The bill would also limit the mayor of Louisville to two straight terms.
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Critics liken the bill to a 'war on Louisville' that threatens to unravel key parts of merged city-county government. Supporters say letting citizens create new small cities is simply a matter of fairness, especially outside the dividing line of Louisville’s Urban Services District.
The measure dropped a controversial provision that would limit Louisville's mayor to two straight terms instead of the three now allowed.
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The GOP-backed measure in the Kentucky legislature also would allow new independent cities to form in Jefferson County.