This bill proposes the establishment of a "social district license" in Minnesota, allowing cities to issue licenses to on-sale license holders whose premises are adjacent to designated social districts. The license permits the consumption of alcoholic beverages sold by the licensee within the social district, but prohibits sales or service of alcohol in the district. Cities must define the boundaries of the social district, including specific premises for consumption, and must adopt this designation by ordinance. The bill outlines requirements for signage, management plans, and the responsibilities of on-sale licensees, including container specifications for alcoholic beverages consumed in the district.

Additionally, the bill mandates that cities report to legislative committees within 24 months of issuing a social district license. The report must cover various aspects, including the designation process, community responses, challenges faced, public safety concerns, and recommendations for modifications to the social district law. Overall, the bill aims to create a structured framework for the operation of social districts while ensuring public safety and community engagement.