The bill S.F. No. 1182 allows cities in Minnesota to issue a "social district license" to businesses with an existing on-sale liquor license, if their premises are next to a designated social district. This license will let people buy alcoholic drinks from these businesses and consume them within the social district, but not purchase or get service directly in the district itself.

Cities need to officially establish these social districts through local ordinances, clearly demarcating where and when alcohol can be consumed. These areas will have signs showing their boundaries and the permissible times for alcohol consumption, managed and maintained by the city to ensure public health and safety.

Businesses in the social district must sell drinks in specific non-glass containers that show who sold the drink, a unique social district logo, a responsible drinking reminder, and must hold no more than 16 ounces. Only drinks bought within the social district from licensed vendors can be carried and consumed there during the approved times.

Every two years, cities must report to legislative committees about the social districts covering aspects like the designation process, local response, operational challenges, public safety issues, and the overall pros and cons, suggesting potential changes for future improvements.