HB 1296

           Second Regular Session of the 124th General Assembly (2026)
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between statutes enacted by the 2025 Regular Session of the General Assembly.
    HOUSE ENROLLED ACT No. 1296
    AN ACT to amend the Indiana Code concerning human services.
    Be it enacted by the General Assembly of the State of Indiana:
   SECTION 1. IC 12-7-2-78.6 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2026]: Sec. 78.6. "Ethical standards", for purposes of
IC 12-23-25, has the meaning set forth in IC 12-23-25-1.
   SECTION 2. IC 12-7-2-117.9 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 117.9. "Integrated reentry and
correctional support" refers to mental health and substance use
services and support, including certified peer support recovery
resources and treatment, provided to individuals during
incarceration and reentry.
   SECTION 3. IC 12-7-2-135.2 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 135.2. "Owner", for purposes of
IC 12-23-25, has the meaning set forth in IC 12-23-25-2.
   SECTION 4. IC 12-7-2-158.3 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 158.3. "Recovery residence
services", for purposes of IC 12-23-25, has the meaning set forth in
IC 12-23-25-3.
   SECTION 5. IC 12-21-2-3, AS AMENDED BY P.L.104-2024,
SECTION 47, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
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JULY 1, 2026]: Sec. 3. The secretary or the secretary's designee shall
do the following:
     (1) Organize the division, create the appropriate personnel
     positions, and employ personnel necessary to discharge the
     statutory duties and powers of the division or a bureau of the
     division.
     (2) Subject to the approval of the state personnel department,
     establish personnel qualifications for all deputy directors,
     assistant directors, bureau heads, and superintendents.
     (3) Subject to the approval of the budget director and the
     governor, establish the compensation of all deputy directors,
     assistant directors, bureau heads, and superintendents.
     (4) Study the entire problem of mental health, mental illness, and
     addictions existing in Indiana.
     (5) Adopt rules under IC 4-22-2 for the following:
         (A) Standards for the operation of private institutions that are
         licensed under IC 12-25 for the diagnosis, treatment, and care
         of individuals with psychiatric disorders, addictions, or other
         abnormal mental conditions.
         (B) Licensing or certifying community residential programs
         described in IC 12-22-2-3.5 for individuals with serious
         mental illness (SMI), serious emotional disturbance (SED), or
         chronic addiction (CA) with the exception of psychiatric
         residential treatment facilities.
         (C) Subject to IC 12-29-2-21, certifying community mental
         health centers to operate in Indiana.
         (D) Establish exclusive geographic primary service areas for
         community mental health centers. The rules must include the
         following:
            (i) Criteria and procedures to justify the change to the
            boundaries of a community mental health center's primary
            service area.
            (ii) Criteria and procedures to justify the change of an
            assignment of a community mental health center to a
            primary service area.
            (iii) A provision specifying that the criteria and procedures
            determined in items (i) and (ii) must include an option for
            the county and the community mental health center to
            initiate a request for a change in primary service area or
            provider assignment.
            (iv) A provision specifying the criteria and procedures
            determined in items (i) and (ii) may not limit an eligible
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         consumer's right to choose or access the services of any
         provider who is certified by the division of mental health
         and addiction to provide public supported mental health
         services.
   (6) Institute programs, in conjunction with an accredited college
   or university and with the approval, if required by law, of the
   commission for higher education, for the instruction of students
   of mental health and other related occupations. The programs may
   be designed to meet requirements for undergraduate and
   postgraduate degrees and to provide continuing education and
   research.
   (7) Develop programs to educate the public in regard to the
   prevention, diagnosis, treatment, and care of all abnormal mental
   conditions.
   (8) Make the facilities of the state institutions available for the
   instruction of medical students, student nurses, interns, and
   resident and fellow physicians under the supervision of the faculty
   of any accredited school of medicine or osteopathy located in
   Indiana or an accredited residency or fellowship training program
   in connection with research and instruction in psychiatric
   disorders.
   (9) Institute a stipend program designed to improve the quality
   and quantity of staff that state institutions employ.
   (10) Establish, supervise, and conduct community programs,
   either directly or by contract, for the diagnosis, treatment, and
   prevention of psychiatric disorders.
   (11) Adopt rules under IC 4-22-2 concerning the records and data
   to be kept concerning individuals admitted to state institutions,
   community mental health centers, or other providers.
   (12) Compile information and statistics concerning the ethnicity
   and gender of a program or service recipient.
