(a) The damage to property arises out of the employee’s employment at one of the institutions or facilities operated by the youth authority; and

(b) The employee files a written claim with the employee’s employer within 180 days after the employee discovers or should have discovered the damage.

(2) No claim under subsection (1) of this section shall be paid:

(a) That exceeds, in the aggregate with payments of other claims, the moneys appropriated for such purpose.

(b) To the extent that the person incurring damage has been or may be compensated by liability insurance or otherwise.

(c) If the youth authority determines the cause or occasion of the accident resulting in damage is chargeable to the conduct or negligence of the person damaged.

(3) The decision of the youth authority to reject any claim filed under this section is final and is not subject to review under ORS chapter 183 or by any other agency or court. The provisions of this section do not affect any other remedy that may be available to the claimant under law.

(4)(a) If any person owes a debt to this state or a state agency, and the debt has been fixed by final judgment of a court of competent jurisdiction or is no longer subject to judicial review, the youth authority shall deduct the amount of the debt from any award made to that person under this section.

(b) The youth authority shall request the State Treasurer to transfer to the appropriate fund or account to which the debt is owed, an amount equal to the amount deducted from the award under paragraph (a) of this subsection, for use during that biennium in accordance with law by the state agency administering the fund or account to which the debt is owed. The State Treasurer shall evidence the transfer by proper bookkeeping entries. If the youth authority or State Treasurer cannot determine the appropriate fund or account, the amount shall be transferred to the General Fund for general governmental purposes.

(c) Any debt owed by a person to this state or a state agency is satisfied, upon the completion of a transfer made pursuant to paragraph (b) of this subsection, to the extent of the amount so transferred. [1999 c.905 §10]