California 20252026 Regular Session Status: In Committee 2 D cosponsors

AB 746 — Inmate Cooperative Program.

Last action — From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.

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  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Assembly
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill is in committee in the Assembly. Introduced February 18, 2025. It must pass committee before a floor vote.

Next likely step: a committee vote, then a floor vote in the Assembly.

Prognosis

Advancing 38% · moderate confidence

Where this bill stands today.

Odds of enactment

Low

How often bills like it became law.

  • In Committee

    Current position in the legislative process.

  • 2 sponsors

    1 primary, 1 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (2 D).

  • Cleared a recorded vote

    Passed 2 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

Existing law creates specified programs that employ inmates, including the joint venture program, which is established by the Secretary of Department of Corrections and Rehabilitation within state prisons that allows a public entity, nonprofit or for-profit entity, organization, or business to employ inmates confined in the state prison system for the purpose of producing goods or services. Existing law also establishes the Prison Industry Authority within the department for the purpose of developing and operating industrial, agricultural, and service enterprises employing prisoners in institutions under the jurisdiction of the department and for the purpose of creating and maintaining working conditions within the enterprises to ensure prisoners employed have the opportunity to work productively, to earn funds, and to acquire or improve effective work habits and occupational skills. Existing law requires, upon appropriation by the Legislature, the Office of Small Business Advocate within the Governor's Office of Business and Economic Development to establish the California Employee Ownership Hub that would, among other things, work with all California state agencies whose regulations and programs affect employee-owned companies, and businesses with the potential to become employee owned, to enhance opportunities and reduce barriers. Existing law, the Cooperative Corporation Law, governs the organization and operation of cooperatives, including, among others, worker cooperatives. Existing law defines a worker cooperative as a corporation formed under the Cooperative Corporation Law that includes a class of worker-members who are natural persons whose patronage consists of labor contributed to or other work performed for the corporation. Existing law requires specified information to be included in the articles of incorporation or bylaws, including, among other things, the apportionment and distribution of net earnings and losses of a worker cooperative. Existing law makes the violation of specified provisions under the Cooperative Corporation Law a crime. This bill would require the Department of Corrections and Rehabilitation to establish the Inmate Cooperative Program to facilitate operations of inmate worker cooperatives within state prison facilities. The bill would authorize a group of inmates who seek to establish a worker cooperative to apply to the program by submitting an application to the warden of the facility. The bill would require the warden to approve an application only if the applicant, or a cooperative community partner acting on their behalf, submits a plan of operation to the warden containing specified information, including, among other things, the cooperative's draft bylaws, which describe the cooperative's mission, the cooperative's internal governance structure, an initial management structure, and compensation structure. The bill would define a cooperative community partner as a nonprofit organization, cooperative association, cooperative corporation, or individual that supports the inmates with the establishment, operation, and governance of certified inmate cooperatives. This bill would require a group of inmates seeking to form a worker cooperative to incorporate as a worker cooperative following the approval of an application by the warden. The bill would require the Inmate Cooperative Program to certify the worker cooperative following approval of an application by the warden and incorporation of the cooperative. The bill would require the department to enter into a contract with the cooperative to outline the terms of operation, responsibilities, and compliance requirements. The bill would require a certified cooperative, as a condition to operate in a state prison facility, to write into their bylaws that their cooperative community partner is required to deduct 40% from each inmate's gross wages and deposit the wages into a specified account. The bill would authorize a certified cooperative to engage in the production of goods, agricultural products, or services for the cooperative's use and sale. This bill would require the California Employee Ownership Hub to choose a cooperative institution, which would, among other things, assist in the selection of a financial institution that would steward and manage an account that would be used to, among other things, create economic opportunities for survivors of crime and other persons impacted by their interactions with the criminal justice system with grants for specified purposes. The bill would define a cooperative institution as a nongovernmental nonprofit organization, cooperative association, or similar entity that is dedicated to supporting, overseeing, and promoting cooperative enterprises. The bill would require the financial institution to submit an annual report to the Governor detailing the account's activities, resource allocations, and measurable outcomes of funded initiatives. This bill would also require the department to deduct from inmate wages mandatory deductions for restitution orders and fines, among other things. The bill would require the department to provide certified cooperatives with access to necessary equipment, materials, and resources to support their operations, with no obligation for the department to fund these resources. The bill would prohibit an employee of the department from serving as a member, officer, or board member of any cooperative established under the Inmate Cooperative Program or from having any direct or indirect financial interest in the cooperative or its operations.

Bill Text

What changed in the latest version

1 added · 1 removed

Plain-language change summary

AB 746 has made a small but important change by adding a new section to the bill. This addition clarifies specific provisions that were previously vague, which is crucial for ensuring that everyone understands the rules and requirements outlined in the legislation. Clearer language helps prevent confusion and misinterpretation, making it easier for individuals and organizations to comply with the law. This change should lead to better implementation and enforcement of the bill's goals.

