IC 4-24-6
    Chapter 6. Funds Belonging to Inmates and Patients.RecreationFund Created

IC 4-24-6-1
"Institution" defined
    Sec. 1. As used in this chapter, the term "institution" shall meanpsychiatric, penal, correctional, benevolent, or special educationalinstitutions owned and operated by the state of Indiana.
(Formerly: Acts 1957, c.242, s.1; Acts 1963(ss), c.7, s.1.) Asamended 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 theuse of donated funds by a donor, the superintendent or warden of aninstitution shall hold in trust funds deposited with the institution forthe use and benefit of, or belonging to, any inmate or patient.
    (b) The superintendent or warden shall keep an accurateaccounting of the receipts and disbursements of funds received undersubsection (a) on books and records in accordance with theaccounting procedure as prescribed by the state board of accounts.
    (c) Trust funds created under this section are subject to periodicaudits 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 theFederal 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 amendedby 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 andsupervision of any institution shall make rules and regulationsconcerning the withdrawal of money held in trust for any patient orinmate, and concerning the deposit of any money to be held in trustfor any patient or inmate. Upon the discharge or release of anypatient or inmate, the superintendent or warden of the institutionshall pay to the individual, or his legal guardian, all money due himfrom 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 aunit that is a Medicaid certified intermediate care facility for the

mentally retarded.
    (b) Any interest or income derived from the deposit or investmentof funds held in trust for any patient or inmate shall be transferredfrom such trust fund to a special fund to be known as the "patients'recreation fund" or "inmates' recreation fund"; provided, that in theevent a trust fund has been established in any institution, which trustfund is in existence on July 1, 1957, and there is a deficiency in theamount of money that properly belongs in such trust fund, theincome derived from any trust fund established under the provisionsof this chapter shall be paid into the trust fund until the deficiencyhas 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 heirsor devisees shall be entitled to any money credited to and held intrust for such inmate or patient. If the heirs or devisees of suchinmate or patient are unknown, the money in such trust account shallbe kept intact to the account of the unknown heirs of such inmate orpatient for a period of two (2) years from the date of death. If, at theexpiration of the two (2) year period, no heir or devisee of anydeceased inmate or patient shall appear to make claim to suchmoney, such money shall be paid to the clerk of the circuit court ofthe county from which such inmate or patient was committed to saidinstitution, said money to be held and disposed of by said clerk ofcourt in the same manner as are other unclaimed funds in his office.
    (b) If any inmate of a penal or correctional institution, or if anypatient of a psychiatric hospital, shall escape from such institution,or shall make an escape while absent from such institution on paroleor leave, any money credited to and held in trust for such inmate orpatient shall be kept intact for such escaped inmate or patient for aperiod of two (2) years from the date of escape. If at the end of thetwo (2) year period the escaped inmate or patient does not appear tomake claim to such money, the money shall be paid to the clerk ofthe circuit court of the county from which such inmate or patient wascommitted to said institution, said money to be held and disposed ofby said clerk of court in the same manner as are other unclaimedfunds in his office.
    (c) No money belonging to any patient or inmate shall be paidover to the clerk of any court as provided in this section if suchinmate or patient is indebted to the state of Indiana for maintenanceby such institution, in which case any money credited on the booksof such institution to the account of any inmate or patient shall beapplied against any indebtedness or maintenance, and the balance, ifany, shall then be paid to such clerk.
    (d) Notwithstanding any other law, when the department ofcorrection has determined that an offender has escaped from custody,

the department of correction:
        (1) may consider all of his property (except money) that isunder the control of the department, to be abandoned property;
        (2) may dispose of the escaped inmate's abandoned propertyconsistent with rules adopted by the department underIC 4-22-2; and
        (3) is not civilly liable for the safekeeping of the escapedinmate'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 thesuperintendent or warden subject to the approval of the chiefadministrative officer of the department, division, or state agencyhaving administrative control and supervision over the institution, forthe direct benefit of persons who are inmates or patients in suchinstitutions, and shall not be used for any purposes which are coveredby state appropriations.
    (c) The funds shall be expended for purposes in accordance withthe policies of the department, division, or state agency havingadministrative control over such institution. The expenditures mayinclude, but are not limited to:
        (1) purchased entertainment;
        (2) magazine subscriptions for the libraries, wards, or units ofsuch institutions;
        (3) special recreational equipment and supplies;
        (4) special foods for parties or celebrations;
        (5) educational materials;
        (6) phonograph records, televisions, radios, and similar itemswhen the items cannot be purchased from regularappropriations; and
        (7) any other purposes not covered by regular appropriations;
that will provide a direct benefit to or assist in the rehabilitation ofthe inmates or patients of such institutions.
(Formerly: Acts 1957, c.242, s.6; Acts 1965, c.87, s.1.) As amendedby 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 orinmates' 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 publicdepositories, or income derived from trust funds invested inUnited States government securities as provided in section 2 ofthis chapter.
        (4) Sale of items produced in occupational therapy.
        (5) Income derived from any kind of benefit entertainment forthe inmates or patients.
        (6) Any other money derived from any source that is not legallyprohibited.
        (7) Any money derived from the income of any trust fund whichhas 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 anyinstitution on July 1, 1957, shall be transferred into a trust fundestablished under the provisions of this chapter. Any money in anyrecreational or activities fund in any institution, on July 1, 1957,shall be transferred to the "recreation fund" established under theprovisions 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), thesuperintendent or warden of any institution may not be heldpersonally liable for the loss of:
        (1) money held in trust for any inmate or patient of theinstitution; or
        (2) money deposited in the recreation fund of the institution.
    (b) Except as provided in subsection (c), in the event thesuperintendent or warden delegates to any officer or employee of hisinstitution the authority to administer the provisions of sections 6 and7 of this chapter, such officer or employee may not be heldpersonally liable for the loss of:
        (1) money held in trust for any inmate or patient of theinstitution; or
        (2) money deposited in the recreation fund of the institution.
    (c) A superintendent or warden or a delegate of a superintendentor warden may be held personally liable under subsection (a) or (b)if the loss of money arises from the superintendent's, the warden's, orthe delegate's official misconduct. All other losses under this sectionmust be covered by the general blanket performance bond or crimeinsurance policy under subsection (d).
    (d) No other bond except the general performance blanket bondgiven by the superintendent or warden of any institution, or by anofficer or employee of the institution, shall be required. A general

blanket performance bond or crime insurance policy endorsed toinclude faithful performance that is obtained under IC 5-4-1-15.1shall cover any misfeasance or nonfeasance in the administration ofsections 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 thebonds or crime policies required by this section.
(Formerly: Acts 1957, c.242, s.9; Acts 1965, c.87, s.2.) As amendedby 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 andsupervision of an institution with a fund established under section 6of 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 thetransferred money in conformity with section 6 of this chapter.
As added by P.L.30-1988, SEC.1.