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 process for cities to designate these districts, including requirements for signage, management plans, and specific hours of operation. It stipulates that only alcoholic beverages purchased from on-sale licensees holding a social district license may be consumed within the district, and establishes container requirements for these beverages to ensure safety and responsible consumption.

Additionally, the bill mandates that cities must report to legislative committees within 24 months of issuing the first social district license. This report will cover various aspects, including the community's response to the social district, challenges faced, public safety concerns, and recommendations for potential modifications to the law. The bill aims to create a structured framework for the establishment and regulation of social districts, promoting responsible alcohol consumption while considering the interests of local residents and businesses.