New Jersey S 2367: Allows certain municipalities to establish lower property tax rate on improvements than land and eliminates urban enterprise zone program.

Bill Text

S2367 

SENATE, No. 2367 

STATE OF NEW JERSEY

222nd LEGISLATURE

� 

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Senator JOHN F. MCKEON

District 27 (Essex and Passaic)

Senator� RAJ MUKHERJI

District 32 (Hudson)

SYNOPSIS

���� Permits dental service corporations to establish 
nonprofit parent corporations.

CURRENT VERSION OF TEXT 

���� Introduced Pending Technical Review by Legislative 
Counsel.

�� 

An Act concerning dental service corporations and 
supplementing Title 17 of the Revised Statutes.

���� Be It 
Enacted by the Senate and General Assembly of 
the State of New Jersey:

���� 1.��� The Legislature finds 
and declares that:

���� a.���� It is in the interest 
of the subscribers of a dental service corporation and the State of New Jersey 
that the dental service corporation, under appropriate circumstances, be 
afforded the ability to modernize its corporate structure, subject to 
appropriate standards and approval, to meet the evolving oral health care needs 
of its subscribers, while continuing its current statutory purposes, and at all 
times maintaining its status as a charitable and benevolent institution as 
declared in section 32 of P.L.1968, c.305 (C.17:48C-32).

���� b.��� Ensuring that the dental 
service corporation statutes provide the opportunity for a dental service 
corporation to form a nonprofit parent corporation and make certain 
distributions to its nonprofit parent corporation in a manner authorized by this 
act will facilitate increased utilization of 21st century technologies and 
tools to better address current challenges, improving both the State's health care 
infrastructure and its readiness to promote oral health. �Formation of a 
nonprofit parent corporation by a dental service corporation, if undertaken, 
approved, and completed consistent with the provisions of this act, will also 
promote vital investments and growth in oral health services and diversified 
businesses for the benefit of its subscribers and the State.

���� c.���� Current State law 
governing dental service corporations does not prescribe a clear path for a 
dental service corporation to update and improve its corporate structure for 
the benefit of its subscribers and the State while, at the same time, 
maintaining its nonprofit status, continuing to adhere to its statutory 
purposes to provide dental care and promote oral health to meet the needs of 
its subscribers, and fulfilling the obligations of a dental service 
corporation.

���� d.��� Other states have 
authorized similarly situated nonprofit dental service corporations to 
modernize their corporate structures while maintaining their nonprofit legal 
status and the statutorily prescribed purposes of the entities for the benefit 
of their subscribers and respective oral health care marketplaces.

���� e.���� Because formation of a 
nonprofit parent corporation authorized pursuant to this act does not 
constitute a conversion pursuant to section 3 of P.L.1968, c.305 (C.17:48C-3), 
the existing statutory purposes of the dental service corporation to provide 
dental care and promote oral health to meet the needs of its subscribers shall 
continue unabated if the dental service corporation forms a nonprofit parent 
corporation in the manner authorized by this act.

���� f.���� It is also in the 
interest of the subscribers of a dental service corporation and the State of 
New Jersey that the important statutory objects and purposes of the dental 
service corporation continue to be upheld following the formation of a 
nonprofit parent corporation pursuant to this act; provided, however, that it 
is appropriate to expand and modernize the objects and purposes of the parent 
corporation to encourage further innovation as well as improvement and 
diversification of services.

���� 2.��� As used in this act:

���� �Application� means the 
submission and supporting documentation requesting approval of the formation of 
a parent corporation filed with the commissioner pursuant to subsection a. of section 3 of this act.

���� �Board� or �board of trustees� 
means the board of trustees of the dental service corporation.

���� �Commissioner� means the 
Commissioner of Banking and Insurance.

���� �Dental service corporation� 
means a corporation organized pursuant to subsection a. 
of section 2 of P.L. 1968, c.305 (C.17:48C-2).

���� �Enterprise risk� means any 
activity, circumstance, event, or series of events involving one or more 
affiliates of a dental service corporation that, if not remedied promptly, is 
likely to have a material adverse effect, as determined by the commissioner, 
upon the financial condition or liquidity of the dental service corporation or 
its parent corporation and its subsidiaries taken as a whole.

���� �Entity� means a corporation, 
limited liability company, partnership, association, joint stock company, 
business trust, unincorporated organization, or any similar entity.

���� �Parent corporation