i'm in california too. my understanding of the law is that you can do whatever you want, as long as it's stock to the point of just past the cats, and it has SOME kind of muffler (even a hollow muffler, or glasspack, or whatever is fine)
other places ive read don't even say the muffler is required as long as it isn't over the max sound level in DB's. so it's kind of an unknown thing.
tail pipes are not required as far as i know. however, i like tailpipes because without them you always end up with a bunch of exhaust coming into the cab and that sucks. (and, tailpipes on an SUV should come out the side behind the rear tire, coming out in the back also often leads to exhaust in the cab)
if you want it louder/deeper, a larger diameter pipe AFTER the muffler will do that. so just have them bend up some 2.5" or whatever tailpipe for after the muffler, (run it out the back in the stock location though) and it'll get louder.
and yes, it would get louder if the muffler wasn't connected to any pipe after it. but again, i dont recommend under-cab exhaust exit.