(1) The governing body of a local governmental unit may designate a social district that contains a commons area that may be used by qualified licensees that obtain a social district permit. A governing body of a local governmental unit shall not designate a social district that would close a road unless the governing body receives prior approval from the road authority with jurisdiction over the road. If the governing body of a local governmental unit designates a social district that contains a commons area under this section, the governing body must define and clearly mark the commons area with signs. The governing body shall establish local management and maintenance plans, including, but not limited to, hours of operation, for a commons area and submit those plans to the commission. The governing body shall maintain the commons area in a manner that protects the health and safety of the community. Subject to this subsection, the governing body may revoke the designation if it determines that the commons area threatens the health, safety, or welfare of the public or has become a public nuisance. Before revoking the designation, the governing body must hold at least 1 public hearing on the proposed revocation. The governing body shall give notice as required under the open meetings act, 1976 PA 267, MCL 15.261 to 15.275, of the time and place of the public hearing before the public hearing. The governing body shall file the designation or the revocation of the designation with the commission. As used in this subsection:

  (a) “Local road agency” means a county road commission or designated county road agency or city or village that is responsible for the construction or maintenance of public roads within this state.

  (b) “Road authority” means a local road agency or the state transportation department.

  (2) The holder of a social district permit may sell alcoholic liquor for consumption within the confines of a commons area if both of the following requirements are met:

  (a) The holder of the social district permit sells and serves alcoholic liquor only on the holder’s licensed premises.

  (b) The holder of the social district permit serves alcoholic liquor to be consumed in the commons area only in a container to which all of the following apply:

  (i) The container prominently displays the social district permittee’s trade name or logo or some other mark that is unique to the social district permittee under the social district permittee’s on-premises license.

  (ii) The container prominently displays a logo or some other mark that is unique to the commons area.

  (iii) The container is not glass.

  (iv) The container has a liquid capacity that does not exceed 16 ounces.

  (3) If the commission issues a special license to a special licensee whose event is to be held within a commons area located within a social district, for the effective period of the special license, and subject to the commission’s approval, the governing body of the local unit of government shall delineate the portion of the commons area to be utilized exclusively by the special licensee and the portion of the commons area to be used exclusively by social district permittees.

  (4) A purchaser may remove a container of alcoholic liquor sold by a holder of a social district permit under subsection (2) from the social district permittee’s licensed premises if both of the following conditions are met:

  (a) Except as otherwise provided in subdivision (b), the purchaser does not remove the container from the commons area.

  (b) While possessing the container, the purchaser does not enter the licensed premises of a social district permittee other than any of the following:

  (i) The social district permittee from which the purchaser purchased the container.

  (ii) A social district permittee whose licensed premises is a class B hotel.

  (5) The consumption of alcoholic liquor from a container described in subsection (2)(b) in the commons area as allowed under this section may occur only during the hours of operation under the local management and maintenance plans established by the governing body of the local unit of government under subsection (1).

  (6) A qualified licensee whose licensed premises is shared by and contiguous to a commons area in a social district designated by the governing body of a local governmental unit under this section may obtain from the commission an annual social district permit as provided in this section. The social district permit must be issued for the same period and may be renewed in the same manner as the license held by the applicant. The commission shall develop an application for a social district permit and shall charge a fee of $250.00 for a social district permit. An application for a social district permit must be approved by the governing body of the local governmental unit in which the applicant’s place of business is located before the application is submitted to the commission and before the permit is granted by the commission. The $250.00 permit fee under this subsection must be deposited into the liquor control enforcement and license investigation revolving fund under section 543(9).

  (7) As used in this section:

  (a) “Commons area” means an area within a social district clearly designated and clearly marked by the governing body of the local governmental unit that is shared by and contiguous to the premises of at least 2 other qualified licensees. Commons area does not include the licensed premises of any qualified licensee.

  (b) “Local governmental unit” means a city, township, village, or charter authority.

  (c) “Qualified licensee” means any of the following:

  (i) A retailer that holds a license, other than a special license, to sell alcoholic liquor for consumption on the licensed premises.

  (ii) A manufacturer with an on-premises tasting room permit issued under section 536.

  (iii) A manufacturer that holds an off-premises tasting room license issued under section 536.

  (iv) A manufacturer that holds a joint off-premises tasting room license issued under section 536.