This bill authorizes the city of Two Harbors to issue a special social district license to holders of on-sale liquor licenses whose premises are adjacent to a designated social district. The license permits the consumption of alcoholic beverages sold by the on-sale licensee within the social district, but prohibits sales or service of alcohol within that area. The city must first designate the social district, ensuring it does not include areas owned by individuals who object to the district's extension. The designation will outline specific premises for consumption, as well as the hours and days when consumption is permitted.

Additionally, the bill establishes requirements for the management and maintenance of the social district, including the posting of clear boundaries and signage indicating the rules for alcohol consumption. On-sale licensees must adhere to specific container requirements for beverages consumed in the district, and a report must be submitted to legislative committees within 24 months of the first license issuance, detailing the community's response and any public safety concerns. The bill will take effect upon approval by the Two Harbors City Council and compliance with relevant Minnesota statutes.