The proposed legislation, General Assembly Raised Bill No. 361, aims to provide municipalities with the authority to adopt regulations that permit applicants to pay a fee in lieu of constructing and maintaining public sidewalks as part of new development projects. This option can be exercised when the municipal planning or zoning commission determines that the construction of a sidewalk is unnecessary or impractical. The bill stipulates that the fee amount must be established through a formula or schedule outlined in the regulations, and it cannot be imposed without the consent of both the applicant and the commission. Additionally, municipalities may restrict the areas where this fee option is applicable.

Furthermore, any fees collected under this provision must be deposited into a dedicated fund established by the municipality, which is exclusively designated for the construction or maintenance of public sidewalks. The bill explicitly states that these funds cannot be used for operating expenses or included in the municipal general fund, and expenditures from this fund must follow the same authorization process as other capital expenditures. The act is set to take effect on October 1, 2026, and introduces new legal language to facilitate these changes while deleting any conflicting provisions from existing law.