NJ S4960

Allows dental service corporations (DSCs) to form nonprofit parent corporations by obtaining approval from the Commissioner of Banking and Insurance, requiring submission of a detailed plan including proposed corporate structure, board members, and any planned distributions

Requires parent corporations to maintain nonprofit, charitable status and prohibits them from converting to for-profit entities, redomesticating to another state, operating as risk-bearing entities, or underwriting securities offerings

Mandates parent corporations serve purposes of providing affordable oral health care, promoting integration of oral health systems, delivering innovative solutions, and enhancing competition in dental care delivery

Permits DSCs to pay distributions to parent corporations, including ownership interests in subsidiaries, subject to commissioner oversight for extraordinary distributions exceeding 15% of surplus or net income from the prior year

Requires annual enterprise risk reporting by parent corporations to identify material risks that could adversely affect the DSC, with the commissioner authorized to examine affiliates and obtain records to assess financial condition