I talked to my CA DOJ inspector and it was clear that it was not acceptable. I have not heard of any change.
Yes, if they wanted accurate information. They should say one way or another since it is a known issue. It could be acceptable and they would rather harass people.
That is a bit of a gamble due to the background check. In that case the risk is on the buyer, which is not as much of a target. The powers that be are more likely to go after a FFL than one buyer.
If the card reader doesn't work, then you need to retain a copy. Then again, I don't think that they know if the reader didn't work. I am not sure if there is a DMV record of the types of licenses, but I sure would not bet that they don't.
It is not a matter of what you can get away with, but what it legal or at least what you have been told what the limits are in this case.
I would think it's easy enough for them to publish a bulletin if they agreed with the ATF.
BTW: Anecdotally --- I remember at a gun show a few years ago I heard someone telling their friend when they were filling out the 4473 -- "Just mark US citizen, they don't check..."
I would hazard to guess that if a DL is valid (say pre AB60) and no other criminal record DOJ has no idea person is not a citizen. And my guess is if you take an AB60 license DOJ still doesn't know it's an AB60 license. There is a corner case chance an illegal will obtain a firearm if you accept it and they lie on the 4473. That's the risk in my opinion that would likely impact retail stores more.
It is not a matter of what you can get away with, but what it legal or at least what you have been told what the limits are in this case.

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