CHAPTER 6. FUNDS BELONGING TO INMATES AND PATIENTS.RECREATION FUND CREATED
IC 4-24-6
Chapter 6. Funds Belonging to Inmates and Patients.Recreation
Fund Created
IC 4-24-6-1
"Institution" defined
Sec. 1. As used in this chapter, the term "institution" shall mean
psychiatric, penal, correctional, benevolent, or special educational
institutions owned and operated by the state of Indiana.
(Formerly: Acts 1957, c.242, s.1; Acts 1963(ss), c.7, s.1.) As
amended by P.L.5-1984, SEC.191.
IC 4-24-6-2
Funds held in trust for inmates
Sec. 2. (a) Subject to a designation of the specific purpose for the
use of donated funds by a donor, the superintendent or warden of an
institution shall hold in trust funds deposited with the institution for
the use and benefit of, or belonging to, any inmate or patient.
(b) The superintendent or warden shall keep an accurate
accounting of the receipts and disbursements of funds received under
subsection (a) on books and records in accordance with the
accounting procedure as prescribed by the state board of accounts.
(c) Trust funds created under this section are subject to periodic
audits the state board of accounts considers necessary.
(d) Trust funds created under this section shall be:
(1) deposited in depositories whose deposits are insured by the
Federal Deposit Insurance Corporation; or
(2) invested in government securities of the United States.
(Formerly: Acts 1957, c.242, s.2; Acts 1959, c.253, s.1.) As amended
by P.L.8-1991, SEC.2.
IC 4-24-6-3
Withdrawal of money; rules and regulations
Sec. 3. The chief administrative officer of the department,
division or state agency having administrative control and
supervision of any institution shall make rules and regulations
concerning the withdrawal of money held in trust for any patient or
inmate, and concerning the deposit of any money to be held in trust
for any patient or inmate. Upon the discharge or release of any
patient or inmate, the superintendent or warden of the institution
shall pay to the individual, or his legal guardian, all money due him
from any trust account.
(Formerly: Acts 1957, c.242, s.3.)
IC 4-24-6-4
Recreation fund
Sec. 4. (a) This section does not apply to a patient:
(1) in a state developmental center listed in IC 12-24-1-1; or
(2) in an institution listed in IC 12-24-1-3 if the patient is in a
unit that is a Medicaid certified intermediate care facility for the
mentally retarded.
(b) Any interest or income derived from the deposit or investment
of funds held in trust for any patient or inmate shall be transferred
from such trust fund to a special fund to be known as the "patients'
recreation fund" or "inmates' recreation fund"; provided, that in the
event a trust fund has been established in any institution, which trust
fund is in existence on July 1, 1957, and there is a deficiency in the
amount of money that properly belongs in such trust fund, the
income derived from any trust fund established under the provisions
of this chapter shall be paid into the trust fund until the deficiency
has been fully paid.
(Formerly: Acts 1957, c.242, s.4.) As amended by P.L.5-1984,
SEC.192; P.L.21-1996, SEC.1.
IC 4-24-6-5
Distribution of trust funds upon inmate's death
Sec. 5. (a) If any inmate of any penal or correctional institution,
or any patient of any psychiatric institution, shall die, his lawful heirs
or devisees shall be entitled to any money credited to and held in
trust for such inmate or patient. If the heirs or devisees of such
inmate or patient are unknown, the money in such trust account shall
be kept intact to the account of the unknown heirs of such inmate or
patient for a period of two (2) years from the date of death. If, at the
expiration of the two (2) year period, no heir or devisee of any
deceased inmate or patient shall appear to make claim to such
money, such money shall be paid to the clerk of the circuit court of
the county from which such inmate or patient was committed to said
institution, said money to be held and disposed of by said clerk of
court in the same manner as are other unclaimed funds in his office.
(b) If any inmate of a penal or correctional institution, or if any
patient of a psychiatric hospital, shall escape from such institution,
or shall make an escape while absent from such institution on parole
or leave, any money credited to and held in trust for such inmate or
patient shall be kept intact for such escaped inmate or patient for a
period of two (2) years from the date of escape. If at the end of the
two (2) year period the escaped inmate or patient does not appear to
make claim to such money, the money shall be paid to the clerk of
the circuit court of the county from which such inmate or patient was
committed to said institution, said money to be held and disposed of
by said clerk of court in the same manner as are other unclaimed
funds in his office.
(c) No money belonging to any patient or inmate shall be paid
over to the clerk of any court as provided in this section if such
inmate or patient is indebted to the state of Indiana for maintenance
by such institution, in which case any money credited on the books
of such institution to the account of any inmate or patient shall be
applied against any indebtedness or maintenance, and the balance, if
any, shall then be paid to such clerk.
(d) Notwithstanding any other law, when the department of
correction has determined that an offender has escaped from custody,
the department of correction:
(1) may consider all of his property (except money) that is
under the control of the department, to be abandoned property;
(2) may dispose of the escaped inmate's abandoned property
consistent with rules adopted by the department under
IC 4-22-2; and
(3) is not civilly liable for the safekeeping of the escaped
inmate's property.
