TABLE OF CONTENTS

PURPOSE

This Department Order establishes instructions for the Department acting as a fiduciary for all inmate monetary transactions. These include procedures for Inmate Funds, Discharge Funds, Indigent Inmate Allowance, Attorney General Set Off Funds, Supervision Fees and deductions from inmate wages.

PROCEDURES

905.01 INMATE FUNDS -

The Department shall act as a custodian for all funds received for inmates and is limited to only inmates' trust accounts as accounted for on the Inmate Banking System.

1.1 Institutions shall not maintain bank accounts for inmates. Inmates are responsible for the safekeeping and maintenance of their savings account book(s) and/or financial records. Negotiable instruments shall be handled in accordance with DO #303, Bank Accounts/Petty Cash System.

1.2 Funds received for deposit to an inmate's account shall:

1.2.1 Be made payable to "The Arizona Department of Corrections" (ADC) and marked "for the account of (inmate name and number).

1.2.2 Be in the form of a money order, cashier's check, business check or city, county, state or federal government check. Personal checks shall not be accepted and shall be returned to the sender.

1.2.3 For the following, be placed on hold for 10 work days from the date of deposit or until they clear the financial institutions on which they are drawn:

1.2.3.1 Business Checks greater than $25.00.

1.2.3.2 Cashier checks greater than $300.00.

1.2.3.3 Money orders greater than $300.00 (except government checks and USPO money orders).

1.2.3.4 Out-Of-Country checks or money orders.

1.3 Cash shall not be accepted for an inmate or deposited into inmate accounts.

1.4 Cash received by mail for deposit into an inmate account shall be receipted then deposited into the Institution's Revolving Fund. Cash not returnable due to no return address shall be classified as Abandoned Funds. A Revolving Fund check:

1.4.1 Made payable to the sender in the amount of the cash received shall be written and mailed or given to the sender with notification that money orders or cashier checks are required.

1.4.2 Issued for returned cash that does not clear the bank in 180 days shall be voided and the funds deposited with the State Treasurer as Abandoned Funds.

1.5 All checks, money orders, etc. shall be stamped with a restrictive deposit only endorsement for the Institution upon receiving these funds from the donor or by mail. A pre-numbered receipt shall be issued.

1.6 All monies received shall be delivered to the appropriate Inmate Banking System accounting area as soon as possible. Staff shall protect and secure these funds through processing to prevent loss and theft.

1.7 The Budget Unit Supervisor or designee shall, when the financial institution(s) requires a signature on the Pay To The Order Of line, ensure that the inmate endorses the check. No endorsements are needed if the financial institution(s) honors the check without the signature of the inmate.

1.8 All negotiable instruments received by the Budget Unit Supervisor after the inmate has been discharged shall be returned to the sender with a letter explaining that the individual is no longer at the address.

1.9 The Business and Finance Bureau Administrator or designee may invest inmate trust funds with the State Treasurer. Interest earned on the investment of inmate trust shall be deposited in the Special Services Fund, in accordance with Department Order #303, Bank Accounts/Petty Cash System.

905.02 INMATE BANKING PETTY CASH FUND - The Administrative Services Inmate Banking Manager or designee shall prepare a petty cash check in the amount of $200.00, to be drawn on the Inmate Banking Control Account. Checks shall be forwarded to the Inmate Banking Supervisor or designee, of each institution, to be cashed to establish the Inmate Banking Petty cash fund.

905.03 BALANCE OF ACCOUNTS

905.04 DISBURSEMENT OF INMATE MONIES

1.1.6 An inmate shall not be allowed to make purchases from the inmate store for any amount which exceeds the amount available in the spendable account. Credit shall not be extended to any inmate.

1.1.7 For liability for which an inmate has insufficient funds to pay, a hold shall be placed on the account, in accordance with Department Order #902, Inmate Legal Access to the Courts. The amount owed shall be collected in accordance with the Schedule of Deduction from Inmate Monies (Attachment A).

