Yep, the cartel model is probably good for understanding things like SB 827. Of course the straightforward interpretation is also correct: the bill was an argument about what powers different levels of government should wield.

Perhaps the cartel idea gives guidance here: power should be held at a level high enough that the electorate doesn't represent the interest of a cartel. (Since as we all know, special interests never have special access to the corridors of power at high level).