Introduced Version HOUSE BILL No. 1395 _____ DIGEST OF INTRODUCED BILL Citations Affected: IC 12-7-2; IC 12-14-5.4. Synopsis: Drug testing requirement for TANF eligibility. Provides that as a condition of receiving temporary assistance for needy families (TANF), an individual who is at least 18 years of age must submit to and pass: (1) a drug test at the time the individual applies to receive TANF; and (2) routine, randomly scheduled drug tests while the individual is receiving TANF (required drug tests). Provides that the testing requirement does not apply to an individual who receives TANF benefits on behalf of a child and does not receive TANF benefits on the individual's own behalf. Requires county offices of the office of the secretary of family and social services (FSSA) to inform TANF applicants of the drug testing requirement. Provides that an individual who fails a required drug test is ineligible to receive TANF benefits until the individual: (1) provides to FSSA evidence that the individual is participating in, or on a waiting list to participate in, a drug abuse treatment program; and (2) passes two consecutive drug tests. Provides for appointment of a representative payee to receive TANF on behalf of a child if the individual who would otherwise receive TANF on behalf of the child is ineligible for TANF as a result of failing a required drug test. Provides that if an individual fails a required drug test, FSSA shall withhold the amount of the cost of: (1) the drug test; and (2) any subsequent required drug test; from future TANF benefits the individual receives. Requires a county office of FSSA to provide a list of drug abuse treatment programs to an individual who fails a required drug test. Specifies requirements for a facility that administers a required drug test. Requires FSSA to provide to: (1) the Indiana housing and community development authority; and (2) any division (Continued next page) Effective: July 1, 2025. Davis, Prescott January 13, 2025, read first time and referred to Committee on Family, Children and Human Affairs. 2025 IN 1395—LS 7129/DI 119 Digest Continued of FSSA that implements the Supplemental Nutrition Assistance Program; the name of an individual who fails a required drug test. Provides that FSSA's records concerning the results of an individual's required drug test may not be admitted against the individual in a criminal proceeding. Provides for administrative remedies and an appeals process with regard to the drug testing requirement. Requires FSSA to collect data to assess and prevent discrimination based on race, ethnicity, or sex with regard to the administration of the drug testing requirement. Consolidates overlapping definitions of "TANF" and "TANF program". 2025 IN 1395—LS 7129/DI 1192025 IN 1395—LS 7129/DI 119 Introduced First Regular Session of the 124th General Assembly (2025) PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type. Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution. Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2024 Regular Session of the General Assembly. HOUSE BILL No. 1395 A BILL FOR AN ACT to amend the Indiana Code concerning human services. Be it enacted by the General Assembly of the State of Indiana: 1 SECTION 1. IC 12-7-2-111, AS AMENDED BY P.L.10-2019, 2 SECTION 52, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 3 JULY 1, 2025]: Sec. 111. (a) "Immediate family", for purposes of the 4 statutes listed in subsection (b), means the following: 5 (1) If a Medicaid applicant is married, the applicant's spouse and 6 dependent children less than twenty-one (21) years of age. 7 (2) If a Medicaid applicant is not married, the following: 8 (A) If the applicant is divorced, the parent having custody. 9 (B) If the applicant is less than twenty-one (21) years of age: 10 (i) the parent having custody; and 11 (ii) the dependent children less than twenty-one (21) years 12 of age of the parent or parents. 13 (C) If clauses (A) and (B) do not apply, the applicant's parents. 14 (b) This section Subsection (a) applies to the following statutes: 15 (1) IC 12-14-1 through IC 12-14-8, except IC 12-14-5.4. 2025 IN 1395—LS 7129/DI 119 2 1 (2) IC 12-15, except IC 12-15-32, IC 12-15-33, and IC 12-15-34. 2 (c) "Immediate family", for purposes of IC 12-14-5.4, means 3 any of the following: 4 (1) A parent. 5 (2) A stepparent. 6 (3) A grandparent. 7 (4) A sibling who is at least twenty-one (21) years of age. 8 (5) A legal guardian. 9 SECTION 2. IC 12-7-2-138, AS AMENDED BY P.L.141-2006, 10 SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 11 JULY 1, 2025]: Sec. 138. "Physician" means the following: 12 (1) For purposes of IC 12-10-17.1, IC 12-14-5.4, and 13 IC 12-15-35, an individual who is licensed to practice medicine 14 in Indiana under IC 25-22.5. 