the Act, has nominated an occupation in relation to a holder of, or an applicant or a proposed applicant for, a [Subclass 457 visa].
(2)For subsection 140GB (2) of the Act, the criteria that must be satisfied for the Minister to approve a nomination by a person are set out in subregulations (3) to (12).
(3)The Minister is satisfied that the person has made the nomination in accordance with the process set out in regulation 2.73.
(4)The Minister is satisfied that the person is:
(a)a standard business sponsor; or
(b)a party to a work agreement (other than a Minister).
(5)The Minister is satisfied that the person has identified in the nomination the visa holder, or the applicant or proposed applicant for the visa, who will work in the nominated occupation.
(6)If the person identifies a holder of a [Subclass 457 visa] (the visa holder) for subregulation (5), the Minister is satisfied that the person:
(a)has listed on the nomination each other holder of a visa of that kind who was granted the visa on the basis of having the necessary relationship with the visa holder as mentioned in clause 457.321 of Schedule 2; and
(b)if the Minister requires the visa holder to demonstrate that he or she has the skills necessary to perform the occupation — the visa holder demonstrates that he or she has those skills in the manner specified by the Minister.
(7)For paragraph (6) (a), the Minister may disregard the fact that 1 or more persons required to be listed on the nomination are not listed, if the Minister is satisfied it is reasonable in the circumstances to do so.
(7A)In addition to subregulation (6):
(a)if:
(i) the person identifies a holder of a [Subclass 457 visa] (the visa holder) for subregulation (5); and
(ii) the [Subclass 457 visa] was granted after the Minister had waived the requirements of paragraph 4006A (1) (c) of Schedule 4 on the basis of a written undertaking made by the current sponsor of the visa holder (as set out in subclause 4006A (2) of that Schedule);
the Minister is satisfied that the person has provided, in writing, an undertaking that is equivalent to the undertaking made by the current sponsor of the visa holder; and
(b)if:
(i) the person identifies a holder of a [Subclass 457 visa] (the visa holder) for subregulation (5); and
(ii) the person has listed on the nomination a person described in paragraph (6) (a); and
(iii) the [Subclass 457 visa] was granted to the person described in paragraph (6) (a) after the Minister had waived the requirements of paragraph 4006A (1) (c) of Schedule 4 on the basis of a written undertaking made by the current sponsor of the visa holder (as set out in subclause 4006A (2) of that Schedule);
the Minister is satisfied that the person has provided, in writing, an undertaking that is equivalent to the undertaking made by the current sponsor of the visa holder.
(8)If the nomination was made before 1 July 2010 — the Minister is satisfied that the person has provided the following information as part of the nomination:
(a)if there is a 6‑digit ASCO code for the nominated occupation — the 6-digit ASCO code;
(b)if there is no 6-digit ASCO code for the occupation, and the person is a standard business sponsor — the name of the occupation as it appears in the instrument in writing made for the purposes of paragraph (10) (a);
(c)if there is no 6-digit ASCO code for the occupation and the person is a party to a work agreement — the name of the occupation as it appears in the work agreement;
(d)the location or locations at which the nominated occupation is to be carried out.
(8A)If the nomination is made on or after 1 July 2010 – the Minister is satisfied that the person has provided the following information as part of the nomination:
(a)if there is a 6-digit ANZSCO code for the nominated occupation - the name of the occupation and the corresponding 6-digit ANZSCO code;
(b)if:
(i) there is no 6-digit ANZSCO code for the nominated occupation; and
(ii) the person is a standard business sponsor;
the name of the occupation and the corresponding 6-digit code as they are specified in the instrument in writing made for paragraph (10)(aa);
(c)if:
(i) there is no 6-digit ANZSCO code for the nominated occupation; and
(ii) the person is a party to a work agreement;
the name of the occupation and the corresponding 6-digit code (if any) as they are specified in the work agreement;
(d)the location or locations at which the nominated occupation is to be carried out.