1.3.4 Emergency Escorted Visits shall be in accordance with DO #1005, Emergency Inmate Escorted Visit. If the inmate has insufficient funds to pay the full costs prior to the visit, the inmate's trust account shall be placed on hold. The obligation can be collected in full if funds are available.

905.05 HEALTH AND WELFARE INDIGENT INMATE ALLOWANCES

1.1 Indigent Status - Inmates whose spendable account balance, including deposits made during the previous 30 days, does not exceed $12.00 may apply for Health and Welfare Indigence status through their assigned CO III.

1.1.1 Inmates may renew their indigent status by submitting a new application and meeting the eligibility requirements for each 30 day period.

1.2 Applications - CO IIIs shall:

1.2.1 Complete the Application for Indigent Status, Form 905-2P.

1.2.2 Ensure appropriate signing of the application by the inmate.

1.2.3 SECTION DELETED

1.3 Eligibility - Assigned staff shall:

1.3.1 Review the inmate's account on the Inmate Banking System.

1.3.2 Determine through an inmate account review monies available to the inmate to spend, including deposits to the account and mandatory deductions and if the inmate's account has exceeded $12.00 during the previous 30 days.

1.3.3 Either approve or disapprove the application.

1.3.4 Distribute copies of the approved application.

1.3.5 If the application is disapproved, return the disapproved application to the inmate and retain a copy.

1.4 New Application - An inmate shall not be given indigent status automatically when being transferred from one institution to another or moved from one custody level to another within the Institution. A new application for indigent status is required.

1.5 Health and Welfare Items

1.5.1 Indigent status inmates shall receive the following health and welfare items on an exchange basis:

1.5.1.1 Comb.

1.5.1.2 Toothpaste.

1.5.1.3 Toothbrush.

1.5.1.4 Disposable razor.

1.5.1.5 Shampoo.

1.5.1.6 Deodorant.

1.5.1.7 Shaving cream.

1.5.1.8 Cinnamon sticks.

1.5.1.9 Denture Cleaner Tablets.

1.5.1.10 Denture Cup.

1.5.1.11 Denture Brush.

1.5.1.12 Denture Adhesive Pad or Cream/Paste.

1.5.2 Indigent status inmates shall receive the following health and welfare items as necessary.

1.5.2.1 Sanitary napkins.

1.5.2.2 Cleaning supplies.

1.5.2.3 Laundry supplies.

1.5.2.4 Bath soap.

1.5.3 Indigent status inmates shall receive the following writing supplies as necessary to allow for correspondence authorized by Department Order #909, Inmate Mail/Property and Stores:

1.5.3.1 12 envelopes.

1.5.3.2 12 sheets of writing paper.

1.5.3.3 one pencil.

1.6 Distribution - Staff shall:

1.6.1 Issue health and welfare supplies.

1.6.2 Ensure supplies are issued to inmates within five work days after receipt of a copy of an approved Application for Indigent Status.

1.7 Mail and Legal Supplies

1.7.1 Inmates shall be provided with the required legal supplies in accordance with Department Order #902, Inmate Legal/Court Access.

1.7.2 Indigent inmates' correspondence shall be sent by first class mail without charge to the inmate, in accordance with Department Order #909, Inmate Mail and Property and Stores.

1.7.3 Special mail services shall be provided only at the inmate's expense, example: certified, registered and/or insured mail.

1.8 Documentation Retention - Business managers shall retain Applications for Indigent Status until the end of the next fiscal year, at which time the applications shall be destroyed.

1.9 Funding and Stock - Indigent allowance supplies may be purchased with other operating funds or A&R funds and stocked in the warehouse/prison supply based on estimated needs.

1.9.1 Private Prisons, who are under contract by the Department, may purchase indigent allowance supplies with the Welfare and Benefits fund as outlined in Department Order #303, Bank Accounts/Petty Cash System.