(Formerly: Acts 1957, c.242, s.5.) As amended by P.L.39-1983,
SEC.1.
IC 4-24-6-6
Recreation funds; establishment
Sec. 6. (a) There is established in each psychiatric, benevolent,
penal, and correctional institution a fund to be known as the:
(1) patients' recreation fund;
(2) students' recreation fund; or
(3) inmates' recreation fund.
(b) These funds shall be used, at the discretion of the
superintendent or warden subject to the approval of the chief
administrative officer of the department, division, or state agency
having administrative control and supervision over the institution, for
the direct benefit of persons who are inmates or patients in such
institutions, and shall not be used for any purposes which are covered
by state appropriations.
(c) The funds shall be expended for purposes in accordance with
the policies of the department, division, or state agency having
administrative control over such institution. The expenditures may
include, but are not limited to:
(1) purchased entertainment;
(2) magazine subscriptions for the libraries, wards, or units of
such institutions;
(3) special recreational equipment and supplies;
(4) special foods for parties or celebrations;
(5) educational materials;
(6) phonograph records, televisions, radios, and similar items
when the items cannot be purchased from regular
appropriations; and
(7) any other purposes not covered by regular appropriations;
that will provide a direct benefit to or assist in the rehabilitation of
the inmates or patients of such institutions.
(Formerly: Acts 1957, c.242, s.6; Acts 1965, c.87, s.1.) As amended
by P.L.7-2004, SEC.1.
IC 4-24-6-7
Sources of recreation fund
Sec. 7. Money may accrue to the patients' recreation fund or
inmates' recreation fund from the following sources:
(1) Gifts to the fund.
(2) Profits from the operation of a commissary or canteen.
(3) Interest earned by deposit of trust funds in public
depositories, or income derived from trust funds invested in
United States government securities as provided in section 2 of
this chapter.
(4) Sale of items produced in occupational therapy.
(5) Income derived from any kind of benefit entertainment for
the inmates or patients.
(6) Any other money derived from any source that is not legally
prohibited.
(7) Any money derived from the income of any trust fund which
has been deposited in any special fund of the institution.
(Formerly: Acts 1957, c.242, s.7.) As amended by P.L.5-1984,
SEC.193.
IC 4-24-6-8
Funds held on July 1, 1957
Sec. 8. All money held in trust for any inmate or patient of any
institution on July 1, 1957, shall be transferred into a trust fund
established under the provisions of this chapter. Any money in any
recreational or activities fund in any institution, on July 1, 1957,
shall be transferred to the "recreation fund" established under the
provisions of this chapter.
(Formerly: Acts 1957, c.242, s.8.) As amended by P.L.5-1984,
SEC.194.
IC 4-24-6-9
Accountability for funds held in trust
Sec. 9. (a) Except as provided in subsection (c), the
superintendent or warden of any institution may not be held
personally liable for the loss of:
(1) money held in trust for any inmate or patient of the
institution; or
(2) money deposited in the recreation fund of the institution.
(b) Except as provided in subsection (c), in the event the
superintendent or warden delegates to any officer or employee of his
institution the authority to administer the provisions of sections 6 and
7 of this chapter, such officer or employee may not be held
personally liable for the loss of:
(1) money held in trust for any inmate or patient of the
institution; or
(2) money deposited in the recreation fund of the institution.
(c) A superintendent or warden or a delegate of a superintendent
or warden may be held personally liable under subsection (a) or (b)
if the loss of money arises from the superintendent's, the warden's, or
the delegate's official misconduct. All other losses under this section
must be covered by the general blanket performance bond or crime
insurance policy under subsection (d).
(d) No other bond except the general performance blanket bond
given by the superintendent or warden of any institution, or by an
officer or employee of the institution, shall be required. A general
blanket performance bond or crime insurance policy endorsed to
include faithful performance that is obtained under IC 5-4-1-15.1
shall cover any misfeasance or nonfeasance in the administration of
sections 6 and 7 of this chapter on the part of any superintendent,
warden, officer, or employee of the institution.
(e) The commissioner of insurance shall prescribe the form of the
bonds or crime policies required by this section.
(Formerly: Acts 1957, c.242, s.9; Acts 1965, c.87, s.2.) As amended
by P.L.5-1984, SEC.195; P.L.49-1995, SEC.1; P.L.22-1996, SEC.1.
IC 4-24-6-10
Repealed
(Repealed by P.L.5-1984, SEC.196.)
IC 4-24-6-11
Transfer of funds
Sec. 11. The chief administrative officer of the department,
division, or state agency that has administrative control and
supervision of an institution with a fund established under section 6
of this chapter may transfer money from the institution's fund to one
(1) or more other funds established under section 6 of this chapter.
The institution receiving the transferred money shall use the
transferred money in conformity with section 6 of this chapter.
As added by P.L.30-1988, SEC.1.