Sec. 7. (a) A person under the control of a county detention facility or the department of correction who: (1) has been charged with a new crime while confined; or (2) has allegedly violated a rule of the department or county facility; may be immediately assigned to Class III and may have all earned credit time suspended pending disposition of the allegation. (b) A person assigned to Class III under subsection (a) shall be denied release on parole or discharge until: (1) he is in the actual custody of the department or the county detention facility to which he was sentenced; and (2) he is granted a hearing concerning the allegations. The department or sheriff may waive the hearing if the person is restored to his former credit time class and receives all previously earned credit time and any credit time that he would have earned if he had not been assigned to Class III. (c) A person who is assigned to Class III under subsection (a) and later found not guilty of the alleged misconduct shall have all earned credit time restored and shall be reassigned to the same credit time class that he was in before his assignment to Class III. In addition, the person shall be credited with any credit time that he would have earned if he had not been assigned to Class III.
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