Final answer:
A referendum asks voters to approve or reject a state or local law. This direct democracy tool allows citizens to contribute to the legislative process, either by reaffirming or repealing existing laws through popular referendums or proposing new laws via initiatives.
Step-by-step explanation:
A referendum is a type of ballot which asks voters to approve or reject a state or local law. This process enables citizens to directly influence legislation, bypassing the normal legislative process. In the United States, a referendum can be initiated by the government to gauge public support for a law passed by the state or to hear citizens' voices on a contested issue. A popular referendum occurs when citizens use a petition process to place a law enacted by the state government on the ballot to be reaffirmed or repealed. Direct democracy in several states allows for this process as a means for the public to have a say in their governance on specific issues.
In some states, the initiative, also known as a proposition, is another form of direct democracy. An initiative starts as a proposal by the citizens and can lead to the creation of a new law or a constitutional amendment if passed through a vote. While similar to a referendum, an initiative introduces new legislation, whereas a referendum typically relates to laws that already exist. Both methods are subject to legal review to ensure they comply with state and federal laws.