Farmington permission to issue a social district license

A bill for an act

relating to liquor; allowing the city of Farmington to issue a social district license;

amending Laws 2022, chapter 86, article 2, section 5, as amended.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Laws 2022, chapter 86, article 2, section 5, as amended by Laws 2024, chapter

114, article 5, section 6, is amended to read:

Sec. 5.
SOCIAL DISTRICT LICENSE; CITIES OF ANOKA,
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FARMINGTON,
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SHAKOPEE, AND STILLWATER.

Subdivision 1.

Social district; consumption allowed.

The cities of Anoka,
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Farmington,
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Shakopee, and Stillwater may issue a social district license to any holder of an on-sale

license whose on-sale premises is contiguous with the premises of the social district

designated in subdivision 2. The license authorizes consumption, but not sales or service,

of alcoholic beverages sold by the on-sale licensee within the social district.

Subd. 2.

Designation of social district.

(a) Prior to issuing the license in subdivision 1,

the city must designate and describe the premises of the social district. The district may not

include any area under the ownership or control of a person that objects to the extension of

the social district to that area.

(b) The designation must include the specific premises where consumption of alcoholic

beverages is allowed and also include the proposed hours and days in which consumption

of alcoholic beverages is allowed in the social district. The city must adopt the designation

by ordinance prior to issuing the license in subdivision 1.

Subd. 3.

Boundaries clearly defined.

The social district must be clearly defined with

signs posted in a conspicuous location indicating the area included in the social district and

the days and hours during which alcoholic beverages may be consumed in the district. In

addition, signs must include:

(1) the local law enforcement agency with jurisdiction over the area comprising the

social district; and

(2) a clear statement that an alcoholic beverage purchased for consumption in the social

district shall:

(i) only be consumed in the social district; and

(ii) be disposed of before the person in possession of the alcoholic beverage exits the

social district unless the person is reentering the licensed premises where the alcoholic

beverage was purchased.

Subd. 4.

Management and maintenance.

The city must establish management and

maintenance plans for the social district and post these plans, along with a rendering of the

boundaries of the social district and days and hours during which alcoholic beverages may

be consumed in the district, on the website for the city. The social district must be maintained

in a manner that protects the health and safety of the general public.

Subd. 5.

Requirements for on-sale licensees.

An on-sale licensee holding a social

district license may only sell and serve alcoholic beverages on the premises specified in the

licensee's on-sale license. The licensee must not allow a person to enter or reenter its on-sale

licensed premises with an alcoholic beverage not sold by the on-sale licensee. Sales for

consumption in the social district must meet the following container requirements:

(1) the container clearly identifies the on-sale licensee from which the alcoholic beverage

was purchased;

(2) the container clearly displays a logo or some other mark that is unique to the social

district in which it will be consumed;

(3) the container is not comprised of glass;

(4) the container displays, in no less than 12-point font, the statement, "Drink Responsibly

- Be 21."; and

(5) the container shall not hold more than 16 fluid ounces.

Subd. 6.

Additional social district requirements.

The possession and consumption of

an alcoholic beverage in a social district is subject to all of the following requirements:

(1) only alcoholic beverages purchased from an on sale-licensee holding a social district

license located in or contiguous to the social district may be possessed and consumed in the

district;

(2) alcoholic beverages shall only be in containers meeting the requirements set forth

in subdivision 5;

(3) alcoholic beverages shall only be possessed and consumed during the days and hours

set by the city as specified in subdivision 2; and

(4) a person shall dispose of any alcoholic beverage in the person's possession prior to

exiting the social district unless the person is reentering the on-sale licensed premises where

the alcoholic beverage was purchased.

Subd. 7.

Report required.

Within 24 months from the first issuance of a social district

license, the city of Anoka must provide a report to the chairs and ranking minority members

of the legislative committees with jurisdiction over liquor regulation. The report must include

a discussion of the following subjects:

(1) the process used by the city in designating the social district;

(2) the community response to the social district, with a concentration on residents living

and businesses operating within a one-mile radius of the district;

(3) the response to the social district from both on-sale licensees holding a social district

license and not holding a social district license;

(4) the problems or challenges encountered in establishing and overseeing the social

district and social district licenses;

(5) any public safety concerns that arose due to the operation of the social district;

(6) the benefits and drawbacks to the city of continuing the social district; and

(7) recommendations for modifications to the social district special law established in

this section.

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EFFECTIVE DATE.

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This section is effective upon approval by the Farmington City

Council and compliance with Minnesota Statutes, section 645.021.

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