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 process for forming a parent corporation, which requires approval from the Commissioner of Banking and Insurance. The bill emphasizes that the parent corporation must maintain the DSC's statutory purposes, such as providing affordable oral health care and promoting innovation, and it explicitly prohibits the parent corporation from operating for profit or converting to a for-profit entity.

Additionally, 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 process of these transactions, including the necessity for an annual enterprise risk report to assess potential risks to the DSC. The legislation also includes provisions for confidentiality regarding sensitive information obtained during examinations or investigations related to the parent corporation, ultimately aiming to enhance the operational capabilities of DSCs while safeguarding the interests of their subscribers.