Issues

The Community Reinvestment Bill will allow for the creation of worker cooperatives inside of California prisons, which will empower incarcerated people with meaningful employment opportunities, financial literacy, and cooperative business training while improving reentry pathways to end the perpetuating cycles of trauma, poverty, and crime. AB 746 offers an innovative approach to rehabilitation, addressing economic inequity, reducing recidivism, and promoting long-term job sustainability. Additionally, the bill creates the Green Cooperative Reentry Reserve, which will strengthen the economy, our environment, and public safety by providing business grants to previously incarcerated individuals, crime survivors, and system-impacted communities. It will prioritize the creation of jobs for residents of low-income communities, who are often left out of the traditional economy. By investing in industries such as clean energy, sustainable infrastructure, and environmentally responsible agriculture, AB 746 will create well-paying, stable jobs that provide individuals with the financial independence needed to build better futures.

The importance of creating climate resilient jobs for low-income communities cannot be overstated. In many underserved areas, limited job opportunities lead to higher levels of poverty, which in turn contribute to social instability and increased crime rates. Research consistently shows that poverty and crime are closely linked: individuals living in economically distressed neighborhoods are more likely to experience hardship, which can increase the likelihood of engaging in criminal activity. By providing meaningful employment through AB 746, we can address the root causes of poverty and reduce the conditions that foster criminal behavior.

This bill amends the legislative code to allow for the creation of cooperatives inside of California prisons, a first in the United States, and supports the development of cooperatives outside of prison through the creation of a “Green Reentry Coop Fund.” This Fund will receive 40% of revenues generated by all cooperatives operating inside of California prisons. The Fund will distribute grants to persons who were formerly incarcerated and system-impacted entrepreneurs developing ecologically regenerative worker cooperatives in, by, or for low income and system-impacted communities.

AB 746 (2025)