Here's the relevant language from Vehicle Code section 9954(d)(1) (SB 1542, Stats. 2006, ch. 433):
Quote:
(d) (1) This section does not apply to a vehicle line of a motor vehicle manufacturer that on January 1, 2006, does not provide for the production of a replacement key or other functionally similar device that allows the vehicle to be entered, started, and operated, by anyone other than the
vehicle manufacturer itself and only itself, provided that the vehicle manufacturer operates a telephone or electronic request line 24 hours a day and seven days a week, and upon a request of the registered owner or family member of the registered owner of the vehicle, a replacement key or other functionally similar device that will allow the vehicle to be
entered, started, and operated, is furnished to the registered owner at a reasonable cost within one day of the request or via the next overnight delivery. (emphasis added)
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Full text of the statute can be found here:
http://leginfo.ca.gov/pub/05-06/bill..._chaptered.pdf
I have heard that the replacement cost for the smart's key is something like $200 or more (I have not confirmed this). Because the Legislature did not define "reasonable cost," Daimler's charge of $200+ or whatever it is could be "reasonable" under the circumstances -- I don't think anyone's challenged them on this yet.