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Amend KRS 65.003, relating to local ethics, to specify the composition of the commission in a consolidated local government and allow the commission to use the county attorney's office for legal council by procurement methods; amend KRS 67C.103 to place controls on council district formation and redistricting and to allow regulations issued by local health boards and local solid waste management boards operating under KRS Chapter 109 or 212 that apply to individuals residing or businesses operating within the jurisdiction of the consolidated local government be subject to being overridden by the consolidated local government council within 45 days of issuance; prohibit the council from not accepting legislation with specified form requirements of KRS 83A.060; allow the consolidated local government council, or either of the 2 major political caucuses, to hire or retain legal counsel; create a new section of KRS Chapter 67C to require an office of internal audit to be created and headed by a chief audit executive who is appointed; amend KRS 67C.115 and 69.210 to conform; amend KRS 67C.111 to allow cities of 3,000, rather than 6,000, to be incorporated in the boundaries of the consolidated local government and set the petition requirement relating to incorporation to 66% rather than 75% and grant 1 year for the petition to be completed; amend KRS 67C.147 to allow the consolidated local government council to sub-classify property into land and improvements for purposes of levying the ad valorem tax within the area formerly comprising the city of the first class; establish controls on the calculation of the compensating tax rate and the 4% tax rate, and the application of the homestead exemption; outline the transition of presently serving ethics commission members; outline transition from the current chief audit executive to the appointed position.