(a) Under any work-release program, earnings by the inmate shall be paid directly to the Division of Correction and applied as follows:
(1) The division shall retain an amount to be established by the Director of the Division of Correction which will reasonably compensate the division for the cost of feeding, housing, and supervising the inmate;
(2) The division shall determine if the inmate has persons dependent upon him or her for their support and may remit to such persons that portion of the earnings which the director considers reasonable;
(3)
(A) The division shall determine if the inmate has created victims of his or her criminal conduct who are entitled to restitution or reparations for physical injury or loss of or damage to property and may remit to the victim that portion of the earnings which the director considers reasonable.
(B) However, in no case shall the portion of the earnings remitted for restitution be in excess of twenty-five percent (25%) of the inmate's income remaining after deduction for the cost of care, custody, and family support provided for in subdivisions (a)(1) and (2) of this section.
(C) The names and addresses of victims and the amount of restitution to be paid shall be provided to the director by certificate of the trial court in which the inmate was convicted; and
(4) The balance shall be deposited to the account of the inmate.
(b) Inmates may be required to contribute to the support of their dependents who may be receiving public assistance during the period of their commitment if funds credited to them are adequate for that purpose provided that all inmates participating in the work-study release programs shall continue to be housed at a division institution.
(c) The division shall promulgate rules governing the possession of or use of money by inmates and may prohibit the possession of money by inmates and may establish a system for the custody of all funds belonging to inmates, for the balance of such fund period.