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. The legislation outlines the application process for DSCs to form a parent corporation, which requires a detailed plan and compliance with solvency requirements. The Commissioner of the Department of Banking and Insurance will review these applications and has the authority to approve or disapprove them within 120 days, with provisions for addressing deficiencies and seeking judicial review if disapproved. The parent corporation must maintain the original purposes of the DSC, focusing on affordable and accessible oral health care, and is explicitly prohibited from operating for profit.

Additionally, the bill allows DSCs to make distributions to their parent corporations under specific conditions, ensuring that these actions do not jeopardize the financial stability or services provided to subscribers. It establishes guidelines for the approval process of these distributions and mandates annual enterprise risk reports to assess potential risks to the DSC. The legislation aims to enhance competition and innovation in oral health care while safeguarding the interests of subscribers and the public. It also includes provisions to maintain the confidentiality of documents shared with the commissioner, preventing their use in private civil actions.