905.06 FORFEIT OF INMATE EARNINGS UPON ESCAPE

905.07 ESCAPEE APPREHENSION COSTS

1.1.1 The Incident Commander, in accordance with Department Order #706, Incident Management System, shall ensure that:

1.1.1.1 A mileage and operations log is kept for each vehicle that reflects actual miles driven, the amount of fuels, oils and other lubricants used, to include tires, batteries and accessories required. Logs shall be turned into the Institution Business Manager, or designee, within five working days upon termination of the pursuit/chase.

1.1.1.2 Lodging expenses for staff shall show the name(s) of the staff, dates and cost for each.

1.1.1.3 All food expense receipts reflect the staff name(s), dates and amounts involved. Meals provided from the Institution kitchen shall be recorded based on the cost per meal allocation or contractor costs and shall include the staff name(s) that would not have normally been on duty had it not been for the escape. Accurate counts shall be maintained for costs.

1.1.1.4 The Positive Attendance Report (PAR) properly reflects all regular and overtime/compensatory hours worked by staff based solely on the escape. (Regular hours shall be recorded since the staff are not working their regular assigned place of duty, and shall be recorded as an expense against incurred costs due to the escape.)

1.1.2 The Chief of Staff or designee shall ensure that all investigator staff time, food, lodging, travel and costs incurred as a result of the escape are recorded with the staff name, date and amount. Records shall be given to the Business Manager of the Institution within five work days after the escape actions are terminated.

1.1.3 The Deputy Director for Prison Operations and the appropriate Assistant Director shall ensure that all staff time, food, lodging, travel and costs incurred as a result of the escape, are recorded with the staff name, date and amount. Records shall be given to the Budget Unit Supervisor from which the escape occurred within five work days after the escape actions are terminated.

1.2 All reproduction (copying) and publication costs incurred as a result of the escape shall be recorded by every office involved and sent to the Budget Unit Supervisor where the escape occurred.

1.2.1 The Institution Business Manager or designee shall coordinate with County and/or City Officials to obtain actual and estimated costs that the Department will be required to pay due to the jail charges, if appropriate, based on the escapee(s) being held at facilities other than those of the Department.

1.3 The Institution Business Manager or designee shall prepare a consolidated report to show the total costs incurred in each area of staff time, food, lodging, etc., and use the documents received from all sources as back up. This report shall be submitted to the County Attorney's office within three weeks after the apprehension. A copy of the report shall be provided to the Deputy Director for Prison Operations and Assistant Director for Administrative Services.

1.4 The Institution Business Manager or designee shall be available to the County Attorney to assist in and/or answer questions pertaining to the apprehension costs.

1.5 The inmate's account shall be placed on hold until the total apprehension costs are paid in full.

1.5.1 The inmate's account shall also be placed on hold to pay institution restitution in the event the inmate has been found guilty in a disciplinary hearing of destroying and/or damaging state property in the course of the escape. The Disciplinary Coordinator/Hearing Officer shall notify the Budget Unit Supervisor or designee. These costs shall be deducted after the apprehension costs are paid.

1.5.2 All sources of funds deposited into the inmates account shall be subject to the withholdings to pay for the apprehension and Institution restitution costs. The Budget Unit Supervisor or designee may permit the inmate to spend a portion of the funds available to purchase only personal hygiene supplies from the store.

1.6 Payments withheld from the inmate's account to repay escapee apprehension costs and/or Institution restitution charges shall be deposited in the Institution's operating funds as long as the collections are in the same fiscal year in which the expenses were incurred. Collections made from the inmate's account in subsequent fiscal year(s) shall be a deposit to the State Treasurer, General Fund.

1.7 The Institution Business Manager or designee shall maintain appropriate accounting records to reflect the payments made, dates, amounts and balances due.

905.08 INMATE MONETARY DEBTS OWED AS A RESULT OF LITIGATION

905.09 MEDICAL COSTS FOR INMATES CAUSED BY ASSAULTS - Inmates shall be assessed medical costs as the result of inmate assaults or self-inflected injuries.

