This bill allows municipalities and counties in New Jersey to reduce speed limits on certain roads by up to five miles per hour without the need for an engineering and traffic investigation, which is currently required by law. This provision applies specifically to roads with a speed limit of 35 miles per hour or less that are located in school zones or designated high-pedestrian areas. However, municipalities and counties are limited to making this reduction only once for the same road segment and cannot set the speed limit below 15 miles per hour. Additionally, speed limit reductions cannot occur if a traffic study is underway or has been conducted within the past year.

Furthermore, the bill mandates that municipalities and counties must establish criteria for identifying high-pedestrian areas, taking into account the surrounding land use and context. Priority should be given to areas such as commercial downtowns, transit corridors, and school zones, particularly those within a quarter to half a mile of major transit facilities. The bill also requires the appropriate authorities to install signage to inform the public of any new speed limits established under this legislation.