(9)The Minister is satisfied that either:
(a)there is no adverse information known to Immigration about the person or a person associated with the person; or
(b)it is reasonable to disregard any adverse information known to Immigration about the person or a person associated with the person.
(10)If the person is a standard business sponsor — the Minister is satisfied that:
(a)if the nomination was made before 1 July 2010 - the nominated occupation corresponds to an occupation specified by the Minister in an instrument in writing for this paragraph; and
(aa)if the nomination is made on or after 1 July 2010 – the nominated occupation and its corresponding 6-digit code correspond to an occupation and its corresponding 6-digit code specified by the Minister in an instrument in writing for this paragraph; and
(b)if required by the instrument mentioned in paragraph (a) or (aa) — the nomination of an occupation mentioned in the instrument is supported, in writing to the Minister, by an organisation specified by the Minister in an instrument in writing for this paragraph; and
(c)the terms and conditions of employment of the person identified in the nomination will be no less favourable than the terms and conditions that:
(i) are provided; or
(ii) would be provided;
to an Australian citizen or an Australian permanent resident for performing equivalent work at the same location; and
(cc)the base rate of pay, under the terms and conditions of employment mentioned in paragraph (c), that:
(i) are provided; or
(ii) would be provided;
to an Australian citizen or an Australian permanent resident, will be greater than the temporary skilled migration income threshold specified by the Minister in an instrument in writing for this paragraph; and
(d)if the nomination was made before 1 July 2010 - the person has certified as part of the nomination, in writing, that:
(i) the tasks of the position include a significant majority of the tasks of:
(A)the nominated occupation listed in the ASCO; or
(B)the nominated occupation specified in an instrument in writing for paragraph (a); and
(ii) if the person is lawfully operating a business outside Australia but does not lawfully operate a business in Australia:
(A)the nominated occupation is a position in the business of the standard business sponsor; or
(B)the nominated occupation is an occupation specified by the Minister in an instrument in writing for this sub-paragraph; and
(iii) if the person lawfully operates a business in Australia:
(A)the nominated occupation is a position with a business, or an associated entity, of the person; or
(B)the nominated occupation is an occupation specified by the Minister in an instrument in writing for this sub-paragraph; and
(iv) the qualifications and experience of the visa holder, or the applicant or proposed applicant for the visa, identified in relation to the nominated occupation are commensurate with the qualifications and experience specified:
(A)for the occupation in the ASCO; or
(B)if there is no ASCO code for the nominated occupation — for the occupation in the instrument in writing made for the purpose of paragraph (a); and
(e)if the nomination is made on or after 1 July 2010 – the person has certified as part of the nomination, in writing, that:
(i) the tasks of the position include a significant majority of the tasks of:
(A)the nominated occupation listed in the ANZSCO; or
(B)the nominated occupation specified in an instrument in writing for paragraph (aa); and
(ii) if the person is lawfully operating a business outside Australia but does not lawfully operate a business in Australia:
(A)the nominated occupation is a position in the business of the standard business sponsor; or
(B)the nominated occupation is an occupation specified by the Minister in an instrument in writing for this sub-subparagraph; and
(iii) if the person lawfully operates a business in Australia:
(A)the nominated occupation is a position with a business, or an associated entity, of the person; or
(B)the nominated occupation is an occupation specified by the Minister in an instrument in writing for this sub-subparagraph; and
(iv) the qualifications and experience of the visa holder, or the applicant or proposed applicant for the visa, identified in relation to the nominated occupation are commensurate with the qualifications and experience specified:
(A)for the occupation in the ANZSCO; or
(B)if there is no ANZSCO code for the nominated occupation - for the occupation in the instrument in writing made for paragraph (aa).
