I just noticed that I put court cases. It was just 1 case, sorry.

What happened was I was arrested for possesion of a controled substance in California. Which I dont even think at the time was a felony, I could be wrong though. Anyhow I was given the chance to do Diversion (deffered entry of judgement), which means that I had to plead guilty. The Judge then suspended the caseand my case remained open until successful completion of the program, then the trial resumed and the judge dismissed my case. It was also explained to me that by doing this it would make it as though I had never been arrested. BUT apparently thats not the case.
I was contacted by a Deputy last month and questioned about 2 of my answers on the CCW application. He said that he needed a written explanation of why I answered question:

#6 “Have you been convicted in any court of a felony, or attempt or conspiracy to commit a felony, or any other crime for which the judge could have imprisoned you for more than one year, even if you received a shorter sentence including probation?”

with a NO.
and question:

#8 “Are you an unlawful user or, or addicted to, marijuana, or any depressant, stimulant, or narcotic drug, or any other controlled substance?”

which I also answered NO. Look Im not gonna lie here. I have done a few drugs back in the day. Who hasnt? But do I currently or have I within the last 4 years? No. I dont even smoke cigarettes anymore. ANYHOW...

I complied with his request and hand delivered it to him that day. He looked it over and basically dismissed it right there. He kept telling me that by making a guilty plead then I am automatically CONVICTED. And in his opinion I lied on my app.
A few weeks later I recieved a certified letter in the mail from them telling me that I was denied. Their reason was that I was arrested in 2002 for possesion of controled substance. It also states in the letter that they are aware that I was given differed judgement of entry and completed it successfully.

Guys Im not going to sit here and pretend I know anything about how the law works but according to a bunch of "law" websites I should have NO record.

I'm quoting www.drcrime.com/diversion.html

"Criminal record retention and disposition resulting from participation in deferred entry of judgement
Upon successful completion of the deferred entry of judgement program, the arrest upon which the judgement was deferred is considered to have never occurred. The defendant may respond to any questions concerning his/her prior criminal record that he/she was not arrested or granted deferred entry of judgement to the offense, except that the arrest may be disclosed by the Department of Justice in response to any peace officer application request, and he/she must disclose the arrest in response to any direct question contained in any questionnaire or application for a position as a peace officer as defined in P.C. 830.
If due to unsatisfactory conduct or performance in the program, defendant's plea of guilty is entered pursuant to P.C. 1000.3, it shall constitute a conviction. "

Am I reading this incorrectly?

Thanks for your time guys and please be honest.
If I AM wrong, I will accept it like a man.