It allows the California legislature to adopt permanent DST, if the federal law allows it. But the federal law currently allows seasonal DST or permanent standard time, not permanent DST.
Perhaps, it's useful because 1949's proposition 12 adopted DST in California, but it was superceeded by federal law in 1966; and maybe it wasn't clear if the California legislature could legislate against the will of the people as expressed in 1949; in general, the CA legislature can't overturn voter propositions.
No, it didn’t.
It had a legislatively-referred statute proposition (neither an initiative, which is a law proposed by the voters, nor a referendum, which is a voter-initiated exercise moving a bill already passed by the legislature to a vote of the people) to both align California law with federal law on Daylight Savings Time (since a prior voter initiative technically locked California into both having a DST switch and having a particular DST period which was no longer the standard federally-allowed period, and the legislature cannot change laws passed by voter initiative without securing the approval of voters) and allow (but not require) the legislature to make further changes to the DST period as long as they were within federal law, including either permanent standard time or permanent DST (but the latter only if federal law was changed to allow it.)
See, https://ballotpedia.org/California_Proposition_7,_Legislativ...
So, no, there was no voter mandate that was ignored. The legislature asked for some cleanup and discretionary authority, and the voters said yes. That's it.
https://en.wikipedia.org/wiki/2018_California_Proposition_7