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AB-746 • 2026

Inmate Cooperative Program.

Inmate Cooperative Program.

Crime Labor
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
McKinnor
Last action
Official status
Assembly - Died - Appropriations
Effective date
Not listed

Plain English Breakdown

The official text states the bill passed both chambers but does not list an effective date, leaving uncertainty about when these rules begin.

Inmate Worker Cooperatives

This law requires the Department of Corrections and Rehabilitation to create a program that allows groups of inmates to form worker cooperatives inside state prisons with help from outside partners.

What This Bill Does

  • Requires the Department of Corrections and Rehabilitation to establish an Inmate Cooperative Program for prison facilities.
  • Allows inmate groups to apply to start a cooperative by submitting a plan that includes draft rules, management details, and pay structures.
  • Requires certified cooperatives to include in their rules that outside partners deduct 40% of each inmate's gross wages into a special account managed by a financial institution.
  • Requires the California Employee Ownership Hub to select an organization to help manage funds for grants supporting crime survivors and others impacted by the criminal justice system.
  • Prohibits prison employees from serving on cooperative boards or having any direct or indirect financial interest in these cooperatives.

Who It Names or Affects

  • Inmates who want to form worker cooperatives inside state prisons
  • The Department of Corrections and Rehabilitation
  • Nonprofit organizations, associations, corporations, or individuals acting as community partners for the cooperatives
  • Survivors of crime and others impacted by their interactions with the criminal justice system through grant funding

Terms To Know

Worker Cooperative
A corporation formed under state law where worker-members contribute labor or perform work for the business.
Cooperative Community Partner
An outside nonprofit, association, corporation, or individual that helps inmates set up and manage their certified cooperative.
Gross Wages
The total amount of money an inmate earns before any deductions are taken out.

Limits and Unknowns

  • The law requires the prison department to provide access to necessary equipment and materials, but it does not require the department to pay for these resources.
  • Specific details about how grants are awarded depend on future actions by selected organizations.
  • The effective date is not listed in the provided text.

Bill History

  1. California Legislative Information

    Assembly - Died - Appropriations

Official Summary Text

Inmate Cooperative Program.