Senate Enrolled Act 258 was authored by District 39 State Senator John Waterman (R-Shelburn).
Long-term inmates are defined as those serving sentences of 25 years or longer, he said.
"Hoosiers spend millions of dollars each year to incarcerate inmates in Indiana's correctional facilities," Waterman said. "This legislation will help us keep the costs of incarceration down by requiring the DOC to determine if inmates serving long-term sentences for non-violent offenses have been rehabilitated and are able to re-enter society."
According to Waterman, any inmate released under such circumstances will be placed on parole.
Members of the Sentence Review Panel will consider education level and conduct of the inmate, as well as availability of employment and suitable living arrangements following release, Waterman said.
SEA 258 also requires the DOC to provide counseling and supervised Internet access to inmates within 90 days of their scheduled discharge so they can search for employment.
Waterman serves Senate District 39, which includes Clay, Greene, Knox, Daviess, Owen, Sullivan and Vigo counties.