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SF 5237

City of Hibbing authorization to issue social district license

2025-2026 Regular Session Introduced by Rob Farnsworth

Hibbing can create a defined social district where patrons may consume alcohol purchased from nearby licensed premises on licensed sites during set hours, with specific rules and s

Referred to Commerce and Consumer Protection
#citiesandtowns-specific #liquor
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Bill Summary · SF 5237

Summary of SF 5237 (2025-2026) — City of Hibbing authorization to issue social district license

Purpose and intent

  • Authorizes the City of Hibbing to designate a social district and issue a social district license to eligible on-sale licensees and certain other permittees.
  • The social district allows consumption of alcoholic beverages within defined premises and hours, without authorizing sales or service within the district itself (consumption rights are granted to the licensee’s products, not new sales inside the social district).

Key provisions and changes

Subdivision 1 — Social District and consumption authorization

  • Hibbing may issue a social district license to:
    • An on-sale licensee whose premises are contiguous with the designated social district, allowing consumption of alcoholic beverages within the social district (sales still occur at the licensed premises, not inside the district).
    • Municipal liquor stores authorized for on-sale of intoxicating liquor, and to holders of caterer’s permits, for sales or service and consumption within the social district.
  • The license permits consumption only; it does not permit new sales or service inside the district.

Subdivision 2 — Designation of the social district

  • The city must designate and describe the social district premises before issuing the license.
  • The district cannot extend into areas owned or controlled by someone who objects to expansion.
  • The designation must specify:
    • The premises where consumption is allowed.
    • The proposed hours and days for consumption.
  • The designation must be adopted by ordinance.

Subdivision 2(c) — Intercity district cooperation

  • A city may designate or modify a social district to include premises located in another city if:
    • The districts abut, and
    • Each involved city authorizes the combined district by ordinance.

Subdivision 3 — Clearly defined boundaries and signage

  • The district must have conspicuous signs displaying:
    • The boundaries and hours/days for consumption.
    • The local law enforcement agency with jurisdiction.
    • A statement that alcohol purchased in the district must be consumed within the district (or a neighboring coordinated district) and disposed of before exiting, unless re-entering the original premises.

Subdivision 4 — Management and maintenance

  • Hibbing must establish and post:
    • Management and maintenance plans for the district.
    • A rendering of boundaries and hours on the city website.
  • Plans must protect public health and safety.

Subdivision 5 — On-sale licensee requirements

  • An on-sale licensee with a social district license may sell/serve only on its own licensed premises.
  • Patrons may not bring outsiders into the on-sale premises with alcohol not purchased from that licensee.
  • Container requirements for beverages sold for consumption in the district:
    • Container must identify the originating on-sale license.
    • Must display a logo or mark unique to the social district.
    • Must not be glass.
    • Must display a readable (no smaller than 12-point) “Drink Responsibly — Be 21.” statement.
    • Must not exceed 16 fluid ounces.

Subdivision 6 — Additional social district requirements

  • Possession and consumption rules:
    • Only alcoholic beverages purchased from a nearby on-sale licensee within or contiguous to the social district may be possessed/consumed there.
    • Beverages must be in compliant containers.
    • Consumption is restricted to designated days/hours.
    • Beverages must be disposed of before exiting the district unless re-entering the same on-sale premises.

Effective date

  • The section becomes effective upon approval by the Hibbing City Council and compliance with Minnesota Statutes, § 645.021.

Who is affected

  • On-sale liquor licensees in Hibbing (and any contiguous or designated premises) seeking to participate in the social district.
  • Hibbing residents and visitors allowed to consume alcohol within the designated district premises during designated hours.
  • Municipal liquor stores authorized for on-sale of intoxicating liquor and caterers with permits, where applicable.
  • Local law enforcement and city officials responsible for enforcement, signage, and maintenance.

Procedural/timeline notes

  • Requires city ordinance to designate the social district and set hours/days.
  • Possible cross-border designation with another city if both cities approve.
  • Effective date contingent on city council approval and statutory compliance.

This bill provides Hibbing with a framework to create a defined social district where patrons can consume alcohol purchased from nearby licensed premises, under specified conditions and signage, without expanding the traditional on-sale license rights.

Compiled from official sources — confirm details with the bill’s official record.

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