Mental health services. Requires the secretary of family and social services to certify integrated reentry and correctional support programs. Requires the owner of a recovery residence to register with the division of mental health and addiction (division). Sets forth the requirements for registration. Requires the division to post a list of registered recovery residences on the division's public website and include certain information concerning each recovery residence. Requires the division to adopt rules concerning: (1) the issuance, revocation, and denial of a registration; and (2) any rules necessary to implement these provisions. Allows the division to contract with certain entities to administer the registration of recovery residences.

Department of education and education matters. Makes various changes to education provisions concerning the following: (1) Creating a teaching and learning framework for the implementation of mathematics academic standards. (2) Development of a data science math pathway. (3) Submission of a report to the general assembly concerning recommendations on strategies to support academically and fiscally underperforming schools, and interventions as necessary. (4) Evaluating, approving, and publishing high quality curricular materials time lines. (5) Local board membership for a local centralized school facilities board and local student transportation board. (6) Salary differentiation regarding teachers who possess a literacy endorsement. (7) Amounts expended in participating in an interlocal agreement included in determining amounts school corporations expend on full-time teacher salaries for purposes of teacher salary minimum funding requirements. (8) Summer school program and reimbursement administration. (9) Criteria required for eligibility of a waiver for conducting four day school weeks. (10) Oversight of career and technical education program designation. (11) Uses of teacher appreciation grants. (12) The calculation of operating referendum distributions and school safety referendum distributions to charter schools with regard to virtual instruction. (13) Petitions regarding reconsidering payments of choice scholarships. (14) Membership of the board for proprietary education. (15) The effective date regarding the changes to the definition of "eligible choice scholarship student". (16) Career specialist permit eligibility. Provides that an emergency permit may be renewed up to two times to an individual enrolled in an alternative teacher certification program if the program provides documentation verifying the individual's good standing in the program to the department of education. Creates a new qualification option for a transition to teaching program participant who seeks to obtain a license to teach in grades 5 through 12. Removes a provision that provides that the department may not release less than 10 items per subject matter level per grade level regarding the statewide summative assessment. Removes a requirement that for a parent or student to use a career scholarship account (CSA) annual grant amount for costs related to transportation a CSA participating entity must pay a matching amount for the transportation costs. Requires each state educational institution that offers a two year graduate degree program in mental or behavioral health to evaluate the graduate degree program to determine the feasibility of providing the program in a specifically structured manner to allow full-time students to complete the program within: (1) one year; or (2) five years if the program is combined with a baccalaureate degree program. Requires the Indiana department of education to elect to participate as a covered state in the federal tax credit scholarship program for elementary and secondary education under Section 25F of the Internal Revenue Code (enacted in Public Law 119-21, commonly known as the One Big Beautiful Bill Act of 2025). Makes conforming changes to the school scholarship tax credit in current law. Requires the governor and the department of workforce development, in consultation with the commission for higher education, to: (1) establish a process to identify eligible workforce training programs; (2) establish a process for institutions and programs to apply for recognition as an eligible workforce training program; (3) coordinate certain workforce training matters; and (4) require eligible workforce training programs to provide certain datasets to the department. Provides that the department of workforce development must maintain alignment with federal rules governing workforce Pell grants. Repeals certain provisions concerning postsecondary career and technical education.

Water intensive facilities. Provides that if a proposed economic development project includes proposed construction or establishment of a facility that will consume an average of at least 500,000 gallons of water per day in ordinary operation (water intensive facility), the Indiana finance authority (IFA) may not approve a bid for the project, the Indiana economic development corporation (IEDC) may not grant a job creation incentive for the project, and a local unit may not provide financing for the project unless the IFA, IEDC, or local unit: (1) provides notice of the proposed water intensive facility to the water utility that provides water utility service to the proposed location of the water intensive facility; (2) receives from the water utility a plan for provision of water utility service to the water intensive facility; (3) determines that the water utility's plan adequately ensures that: (A) the water utility can reliably meet both the ordinary and peak water demand of the water intensive facility; and (B) incremental costs of supplying water to the water intensive facility will be allocated to and paid by the water intensive facility; and (4) provides the water utility's plan to the local plan commission.