15 (2) For purposes of IC 12-26, either of the following: 16 (A) An individual who holds a license to practice medicine 17 under IC 25-22.5. 18 (B) A medical officer of the United States government who is 19 in Indiana performing the officer's official duties. 20 SECTION 3. IC 12-7-2-189.7 IS REPEALED [EFFECTIVE JULY 21 1, 2025]. Sec. 189.7. "TANF", for purposes of IC 12-20, refers to the 22 federal Temporary Assistance for Needy Families program under 42 23 U.S.C. 601 et seq. 24 SECTION 4. IC 12-7-2-189.8, AS ADDED BY P.L.92-2005, 25 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 26 JULY 1, 2025]: Sec. 189.8. "TANF" or "TANF program" refers to the 27 federal Temporary Assistance for Needy Families program under 42 28 U.S.C. 601 et seq. 29 SECTION 5. IC 12-14-5.4 IS ADDED TO THE INDIANA CODE 30 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE 31 JULY 1, 2025]: 32 Chapter 5.4. Drug Testing of TANF Applicants and Recipients 33 Sec. 1. (a) This chapter applies to an individual who: 34 (1) is eligible to receive TANF benefits; and 35 (2) is at least eighteen (18) years of age. 36 (b) This chapter does not apply to an individual who receives 37 TANF benefits on behalf of a child and does not receive TANF 38 benefits on the individual's own behalf. 39 Sec. 2. As used in this chapter, "controlled substance" has the 40 meaning set forth in IC 35-48-1-9. 41 Sec. 3. As used in this chapter, "drug test" means a test capable 42 of detecting the presence of a controlled substance in the body of 2025 IN 1395—LS 7129/DI 119 3 1 an individual to whom the test is administered. 2 Sec. 4. For purposes of this chapter, an individual "fails a drug 3 test" if: 4 (1) a drug test administered to the individual indicates the 5 presence of a controlled substance in the individual's body; 6 and 7 (2) the individual's use of the controlled substance is not 8 authorized by: 9 (A) a valid prescription; or 10 (B) an order of a physician acting in the course of the 11 physician's professional practice. 12 Sec. 5. For purposes of this chapter, an individual "passes a 13 drug test": 14 (1) if a drug test administered to the individual does not 15 indicate the presence of a controlled substance in the 16 individual's body; or 17 (2) if: 18 (A) a drug test administered to the individual indicates the 19 presence of a controlled substance in the individual's body; 20 and 21 (B) the individual's use of the controlled substance is 22 authorized by: 23 (i) a valid prescription; or 24 (ii) an order of a physician acting in the course of the 25 physician's professional practice. 26 Sec. 6. As used in this chapter, "routine, random drug test" 27 means a drug test administered to an individual: 28 (1) as directed by the office of the secretary; and 29 (2) on a date that: 30 (A) is: 31 (i) at least twenty (20) days; and 32 (ii) not more than thirty (30) days; 33 after the date of the most recent drug test to which the 34 individual was required to submit under this chapter; and 35 (B) is disclosed by the office of the secretary to the 36 individual not earlier than the immediately preceding day. 37 Sec. 7. A county office shall provide the following information 38 in writing to an individual at the time the individual applies to 39 receive TANF benefits on the individual's own behalf: 40 (1) The individual is required to: 41 (A) be tested for the use of controlled substances at the 42 time of application; and 2025 IN 1395—LS 7129/DI 119 4 1 (B) submit to routine, random drug tests while receiving 2 TANF benefits. 3 (2) If the individual fails a drug test to which the individual is 4 required to submit under this chapter: 5 (A) the individual may be: 6 (i) ineligible for TANF; and 7 (ii) ineligible to receive TANF benefits on behalf of a 8 child; and 9 (B) the cost of the drug test, and of any subsequent drug 10 test to which the individual is required to submit under this 11 chapter, will be withheld from future TANF benefits the 12 individual receives. 13 Sec. 8. An individual must, as a condition of receiving TANF 14 benefits on the individual's own behalf, submit to and pass: 15 (1) a drug test at the time the individual applies to receive; 16 and 17 (2) routine, random drug tests while the individual is 18 receiving; 19 TANF benefits on the individual's own behalf. 20 Sec. 9. An individual who fails a drug test to which the 21 individual is required to submit under section 8 of this chapter is 22 ineligible to receive TANF benefits until the individual: 23 (1) provides to the office of the secretary evidence that the 24 individual is: 25 (A) participating in; or 26 (B) on a waiting list to participate in; 27 a drug abuse treatment program; and 28 (2) passes two (2) consecutive routine, random drug tests. 