House OKs bill to streamline insolvency process for fraternal benefit societies

The House passed a bill Monday that would give Minnesota-based organizations like the Catholic United, Sons of Norway and Polish Falcons of America a system to liquidate or transfer membership to another organization.

Domestic fraternal benefit societies, often not-for-profit organizations, would have a system toward insolvency under HF3799, sponsored by Rep. Joe Hoppe (R-Chaska). The House passed the bill 123-0, as amended, sending it to the Senate where Sen. Gary Dahms (R-Redwood Falls) is the sponsor.

The bill outlines definitions and purposes for the societies facing insolvency, and how the organizations can transfer into other societies or how to liquidate. If they need to transfer, the bill would allow “a streamlining process once that happens,” according to Rep. Debra Hilstrom (DFL-Brooklyn Center).

“We look at this as repairing the roof before it starts to rain,” Hoppe said.