only in State, County, school district or municipal improvement securities within the State of Utah.

Sec. 8. Record. Reports. The Retirement Commission shall keep a record of all its proceedings, and a record of all money received and paid out, all of which records shall be open for public inspection. It shall also make such reports from time to time to the state superintendent of public instruction or board of education or board of trustees as may be required.

Sec. 9. Teachers to be Notified. When a board of Retirement Commissioners has been duly organized in any district or county, the superintendent of schools who has charge. of said district or county shall cause each teacher within said district or county to be notified of the fact, and he or she shall, within thirty days thereafter, reply in writing, accepting or declining membership in said Retirement Association. In case a teacher declines to become a member, he or she may only become a member thereafter by a two-thirds vote of all the commission and payment of all back dues, dating from the organization of said Retirement Association. All new teachers accepting employment under the board of education or trustees in any county subsequent to the organization of a Retirement Association within the district or county may contract and agree to the provisions governing membership in said association.

Sec. 10.

Sources of income. The income of the Public School Teachers' Retirement Association shall be from the following sources:

a. All teachers in the employ of the Board of Education or Boards of Trustees at the time of the organization of said Retirement Association and who have become members thereof, and all new teachers entering the employment of the Board of Education or Board of Trustees, shall have deducted from each and every payroll in payment for services one per cent of the face of said payroll, and the amount of said deduction shall be certified by the Clerk of the Board of Education or Board of Trustees monthly to the treasurer of the Association.

b. All amounts deducted from teachers' salaries on account of absence through sickness, not to exceed five days in any one year for a teacher; provided, that by a special resolution the Board of Education or Board of Trustees may, on account of a shortage of funds, withhold the payment of said deductions out for a period not to exceed one year at a time. All deductions belonging to this fund shall be certified to monthly by the Board of Education or Board of Trustees to the treasurer of the Association.

C. All moneys received from donations, legacies, gifts, bequests, or otherwise for or on account of said fund.

Sec. II.

Current fund. (Permanent fund. The first two sources of income, viz: "a" and "b," shall constitute the Current Fund, and the third source, viz: "c," shall constitute the Permanent Fund, unless specifically stipulated for the Current Fund in the donation, legacy, gift or bequest. No portion of the Permanent fund shall be available for current expenditure, but the interest thereon shall become a part of the Current Fund.

Sec. 12.

Beneficiaries retirement. There shall be two classes of beneficiaries under the Retiremnt Fund, viz: Class "A" and Class "B."

Class A. On the recommendation of the Retirement Commission, the Board of Education or Board of Trustees shall have power by a two-thirds vote to retire any member of the Association who is mentally or physically incapacitated for the performance of duty, provided, said teacher has taught in the district or county in which said district is located at least five years, and whose term of service shall aggregate thirty years, whether before or after, or partly before or after, the passage of this act. Each teacher so retired shall be entitled to receive as pension an annual salary equal to one half of the average annual salary drawn by said teachers for the five years preceding retirement, but in case his or her years of teaching shall not aggregate thirty years, he or she may be temporarily retired and shall be entitled to as many thirtieths of the half-salary as his or her years of service are a

party of thirty. Any teacher who has been retired under this class and who recovers his or her mental or physical powers sufficiently to teach or earn a livelihood in some other manner, in the opinion of the Medical Inspector of the Board of Education or Board of Trustees or of a physician selected by the Retirement Commissioners in case there is no Medical Inspector designated, shall cease to draw an annuity under this classification.

Class B. Any member of the Retirement Association who has taught thirty years, one-third of which time has been in the district or county in which said district is located, and who has reached the age of sixty years, shall, upon his or her request, or upon the recommendation of the Retirement Commissioners and a two-thirds vote of the Board of Education or Board of Trustees, without option, be placed upon the retired list, and shall be entitled to annual salary equal to onehalf of the average annual salary of the five years preceding retirement.

Sec. 13. Id. Membership continued. Provided that any teacher who is retired under the provision of either class "A" or "B," and who at the time of retirement has not paid into the Retirement Fund a sum equal to one per cent of the entire salary received for the previous years of service claimed, shall have such an amount deducted from his or her annuity as shall equal the amount still due. This deduction may, in the discretion of the Retirement Commissioners, be distributed over a period not to exceed three years. Any teacher may, at the time of becoming a member of the Association, be credited in full for all back payment covering previous years of service claimed by paying one-half of one per cent of all salaries earned during time of service claimed. Any teacher who is a member of a Retirement Association in the State of Utah, and who accepts employment in a district or county outside of the bounds of his or her association shall, within thirty days thereafter, select which of two ways he or she prefers to continue his or her membership.

If the first mentioned is selected the secretary of the com

mission shall fill out on a paper form a report, covering the necessary data concerning said teacher, which report, with the one-half of the amount of money paid into the fund by or on account of said teacher, as hereinafter provided, shall be accepted by any comission in the State as the complete record and payment of back dues of such teacher.

If the second method is chosen a teacher may continue his or her membership by voluntarily sending annually to the secretary of the association the one per cent of his or her salary as certified to by the clerk of the board where he or she is employed.

Sec. 14. Teacher dismissed or withdrawing entitled to refund. Any teacher dismissed from the service of the Board of Education or Board of Trustees for cause shall be entitled to a refund of all money, without interest, paid into the retirement fund by said teacher.

Any teacher voluntarily withdrawing from the services of the Board of Education or Board of Trustees shall be entitled to a refund of one-half of the amount paid into said fund by. said teacher, provided, he or she makes application in writing within three months for the refund.

Sec. 15. Estate entitled to refund. In case of the death of a member of the Retirement Association the estate of said teacher shall be entitled to a refund of the total amount paid into said fund by said teacher.

Sec. 16. Insufficient funds. If at any time the funds of the Retirement Association are not sufficient to meet the annuities and refunds hereinbefore specified, each annuitant and claimant shall be paid pro rata his or her proportion of the funds that are available.

Sec. 17. "Teacher" defined. The term "teacher," as used throughout this bill shall include superintendents, supervisors, principals and teachers.

Sec. 18. Rules and by-laws. The Retirement Commission is empowered to adopt such additional rules and by-laws for the carrying out of the provisions of this bill as are in harmony with its intents and purposes.

Extracts from the Constitution of the
State of Utah.

ARTICLE X.

EDUCATION.

Section I. Free non-sectarian schools. The legislature shall provide for the establishment and maintenance of a uniform system of public schools, which shall be open to all children of the State, and be free from sectarian control.

Sec. 2. Public school system. Maintenance. The public school system shall include kindergarten schools; common schools, consisting of primary and grammar grades; high schools; an agricultural college; a university, and such other schools as the legislature may establish. The common schools shall be free. The other departments of the system shall be supported as provided by law; Provided, that high schools may be maintained free in all cities of the first and second class now constituting school districts, and in such other cities and districts as may be designated by the legislature. But where the proportion of school moneys apportioned or accruing to any city or district shall not be sufficient to maintain all the free schools in such city or district, the high schools shall be supported by local taxation.

Sec. 3. State school fund. Interest distributed. The proceeds of all lands that have been, or may be granted by the United States to this State, for the support of the common schools; the proceeds of all property that may accrue to the State by escheat or forfeiture; all unclaimed shares and dividends of any corporation incorporated under the laws of this State; the proceeds of the sale of timber, minerals or other property from school and State lands, other than those granted for specific purposes; and the five per centum of the net pro

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