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No, you need a type 6 FFL to sell reloaded ammunition. it's considered manufacturing ammunition for sale, and regulated by the ATF. you can obtain the equipment and start learning now, but without about $200,000 cash you will not be able ot sell your reloads. Doing it in California is especially expensive, you'll need the usual business license and place of business,but also have permission from the fire department, blast proof safes, secure storage, and between 1 to 10 million dollars of liability insurance (even if you claim no liability on your products- some people don't know how to read). the actual license fees are not expensive, the expensive part is finding a location you can do this at, paying rent, utilities, employees and insurance premiums. the 06 FFL is like $400 or something, getting the permits in Oregon City will cost at least 10X that. Oregon City will try to block you from doing this.
The machine can be purchased without a license. You however do need a federal license to manufacture ammo if you sell the ammo. At least $1,000,000 in liability insurance would be a good idea if your buddy has any assets to protect. Setting up a subchapter-s or similar corporation would help limit his personal liability.
He can - but - I doubt he can afford to do it legally. The license is $500 for three years if the local police will sign it. And before it is approved by the feds - you need to prove you have at least $500,000 in liability insurance for the manufacture of ammo. I checked with State Farm Insurance a few years back and they wanted $431 a month for the insurance.
You can't reload and legally sell ammo anywhere in the country without at least a Type 6 FFL. Effectively you have run it as a business. You can buy the equipment and reload ammo for your own use legally.
No, he has to be a licensed ammunition manufacturer, which costs A LOT of money.