(1) Inmates incarcerated in a state prison shall be subject to a minimum 20% savings deduction from their monthly earnings, which will be held in trust for each inmate and accounted for in savings subaccounts on the department trust accounting system.

(2) The savings deduction will be applied to an inmate's monthly earnings after accounting for all mandatory obligations. If taking a monthly savings deduction will render the inmate indigent as defined in department policy, no savings will be deducted for that month.

(3) For purposes of this rule, "monthly earnings":

(a) include funds received from the department for education, treatment, or work assignments;

(b) exclude funds received from outside sources including family and proceeds from hobby sales.

(4) Funds transferred to savings subaccounts will not be subject to additional deductions for child support or other obligations under 53-1-107(2), MCA.

(5) An inmate serving a life sentence without the possibility of parole may request the department to return funds deducted from the inmate's earnings and set aside in the savings subaccount.

(6) Funds in the savings subaccount may be used prior to release to pay re-entry expenses. All re-entry expenses to be paid prior to an inmate's release must be requested by the inmate in writing and approved by a designated department employee.

(7) Upon release from custody, the department shall return the balance of an inmate's savings subaccount to the inmate.