905.10 DISCHARGED INMATE MONIES, CLOTHING AND TRANSPORTATION

1.1 Dedicated Discharge Account Procedures - Dedicated Discharge Accounts shall be established for all inmates.

1.1.1 The Department shall withhold 25% of the wages earned by each inmate and deposit this amount into the inmate's Dedicated Discharge Account, until the balance of the account reaches $50.

1.1.2 The Dedicated Discharge Account shall be reserved until the inmate's discharge or release from the Department and shall not be considered available funds when computing indigent status.

1.1.3 Upon discharge from the Department or release to a status that is under the supervision of the Community Corrections Division inmates shall be provided the balance of their Dedicated Discharge Account, in accordance with Attachment F.

1.2 Eligibility Criteria for Discharge Allowance and Clothing - An inmate may be entitled to a discharge allowance upon release or discharge, including a supervised release, See Attachment F. (Checks or cash shall not be issued in lieu of clothing.)

1.2.1 Inmates shall be provided gender appropriate clothing upon release or discharge, as follows:

1.2.1.1 One pair of blue jeans.

1.2.1.2 One shirt.

1.2.1.3 One pair of undershorts/panties.

1.2.1.4 One bra.

1.2.1.5 One pair of hosiery or socks.

1.2.1.6 One pair of shoes or boots for inmates who do not own personal footwear. (Inmates wearing footwear that has been issued to them shall not be issued new footwear prior to their discharge.)

1.2.1.7 Female inmates may choose a dress, instead of jeans and a shirt or a skirt instead of jeans at facilities where donated clothing is available.

1.2.2 An inmate with less than $50 in a dedicated discharge account shall only receive the allowance amount needed to make a total of $50, if eligible.

1.3 Determination of Eligibility - Before an inmate is released or discharged, staff shall confirm the inmate's entitlement to a discharge allowance by:

1.3.1 Examining the inmate's file and conducting a pre-release interview to determine if the inmate meets the eligibility criteria for discharge allowance.

1.3.2 Ensuring that inmates who meet the eligibility criteria for discharge allowance receive the discharge allowance.

1.4 Disposition of Property - Shall be in accordance with Department Order #909, Inmate Mail/ Property and Stores.

1.5 Transportation Assistance for Paroled/Discharged Inmates - When appropriate, Wardens may issue to paroled inmates, if consistent with the signed conditions of supervision, or to discharged inmates a nontransferable ticket on a railroad or bus serving near the place of discharge to the first railroad depot or bus station beyond the State limits.

1.5.1 Checks or cash shall not be issued in lieu of a ticket.

1.5.2 Tickets shall be purchased from discharge appropriated monies. If the ticket is not used within three days after the date of discharge, it shall be voided and the funds returned to the discharge account, unless use of the ticket was precluded because of the inmate's illness.

1.5.3 Wardens shall ensure that inmates who need transportation upon release are transported in accordance with Department Order #705, Inmate Transportation.

1.5.4 All exceptions shall be approved by the Deputy Director for Prison Operations.

1.6 The Department shall reimburse any discharge expenses incurred by Private Prisons.

905.11 UTILITY CHARGING -

Inmates shall be allowed the number of electrical and other-powered appliances as authorized in Department Order #909, Inmate Mail/Property and Stores.

1.2.1.10 Inpatient Component Units at ASPC-Florence, Lewis, Perryville and Tucson.

1.2.1.11 ASP- Florence West (Return to Custody Unit).

1.2.1.12 Inmates who are classified as minors and inmates who possess only medically-prescribed electrical appliances are exempt from payment.

1.5 The Assistant Director for Administrative Services shall prepare a report to the Director for the Joint Legislative Budget Committee and the Director of the Governor's Office of Strategic Planning and Budgeting by September 1 of each year detailing the collection and expenditure of monies collected from inmates as utility charges.

