I don't mean to come off as insulting, but the problem clearly seems to be Aaron, and not California. He is overly combative, unwilling to accept olive branches (and exemptions! resolving the issue!), and stubborn. Find the path of least resistance, don't keep slamming into the same brick wall.
An entrepreneur should know how to problem-solve. MAKE IT WORK.
2. The waiver was only issued because he was embarrassing them in front of reporters.
3. The waiver does not cover intra-state operations, which would mean he would be unable to get early adopters from the most technology friendly place in the country. He would also be unable to demo the product in front of investors.
An entrepreneur should know how to problem-solve. MAKE IT WORK.