29 Sec. 10. (a) An individual is ineligible to receive TANF benefits 30 on behalf of a child for the duration of a period during which the 31 individual is ineligible to receive TANF benefits under section 9 32 this chapter. 33 (b) If an individual is ineligible to receive TANF benefits on 34 behalf of a child under subsection (a): 35 (1) the child's eligibility to receive TANF benefits is not 36 affected; and 37 (2) the individual may designate as a representative payee to 38 receive TANF benefits on behalf of the child during the 39 individual's period of ineligibility to receive TANF benefits: 40 (A) an immediate family member of the child; or 41 (B) an individual who is: 42 (i) not an immediate family member of the child; and 2025 IN 1395—LS 7129/DI 119 5 1 (ii) approved by the division to act as a representative 2 payee for the child; 3 if no immediate family member of the child is available or 4 willing to act as a representative payee for the child. 5 (c) If an individual: 6 (1) is ineligible to receive TANF benefits on behalf of a child 7 under subsection (a); and 8 (2) does not designate a representative payee for the child 9 under subsection (b); 10 the division shall designate a representative payee for the child. If 11 the division designates a representative payee for a child under this 12 subsection, the division may designate an individual who is not an 13 immediate family member of the child only if no immediate family 14 member of the child is available or willing to act as a 15 representative payee for the child. 16 (d) If an individual who is designated as a representative payee 17 for a child under this section has been convicted of: 18 (1) a controlled substance offense under IC 35-48-4; or 19 (2) an offense in another jurisdiction that is substantially 20 similar to a controlled substance offense under IC 35-48-4; 21 the individual must submit to and pass a drug test in order to serve 22 as the representative payee for the child. The individual shall pay 23 the cost of the drug test required under this subsection. If the 24 individual fails the drug test or fails to pay the cost of the drug test, 25 the individual may not act as a representative payee for the child. 26 (e) The office of the secretary shall notify the department of 27 child services regarding a child for whom a representative payee 28 has been designated under this section. 29 Sec. 11. (a) Except as provided in section 10(d) of this chapter 30 and subsection (b), the office of the secretary shall pay the cost of 31 a drug test required under this chapter. 32 (b) If an individual fails a drug test to which the individual is 33 required to submit under this chapter, the office of the secretary 34 shall withhold the amount of the cost of: 35 (1) the drug test; and 36 (2) any subsequent drug test to which the individual is 37 required to submit under this chapter; 38 from future TANF benefits the individual receives. 39 Sec. 12. A county office shall provide a list of drug abuse 40 treatment programs to an individual who fails a drug test to which 41 the individual is required to submit under this chapter. 42 Sec. 13. A drug test required under this chapter must be 2025 IN 1395—LS 7129/DI 119 6 1 performed by a: 2 (1) SAMHSA (as defined in IC 22-10-15-3) clinical laboratory; 3 or 4 (2) clinical laboratory holding a federal Clinical Laboratory 5 Improvement Act (CLIA) certificate or a CLIA certificate of 6 accreditation. 7 Sec. 14. The office of the secretary shall provide to: 8 (1) the Indiana housing and community development 9 authority created by IC 5-20-1-3; and 10 (2) any division of the office of the secretary that implements 11 SNAP (as defined in IC 12-14-30-1); 12 the name of an individual who fails a drug test to which the 13 individual is required to submit under this chapter. 14 Sec. 15. The office of the secretary's records concerning the 15 results of a drug test to which an individual is required to submit 16 under this chapter may not be admitted against the individual in 17 a criminal proceeding. 18 Sec. 16. (a) This chapter is subject to administrative hearing 19 procedures under IC 4-21.5. 20 (b) The office of the secretary shall provide an appeals process 21 for individuals required to submit to drug testing under this 22 chapter. 23 Sec. 17. The office of the secretary shall collect data to assess 24 and prevent discrimination based on race, ethnicity, or sex with 25 regard to the administration of this chapter. 26 Sec. 18. The office of the secretary may adopt rules under 27 IC 4-22-2 necessary to implement this chapter. 2025 IN 1395—LS 7129/DI 119