Frosty's magical hat escapes from a series of locked boxes. Tommy Tinkerton in a town called Evergreen needs Frosty more than anyone. There is no magic in this pristine town. Walter has overprotective parents. Frosty befriends Walter who breaks curfew. Tommy discovers a hidden basement in the library. News of Frosty starts to spread and the parents fear the kiddie rebellion.
The Tinkerton dad is obsessed with rules. That is presented as wrong and opposite to magic. First off, the rules need to be more draconian so that opposing them would make sense. Magic is mostly reckless. It's not until that town hall meeting when the evil of oppressive rules is shown. The principal should have a bigger role earlier in the movie. The theme, the structure, the characters, and the animation are all a bit wonky. This does not have the magic of the classic Frosty.