This bill amends the Dental Service Corporation Act of 1968 to enable dental service corporations (DSCs) in New Jersey to establish nonprofit parent corporations, thereby modernizing their corporate structure while preserving their charitable status and statutory purposes. The legislation outlines the application process for forming a parent corporation, which requires approval from the Commissioner of Banking and Insurance. The application must include a detailed plan for the parent corporation's formation, compliance documentation, and any proposed material changes to the DSC's business. The commissioner has 120 days to approve or disapprove the application, with provisions for addressing deficiencies and judicial review in case of disapproval.

Furthermore, the bill allows DSCs to make distributions to their parent corporations under specific conditions, ensuring that these distributions do not jeopardize the financial stability of the DSC. It establishes guidelines for the approval of such distributions and mandates annual enterprise risk reports to assess potential risks to the DSC. The parent corporation must uphold the DSC's statutory purposes, focusing on affordable oral health care and promoting competition in service delivery, while being explicitly prohibited from operating for profit or converting to a for-profit entity. The bill also includes provisions for confidentiality regarding sensitive information obtained during examinations or investigations related to the act.