The bill amends New Jersey law to create a framework for issuing premises expansion permits for holders of alcoholic beverage manufacturer and retail consumption licenses. It defines key terms such as "outdoor space," "premises expansion permit," and "public sidewalk," and outlines an annual application process for these permits, which allow license holders to extend their business premises into outdoor areas for the sale of food and beverages. The bill requires that applications be approved by the director of the Division of Alcoholic Beverage Control in consultation with local governing bodies. It also clarifies that restaurants without alcoholic beverage licenses can use outdoor spaces for non-alcoholic purposes, provided they comply with municipal zoning regulations.

Additionally, the bill establishes that municipalities can impose regulations on sanitation, noise, and operational hours, and allows for the conversion of temporary permits to premises expansion permits without additional applications. It sets a deadline for the director to issue necessary regulations by May 30, 2025, and states that the provisions will expire on November 30, 2025, unless further action is taken. The bill also includes new provisions regarding the use of State-owned rights-of-way for outdoor dining, requiring permits from the New Jersey Department of Transportation, and specifies setback requirements for locally owned roads intersecting with the State highway system. The act will take effect 30 days after enactment, with certain subsections remaining inoperative until May 30, 2025, although the director can take anticipatory actions before that date.