Initiative and Referendum

Issue

Should we amend Minnesota’s Constitution to allow initiative and referendum?

Policy

The Minnesota Chamber opposes a constitutional amendment to allow initiative and referendum (I&R). The Chamber believes there are other ways to reform the state’s policy-making process. They are presented in a separate policy statement, “Elections and Legislative Reform.”

Initiative and referendum is to a great extent a reaction to the Legislature’s inability to resolve society’s most controversial issues. Bringing these issues to a popular vote is not likely to resolve them, because the issues tend to be complex and require compromise. The I&R process generates simple solutions. Complicated proposals are impossible to “sell” in general elections. Proposals are voted up or down, giving no opportunity for compromise. Furthermore, once I&R is approved, there’s no practical way to limit it to issues the Legislature fails to resolve. Anyone who loses a debate at the Legislature will have the option of taking the issue “to the people.”

Business Impact

Adoption of initiative and referendum could create adverse consequences for Minnesota businesses. I&R would increase the complexity of the legislative process for businesses by forcing them to carefully monitor all I&R bills and educate the public on their business impact. Businesses might have to contribute significant funding to public awareness campaigns in order to counteract elaborate efforts by special-interest groups to place proposals on the ballot that are adverse to business. As it would be difficult to limit I&R to issues the Legislature fails to resolve, businesses would have to exert a double effort – first at the Legislature, and second, with the public – to ensure protection of their interests. In addition, I&R reduces the accountability of legislative leaders to the business community by enabling them to pass off decision-making authority on important business issues to the public. With no direct voting rights, businesses’ representation on vital issues would be significantly undermined if I&R were used.