HonorablePI.0. Flowers

Secretary of State Austin, Texas

Dear Sir: Attention: Mr. UJallace Scott Securities Commissioner
Opinion No. O-2787 Re: Whether members of the Securities Division of the office of Secretary of Statewho attend conference called by you to be held at Dallas, Texas on October 8 to 11 will be entitled to reimbursementfrom the State for their expenses, therebeing in Dallas at the time a conventionof the National Association of Securities Commissioners.

Y~~?:r opinion request of September 27, 1940, sets out the facts conciselyand we thereforequote the same in full:

,"TheSecuritiesDivision of the Office of the Secretary of State has made a practice of holding periodic conferencesat the Office of the Secretary of Statewhich are attendedby all investigatorsemployedby the SecuritiesDivision. These conferencesare devoted to a study and explanation of the SecuritiesAct and of the Real Estate Dealers' LicenseAct and discussion of the many problems confrontingsuch investigators. An informal program is planned in advance which usually includesdiscussion of the generalpolicy of the department by the Secretary of State, the Assistant Secretary of State and the Securities Commissionerand specific cases are discussed both from the standpointof settling the particular cases and of furnishing exa+les for the solution of other cases. These conferencesusually result in the discovery of somenew method of hantllingthe business of thedepartment in a more efficient manner, both in the work of the investigatorsand in the handling of thework of the department as itaffects the investigators ingeneral.

"On October gth, 9th, 10th and 11th of this year the National Association of Securities Commissionerswill meet in Dallas,HonorableM. 0. Flowers, page 2 O-2787

Texas. This meeting will be attended by practically all of the State Securitiee Commissioners,by officials of,the Securities and Exchange Commission, including the Honorable Jerome Franks, Chairman of the Securities and Exchange Commission, by the Honorable Sam Rayburn Speaker of the House of Representatives,by the Honorable 6. H. Allred, Regional Administrator of the Securutiesand Exchange Commission for this region, the SecuritiesCommissionersof such neighboring states as have securitiesacts, and by many other men who are distinguished in the field of securitiesregulation. An outstandingprogram has been arranged for thismeeting.

"It is the belief of this department that immeasurablymore benefit would he obtainedby holding the next regular conference of the entire personnel of the SecuritiesDivision on such dates in Dallas, Texas. This departmentof necessity works in close cooperationwith the Securitiesand Exchange Commissionand in attendance at this meetingwill be not only the Regional Administrator of theSecurities and Exchange Commission, the Honorable 0. H. Allred, but all members of the staff. It is believed that the opportunity for the forces of the State SecuritiesCommission and of the National Securities Commission to get together and discuss cases and problems on which both divisionsare working at the present time will be of great benefit and will enable the two divisions, and in .particularthe office of the Secretary of State, tomore efficientlyprotect the investingpublic of Texas~from fraudulent sales of stocksand securities.

"As stated above, there will also be present the Securities Commissionersof the neighboring stateswhose cooperation is likewise essential to the work of this department and a greater measure of cooperationwill undoubtedlybe 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 Commissionerof Texas are planning to be in Dallas on these dates and it is planned, if such conference can be legally called at Dallas instead of at Austin, that all members of the SecuritiesDivision be given an opportunity to attend such meeting, hear such.addresses,and that a conferenceof the entire personnel of this department be held each day at the close of the scheduledprogram for the purpose of discussing the problems and topicsdiscussedby the speakers on such program.

I would, therefore, respectfullyrequestyour opinion as to whether or not such conference canbe legally called at Dallas, Texas instead of at Austin, Texas on the above dates, and whether ornot the members of th.is department attending such conferencewill be entitled to claim theexpenses incur-

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HonorableM. 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 GeneralAppropriation Bill.t'

From your letter it appears that this conferencewould be called in Austin were it not for the desirabilityof having it at Dallas on the occasion of the convention of the National Association of.Securities Commissioners. We understand that all the businesswhich otherwisewould be transacted in Austin will be attended in Dallas with the probability that added benefitsmay be had through attending the [meetings

of the NationalAssociation during the same period of time. The conference to be called by you would be official in every respect and the employees summonedby you would be required to appear. If we understand you correctly the place of your regular conference is changed and perhaps the date isvaried slightly in order to get the advantages of having your employeesattend the meetings of the NationalAssociation, No new conference is created in order to attend the National Association Conventionand it is apparent that little, if any, added expensewould be incurred. While the meeting of the National Associationwould be the cause of changing the place of your conference the prime purpose of the meeting of the stateemployees remains the sameas itwould be if held in Austin. It is our opinion that the inhibition contained in the current appropriationbill against paying traveling expenses of employees of the state inattending conventions is not applicable here, that this conference can be legally called to be held in Dallas insteadof in Austin, Texas, and that the members of your dep;rtment res:~onding to the request to attend may claim reimbursements from the State for their expenses. The answer to your question is theref'ore an aff'irmative

one.

Yours very truly

APPROVED OCT. 4, 1940 GERiiLD

C. MANN ATTORNEY GENERAL OF TEXAS ATTORNEY GENERAL OF 'TEXAS

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