Yes. Honors courses are either full honors or contract honors. In full honors, only honors students may enroll. Those classes are smaller and are taught differently. Please think about offering full honors classes in your department.
In contract courses, students contract with the instructor to elevate a regular class to honors level. For example, genetics students receive 23 and Me kits to analyze their own genome. Later, they report on their results to the class orally and in writing. Simply adding a research paper should be avoided. Projects that are interesting and engaging are best.