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Thanks for this reference. I was previously mentioning an out of state gift transfer to CA family member as it states:

"Example of interstate intrafamilial transfer

Suppose you live in California, and your grandparent lives in Texas. Your grandparent wants to give you a pistol as a gift.
Since your grandparent is yet living, this transfer is not an inheritance.
Because it is interstate, Texas to California, the pistol must go to a CA FFL - the receiver may not take possession until the transfer has occurred at the CA FFL - so
1. CALL the FFL ahead of time to see if he understands interstate intrafamilial transfer; any FFL who suggests you do not need his services for an interstate intrafamilial transfer does NOT understand it.
2. ASK about the fees; there are no regulations limiting the transfer fees on interstate transfer.
3. ASK whether the FFL will accept a shipment from a non-licensed person; that is legal, but some have a business practice to accept only from other licensed persons.
Handguns transferred via intrafamilial transfer are NOT subject to the Roster.
Handguns should be accompanied by a letter of gift, specifying giver's name and relationship (e.g. John Smith, Grandfather), the handgun (e.g. Glock 17 9mm pistol, serial 12345), and the receiver's name (e.g. Little Jimmy Smith).
Since the transfer must use a CA FFL, the ordinary rules for an FFL transfer must be followed, including background check and 10-day wait. The receiver should be at least 18 years old for a long gun, 21 for a handgun; if a handgun, the receiver may have an unexpired Handgun Safety Certificate; otherwise, from 2015 forward, a Firearms Safety Certificate is required for any firearm.
The FFL should use the DROS "Curio/Relic/Exempt" process, and add a comment "27870PC intrafamily transfer"."

So as long as a CA FFL is involved, this type of transfer (up to 5 per year) of out-of-state P7s into CA can occur.

Is this how you read it?
Yes. Grandparent to grandchild transfer is fine. Off roster handguns may be transferred into California with this method.

No in-laws to son-in-law transfers are allowed. No step parent to child transfers are allowed. Absolutely, no straw transfers should be done using this method, where a gun is transferred from parent to daughter, then to husband. Straw transfers are strictly against the law.

Call the receiving CA FFL first. Some FFLs don't really understand the transfer laws very well. Years ago, I wanted to purchase a HK45 by PPT from a new California resident, who had a California Drivers License. One FFL refused the perfectly legal transfer. I finally had the gun transferred by Frank Tabor of Mythbusters fame.
 
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