From the Statute:
Is the subject of an indictment, an information, or a felony complaint alleging that the prospective transferee has committed a crime punishable by imprisonment for a term exceeding one year as defined in 18 U.S.C. sec. 921 (a) (20), as amended, and either there has been no final disposition of the case or the final disposition is not noted in the other databases.
That sounds to me like it applies tosomeone who has been indicted and formally charged and the case is pending. I.e. you've been arrested, charged, but whether you are convicted is still pending. If you're arrested without being formally charged, or charges are dropped, or found not guilty, the arrest on your recordhas no bearing on your purchase. Moreover it needs to be a felony and punishable by over a year in prison.
It's still unconstitutional and "guilty until proven innocent" motivation, but it doesn't apply to getting arrested for driving with an expired license.