(f)the position associated with the nominated occupation is genuine; and
(g)if the person has identified in the nomination the holder of a Subclass 457 (Temporary Work (Skilled)) visa in relation to whom the requirements in subclause 457.223(6) of Schedule 2 were met—one of the following applies:
(i) the requirements in subclause 457.223(6) of Schedule 2 continue to be met;
(ii) if:
(A)the holder would be required to hold a licence, registration or membership that is mandatory to perform the occupation nominated in relation to the holder; and
(B)in order to obtain the licence, registration or membership, the holder would need to demonstrate that the holder has undertaken a language test specified by the Minister under subparagraph 457.223(4)(eb)(iv) of Schedule 2 and achieved a score that is better than the score specified for the test by the Minister under subparagraph 457.223(4)(eb)(v) of Schedule 2;
the holder demonstrates that he or she has proficiency in English of at least the standard required for the grant (however described) of the licence, registration or membership;
(iii) the holder is an exempt applicant within the meaning of subclause 457.223(4) of Schedule 2;
(iv) unless subparagraph (ii) applies—the holder:
(A)has undertaken a language test specified by the Minister under subparagraph 457.223(4)(eb)(iv) of Schedule 2; and
(B)achieved within the period specified by the Minister in a legislative instrument for this subparagraph, in a single attempt at the test, the score specified by the Minister under subparagraph 457.223(4)(eb)(v) of Schedule 2; and
(h)either:
(i) the person will:
(A)engage the visa holder, the applicant for a visa or the proposed applicant for a Subclass 457(Temporary Work (Skilled)) visa only as an employee under a written contract of employment; and
(B)give a copy of that contract to the Minister; or
(ii) the nominated occupation is an occupation specified by the Minister in an instrument in writing for sub-subparagraph (e)(iii)(B).
(10AA)For paragraphs (10) (c) and (cc), if no Australian citizen or Australian permanent resident performs equivalent work in the person’s workplace at the same location, the person must determine, using the method specified by the Minister in an instrument in writing for this subregulation:
(a)the terms and conditions of employment; and
(b)the base rate of pay, under the terms and conditions of employment;
that would be provided to an Australian citizen or an Australian permanent resident to perform equivalent work in the person’s workplace at the same location.
(10AB)Paragraphs (10) (c) and (cc) do not apply if the annual earnings of the person identified in the nomination are equal to or greater than the amount specified by the Minister in an instrument in writing for this subregulation.
(10A)The Minister may disregard the criterion in paragraph (10) (cc) for the purpose of subregulation (2) if:
(a)the base rate of pay will not be greater than the temporary skilled migration income threshold specified for that paragraph; and
(b)the annual earnings are equal to or greater than the temporary skilled migration income threshold; and
(c)the Minister considers it reasonable to do so.
(11)If the person is a party to a work agreement (other than a Minister) — the Minister is satisfied that:
(a)the nominated occupation is specified in the work agreement as an occupation that the person may nominate; and
(b)if the nomination was made before 1 July 2010 - the person has certified as part of the nomination, in writing, that:
(i) the tasks of the position include a significant majority of the tasks of:
(A)if the nomination is made using an ASCO code - the nominated occupation listed in the ASCO; or
(B)if the nomination is not made using an ASCO code -the nominated occupation specified in the work agreement; and
(ii) the qualifications and experience of the visa holder, or the applicant or proposed applicant for the visa, identified in relation to the nominated occupation are commensurate with the qualifications and experience specified for the occupation in the work agreement; and
(c)if the nomination is made on or after 1 July 2010 - the person has certified as part of the nomination, in writing, that:
(i) the tasks of the position include a significant majority of the tasks of:
(A)if the nomination is made using an ANZSCO code - the nominated occupation listed in the ANZSCO; or
(B)if the nomination is not made using an ANZSCO code -the nominated occupation specified in the work agreement; and
(ii) the qualifications and experience of the visa holder, or the applicant or proposed applicant for the visa, identified in relation to the nominated occupation are commensurate with the qualifications and experience specified for the occupation in the work agreement.
(12)If the person is a party to a work agreement and the work agreement specifies requirements that must be met by the party to the work agreement — the Minister is satisfied that the requirements of the work agreement have been met.
Key Legal Topics
Areas of Law
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Immigration
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Administrative Law
Legal Concepts
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Judicial Review
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Procedural Fairness
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Statutory Construction
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Jurisdiction
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