What term is commonly used for a formal legislative proposal?

A formal legislative proposal is referred to as a bill. In the legislative process, a bill is the draft of a proposed law which is introduced in either house of a legislature for discussion and approval. Once a bill is passed by the legislature and receives approval, it can become law and is then referred to as an act.

The term "act" specifically denotes legislation that has already been passed, whereas a bill is still under consideration. A clause is a distinct section of a bill or act that outlines specific provisions within that legislation, and a bylaw is a rule or regulation made by a local authority or corporation for its own governance, typically not at the legislative level. This context illustrates that the correct term for a formal proposal that is yet to be passed is indeed a bill.