If this concerns what would have been considered private sales between non-FFL holders would it also come into play with a private person selling TO an FFL holder? In other words, if I want to sell a firearm to a licensed dealer because I no longer want that gun do I need to get an FFL just to do that?
What a mess!
In CA, any private party sales must go through an FFL dealer.
So purchaser is background checked, and a paper (computer) trail is established, or continued ...
But, as you suggest, will seller also need a license???
Yes, a MESS, probably intentional to entrap