The proposed bill establishes a new State Commission on Program Efficiency, composed of up to 20 members from the New Hampshire business community appointed by the governor. This commission is responsible for evaluating the efficiency and effectiveness of state agency programs by analyzing their budgets, spending, and outcomes. Each state agency head is required to submit a strategic plan for program activities to the commission by September 30, 2026, which must include a mission statement, goals, operational processes, and an evaluation schedule. The commission will meet monthly and can recommend changes to programs that do not meet efficiency and budget goals to the House Finance Committee. Additionally, the bill mandates that each agency prepare an annual performance plan with measurable goals and indicators, updated every two years, and submit annual program performance reports detailing their achievements.

Furthermore, the bill allows for waiving certain administrative procedural requirements in exchange for accountability in achieving performance goals, providing greater managerial flexibility. This includes proposals to waive limitations on staffing levels, compensation, and funding transfers, contingent upon endorsement by the relevant agencies and inclusion of quantifiable performance improvements. The commission is also tasked with designating programs for performance measurement and reporting on the benefits and challenges of the plans by September 30, 2028. While the bill does not allocate new funding or positions, it is anticipated to lead to indeterminable increases in expenditures due to the new reporting requirements imposed on agency heads. Overall, the bill aims to enhance government efficiency and accountability through structured performance planning and reporting.