Hepburn Shire Council has further clarified details in a draft local law, which will be considered by councillors at a meeting on Tuesday night.
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Local Law Number 2, which covers a range of activities, has provoked a response from residents, with some claiming it "overreaches" and jeopardises their way of life.
In response to several claims, a Hepburn Shire Council spokesperson said in a statement that despite the literal reading of the draft law, bicycles will not be banned from Daylesford's CBD.
"The intent of this clause in the draft Local Law is that bikes will not be permitted on the footpath, but will be permitted on the roadway," the statement reads.
However, "wheeled toy vehicles", defined as scooters, skateboards, roller skates and blades, and remote controlled aircraft, or a vehicle used for "recreational purposes but excludes a bicycle", will be not be permitted to ride in designated areas, including Vincent Street where there is high pedestrian traffic and outdoor dining.
According to the statement, liquor laws will remain the same as they were when the last Local Law was passed in 2010.
"A person can have a picnic with a bottle of wine unless it is within a restricted area," the statement reads.
Similarly, there have been concerns over busking and public performances, but they are still allowed with a permit "as has been the case for the last 10 years".
Farm gate stalls and children's lemonade stands will not be banned, the statement notes, but as with the last law, anyone intending to open a farm gate stall will require a permit.
Lemonade stands operated from a driveway - that is, on the resident's property - will not require a permit, but stands on public land will.
The new law will also clarify the old in some places, council said - starting campfires in public reserves, for example, has always been an offence.
One of the residents who has been calling for council to rethink and amend the draft law, Dr Patrick Jones, said the ambiguous language used in the draft was a concern.
Indigenous traditional owners had not been duly consulted, he added.
He said a list of proposed amendments had been sent to councillors to consider - some include adding an appeals process, removing words that could prevent singing in public, and referring to pre-existing state legislation.
"The community will have a win if they take these key amendments," he said.
"There's been more than 100 submissions from residents."
He said an example was rules around "scavenging" recyclable material from the council transfer station, which could be addressed with a new policy.
Council's statement said the transfer station was a worksite and needed to be managed under WorkSafe legislation.
The draft Local Law will be considered at the Hepburn Shire Council meeting at the Daylesford Senior Citizens rooms from 6pm on Tuesday.