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The GOP-backed House Bill 388 also would create new EMS reimbursements and change how new cities could be formed or added to in Jefferson County.
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Republican Bill Dieruf and Democrat Craig Greenberg were the leading candidates vying to succeed outgoing Louisville Mayor Greg Fischer.
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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.
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The GOP-backed measure in the Kentucky legislature also would allow new independent cities to form in Jefferson County.