(a) As used in this section, “designated entertainment district” means a contiguous area located in a part of a city, a municipality, or an incorporated town that:
(1) Is zoned for or customarily used for commercial purposes; and
(2) Contains any number and any combination of restaurants, taprooms, taverns, entertainment establishments, hospitality establishments, music venues, theaters, bars, art galleries, art studios, tourist destinations, distilleries, dance clubs, cinemas, or concert halls.
(b)
(1) A city, a municipality, or an incorporated town collecting a gross receipts tax on prepared food or hotel and motel accommodations under §§ 26-75-602 — 26-75-613 and located in a county authorized to sell alcoholic beverages may by ordinance create a designated entertainment district.
(2) A designated entertainment district may be permanent or temporary.
(3)
(A) A city, a municipality, or an incorporated town that creates a designated entertainment district under this section shall set by ordinance reasonable standards for the regulation of alcohol possession within the boundaries of the designated entertainment district.
(B) An ordinance enacted under this subsection does not diminish the requirements of the Alcoholic Beverage Control Division of the Department of Finance and Administration concerning permits issued within the designated entertainment district.
(4) A city, a municipality, or an incorporated town that creates a designated entertainment district under this section shall notify the division within ten (10) days of the issuance or removal of a permanent or temporary designation as a designated entertainment district.