The proposed bill, Substitute Senate Bill No. 425, mandates that all state agencies in the executive branch develop and implement annual performance plans by July 1, 2027. These plans must outline the agencies' strategic and operational goals. The Office of Policy and Management (OPM) is tasked with establishing guidelines for these performance plans and providing training and technical assistance to agencies upon request. Additionally, starting January 1, 2028, each agency is required to report its performance plan and progress to OPM and the relevant legislative committee, with certain exceptions for specific agencies that will only report to the committee.

Furthermore, the bill stipulates that OPM will conduct regular performance evaluations of state agencies at least every two years, beginning January 1, 2028. The bill includes provisions for hearings where the executive authority of each agency will present their performance plan to the legislative committee after the report is submitted. The effective date for this legislation is set for October 1, 2026. The bill also introduces potential costs associated with the development and implementation of these plans, with an estimated one-time cost of up to $3 million for OPM in FY 27 and ongoing costs for performance evaluations in subsequent years.