Classification of marijuana and THC. Moves marijuana and tetrahydrocannabinol (THC) from classification as schedule I controlled substances to schedule III. Makes a conforming amendment.

Deferred retirement option plan. Allows a member of the 1925 police pension fund, 1937 firefighters' pension fund, 1953 police pension fund (Indianapolis), or 1977 police officers' and firefighters' pension and disability fund to withdraw from the deferred retirement option plan (DROP) and make an election to enter the DROP for a second time not earlier than three years after the date the member withdraws from the DROP. Provides that a member may make an election to enter the DROP only twice in the member's lifetime.

Surrender of firearms for domestic violence crimes. Provides that a person who: (1) has been convicted of a crime of domestic violence; and (2) knowingly or intentionally possesses a firearm; commits a Class A misdemeanor. Specifies defenses. Requires a court to issue an order, upon entry of a judgment of conviction for domestic battery or a crime of domestic violence, that: (1) prohibits ownership or possession of a firearm; (2) requires the defendant to surrender: (A) any firearm owned or possessed by the defendant; and (B) any license or permit to carry a handgun (license) owned or possessed by the defendant; and (3) requires confiscation, within 72 hours, of any firearm or license owned or possessed by the defendant. Provides that a domestic batterer who knowingly or intentionally fails to surrender a certain firearm or license commits a Class A misdemeanor, enhanced to a Level 6 felony in specific instances. Provides defenses. Specifies how a confiscated firearm or license shall be returned or disposed of if a person's right to possess a firearm is restored.

Natural resource entrance fees. Allows counties to adopt an ordinance to impose a surcharge of not more than $2 in addition to the fees charged by the department of natural resources (department) for entry into state parks and state recreation areas. Requires the department to collect the surcharge and to report and pay the surcharge to each county treasurer. Provides that the revenue collected is to be used for purposes related to first responders and infrastructure improvements. Provides that the surcharge may not be imposed on a person who holds an annual pass.

Sentence modification. Requires the department of correction to issue a certificate of eligibility for rehabilitative release (certificate) to certain convicted persons. Provides that a certificate must be issued to the following: (1) A person sentenced for a crime other than murder who is at least 60 years of age, and has served at least 20 years in the department of correction. (2) A person serving a sentence for murder who is at least 62 years of age, and has served at least 30 years in the department of correction. Allows a convicted person who has received a certificate to file a petition for sentence modification without the consent of the prosecuting attorney. Provides certain criteria that the court must consider when ruling on a petition for sentence modification. Allows a court to grant a petition for sentence modification if the court finds, by clear and convincing evidence, that: (1) the convicted person is no longer a danger to public safety; (2) the convicted person has demonstrated significant rehabilitative efforts, including participation in educational, vocational, and therapeutic programs; and (3) the interest of justice supports sentence modification. Allows the state public defender to represent a convicted person on a petition for sentence modification that is based upon a certificate. Allows certain convicted persons to file a petition for sentence reduction. Requires a petition for sentence reduction to identify information related the convicted person, sentence sought to be reduced, and evidence in support of the request. Allows a court to dismiss an incomplete petition or set a hearing on a properly filed petition. Requires that notice of a hearing be served on the petitioner, convicted person, counsel, department of correction, prosecuting attorney, and the victim or witness. Requires a court to appoint a public defender to represent the convicted person. Provides that the court is to take certain factors into consideration when deciding a petition for sentence reduction. Specifies that if the evidence supports that the convicted person does not present a significant safety risk to the community, there is a rebuttable presumption that the convicted person's sentence should be reduced by at least 20%. Requires the court to issue a final appealable order with findings of fact.

Administrative rules review. Establishes the administrative rules review committee. Requires an agency to submit a rule, including an executive order, and the latest version of the regulatory analysis with any supporting documents to the office of fiscal management and analysis of the legislative services agency to estimate the fiscal impact on state and local government. Provides that if the fiscal impact is estimated to be greater than $300,000 in any two year period, the rule and supporting documents shall be provided to the administrative rules review committee for review. Provides that the rule described may not take effect unless authorized by a bill enacted by the general assembly, unless the governor certifies that an emergency exists and the rule is necessary to address the emergency. Specifies that a rule enacted to address an emergency expires after one year.

