The bill authorizes the City Council of Alabaster, Alabama, to establish and regulate up to two entertainment districts within the city through an ordinance. These districts can include one or more licensed establishments from the Alabama Alcoholic Beverage Control Board and must not exceed a half-mile by half-mile area. The ordinance will set regulations for the hours of operation, the potential revocation of the entertainment district designation, and other operational aspects. Additionally, it allows retail licensees within these districts to obtain an entertainment district permit, which permits patrons to carry open containers of alcoholic beverages within the district, but prohibits them from entering other licensed premises with these containers.

The bill also includes provisions that prohibit individuals other than retail licensees from bringing open or closed containers of alcoholic beverages acquired outside the district into the entertainment district during its operational hours. The enforcement of the ordinance and any penalties for violations will be managed by the City of Alabaster, as authorized by law. The act is set to take effect on June 1, 2026.