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"draft law on" is correct and commonly used in written English
It is typically used when discussing a proposed piece of legislation that is not yet finalized or enacted into law. Here is an example of how it can be used in a sentence: The government has introduced a draft law on immigration reform that aims to address the current challenges and concerns surrounding the country's immigration policies.
Exact(60)
A draft law on money laundering has been prepared.
Widodo has promised to pass a long-delayed draft law on indigenous rights.
China's initiative is part of a draft law on the use of renewable energy.
Confusingly, a draft law on secession is also being prepared to mark the way out for those who want one.
This year, Congo's (unelected) parliament is due to consider a new draft law on nationality, which might be more inclusive.
The European Commission proposed a new draft law on investment services today that drew immediate protests from the banking industry.
That might be the headline if Germany's draft law on ring-fencing financial risks ever hits the statute books in its present form.
An Italian parliamentary commission passed a draft law on Tuesday to ban women from wearing clothing that covers their faces in public.
When the Hungarian government sent a draft law on the central bank to the European Central Bank in fall 2011, the English version was also misleading.
A draft law on nongovernmental organizations would limit foreign financing and training of activists and journalists, similar to legislation in Russia.
A draft law on animal cruelty that would extend protection to pets, farm livestock and laboratory animals was proposed in 2009 but has yet to be adopted.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com