Second tribunate (122 BC)
Either after re-election to a second tribunate or during the second tribunate itself, he passed a law to transfer the jury pool in corruption courts (quaestio de repetundis) to the equestrians. This law, however, "merely reallocated influence from one section of the elite to another" and "did not 'democratise' [the repetundae court], merely hand[ing] control to non-senatorial members of the elite". This law also substantially changed Roman criminal procedure by allowing the allies to prosecute (both directly and through an intermediary) ex-magistrates for corruption.
The difficulty of finding enough land in Italy for resettlement – as taking land from the Italian allies was politically impossible as it would have "wrought serious damage to their interests" – led Gaius and his allies to pursue both Italian and foreign colonisation programmes. An ally of Gaius Gracchus, Gaius Rubrius, as part of the Gracchan programme, successfully carried a law to establish a colony at Carthage. One of the other tribunes in this year, Marcus Livius Drusus, countered Gaius and Rubrius' programme by proposing twelve colonies of three thousand needy families each, with allotments of land free from rent. Drusus' proposals passed also, but "came to nothing"; regardless, the passage led to establishment of a series of three-man boards to manage the various colonisation programmes. Supposedly, these proposals from Livius Drusus were brought at the prompting of the senate, which sought to find someone else to rival Gracchus' popularity.
Gaius also proposed, in probably two citizenship bills, giving citizenship to the Latins and Latin rights to Italian allies. Gaius' rationale may have been related to the land reform measures:
It may be that Gaius Gracchus, aware in hindsight of the problems which had arisen when the commission had wanted to take ager publicus away from the allies, tried to represent Tiberius' intentions as designed to benefit Italy in general, instead of the Roman citizens only.
The first bill, to give citizenship to the Latins, was vetoed by Drusus, and the second bill on Latin rights for the Italians may have also given them full citizenship rights; but, although Fannius was an ally of Gracchus, he opposed the second bill. Drusus countered Gaius' Italian citizenship bill with a much less extensive bill to exempt them from scourging, which passed. Fannius, for his part, was able to mobilise opposition to extending citizenship by convincing the people that extending citizenship would require them to share their privileges. A fragment of Fannius' speech survives:
I suppose you imagine that, if you give citizenship to the Latins, you will still have a place in the assembly in which you are standing, and will participate in the games and festivals. Don't you realise that they will swamp everything?
The issue persisted through the end of the year to the consular elections, when Fannius promulgated an edict expelling Italians from Rome, which was opposed by an edict of Gaius' which allegedly promised tribunician protection for any Italians who remained (but was, in the event unfulfilled).
He also proposed a bill to have the centuries (the Roman voting blocs) vote in a random order rather than in traditional order in which the richest centuries voted first. This would not have changed the overweighting of the rich in the Roman comitia, but would have ensured "the chances of those who drew their support from the poorer citizens would not be prejudiced". There is, however, no evidence that this bill passed.
During his second tribunate, he left the city – perhaps sanctioned by the senate – to supervise the foundation of the colony at Carthage, which supposedly was plagued with bad omens. The citizenship bills' failure, however, revealed his waning popularity, and he was defeated when he stood for re-election to a third consecutive tribunate.