> I'd rather they spend the money on a ballot initiative that says they have a certain amount of time to reject a permit, and it simply issues (with a refund of the permit processing fees) if the deadline passes.

I'm not very familiar with the specifics, but AFAIU the most important municipalities in the state enjoy so-called "Home Rule" under the California Constitution. I believe that means that a self-executing rule such as you've proposed is unconstitutional. Rather, somewhat like the constraints imposed on the Federal government viz-a-viz the states, the state government is often limited to cajoling municipalities through expenditures, budgeting, and law suits.