Federal Laws are passed by The Congress, and signed off by The President. All members of the Congress are elected by citizens in their District (the H. or Rep.) or (in the Senate) Citizens of their State.
In 1911, California voters approved the constitutional processes of initiative, referendum, and recall. Through these processes, voters can adopt a change in law (an initiative), disapprove a law passed by the Legislature (a referendum), or remove an elected official from office (a recall).
These three are examples of democracy. Period, end of story.