New powers are to be given to Scotland's Parliament as part of the devolution agreement after the Scottish independence referendum.
The plans are made using recommendations from the Smith Commission, which include the devolution of a range of benefits to support older people, carers and disabled people and said the Parliament should be able to create new benefits in devolved areas and make discretionary payments in any area of welfare.
Laying out new taxes and granting the vote to those aged 16 and over are also in process or have already been agreed.
David Cameron has said: "Scotland spoke, we listened and now here we are delivering."
However, according to the BBC, Ms Sturgeon said, "under the proposals, the UK government will hold a veto over key devolved powers, including the ability to "abolish the bedroom tax", and called for an urgent rethink of what was on offer."
She said: "The legislation published today does not represent the views of the Scottish Government, but it does represent some progress.
"However, too much of what the Prime Minister has set out imposes restrictions on the recommended devolved powers and would hand a veto to UK ministers in key areas."
Cedrec's take
The Smith Commission summary isn't reported in great detail within the BBC, however so many changes are already filtering through from the tax changes, the Landfill Tax (Scotland) Act 2014 coming to mind as an example. In this draft, tax, welfare and energy are amongst some of the matters addressed.
The lowering of the voting age is already confirmed, and this has led to some protest. The circumstances that the referendum allowed younger people to cast a vote led to accusations that the "Yes" campaign were trying to create more "Yes" votes by widening the demographic which was widely associated with the movement. Furthermore, the fact that under 18's may have a vote in Scotland and not in Wales and England will possibly lead to a reconsideration for younger voters in the rest of the UK.
Gradually, Holyrood and Westminster are thrashing out a more concrete plan, and the new UK is beginning to take shape. Drafts are fickle things, and this new publication could very well be out of date within a few months as the two Governments broker a deal.
For more information, see: