BILL NUMBER: AB 1133 VETOED DATE: 10/14/2003 To Members of the California State Assembly: I am returning Assembly Bill 1133 without my signature. This bill provides that if a judgment for unpaid wages or penalties remains unsatisfied for 6 months after the judgment becomes final, a penalty equal to the amount of the judgment is applied. This penalty is then applied every 6 months the judgment remains unsatisfied, up to a maximum of 4 times. This bill is intended to encourage employers to promptly satisfy judgments entered against them by the Labor Commissioners Office. However, existing law already provides that interest on judgments accrues at a rate of 10 percent per annum on the principal amount of a judgment, which remains unsatisfied. I applaud the author for his efforts to ensure prompt payment of unpaid wages and any associated penalties. While the current 10 percent per annum rate on a judgment may not be a sufficient penalty, potentially doubling a judgment 240 percent in a two-year period is excessive. I encourage the Legislature to find a more appropriate penalty scheme. For these reasons, I am unable to sign this bill. Sincerely, GRAY DAVIS