Enacts new GS 135-48.47 to allow employees and retirees of local government units, and their dependents, to participate in the State Health Plan (Plan), provided the local government unit (1) elects to participate and (2) complies with applicable laws and policies. Sets out the requirements that a local government must meet to participate in the Plan, including determining the eligibility of employees, retirees, and dependents, and premium amounts. Ends eligibility to participate on July 1, 2014; however, allows covered local government retirees who retire before July 1, 2014, while covered by the state, to remain eligible for coverage. Makes conforming changes to GS 135-48.1(11) (definition of employing unit) and GS 135-48.55 (concerning interest on late premiums) and amends GS 135-48.8 to add a statement of public interest. Allows any local government unit participating in the Plan when this act becomes law to elect to operate under new GS 135-48.47; requires such units to stop monthly contributions to the Teachers’ and State Employees’ Retirement System.