You cant bore them out a machine shop can. Ya I have worked with a couple blocks that have been bored out. You don't really have to do anything but find a good machine shop. I do not know all of California's rules but if you keep the same compression ratio or bump it up a little you should be fine + get it tuned. Higher compression usually needs a high octane fuel and a little less timing advance.
Examples the b18a/b run a 9/1 compression ratio some of the b16a/b18cs run a 10/1 some of the ks run 11/1 or 12/1. Compression = power, bigger bore = power. How much power don't expect to set the world on fire. If you are planing on going turbo compression is the enemy and maintaining your stock cylinder wall thickness is good so boring is bad (the cylinders are less likely to crack or deform the bigger thy are).