I've had three encounters with police while en femme in Los Angeles.. Each time I had to show my drivers (drab) license. The police never made an issue of the dressing.
The first time, four of us "girls" were going home from a TG ball after midnight. The officer looked at my license, looked at the "girls", then told me to drive carefully, and let us go.
Another time, I was walking in Hollywood to a TG bar, when two officers stopped me, hassled me for a while, supposedly for possible soliciting... Good cop/ bad cop bit...let's run him/her in...she hasn't done anything wrong, let her go...they eventually let me go. It was nearing election time, and a push was on to clean up Hollywood, but I kinda think the "bad" cop was just feeling ornery.
The third time, (I just told this story on another forum) I was stopped for a traffic violation. Two officers had me get out of the car, looked at my license, and wrote me up a ticket. Very polite throughout. Afterwards, one of the officers sidled up to me and asked....are those your real nails?
So, is it illegal to CD in California? Maybe, but certainly not often enforced.
Mitzi