1.6.2 Referendum Power and its Impact on Debt

1.6.2 Referendum Power and its Impact on Debt

Under the referendum power, the electorate in California may reject and nullify a legislative act. If a petition with the requisite number of signatures is submitted to the legislative body within 30 days of the legislative act, the legislative body may either repeal the legislation or submit the legislation to the electorate for ratification. Legislative acts for which a qualifying referendum petition has been submitted do not become effective until ratified.

The referendum power may be applied to actions approving the issuance and sale of debt, and the referendum power must be kept in mind in scheduling the consummation of transactions for which a referendum petition is a realistic concern. Referenda on actions approving debt issuances are, however, rare.