Under the terms of the proposition, the speed limit on four downtown streets would be reduced from 50 km/hr to 30 km/hr.
The Ministry of Transport is working on new laws which will facilitate collecting fines for driving infractions.
Around one quarter of fines charged for speeding past traffic enforcement cameras are not collected, Vísir reports.
This morning, the Reykjavik Metropolitan Police arrested a man accused of driving a motocross bike under the influence of narcotics.
Police pulled over the driver of a minibus for speeding on Suðurlandsvegur in South Iceland shortly before midnight last night.