This bill establishes a framework for social district licenses in Minnesota, allowing cities to issue licenses to on-sale licensees whose premises are adjacent to designated social districts. The bill outlines the process for cities to designate these social districts, which includes submitting a proposed ordinance to the commissioner for approval. The social district license permits the consumption of alcoholic beverages sold by the on-sale licensee within the designated area, but prohibits sales or service of alcohol within the social district itself. The bill also specifies that no city may submit a proposed ordinance for a social district before January 1, 2026.

Additionally, the bill mandates that social districts must be clearly defined with appropriate signage indicating the boundaries and hours of consumption. It sets forth requirements for on-sale licensees, including container specifications for alcoholic beverages consumed in the social district, and establishes management and maintenance plans that cities must implement. The effective date for these provisions is set for January 1, 2026.