Bill
AB 746
Establishes an Inmate Cooperative Program to form, govern, and operate inmate worker cooperatives inside state prisons with partner organizations and wage deductions.
AB 746 (McKinnor) – Inmate Cooperative Program — Summary
Overview and Intent
- Purpose: Establish an Inmate Cooperative Program to enable inmate worker cooperatives within California state prisons. The bill envisions cooperatives as a path to economic independence, skill development, and facilitated reentry, with an emphasis on governance, accountability, and community partnerships.
- Context: Builds on existing inmate labor programs (e.g., Prison Industry Authority, Joint Venture Program) and the California Employee Ownership Hub framework for employee-owned enterprises.
Key Provisions
- Establishment and scope
- The Department of Corrections and Rehabilitation (CDCR) would create the Inmate Cooperative Program to support inmate worker cooperatives inside state prisons.
- Groups of inmates may apply to the program by submitting an application to the facility warden; the warden approves only if a plan of operation (including mission, governance, initial management, and compensation) is submitted by the applicant or a cooperative community partner (see below).
- Approved groups must incorporate as a worker cooperative and then obtain certification from the Inmate Cooperative Program. The CDCR would enter into a contract with the cooperative outlining operation terms, responsibilities, and compliance.
- Governance and partnerships
- A “cooperative community partner” (a nonprofit, cooperative association/corporation, or individual) would support inmate cooperatives in establishment, operation, and governance.
- Certified cooperatives must embed in their bylaws that a cooperative community partner will deduct 40% of each inmate’s gross wages into a designated account.
- Products and services
- Certified cooperatives may produce goods, agricultural products, or services for internal use or external sale, subject to program rules.
- Oversight, funding, and resources
- CDCR must provide access to necessary equipment, materials, and resources to certified cooperatives, but there is no obligation for the department to fund these resources.
- The department may deduct mandatory amounts from inmate wages for restitution orders and fines (and other mandatory deductions), consistent with existing practices.
- Department employees are prohibited from serving as members/officers/board members of any inmate cooperative or having any financial interest in them.
- Financial and governance infrastructure
- The California Employee Ownership Hub must select a cooperative institution to assist in choosing a financial institution to steward an account used for, among other purposes, supporting crime-survivor initiatives with grants. The financial institution must report annually to the Governor on activities and outcomes.
- Transparency and accountability
- The bill requires an annual reporting framework and clear contract terms between CDCR and each certified cooperative.
Who Would Be Affected
- Incarcerated individuals seeking to form cooperatives and participate in wage-earning activities.
- Prisons and CDCR facilities administering the program and ensuring governance/compliance.
- Cooperative community partners and specified nonprofit/cooperative entities assisting inmate cooperatives.
- The California Employee Ownership Hub and participating financial institutions managing related accounts.
Timeline and Status
- Introduced February 18, 2025.
- As of May 23, 2025: In committee, Held Under Submission (with prior committee referrals and hearings noted in the actions). No explicit appropriation attached.
Notes
- The measure emphasizes climate resilience and a “Green Cooperative Reentry Reserve” to support post-release cooperative growth.
- No new state funding is implied in the digest; the bill focuses on governance, partnerships, and operational structure.
Compiled from official sources — confirm details with the bill’s official record.
Sign in to ask a question.
