This bill permits restaurants and certain alcoholic beverage retailers and manufacturers in New Jersey to expand their operations into designated outdoor spaces, such as patios, decks, yards, and parking lots. It requires the Director of the Division of Alcoholic Beverage Control (ABC) to issue a premises expansion permit to eligible license holders, allowing them to sell food and alcoholic beverages in these outdoor areas. The application process necessitates detailed submissions to the ABC, which must be approved by local municipal officials. Additionally, businesses must submit plans for the layout and management of these outdoor spaces to the municipal zoning officer, while municipalities retain authority to enforce ordinances related to sanitation, noise, and operational hours.

The bill also allows municipalities to regulate live performances and recorded content in outdoor spaces and on public sidewalks, and it clarifies that it does not permit the reopening or expansion of establishments currently closed or under restrictions. It specifies that using State-owned rights-of-way for outdoor dining requires a permit from the New Jersey Department of Transportation, with seasonal setback requirements. Furthermore, permits for establishments with an alcoholic beverage retail license will renew alongside that license, while those without will require annual renewal, aiming to streamline the permitting process while ensuring compliance with existing regulations.