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[[underlined]] Smithsonian Science Information Exchange [[/underlined]]

OMB has decided that the functions of SSIE, Inc. should be "federalized" on or about October 1, 1980.  This is intended to be accomplished by the Department of Commerce (National Technical Information Service) acquiring on that date all of the assets of the corporation (other than cash and receivables) for a fixed sum, and offering civil service employment to many (but possibly not all) of the current employees of SSIE, Inc.  The sum which the corporation can properly accept consistent with its nonprofit status and its obligation to its creditors and employees is the amount necessary to pay the termination costs and to wind up the affairs of the corporation in a fair and orderly fashion.  These costs are principally payments to employees for accrued annual leave and severance pay,
and the administrative costs of terminating the corporation.  The Smithsonian and the Exchange completed and presented to the Department of Commerce and to the Appropriations Subcommittees responsible for that Department estimates of these costs which could be as much as $866,000.  It is expected that this information will be taken into consideration as Congress completes action on the fiscal year 1981 appropriation for the Department.

At the January 1980 meeting, the Board of Regents was advised that the Office of Management and Budget had rejected a Smithsonian proposal that legislation be sought to permit SSIE employees to retain their personnel benefits at the time they became civil service employees.  OMB's position was that such legislation would be "precedent setting".  Early this year, however, the employees of the Exchange engaged the firm of Patton, Boggs and Blow as legal counsel.  It appears likely that the firm will urge that such legislation be passed by the Congress and, in so doing,