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October 11, 2012

Re:      Proposed Rules for Non-State Health Benefits Plans

Dear Mayor

Yesterday the Local Finance Board proposed rules, which would require prior approval by the Division of Local Government Services of all non-state health benefits plans in any collective bargaining agreement.  The proposed rules are based on a recent Attorney General opinion that Section 42 (c) of P.L. 2011, c. 78 applies to all collective bargaining agreements that include non-state health benefit plans.  The proposed rules will apply to all municipalities, fire districts and authorities that have non-State Health Benefit for medical, prescription or dental coverage.  Last week the Commissioner of Education introduced similar regulation for school districts.

We are currently reviewing the proposed regulations and will be sending out a separate letter detailing the proposed rules.  We have also requested a copy of the Attorney General’s opinion as it appears to be different than the guidance initially provide on alternative benefit plans.

The proposed rules are available at on the Division’s website at:

In addition, we anticipate that the proposed rules will be discussed at the Health Benefits Reforms: One Year Later session at the League’s conference.  The session is scheduled for Thursday, November 15 at 10:45 a.m. in room 403.

If you have any questions or comments please contact Lori Buckelew at 609-695-3481 x112 or by e-mailing

Very truly yours,

William G. Dressel, Jr.
Executive Director




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