See this report in the San Francisco Chronicle. I generally agree with Eugene Volokh’s analysis of the California Constitution that the legislature may not amend an initiative directly (instead, it must put any ballot measure before the people to accomplish that purpose). One wrinkle is the possibility that Prop. 22, the earlier initiative is itself unconstitutional. To the extent it is, it would not be a valid initiated statute, and therefore there would be nothing to prevent the state legislature from passing the new statute.