This bill permits restaurants and certain alcoholic beverage retailers and manufacturers in New Jersey to expand their operations into designated outdoor spaces, including public sidewalks, that they own or lease. It introduces a process for obtaining a premises expansion permit from the Director of the Division of Alcoholic Beverage Control (ABC), allowing these businesses to sell food and alcoholic beverages outdoors. The application process requires documentation submission to the municipal zoning officer and endorsements from local governing bodies. Additionally, businesses with previous temporary expansion permits can convert them into permanent permits under this legislation. The bill also allows for the installation of outdoor fixtures like tents and tables, provided they adhere to state construction and fire codes.

Municipalities maintain the authority to enforce ordinances related to sanitation, noise, and operational hours, but cannot restrict outdoor service hours beyond specified limits. They can also regulate live performances and entertainment in these outdoor areas as part of the zoning approval process. The bill clarifies that it does not allow the reopening or expansion of establishments that are closed or under restrictions due to legal sanctions. Furthermore, it requires a permit from the New Jersey Department of Transportation for outdoor dining on State-owned rights-of-way, with seasonal setback requirements. Permits for establishments with an alcoholic beverage retail license will renew alongside that license, while those without will require annual renewal, providing a structured approach to outdoor dining and entertainment.