(a) The department shall take possession of all money that an inmate has on the inmate’s person or that is received with the inmate when the inmate arrives at a facility to be admitted to the custody of the department and all money the inmate receives at the department during confinement and shall credit the money to an account created for the inmate. The department may spend money from an inmate account on the written order of the inmate in whose name the account is established or as required by law or policy subject to restrictions on the expenditure established by law or policy. The department shall ensure that each facility operated by or under contract with the department shall operate an account system that complies with this section, but the department is not required to operate a separate account system for or at each facility.
(b) If an inmate with money in an account established under Subsection (a) dies while confined in a facility operated by or under contract with the department, the department shall attempt to give notice of the account to a beneficiary or known relative of the deceased inmate. On the presentation of a notarized claim to the department for the money by a person entitled to the notice, the department may pay any amount not exceeding $2,500 of the deceased inmate’s money held by the department to the claimant. A claim for money in excess of $2,500 must be made under Chapter 205, Estates Code, or another law, as applicable. The department is not liable for making a payment or failing to make a payment under this subsection.

(c) If money is unclaimed two years after the department gives or attempts to give notice under Subsection (b), or two years after the date of the death of an inmate whose beneficiary or relative is unknown, the executive director, or the executive director’s designee, shall make an affidavit stating that the money in the inmate account is unclaimed and send the affidavit and money to the comptroller.
(d) An inmate who escapes or attempts to escape from the custody of the department forfeits to the department all of the money held by the department in the inmate’s account at the time of the escape or attempted escape. Money forfeited to the comptroller under Subsection (c) escheats to the state.
(e) On notification by a court, the department shall withdraw from an inmate’s account any amount the inmate is ordered to pay by order of the court under this subsection. On receipt of a valid court order requiring an inmate to pay child support, the department shall withdraw the appropriate amount from the inmate’s account under this subsection, regardless of whether the court order is provided by the court or another person. The department shall make a payment under this subsection to either the court or the party specified in the court order. The department is not liable for withdrawing or failing to withdraw money or making payments or failing to make payments under this subsection. The department shall make withdrawals and payments from an inmate’s account under this subsection according to the following schedule of priorities:
(1) as payment in full for all orders for child support;
(2) as payment in full for all orders for restitution;
(3) as payment in full for all orders for reimbursement of the Health and Human Services Commission for financial assistance provided for the child’s health needs under Chapter 31, Human Resources Code, to a child of the inmate;
(4) as payment in full for all orders for court fees and costs;
(5) as payment in full for all orders for fines; and
(6) as payment in full for any other court order, judgment, or writ.
(e-1) Notification from a court under Subsection (e) of an order for restitution must specify the amount of restitution owed on the date of notification.
(f) The department may place a hold on money in or withdraw money from an inmate account:
(1) to restore amounts withdrawn by the inmate against uncollected money;
(2) to correct accounting errors;
(3) to make restitution for wrongful withdrawals made by an inmate from the account of another inmate;
(4) to cover deposits until cleared;
(5) as directed by court order in accordance with Subsection (e);
(6) as part of an investigation by the department of inmate conduct involving the use of the account or an investigation in which activity or money in the inmate’s account is evidence;
(7) to transfer money deposited in violation of law or department policy; or
(8) to recover money the inmate owes the department for indigent supplies, medical copayments, destruction of state property, or other indebtedness.
(g) The department shall withdraw money from an inmate’s account under Subsection (e) before the department applies a deposit to that account toward any unpaid balance owed to the department by the inmate under § 501.063.