Final answer:
An interest group uses the initiative process when it places a policy proposal on a general election ballot at the state level, allowing direct democratic participation in proposing and enacting laws or constitutional amendments.
Step-by-step explanation:
When an interest group puts a policy proposal on a general election ballot at the state level, it is using the initiative process. This form of direct democracy allows citizens, and by extension interest groups, to bypass the legislature and propose new laws or constitutional amendments for a public vote. The initiative process involves several steps, including filing paperwork, collecting signatures, and sometimes passing legal review by state officials such as the attorney general. Once qualified, the initiative appears on the ballot during an election where voters can approve or reject the proposal. This process empowers citizens to directly influence policy, but it can also open the door for well-funded special interests to push their own agendas.