This bill proposes allowing Minnesota cities to issue social district licenses to establishments that already hold on-sale liquor licenses (e.g., bars and restaurants). The social district license would permit patrons to consume alcoholic beverages purchased from licensed businesses within a designated social district, but not sell or serve alcohol within that district.

Key Provisions:

1. Social District Designation (Subdivision 2)

   • Cities must officially designate social districts before issuing licenses.
   • The designated area must not include properties where owners or operators object.
   • Cities must define specific boundaries, allowable consumption hours, and days via ordinance.

2. Clear Boundaries & Signage (Subdivision 3)

   • Signs must be posted clearly marking:
     • District boundaries.
     • Permitted consumption hours and days.
     • Contact information for local law enforcement.
     • A statement requiring consumers to dispose of beverages before leaving, unless reentering the licensed establishment where they purchased the drink.

3. Management & Maintenance (Subdivision 4)

   • Cities must create a management and maintenance plan, published on the city's website.
   • The district must be maintained responsibly to ensure public health and safety.

4. Rules for Participating Businesses (Subdivision 5)

   • Businesses holding social district licenses may not allow outside alcohol into their premises.
   • Alcohol for social district consumption must be served in non-glass containers that:
     • Identify the licensed business.
     • Display a unique social district logo.
     • Contain a "Drink Responsibly – Be 21+" warning (12-point font minimum).
     • Hold no more than 16 fluid ounces.

5. Consumer Restrictions (Subdivision 6)

   • Only alcohol from licensed district businesses may be consumed.
   • Beverages must be in approved containers.
   • Alcohol can only be consumed during designated district hours.
   • Consumers must dispose of drinks before leaving, unless reentering the establishment where the beverage was purchased.

6. Reporting Requirement (Subdivision 7)

   • Within 24 months of the first social district license issuance, cities must submit a report on:
     • The process of district designation.
     • Community and business reactions (within one mile of the district).
     • Challenges or problems encountered.
     • Public safety concerns.
     • The success and drawbacks of the districts.
     • Recommended policy changes.

Purpose of the Bill:

• This bill expands public alcohol consumption options while maintaining designated regulations.
• It requires clear communication, responsible consumption, and city oversight.
• Cities must actively monitor and assess the impact and feasibility of their social districts.

If enacted, this law would be codified in Chapter 340A of the Minnesota Statutes, which governs liquor regulations.