Various labor and safety matters. Repeals various provisions concerning the Indiana department of labor employer data base for youth employment. Removes provisions relating to a belt examiner certificate. Makes corresponding changes.

Collection of cost sharing. Provides that an insurer: (1) must pay a health care provider the full amount due for health care services under the health care provider's agreement with the insurer, including any cost sharing; (2) has the sole responsibility for collecting cost sharing from a covered individual; and (3) upon request of the covered individual, must collect cost sharing throughout the policy year in increments defined by the insurer. Prohibits an insurer from taking certain actions regarding the collection of cost sharing. Requires each insurer to certify to the insurance commissioner, before December 31 of each year, that the insurer has fully and completely complied with the requirements during the previous calendar year.

Sex crimes and child safety. Specifies the sex offender reporting requirements for persons who are sex offenders or required to register in other jurisdictions. Adds "high risk missing person" to the definition of "missing child". Specifies that the silver alert program applies to missing children. Removes provisions concerning possession of child sex abuse material (CSAM) from the statute containing the offense of child exploitation, and makes a new section for CSAM offenses. Creates a new crime for distribution of CSAM, and generally conforms the sentencing enhancements for possession of CSAM, distribution of CSAM, and child exploitation. Specifies that certain restrictions on CSAM in discovery also apply in civil proceedings (under current law, they only apply in criminal proceedings). Provides a defense in specified circumstances. Removes certain duplicative provisions and makes conforming amendments and technical corrections.

Indiana defense matters. Adds one voting member to the Indiana defense task force (task force) appointed by the president pro tempore of the senate and one voting member to the task force appointed by the speaker of the house. Adds the adjutant general of the Indiana National Guard or the adjutant general's designee as a nonvoting member of the task force. Provides that, on or before May 1, 2026, and each May 1 thereafter, the task force shall submit a report to the Indiana economic development corporation's office of defense development and the budget committee. Provides that the report shall identify the task force's identified priorities for expenditures for the following state fiscal year. Provides that on or before August 1, 2027, and each August 1 thereafter, the corporation's office of defense development shall submit a report to the task force and the budget committee that details expenditures from amounts appropriated to the corporation's office of defense development for priorities identified by the task force for the previous state fiscal year. Provides that, beginning with the 2026-2027 state fiscal year, and each state fiscal year thereafter, the corporation's office of defense development shall consider and incorporate, to the extent practicable, the task force's identified priorities for expenditures when the corporation's office of defense development formulates its annual budget. Provides that the IEDC and an operating partner shall administer the federal Unmanned Aircraft System Test Site program Indiana.

Social Security number search requests. Defines "Social Security number search request" (search request) as a request made by a consumer to a consumer reporting agency to conduct a search of all files maintained by the consumer reporting agency to determine if the consumer's Social Security number is associated with one or more consumer credit files not associated with the consumer. Provides that after December 31, 2026, upon receiving a search request from a consumer, a consumer reporting agency shall fulfill the consumer's search request if: (1) the consumer reporting agency maintains a file on the consumer; and (2) the consumer provides proper identification and written consent for the consumer reporting agency to verify with the Social Security Administration that the consumer's Social Security number belongs to the consumer. Provides that in fulfilling a search request, a consumer reporting agency shall: (1) verify with the Social Security Administration that the Social Security number supplied by the consumer belongs to the consumer; and (2) conduct a search of all files maintained by the consumer reporting agency to determine if the consumer's Social Security number is associated with one or more files not associated with the consumer. Provides that if the search indicates that the consumer's Social Security number is associated with any files not associated with the consumer, the consumer reporting agency must provide information as to: (1) the number of such files; and (2) each person that procured a consumer report in connection with those files during the one year period immediately preceding the date of the consumer's search request. Prohibits a consumer reporting agency from charging or increasing certain fees in connection with a search request.

Unlawful proposition penalties. Provides that at the time of sentencing for a person convicted of making an unlawful proposition the court may require the person to complete a prostitution offender program approved by the court. Requires a person ordered to complete a prostitution offender program to pay a fee.