This bill authorizes cities of the first class in Minnesota to issue a new type of license known as a "social district license," which allows for the consumption of alcoholic beverages within designated social districts. The bill outlines the requirements for establishing these districts, including the need for cities to designate specific premises where consumption is permitted, the days and hours of operation, and the posting of clear signage to define the boundaries of the social district. The license permits consumption but prohibits sales or service of alcoholic beverages outside the licensed premises.

Additionally, the bill sets forth various requirements for on-sale licensees and patrons within the social district. On-sale licensees must ensure that alcoholic beverages are sold in specific containers that meet certain criteria, such as being non-glass and clearly identifying the licensee. The bill also mandates that cities report on the social district's impact within 24 months of its establishment, covering aspects such as community response, public safety concerns, and recommendations for future modifications. Overall, the legislation aims to create a structured framework for social districts while ensuring public safety and community engagement.