Honorable PI.0. Flowers
Secretary of State
Austin, Texas
Dear Sir: Attention: Mr. UJallaceScott
Securities Commissioner
Opinion No. O-2787
Re: Whether members of the Securities
Division of the office of Secretary
of State who attend conference called
by you to be held at Dallas, Texas on
October 8 to 11 will be entitled to
reimbursement from the State for their
expenses, there being in Dallas at
the time a convention of the National
Association of Securities Commissioners.
opinion request of September 27, 1940, sets out the facts
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concisely and we therefore quote the same in full:
,"The Securities Division of the Office of the Secretary of
State has made a practice of holding periodic conferences at
the Office of the Secretary of State which are attended by
all investigators employed by the Securities Division. These
conferences are devoted to a study and explanation of the
Securities Act and of the Real Estate Dealers' License Act and
discussion of the many problems confronting such investigators.
An informal program is planned in advance which usually in-
cludes discussion of the general policy of the department by
the Secretary of State, the Assistant Secretary of State and
the Securities Commissioner and specific cases are discussed
both from the standpoint of settling the particular cases and
of furnishing exa+les for the solution of other cases. These
conferences usually result in the discovery of some new method
of hantllingthe business of the department in a more efficient
manner, both in the work of the investigators and in the hand-
ling of the work of the department as it affects the investi-
gators in general.
"On October gth, 9th, 10th and 11th of this year the National
Association of Securities Commissioners will meet in Dallas,
Honorable M. 0. Flowers, page 2 O-2787
Texas. This meeting will be attended by practically all of
the State Securitiee Commissioners, by officials of,the Se-
curities and Exchange Commission, including the Honorable
Jerome Franks, Chairman of the Securities and Exchange Com-
mission, by the Honorable Sam Rayburn Speaker of the House
of Representatives, by the Honorable 6. H. Allred, Regional
Administrator of the Securuties and Exchange Commission for
this region, the Securities Commissioners of such neighboring
states as have securities acts, and by many other men who are
distinguished in the field of securities regulation. An out-
standing program has been arranged for this meeting.
"It is the belief of this department that immeasurably more
benefit would he obtained by holding the next regular confer-
ence of the entire personnel of the Securities Division on
such dates in Dallas, Texas. This department of necessity
works in close cooperation with the Securities and Exchange
Commission and in attendance at this meeting will be not only
the Regional Administrator of the Securities and Exchange Com-
mission, the Honorable 0. H. Allred, but all members of the
staff. It is believed that the opportunity for the forces of
the State Securities Commission and of the National Securities
Commission to get together and discuss cases and problems on
which both divisions are working at the present time will be
of great benefit and will enable the two divisions, and in
.particular the office of the Secretary of State, to more ef-
ficiently protect the investing public of Texas~from fraudu-
lent sales of stocks and securities.
"As stated above, there will also be present the Securities
Commissioners of the neighboring states whose cooperation is
likewise essential to the work of this department and a great-
er measure of cooperation will undoubtedly be secured from
such Commiseioners through the closer contacts that will be
made on this occasion. The Secretary of State of the State
of Texas, the Assistant Secretary of State of the State of
Texas and the Securities Commissioner of Texas are planning to
be in Dallas on these dates and it is planned, if such con-
ference can be legally called at Dallas instead of at Austin,
that all members of the Securities Division be given an op-
portunity to attend such meeting, hear such.addresses, and
that a conference of the entire personnel of this department
be held each day at the close of the scheduled program for the
purpose of discussing the problems and topics discussed by
the speakers on such program.
I would, therefore, respectfully request your opinion as to
whether or not such conference can be legally called at Dal-
las, Texas instead of at Austin, Texas on the above dates,
and whether or not the members of th.isdepartment attending
such conference will be entitled to claim the expenses incur-
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Honorable M. 0. Flowers, page 3 O-2787
red on such trip under the laws of the State of Texas and in
particular under the provisions of the General Appropriation
Bill.t'
From your letter it appears that this conference would be called in
Austin were it not for the desirability of having it at Dallas on
the occasion of the convention of the National Association of.Se-
curities Commissioners. We understand that all the business which
otherwise would be transacted in Austin will be attended in Dallas
with the probability that added benefits may be had through attend-
ing the [meetingsof the National Association during the same period
of time. The conference to be called by you would be official in
every respect and the employees summoned by you would be required
to appear. If we understand you correctly the place of your regu-
lar conference is changed and perhaps the date is varied slightly
in order to get the advantages of having your employees attend the
meetings of the National Association, No new conference is created
in order to attend the National Association Convention and it is
apparent that little, if any, added expense would be incurred.
While the meeting of the National Association would be the cause of
changing the place of your conference the prime purpose of the
meeting of the state employees remains the same as itwould be if
held in Austin. It is our opinion that the inhibition contained
in the current appropriation bill against paying traveling expenses
of employees of the state in attending conventions is not applicable
here, that this conference can be legally called to be held in
Dallas instead of in Austin, Texas, and that the members of your
dep;rtment res:~ondingto the request to attend may claim reimburse-
ments from the State for their expenses. The answer to your ques-
tion is theref'orean aff'irmativeone.
Yours very truly
APPROVED OCT. 4, 1940 ATTORNEY GENERAL OF 'TEXAS
GERiiLDC. MANN
ATTORNEY GENERAL OF TEXAS
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