This bill authorizes the city of Two Harbors, Minnesota, to issue social district licenses, allowing the consumption—but not the sale or service—of alcoholic beverages within a designated social district.

Key provisions include:
- Issuance of Licenses: Only holders of on-sale liquor licenses whose premises are adjacent to the social district can receive this license.
- Designation of Social District: The city must define and describe the area where alcohol consumption is allowed, ensuring no included property owners object. An ordinance must be adopted before issuing licenses.
- Clear Boundaries and Signage: The district must have visible signs outlining its boundaries, as well as the permitted days and hours for alcohol consumption. Signs must also provide law enforcement contact information and rules concerning alcohol possession and disposal.
- Management & Maintenance: The city is responsible for creating and posting management and maintenance plans for the district to ensure public health and safety.
- Rules for On-Sale License Holders: Alcoholic beverages can only be sold for consumption within the on-sale licensee’s premises, and license holders must ensure that individuals do not bring in outside alcohol. Drinks for the social district must be in clearly marked, non-glass containers of no more than 16 ounces, displaying responsible drinking messages.
- Additional Requirements for Alcohol Possession & Consumption: Only beverages purchased within the district from participating licensees are allowed, and consumption must follow the city’s designated rules. Open drinks must be disposed of before leaving the district, except when reentering the original licensed premises.
- Reporting Requirement: Within 24 months of the first social district license issuance, the city must report to state legislative committees on topics including community responses, challenges, public safety concerns, and recommendations for changes.

This bill aims to create a regulated outdoor drinking area while ensuring proper oversight and public safety in Two Harbors.