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NJ S2367
Bill
Status
Introduced
1/13/2026
Primary Sponsor
John McKeon
Click for details
AI Summary
- Authorizes New Jersey dental service corporations to establish nonprofit parent corporations while maintaining their charitable and tax-exempt status
- Requires dental service corporations to submit an application to the Commissioner of Banking and Insurance, including a detailed plan, corporate structure diagrams, and financial documentation demonstrating solvency compliance
- Mandates the Commissioner approve or disapprove applications within 120 days of completeness, with grounds for disapproval limited to violations of law, threats to safety/soundness, or substantial reduction in subscriber services
- Prohibits the parent corporation from converting to for-profit status, redomesticating to another state, operating as a risk-bearing entity, or underwriting securities offerings
- Imposes annual enterprise risk reporting requirements and allows distributions to the parent corporation only from earned surplus, with extraordinary distributions requiring 30-day advance notice to the Commissioner
Legislative Description
Permits dental service corporations to establish nonprofit parent corporations.
Commerce
Last Action
Introduced in the Senate, Referred to Senate Commerce Committee
1/13/2026
Committee Referrals
Commerce1/13/2026
Full Bill Text
No bill text available