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 the 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 also allows for the conversion of existing temporary expansion permits to premises expansion permits without requiring a new application. Additionally, it clarifies that outdoor spaces can be used by restaurants without alcoholic beverage licenses for purposes other than selling alcohol, and mandates compliance with local ordinances regarding sanitation, noise, and operational hours.

The bill specifies that the use of State-owned rights-of-way for outdoor dining is prohibited unless approved by the New Jersey Department of Transportation, and it establishes setback requirements for locally owned roads that intersect with the State highway system. The act is set to take effect 30 days after enactment, with certain sections expiring on November 30, 2025. It also allows the director to take necessary actions to implement the provisions prior to the effective date of some subsections, which will remain inoperative until May 30, 2025.