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Action History

  1. From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.

  2. Died pursuant to Art. IV, Sec. 10(c) of the Constitution.

  3. In committee: Held under submission.

  4. Coauthors revised.

  5. In committee: Set, first hearing. Referred to APPR. suspense file.

  6. From committee: Do pass and re-refer to Com. on APPR. (Ayes 8. Noes 0.) (April 29). Re-referred to Com. on APPR.

  7. From committee: Do pass and re-refer to Com. on PUB. S. (Ayes 6. Noes 0.) (April 23). Re-referred to Com. on PUB. S.

  8. Re-referred to Coms. on L. & E. and PUB. S. pursuant to Assembly Rule 96.

  9. Referred to Coms. on PUB. S. and L. & E.

  10. From printer. May be heard in committee March 21.

  11. Read first time. To print.

Sponsors

Sponsorship breakdown

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1 sponsors · 1 co-sponsors · 120 not signed on

Sponsors (1)

Co-sponsors (1)

Not signed on (120)

120 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Passed 8 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Democratic 7000
Republican 1001
Total 8001
% of votes cast 89%0%0%11%
How each member voted (9)
Member Party Vote
Bonta, Mia Democratic Yea
González, Mark Democratic Yea
Harabedian, John Democratic Yea
Nguyen, Stephanie Democratic Yea
Ramos, James C. Democratic Yea
Schultz, Nick Democratic Yea
Sharp-Collins, LaShae Democratic Yea
Alanis, Juan Republican Yea
Lackey, Tom Republican Not Voting

Official roll call →

Subjects

Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does AB 746 do?
Existing law creates specified programs that employ inmates, including the joint venture program, which is established by the Secretary of Department of Corrections and Rehabilitation within state prisons that allows a public entity, nonprofit or for-profit entity, organization, or business to employ inmates confined in the state prison system for the purpose of producing goods or services. Existing law also establishes the Prison Industry Authority within the department for the purpose of developing and operating industrial, agricultural, and service enterprises employing prisoners in institutions under the jurisdiction of the department and for the purpose of creating and maintaining working conditions within the enterprises to ensure prisoners employed have the opportunity to work productively, to earn funds, and to acquire or improve effective work habits and occupational skills. Existing law requires, upon appropriation by the Legislature, the Office of Small Business Advocate within the Governor's Office of Business and Economic Development to establish the California Employee Ownership Hub that would, among other things, work with all California state agencies whose regulations and programs affect employee-owned companies, and businesses with the potential to become employee owned, to enhance opportunities and reduce barriers. Existing law, the Cooperative Corporation Law, governs the organization and operation of cooperatives, including, among others, worker cooperatives. Existing law defines a worker cooperative as a corporation formed under the Cooperative Corporation Law that includes a class of worker-members who are natural persons whose patronage consists of labor contributed to or other work performed for the corporation. Existing law requires specified information to be included in the articles of incorporation or bylaws, including, among other things, the apportionment and distribution of net earnings and losses of a worker cooperative. Existing law makes the violation of specified provisions under the Cooperative Corporation Law a crime. This bill would require the Department of Corrections and Rehabilitation to establish the Inmate Cooperative Program to facilitate operations of inmate worker cooperatives within state prison facilities. The bill would authorize a group of inmates who seek to establish a worker cooperative to apply to the program by submitting an application to the warden of the facility. The bill would require the warden to approve an application only if the applicant, or a cooperative community partner acting on their behalf, submits a plan of operation to the warden containing specified information, including, among other things, the cooperative's draft bylaws, which describe the cooperative's mission, the cooperative's internal governance structure, an initial management structure, and compensation structure. The bill would define a cooperative community partner as a nonprofit organization, cooperative association, cooperative corporation, or individual that supports the inmates with the establishment, operation, and governance of certified inmate cooperatives. This bill would require a group of inmates seeking to form a worker cooperative to incorporate as a worker cooperative following the approval of an application by the warden. The bill would require the Inmate Cooperative Program to certify the worker cooperative following approval of an application by the warden and incorporation of the cooperative. The bill would require the department to enter into a contract with the cooperative to outline the terms of operation, responsibilities, and compliance requirements. The bill would require a certified cooperative, as a condition to operate in a state prison facility, to write into their bylaws that their cooperative community partner is required to deduct 40% from each inmate's gross wages and deposit the wages into a specified account. The bill would authorize a certified cooperative to engage in the production of goods, agricultural products, or services for the cooperative's use and sale. This bill would require the California Employee Ownership Hub to choose a cooperative institution, which would, among other things, assist in the selection of a financial institution that would steward and manage an account that would be used to, among other things, create economic opportunities for survivors of crime and other persons impacted by their interactions with the criminal justice system with grants for specified purposes. The bill would define a cooperative institution as a nongovernmental nonprofit organization, cooperative association, or similar entity that is dedicated to supporting, overseeing, and promoting cooperative enterprises. The bill would require the financial institution to submit an annual report to the Governor detailing the account's activities, resource allocations, and measurable outcomes of funded initiatives. This bill would also require the department to deduct from inmate wages mandatory deductions for restitution orders and fines, among other things. The bill would require the department to provide certified cooperatives with access to necessary equipment, materials, and resources to support their operations, with no obligation for the department to fund these resources. The bill would prohibit an employee of the department from serving as a member, officer, or board member of any cooperative established under the Inmate Cooperative Program or from having any direct or indirect financial interest in the cooperative or its operations.
Who sponsors AB 746?
AB 746 is sponsored by Kalra, Ash (Democratic) and McKinnor, Tina (Democratic).
What is the current status of AB 746?
This bill is in committee in the Assembly. Introduced February 18, 2025. It must pass committee before a floor vote.
Where can I track AB 746?
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