Honorable PI. 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 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. 

Y~~?:r opinion request of September 27, 1940, sets out the facts 

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 includes 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 hantlling the business of the department in a more efficient 

manner, both in the work of the investigators and in the handling of the work of the department as it affects the investigators 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 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 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 outstanding 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 conference 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 Commission, 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 efficiently protect the investing public of Texas~from fraudulent 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 greater 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 conference can be legally called at Dallas instead of at Austin, 

that all members of the Securities Division be given an opportunity 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 Dallas, Texas instead of at Austin, Texas on the above dates, 

and whether or not the members of th.is department 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.Securities 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 attending the [meetings of 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 regular 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:~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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