ATTACHMENT LIST

Attachment A - Schedule of Deductions From Inmate Monies

Attachment B - Example of Calculation of $2.00 or Greater

Attachment C - Example of Wage Less Than $2.00

Attachment D - Example PIE Payroll Calculation

Attachment E - Example of Deduction from Deposits Received in Mail

Attachment F - Discharge Procedures: Inmate Funds and Discharge Allowance

Attachment G - Example of Forfeiture of Inmate Earnings Upon Escape

Attachment H - Institution - Collection of Inmate Monies

Attachment I - Private Prison - Collection of Inmate Monies

Attachment J - Inmate Retention Monies

Attachment K - Supersedes

FORMS LIST

905-1P, Inmate Request for Withdrawal form.

905-2P, Application for Indigent Status

905-8P, Request for Retention Funds

905-11P, Inmate Work and Wage Agreement (PIE)

905-12P, Status Change Request

IMPLEMENTATION

Within 90 days of the effective date of this Department Order, the Assistant Director for Administrative Services shall update and maintain the Inmate Banking Technical Manual addressing at a minimum:

Banking/Inmate Accounts.

Inmate Trust Funds.

Disbursement of Inmate Monies.

Forfeiture of Inmate Monies.

DEFINITIONS

ALCOHOL ABUSE TREATMENT FUND (AATF) - The Department's account for money that accrues from work performed by persons convicted for driving while intoxicated or driving under the influence of alcohol and/or drugs. Funds from this account are used to provide alcohol/substance abuse treatment for inmates incarcerated for DWI offenses.

COMPENSATION - Any remuneration received for the performance of inmate work in the prison industries program, private sector, prison contracts or WIPP.

DEDICATED DISCHARGE ACCOUNT - An account that is established from a percentage of an inmate's wages, which contains a maximum of $50, and that is held for the inmate's discharge or release from prison.

DEPENDENT - A person who relies on another for support.

DEPENDENT SUPPORT - Payments made by the inmate to any person as ordered by a court for support or voluntary payments made by the inmate to any person for support that is verified to be a bona fide dependent of the inmate from documentation such as birth certificates, federal and state income tax records, marriage license, adoption or guardian records, etc.

DISCHARGE ALLOWANCE - A check or cash issued to an eligible inmate upon the inmate's parole or discharge from the Department's custody. The check or cash is expended from funds that are appropriated to the Department.

HEALTH AND WELFARE INDIGENCE - An inmate who has applied for and been approved to receive free health care supplies as a result of meeting established financial requirements.

INMATE TRUST ACCOUNT FUNDS - Funds received from any source and held by the Department in trust for each inmate, comprised of the dedicated discharge account, retention account and the spendable account.

INVESTMENT - Funds invested with the State Treasurer for the specific purpose of earning interest on the deposit(s).

MAIL MONEY - Monies received through the mail for deposit into the spendable account. (Does not include refunds.)

PRISON INDUSTRIES PROGRAM - Any work activity engaged in by adult inmates assigned to an Institution, including Arizona Correctional Industries (ACI), Prison Industry Enhancement (PIE) program, ACI Work Contracts. This program excludes WIPP and Activities and Recreation (A&R) paid inmate income.

RESTITUTION - Court-ordered restitution is payment by the inmate to a victim as ordered by the Court. Disciplinary Restitution is payment by the inmate to the Department as ordered in a disciplinary Hearing.

RETENTION - Monies accrued from wage compensation in accordance with Attachments B & D.

SET-OFF - Deducting monies in any account managed by the Department on behalf of an inmate after a decision is received that orders the inmate to pay court costs, attorney fees and/or punitive damages.

A set-off may be a continuing request so that some funds coming into an inmate's account are automatically set off.

All funds in the inmate's account that are not otherwise designated for dependent care, room and board, court-ordered restitution or prior disciplinary restitution are subject to set-off, except that the account may not be reduced below $12.00 at the time of the set-off.

SPENDABLE BALANCE - Remaining balance in the inmate's trust fund after expenditures have been deducted. This balance is sometimes referred to as Spendable Account.

SPENDABLE EARNINGS

HOURLY WAGE           SPENDABLE  EARNINGS

$2.00 per hour or less        Entire amount less mandatory deductions

$2.00 per hour or greater   50 cents per hour plus 10 % of the balance in excess of 50 cents per                                              hour in accordance with A.R.S. 31-254

AUTHORITY

A.R.S. 12-302, Extensions of Time for Payment of Fees; Relief from Default for Nonpayment.