   (13) Establish standards for services described in IC 12-7-2-40.6
   for community mental health centers and other providers.
   (14) Provide that the standards for services provided by recovery
   residences for residential care and supported housing for chronic
   addiction, when used as a recovery residence, to:
       (A) be certified through an entity approved by the division to
       ensure adherence to standards determined by the National
       Alliance for Recovery Residences (NARR) or a similar entity;
       and
       (B) meet other standards established by the division under
       rules adopted under IC 4-22-2.
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     (15) Provide that the standards for services provided by recovery
     community organizations for behavioral health recovery, when
     used as a recovery community organization:
         (A) be certified through an entity approved by the division to
         ensure adherence to standards determined by the Indiana
         Recovery Network or similar entity that certifies recovery
         community organizations; and
         (B) meet other standards established by the division under
         rules adopted under IC 4-22-2.
     (16) Certify integrated reentry and correctional support
     programs to ensure adherence to standards determined by the
     division or a certification body approved by the division.
     (16) (17) Require the division to:
         (A) provide best practice recommendations to community
         mental health centers; and
         (B) work with community mental health centers in a
         collaborative manner in order to ensure improved health
         outcomes as a part of reviews or audits.
     Documentation developed as a part of an incident or death
     reporting audit or review is confidential and may only be shared
     between the division and the community mental health center.
   SECTION 6. IC 12-23-25 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]:
   Chapter 25. Registration of Recovery Residences
   Sec. 1. As used in this chapter, "ethical standards" means the
ethical standards for recovery residences determined by any of the
following:
     (1) The National Alliance for Recovery Residences (NARR).
     (2) The Indiana Affiliation of Recovery Residences.
     (3) A similar organization, as determined by the division.
   Sec. 2. As used in this chapter, "owner" means a person that
owns a recovery residence.
   Sec. 3. As used in this chapter, "recovery residence services"
means residential care and supported housing for individuals with
chronic addiction provided in a recovery residence.
   Sec. 4. An owner shall register with the division for the purpose
of ensuring adherence to ethical standards.
   Sec. 5. (a) An owner applying for registration under this chapter
shall provide to the division the following:
     (1) Information concerning the owner's qualifications and
     work experience. The owner must certify that the information
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      provided under this subdivision is correct.
      (2) Official documentation that the owner has met all
      applicable zoning and legal requirements concerning the
      recovery residence.
      (3) Three (3) letters of reference.
      (4) Subject to subsection (c), a registration fee of five hundred
      dollars ($500) for each recovery residence owned.
      (5) Proof that the owner and all recovery residence staff are
      at least eighteen (18) years of age.
      (6) A statement that the owner will adhere to the ethical
      standards.
      (7) Any other information required by the division.
    (b) A registration is valid for two (2) years. The owner shall
renew the recovery residence's registration by:
      (1) updating any information required under subsection (a)
      that has changed; and
      (2) subject to subsection (c), paying a renewal fee of three
      hundred fifty dollars ($350) for each recovery residence.
    (c) This subsection applies to an owner that owns more than one
(1) recovery residence. The division may not charge an owner a
total amount for registration or renewal fees that exceeds two
thousand dollars ($2,000) for each registration or renewal period.
    Sec. 6. The division shall post a list of recovery residences
registered under this chapter on the division's public website,
including the following information for each recovery residence:
      (1) Name.
      (2) Address.
      (3) Contact information.
      (4) Registration status.
      (5) Any violations of the ethical standards.
      (6) Any other information required by the division.
    Sec. 7. An owner may not use the words "recovery residence"
in a title or description of a facility, organization, or program that
provides recovery residence services unless the recovery residence
is registered and in good standing under this chapter.
    Sec. 8. The division shall adopt rules under IC 4-22-2
concerning the following:
      (1) The issuance, revocation, and denial of a registration.
      (2) Any other rules necessary to implement this chapter.
    Sec. 9. An administrative proceeding under this chapter is
governed by IC 4-21.5.
    Sec. 10. The division may contract with the Indiana Affiliation
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of Recovery Residences or a similar entity that specializes in the
ethical standards to administer the registration of recovery
residences under this chapter, including maintaining the list
described in section 6 of this chapter and performing any
administrative activities necessary to implement this chapter.
   Sec. 11. This chapter does not affect the standards for the
certification of recovery residences established under
IC 12-21-2-3(14).
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Speaker of the House of Representatives
President of the Senate
President Pro Tempore
Governor of the State of Indiana
Date:  Time:
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