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I see Kimber Stainless Steel Target 2 on the Roster of Certified Handguns in both 9mm and .45ACP, so I'm not sure if there is something we are missing? Ask him why it is not compliant, then I'd check with another FFL.
It's possible that the one you are looking at WAS on the CA DOJ list of approved handguns, up until very recently, and Buds just hasn't been able to update that yet. I would suggest confirming with a couple other FFL's and against the Approved handgun roster for CA here: https://oag.ca.gov/firearms/certified-handguns/search?make=151011, to see if that is the case or if it is still compliant.
Robert, you may want to have them look at the CA DOJ Roster here : https://oag.ca.gov/firearms/certified-handguns/search?make=151011