This bill establishes a new chapter in the New Hampshire Revised Statutes, creating the State Commission on Program Efficiency, which will consist of up to 20 members from the New Hampshire business community appointed by the governor. The commission is tasked with evaluating state agency programs and requires each agency head to submit a strategic plan by September 30, 2029, detailing mission statements, goals, operational processes, and external factors affecting those goals. The commission will review these plans and provide budget recommendations to the House Finance Committee, particularly for programs deemed inefficient. Additionally, the bill mandates that each agency prepare an annual performance plan with measurable goals and indicators, and submit annual performance reports that assess achievements against these goals.

The bill introduces new definitions for terms such as "agency," "outcome measure," and "program evaluation," while deleting any conflicting language in existing statutes. It emphasizes that program performance reports must be drafted solely by state employees, reinforcing the governmental nature of these functions. Furthermore, the bill allows agencies to propose waivers of certain administrative requirements in exchange for accountability in achieving performance goals, affecting staffing, compensation, and funding transfers. The commission is required to report its findings to the House Finance Committee by September 30, 2028. While the bill does not allocate new funding or positions, it is anticipated to lead to indeterminable increases in state expenditures due to the new reporting requirements.