This bill authorizes cities of the first class in Minnesota to issue a new type of license known as a "social district license." This license allows holders of on-sale licenses, whose premises are adjacent to designated social districts, to permit the consumption of alcoholic beverages within those districts, although sales and service are not allowed outside the licensed premises. The bill outlines the process for designating social districts, which must be described in detail by the city, including specific boundaries, days, and hours for consumption. It also mandates that the social district be clearly marked with signage indicating the area and rules regarding the consumption of alcoholic beverages.

Additionally, the bill establishes requirements for both the cities and the on-sale licensees. Cities must create management and maintenance plans for the social district and ensure public safety, while on-sale licensees must adhere to specific container requirements for alcoholic beverages consumed in the district. The bill also includes a reporting requirement for cities to assess the social district's impact within 24 months of its establishment, covering community responses, challenges faced, and public safety concerns.