1.1 A bill for an act 1.2 relating to liquor; authorizing the city of Two Harbors to issue a social district 1.3 license. 1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.5 Section 1. CITY OF TWO HARBORS; SPECIAL LICENSE. 1.6 Subdivision 1.Social district; consumption allowed.The city of Two Harbors may 1.7issue a social district license to any holder of an on-sale license whose on-sale premises is 1.8contiguous with the premises of the social district designated in subdivision 2. The license 1.9authorizes consumption, but not sales or service, of alcoholic beverages sold by the on-sale 1.10licensee within the social district. 1.11 Subd. 2.Designation of social district.(a) Prior to issuing the license in subdivision 1, 1.12the city of Two Harbors must designate and describe the premises of the social district. The 1.13district may not include any area under the ownership or control of a person that objects to 1.14the extension of the social district to that area. 1.15 (b) The designation must include the specific premises where consumption of alcoholic 1.16beverages is allowed and also include the proposed hours and days in which consumption 1.17of alcoholic beverages is allowed in the social district. The city of Two Harbors must adopt 1.18the designation by ordinance prior to issuing the license in subdivision 1. 1.19 Subd. 3.Boundaries clearly defined.The social district must be clearly defined with 1.20signs posted in a conspicuous location indicating the area included in the social district and 1.21the days and hours during which alcoholic beverages may be consumed in the district. In 1.22addition, signs must include: 1Section 1. REVISOR JSK/CH 25-0460803/05/25 State of Minnesota This Document can be made available in alternative formats upon request HOUSE OF REPRESENTATIVES H. F. No. 2424 NINETY-FOURTH SESSION Authored by Zeleznikar03/17/2025 The bill was read for the first time and referred to the Committee on Commerce Finance and Policy 2.1 (1) the local law enforcement agency with jurisdiction over the area comprising the 2.2social district; and 2.3 (2) a clear statement that an alcoholic beverage purchased for consumption in the social 2.4district shall: 2.5 (i) only be consumed in the social district; and 2.6 (ii) be disposed of before the person in possession of the alcoholic beverage exits the 2.7social district unless the person is reentering the licensed premises where the alcoholic 2.8beverage was purchased. 2.9 Subd. 4.Management and maintenance.The city of Two Harbors must establish 2.10management and maintenance plans for the social district and post these plans, along with 2.11a rendering of the boundaries of the social district and days and hours during which alcoholic 2.12beverages may be consumed in the district, on the website for the city of Two Harbors. The 2.13social district must be maintained in a manner that protects the health and safety of the 2.14general public. 2.15 Subd. 5.Requirements for on-sale licensees.An on-sale licensee holding a social 2.16district license may only sell and serve alcoholic beverages on the premises specified in the 2.17licensee's on-sale license. The licensee must not allow a person to enter or reenter its on-sale 2.18licensed premises with an alcoholic beverage not sold by the on-sale licensee. Sales for 2.19consumption in the social district must meet the following container requirements: 2.20 (1) the container clearly identifies the on-sale licensee from which the alcoholic beverage 2.21was purchased; 2.22 (2) the container clearly displays a logo or some other mark that is unique to the social 2.23district in which it will be consumed; 2.24 (3) the container is not comprised of glass; 2.25 (4) the container displays, in no less than 12-point font, the statement, "Drink Responsibly 2.26- Be 21."; and 2.27 (5) the container shall not hold more than 16 fluid ounces. 2.28 Subd. 6.Additional social district requirements.The possession and consumption of 2.29an alcoholic beverage in a social district is subject to all of the following requirements: 2.30 (1) only alcoholic beverages purchased from an on-sale licensee holding a social district 2.31license located in or contiguous to the social district may be possessed and consumed in the 2.32district; 2Section 1. REVISOR JSK/CH 25-0460803/05/25 3.1 (2) alcoholic beverages shall only be in containers meeting the requirements set forth 3.2in subdivision 5; 3.3 (3) alcoholic beverages shall only be possessed and consumed during the days and hours 3.4set by the city of Two Harbors as specified in subdivision 2; and 3.5 (4) a person shall dispose of any alcoholic beverage in the person's possession prior to 3.6exiting the social district unless the person is reentering the on-sale licensed premises where 3.7the alcoholic beverage was purchased. 3.8 Subd. 7.Report required.Within 24 months from the first issuance of a social district 3.9license, the city of Two Harbors must provide a report to the chairs and ranking minority 3.10members of the legislative committees with jurisdiction over liquor regulation. The report 3.11must include a discussion of the following subjects: 3.12 (1) the process used by the city of Two Harbors in designating the social district; 3.13 (2) the community response to the social district, with a concentration on residents living 3.14and businesses operating within a one-mile radius of the district; 3.15 (3) the response to the social district from both on-sale licensees holding a social district 3.16license and not holding a social district license; 3.17 (4) the problems or challenges encountered in establishing and overseeing the social 3.18district and social district licenses; 3.19 (5) any public safety concerns that arose due to the operation of the social district; 3.20 (6) the benefits and drawbacks to the city of Two Harbors of continuing the social district; 3.21and 3.22 (7) recommendations for modifications to the social district special law established in 3.23this section. 3.24 EFFECTIVE DATE.This section is effective upon approval by the Two Harbors City 3.25Council and compliance with Minnesota Statutes, section 645.021. 3Section 1. REVISOR JSK/CH 25-0460803/05/25