Legalization of cannabis. Legalizes the sale and use of cannabis by a person at least 18 years of age. Requires the Indiana department of health to establish a program to issue a medical cannabis identification card to a patient whose physician has recommended cannabis to treat a medical condition. Permits the sale of cannabis to a person less than 18 years of age if the person has been issued a medical cannabis identification card, and exempts purchases by a medical cannabis cardholder from sales tax. Makes conforming amendments.

Medicaid waiver reimbursement for direct care. Requires the office of the secretary of family and social services to apply for an amendment to specified Medicaid waivers to increase reimbursement rates for services provided by direct care staff. Sets forth the manner in which the increased reimbursement may be expended and sets requirements on authorized service providers as a condition to retaining the additional reimbursement.

Dignity and nondiscrimination in education. Provides that a school corporation or qualified school shall not promote certain concepts as part of a course of instruction or in a curriculum or instructional program, or allow teachers or other employees to use supplemental learning materials to promote certain concepts regarding sex, race, ethnicity, religion, color, or national origin. Requires requesting to meet with a teacher for certain complaints. Requires each school corporation or qualified school to establish grievance procedures for certain complaints. Provides that, if a parent of a student or a student, if the student is an adult or emancipated minor, is not satisfied with a final decision, the parent or student may submit a request to the department of education to review the complaint and decision.

Vehicle Bill. None

Medicaid reimbursement rates. Specifies Medicaid reimbursement rates for specified services in the Medicaid risk based managed care program and the Medicaid fee for service program.

Powers of the general assembly. Provides that a session of the general assembly shall adjourn sine die not later than November 1 of the year in which it convenes. Provides that the sessions of the general assembly are considered to adjourn sine die, by operation of law, on November 1 of each year, if the general assembly has not adjourned sine die on an earlier date of that year. Provides that the "prohibited period" during which campaign fundraising may not occur by candidates for election to the general assembly and for state offices ends on the earlier of: (1) May 1; or (2) the date the budget bill for the following budget period is approved by the governor. (Under current law, the prohibited period ends the day the general assembly adjourns sine die in an odd-numbered year.) Provides that, unless otherwise specifically provided by a statute to the contrary, an executive order issued by the governor expires 30 calendar days after the executive order is issued. Provides that a state of disaster emergency declared by the governor may not continue for longer than 30 days unless the state of disaster emergency is specifically renewed by a statute enacted by the general assembly. Provides that certain health orders issued by political subdivisions expire 30 days after they are issued. Repeals the statutes providing for technical sessions and the emergency sessions statute.

Highway finances. Reduces the required percentage amount of the motor vehicle highway account distributions that counties, cities, and towns must use for the construction, reconstruction, and preservation of highways from 50% in current law to 40% in calendar years beginning January 1, 2024, and ending December 31, 2025. Provides that, for a period in which the reduction applies, the term "preservation" includes both snow removal and expenditures for deicing road salt or similar deicing agents. Requires counties, cities, and towns that apply the reduced required percentage amounts authorized under the bill to submit to the local technical assistance program (LTAP) at Purdue University in conjunction with the Indiana department of transportation a detailed itemization of the uses of the funds in the calendar year that were for: (1) purposes other than construction, reconstruction, and preservation; and (2) preservation that included only snow removal and expenditures for deicing road salt or similar deicing agents. Requires the LTAP to present a statewide aggregate report of the results received from counties, cities, and towns to the budget committee for each year.

Income tax replacement. Eliminates the state adjusted gross income tax by reducing the rate to zero. Provides that the reduction in revenue resulting from the elimination of the state adjusted gross income tax must be offset by adjustments to the state gross retail tax. Provides that in calculating the local income tax (LIT), which is imposed based on a local taxpayer's state adjusted gross income, the calculation of a taxpayer's state adjusted gross income for LIT purposes shall be calculated under the adjusted gross income tax provisions as if those provisions, and the most recent adjusted gross income tax rate before its elimination, were still in effect.

