This dealer is full of it.
Well, as a rule, I try to avoid criticizing people in this business (heaven knows, they're a dwindling resource--particularly in California). But I have to agree that his reasoning seemed flawed. It wasn't like I was trying to transfer in a used Mini-14 that may have been modified; I'm purchasing a factory new firearm.
In any case, if he is sheepish about the police-state goons looking over his shoulder, I cannot really blame him. It just goes to show what happens when politicians demagogue and persecute law-abiding citizens (while at the same time, granting leniency to the real criminals). Of course, the armed street gangs, thugs, rapists, and murderers don't give a crap about what the state says they can buy and sell.
What I will complain about with this particular dealer (and many others I've seen listed) was his insistance that I have to pay California State sales tax to him (on the purchase price of the weapons) for the transfer. This is absolute BS. He is not selling me anything, merely acting as a government-mandated transfer agent. I am buying my firearm from out-of-state so California has no authority to tax me on the purchase. Even if I were buying and transferring from a distant seller within California, it would be the seller's job to collect the sales tax, not that of the receiving FFL dealer.
I frankly don't understand why these dealers insist on collecting sales tax when there is no legal requirment for them to do so. I can't imagine that they are doing it out of a sense of loyalty or generosity to the state. Which leads me to ask: are they lying to the buyers and really pocketing the money? If so, then they do have concern for looking over their shoulders--both from the state and from their customers!
Btw, I have found an FFL dealer who charges very low transfer fees, no sales tax, and sounds like a real stand-up guy. As soon as I meet with him and make my transfer arrangements, I'll post a review and give him the credit he deserves.