A.R.S. 28-692.01, Persons Under the Influence of Intoxicating Liquor or Drugs.

A.R.S. 28-692.02, Increased Punishment for Conviction of Driving While Under the Influence of Intoxicating Liquor or Drugs While License Suspended, Revoked or Refused or If Person has not Applied for or Obtained a License

A.R.S. 31-201.01, Medical Costs for Inmate Injuries Caused by Assaults

A.R.S. 31-228, Procedure for Discharge of Prisoner, Return of Property; Furnishing Money, Clothing and Transportation Ticket; Allowing Hair to Grow Before Discharge.

A.R.S. 31-237, Dedicated Discharge Accounts.

A.R.S. 31-239, Utility Fees

A.R.S. 31-254, Compensation for Labor Performed; Price of Prison-Made Articles; Distribution of Earnings; Prisoner's Not Employees and Not Entitled to Worker's Compensation.

A.R.S. 31-255, Alcohol Abuse Treatment Fund.

A.R.S. 31-323, Compensation for Prisoner Participation in Approved Programs.

A.R.S 41-1602.02, Canteens; Establishment; Prices; Goods; Insurance.

A.R.S. 41-1604.03, Special Services Fund; Monies; Uses.

A.R.S. 41-1604.04, Investment of Special Service Funds Monies; Approval; Deposit of Proceeds.

A.R.S. 41-1604.05, Investment of Offenders' Funds; Deposit of Proceeds; Commingling Permitted.

A.R.S. 41-1613, Duties and Powers of the Director pertaining To Community Correctional Centers.

ATTACHMENT A

DEPARTMENT ORDER 905

ARIZONA DEPARTMENT OF CORRECTIONS

SCHEDULE OF DEDUCTIONS FROM INMATE MONIES

* PIE Programs Only-Victim's Compensation Fund 10% of Gross Wages (Attachment D)

June 19, 2002

ATTACHMENT B

DEPARTMENT ORDER 905

EXAMPLE CALCULATION OF $2.00 OR GREATER (NOT PIE):

GENERAL POPULATION INMATE

DUI INMATES

ATTACHMENT C

DEPARTMENT ORDER 905

EXAMPLE CALCULATION OF LESS THAN $2.00:

GENERAL POPULATION INMATE

DUI INMATES

ATTACHMENT D

DEPARTMENT ORDER 905

P I E PAYROLL

GENERAL POPULATION INMATE

80 % Rule calculation

DUI INMATES

80% Rule calculation

ATTACHMENT E

DEPARTMENT ORDER 905

EXAMPLE OF CALCULATION OF DEDUCTION FROM DEPOSITS RECEIVED IN MAIL:

ATTACHMENT F

DEPARTMENT ORDER 905

DISCHARGE PROCEDURES: INMATE FUNDS AND DISCHARGE ALLOWANCE

ATTACHMENT G

DEPARTMENT ORDER 905

EXAMPLE OF FORFEITURE OF INMATE EARNINGS UPON ESCAPE:

Amount to remain encumbered in inmate's account = Unearned income-expenses, if amount is less than $0.00, the amount to remain encumbered in inmate's account is $0.00.

Amount to be forfeited to A&R = total of earned income. If the amount to remain encumbered = $0.00, then the entire balance of the account is forfeited. If the amount to remain encumbered is greater than $0.00, subtract amount to remain encumbered from the balance of the account.

• Monies received from other sources which shall remain in the encumbered account pending payments toward apprehension costs with the escape.

• The earnings of $91.00 in the spendable balance shall all be forfeited to the local A&R fund. Also, any earnings in the inmate's retention account is forfeited.

Questions concerning any calculations shall be directed to the Business and Finance Bureau Administrator or designee.

ATTACHMENT H

DEPARTMENT ORDER 905

INSTITUTION

COLLECTION OF INMATE MONIES