1. A. Any inmate in a penal institution as defined in paragraph 2 of subsection B of Section 566 of this title who successfully obtains a final court order or settlement agreement awarding damages for any cause of action in any federal or state proceedings against the state, a state agency, the Department or any political subdivision, or any employee thereof, shall pay or satisfy from the award any previous assessments of court costs or fines involving the criminal convictions of the offender, victims compensation assessments, restitution awards, probation or parole fees, child support or alimony, civil judgments, and any deficiencies of debts not paid of which the Department of Corrections has notice by lien, garnishment, or other appropriate process. Twenty percent (20%) of the remaining balance of the award shall be placed in the offender's mandatory savings account and the remainder shall be placed in the offender's regular draw account. The state shall give notice to the inmate of known debts owed by the inmate and shall disburse the award ninety (90) days after the notice is mailed.
2. B. Any inmate, as defined in paragraph 2 of subsection B of Section 566 of this title, who successfully obtains a final court order awarding damages for any cause of action arising in tort or contract, in any state or federal proceedings, or any settlement agreement, against any party shall notify the Department of Corrections of the award and shall make the same distribution of the award as is provided in subsection A of this section. In addition, the state, the Department of Corrections, any other state agency, or any political subdivision of the state shall have the first right of subrogation to any such award or settlement for costs of services incurred by the state, state agency, or political subdivision in relation to such claim, for service provided to the inmate at the request of the inmate, and for all costs of incarceration, before any part of the award is placed in the trust account of the inmate.

Added by Laws 1995, HB 1171, c. 141, § 3, eff. November 1, 1995; Amended by Laws 1999, SB 575, c. 127, § 2, emerg. eff. July 1, 1999 (superseded document available).