Purpose

• Allow certain Minnesota cities to issue a social district license so alcohol can be consumed within a defined social district. The rules apply to holders of an onsale license whose premises are contiguous with the designated social district. The change updates and expands how social districts work and how they’re regulated in those cities.

Main Provisions

• Eligible cities and license type:
  • Cities: Anoka, Robbinsdale, Shakopee, and Stillwater may designate a social district and issue a social district license to eligible onsale licensees.
  • The social district allows consumption of alcoholic beverages purchased from an onsale licensee, but it does not authorize sales or service inside the social district.
• Designation details:
  • Before issuing a license, the city must designate and describe the social district’s premises by ordinance.
  • The district cannot include areas where someone objects to being included.
  • The designation must specify the exact premises allowed for consumption and the hours/days consumption is allowed.
• Boundaries and signs:
  • The district must be clearly defined and marked with conspicuous signs.
  • Signs must include the local law enforcement agency with jurisdiction, and state that consumption must stay within the district and beverages must be disposed of before exiting unless reentering the same licensed premises.
• Management and maintenance:
  • The city must have management and maintenance plans, posted on the city’s website, describing the district boundaries and allowed hours/days.
  • Plans must aim to protect public health and safety.
• On-sale licensee requirements:
  • An onsale licensee with a social district license may only sell and serve alcohol on its own licensed premises.
  • Patrons cannot be allowed to enter or reenter the licensee’s premises with an alcoholic beverage not purchased from that licensee.
  • Containers for beverages sold for consumption in the district must: clearly identify the licensee, display a logo or mark unique to the district, not be made of glass, show “Drink Responsibly Be 21” in at least 12-point font, and hold no more than 16 fluid ounces.
• Additional district rules:
  • Only beverages purchased from a social district licensee located in or contiguous to the district may be possessed and consumed in the district.
  • Beverages must be in properly described containers, and consumption must occur only during the hours/days set by the city.
  • Any beverage in a person’s possession must be disposed of before exiting the district unless the person is reentering the same licensed premises where it was purchased.
• Reporting requirement:
  • Within 24 months of the first issuance of a social district license in Anoka, the city must report to the chairs and ranking minority members of the legislative committees with jurisdiction over liquor regulation.
  • The report must cover: how the district was designed, community and business responses, public safety concerns, benefits/drawbacks, and possible modifications or recommendations for changes to the social district framework.

Significant Changes to Existing Law

• This bill amends the existing social district provisions (Laws 2022 chapter 86 article 2 section 5, as amended by Laws 2024 chapter 114 article 5 section 6) to:
  • Expand the list of eligible cities and tighten the design, signage, and enforcement requirements.
  • Introduce explicit container rules, identification requirements, and a finite container size.
  • Require disposal of beverages before exiting the district and limit consumption to district hours/days set by the city.
  • Mandate a formal online management plan and a formal reporting requirement to state lawmakers after the district’s first issuance.

How it works in practice (summary)

• A city designates a defined area where adults can consume alcohol purchased from nearby onsale licensees.
• Clear signage and rules are posted; only beverages from local licensees may be consumed there.
• Consumption occurs only during city-approved hours; disposal rules apply when leaving the district.
• Licensees must follow strict container rules and cannot mixed outside beverages into the district.
• City submits a formal report to state legislators about the district’s operation within two years.

Relevant terms - social district license - onsale licensee - social district - consumption - contiguous - designation - ordinance - hours and days - signage - local law enforcement - disposal - container requirements - Drink Responsibly Be 21 - non-glass container - 16 fluid ounces - public safety - health and safety - reporting requirement - Anoka

If you’d like, I can tailor this summary for a specific audience or add examples to illustrate how the provisions would work in practice.