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 adjacent to their premises. It defines "outdoor space" and specifies the types of licenses applicable for alcoholic beverage sales, including various winery and brewery licenses. The bill 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 alcoholic beverages in these outdoor areas. The application process involves submitting documentation to the municipal zoning officer and obtaining endorsements from local governing bodies. Additionally, the bill allows for the installation of fixtures like tents and tables, provided they comply with state construction and fire codes.

Municipalities retain the authority to enforce ordinances related to sanitation, noise, and operational hours, but cannot limit outdoor service hours beyond specified times. The bill also allows for the conversion of temporary permits into permanent ones for those who held them prior to the bill's enactment. It clarifies that the bill does not authorize the reopening or expansion of any establishment currently closed or under restrictions due to legal actions. Furthermore, it establishes that permits for establishments with an alcoholic beverage retail license will renew alongside that license, while those without such a license will require annual renewal. This structure aims to streamline the permitting process while ensuring local control over outdoor entertainment and dining activities.