Administrative law. Establishes the government reform task force (task force). Provides for members of the task force. Requires the task force to submit a report. Prohibits the consideration of the number or amount of fines or civil penalties imposed on regulated entities by an employee in an agency's evaluation or compensation of the employee. Makes various procedural changes concerning the adoption of administrative rules, including the following: (1) Requires budget agency and office of management and budget review of a regulatory analysis of all proposed rules. (2) Requires a state budget committee review of rules adding or increasing fees, fines, or civil penalties. (3) Requires publication of the text of a proposed rule in the first public comment period and allows a proposed rule to be adopted after one public comment period if no substantive public testimony is received and the rule is not more stringent than applicable federal standards. (4) Replaces various laws granting emergency rulemaking authority with a description of the circumstances when emergency rulemaking (renamed "provisional" rules and "interim" rules) may be used, increases governor and attorney general oversight of provisional or interim rules, and adds a public comment period for interim rules. (5) Reduces from seven to five years the time in which rules need to be readopted to remain effective. (6) Requires agencies to webcast public hearings and allow remote testimony. Prohibits state standards for disposal of coal combustion residuals to be more stringent than federal standards. Allows for certain rules on certain pesticides that are more stringent than federal law. Permits a person to recover attorney's fees if an agency issues an order that is based on an invalid rule or issued without legal authority. Permits an applicant or licensee to recover damages if a professional or occupational licensing agency fails to adopt a rule required to obtain a license. Repeals superseded statutes and makes cross-reference, name, and other conforming changes.

Sentence modification. Establishes an additional sentencing modification procedure for certain individuals and requires that the department of correction annually review inmate records and transmit certain information to specified persons.

Sale of tax sale properties to nonprofits. Provides that a tax sale statute concerning the sale of real property to eligible nonprofit entities for low or moderate income housing applies to all counties. (Current law provides that the provision only applies to a county having a consolidated city.)

Indianapolis infrastructure. Provides that the amount of the gasoline excise tax and special fuel tax revenue that is derived from the annual 1% inflationary increase during the state budget biennium shall be distributed to recipients under the motor fuel tax fund of the motor vehicle highway account based on the vehicle miles traveled in the unit compared to vehicle miles traveled in the state, but not including interstate vehicle miles traveled. Appropriates money from the state general fund to the Indiana department of transportation in an amount necessary to repay all outstanding debt obligations as of June 30, 2023, that are financed with money in the crossroads 2000 fund. Provides that, beginning July 1, 2023, money in the crossroads 2000 fund must be used for projects only in urban areas, as defined by the United States Census Bureau. Authorizes Marion County to establish a local road funding district (district) to capture 20% of the incremental local income tax (LIT) revenue of the county (not including LIT revenue obligated for debt service). Requires the Marion County treasurer to establish a Marion County roads and bridges fund (fund) if a district is established. Provides that the incremental LIT revenue captured in the district shall be deposited in the fund and used for the preservation and reconstruction of roads and bridges of thoroughfares in Marion County that cross into an adjacent county. Prohibits any additional funding for a professional soccer stadium project until and unless certain conditions are met. Amends the maximum grant amount from the local road and bridge matching grant fund based on annual vehicle miles traveled in the local unit. Provides that, if the city-county council in Marion County adopts a maximum county vehicle excise tax or a maximum county wheel tax, then the transportation infrastructure improvement fees that are attributable to motor vehicles registered in Marion County shall be transferred to the Marion County treasurer for deposit in a separate account to be used for the preservation and reconstruction of roadways in Marion County. Requires the Indiana department of transportation to reacquire certain portions of roadways in Marion County that were previously designated as a state highway for administration in the state highway system, to occur before January 1, 2030. Provides that, for purposes of determining the right of the consolidated city of Indianapolis to receive a distribution of money from the motor vehicle highway account based on population, the population of all the territory of the consolidated city is considered its population. Specifies that the board of directors of an urban mass transportation system may incorporate services of a "transportation network company" or "TNC" that connects riders to individuals for prearranged rides through a digital network exchange as a part of its urban mass transportation system within the taxing district of the corporation. Makes an appropriation.

Age for compulsory school attendance. Provides that a student is bound by compulsory school attendance requirements from the beginning of the fall school term for the school year in which the student is five years of age on August 1 of that school year. (Current law provides that a student is bound by compulsory school attendance requirements from the beginning of the fall school term for the school year in which the student becomes seven years of age.) Makes conforming amendments.

Vehicle Bill. None

Restrictions on DOC provision of gender therapy. Provides that the department of correction may not authorize the payment of any money, the use of any state resources, or the payment of any federal money administered by the state to provide or facilitate the provision of sexual reassignment surgery to an offender patient.