The Lincoln times., 1955-04-14
Edueation> Budget Insurance
On Minds Of N. {. Legislators

opposition, declares that mixing
of races in the public schools
within the state can not be ac-
complished, and that any at
tempt to do so will ALLEVIATE pub
lie support to such an extent that
successful operation of the schools
will be impossible. 1t also provid-
es for a permanent advisory COM
mittee to make a continuing study
of problems resulting from the
segregation decision. and to ad-
wise the Governor. General As
sembly. State Board of Education.
and local school boards. Another
of this weeks bills resulting from
the segregation decision would
terminate all contracts Of teach
ers and principals at the end OF
the school year and place them
on a year-to year basis (preSent
contracts are extended automa-
tically unless notice to the con-
t1ary is given prior to the end
Vi tIlC SCIlOOl yCol ,. llC
seems to be that a re-alignment
of districts may be necessary
The committee substitute for the
bill creating a N. c. Board of
Higher Education passed the
House this week by an over
whelming majority. This bill
creates a commission with power
to determine the major functions
and activities at each of the
twelve state supported institutions
of higher learning. Governor
Hodges has stated that such a
board would save money and
help prevent duplication Of ef-
fort Members of county
boards Of education who took
action prior to the April 4 rati-
fication of the omnibus bill which
appointed them may be relieved
to learn a bill has been intro
duced which would validate any
official action they might have
! taken.
Accident, Health, and HOspita-
IizatiOn Insurance AS of this
week, no less than % bills have
been introduced to curtail certain
practices of commercial and nom
profit disqualification insurers.
Generally the bills. many having
similar provisions, strike at mis-
leading advertising, unjust cam
collation. of policies, defenSeS baS-
ed on miSStatementS in applica-
| tionS for insurance, and misre-
presentation of policy procisions
by agents. Of the % bills. only
five have received committee ap-
proval: only three have passed
one house: and none have been
passed by both houses. HB Sc, in
troduced by Rep. Blue and others.
is furthereSt along its legislative
journey. Having passed the House,
it was reported out favorably by
| the Senate Insurance Committee
on Friday. and is scheduled for
debate next Tuesday. Applicable
to policies issued after Jan. l.,
1856, its major provision is re-
Quirement of notice from 80 days
to two years depending on time
policy is in force) before COM
mercoial company may cancel or
fail to renew a policy. A similar
bill. applicable to non-profit in
surers, has passed the House. but
is still in a Senate committee.
The Budget - The joint fin
ance committee has completed
public hearings on proposed new
taxes. About SIG million per year
in new revenue must be found to
balance the budget. The Senate
Finance Committee met separate
ly on Thursday night and( with
% of 25 members present, in
formal, unsigned ballots were
marked. The straw vote gave an
indication of the way the tax
winds are blowing. Support for
the proposed tobacco tax was evi-
dent, with 13 for. S against, and
two members favoring some
modification. There was almost
solid opposition to a flat 3 pct
sales tax which would include
food and medicines and to a
pct. tax on feed, seed, fertilizer,
and insecticides. A tax on realty
transfers also proved unaccep-
table by a vote of 1872. Among
other reported straw votes in IA
vor of tax proposals were: %
l pct. sales tax on new motor
vehicles, with $50 limit, 16 to L;
90 pct. tax on new and used
vehicles, IL to Z: 90 removal of
fleet-oWner exemption (oWners
of five or more vehicleS), Is to 5;
"a increase from 8 1i2 pct. to
10 pct. in liquor tax, IA to 5; 60
adoption of state income tax
withholding plan, IL to 8; 90 3
pct. gross receipts tax on hotels
and motels, IA to 8; Cd proposed
tax on co-operatives, 81 to 0; and
80 proposed 10 pct. luxury tax
on jewelry, luggage, ETC.. 10 to
6. Both the House and Senate
Finance Committees plan further
straw votes in the early part of
this coming week, and some de-
finite committee decisions may
soon materialize
Study Commissions - When
legislative bodies are faced with
difficult questions, on which
there is a dearth of factual in
| formation or an abundance of
disagreement. an accepted me-
thod of disposition is to set up a
study commission. This session
OF the General Assembly has been