The bill proposes the establishment of social district licenses in Minnesota, allowing cities to designate specific areas where people can consume alcohol purchased from nearby on-sale liquor establishments. However, these licenses do not permit the sale or service of alcohol within the designated districts—only consumption.

Key provisions of the bill include:

1. Designation of Social Districts: Cities must designate and describe social district boundaries through an ordinance, ensuring the area does not include property where the owner objects. The proposed ordinance must be submitted to the commissioner for approval, and no city may submit an ordinance before January 1, 2026. Social districts cannot be within 20 miles of an existing social district.

2. Clear Boundaries and Signage: Social districts must have clear signage indicating the boundaries, allowed hours/days, and a statement that alcohol must be consumed within the district and disposed of before leaving unless returning to the licensed premises.

3. Management and Maintenance: Cities must develop and publish management and maintenance plans to ensure public safety and cleanliness.

4. Restrictions on Licensees: On-sale license holders within or next to a social district can sell alcohol for consumption only in designated non-glass containers that:

   • Identify the vendor.
   • Feature a unique social district marking.
   • Display "Drink Responsibly – Be 21" in at least 12-point font.
   • Hold no more than 16 fluid ounces.

5. Possession and Consumption Rules:

   • Only alcohol from participating licensees can be consumed in the district.
   • Alcohol must be in approved containers.
   • Consumption is restricted to designated days/hours.
   • Alcohol must be disposed of before leaving, unless reentering the establishment where it was bought.

This bill aims to create regulated outdoor drinking zones while ensuring public safety and local control.