(1) It is unlawful for any offender committed to the department to possess:

(a) Coin or currency on his person or in premises assigned to him or under his control;

(b) A money order, traveler’s check, promissory note, credit card, personal check or other negotiable instrument.

(2) Subsection (1) does not apply to offenders who are granted a parole; placed on work release, supervised earned release, earned probation or probation; or granted leave for the duration of such leave; however, these offenders may be restricted by the parole or probation order or by order of the commissioner with respect to amounts or form of money possessed or controlled by the offenders.

(3) A violation of subsection (1) shall be considered a rules violation or a violation of the conditions of parole or probation as the case may be and shall be processed in the manner of similar violations.

(4) Any money possessed by an offender may be confiscated by the corrections officer who discovers the possession. The department shall establish a policy and procedure for the collection and accounting of all confiscated funds. All confiscated coin or currency shall be deposited in a special fund which is created in the State Treasury. The money in this special fund may be appropriated by the Legislature to enhance the security of the department’s facilities. Unexpended amounts remaining in the special fund at the end of a fiscal year shall not lapse into the State General Fund, but funds may be expended only by appropriation approved by the Legislature. Any interest earned on amounts in the special fund shall be deposited to the credit of the special fund.

(5) The possession of coin, currency, money order, traveler’s check or other negotiable instrument on the grounds of a facility is prohibited.

(6) The department shall establish a cashless system for facilities no later than July 1, 1996. The department shall provide lockers for visitors to place prohibited items when on grounds of a facility. The department is authorized to charge visitors an hourly rental fee for use of the lockers. Community work centers and restitution centers are exempt unless designated by the commissioner as being included in the cashless system.