This bill establishes the State Commission on Program Efficiency, composed of up to 20 members from the New Hampshire business community appointed by the governor. The commission's primary responsibility is to evaluate the efficiency and effectiveness of state agency programs by reviewing 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 external factors affecting those goals. The commission will meet monthly and can recommend changes to the House Finance Committee if a program is deemed inefficient. Additionally, the bill mandates that each agency prepare an annual performance plan with measurable goals and indicators, updated every two years, and submit annual performance reports comparing actual achievements to set goals.

The bill also introduces provisions for waiving certain administrative procedural requirements in exchange for accountability in achieving performance goals, allowing for greater managerial flexibility. It specifies that the drafting of program performance reports must be conducted exclusively by state employees, reinforcing the governmental nature of these functions. The commission is tasked with designating programs for performance measurement and must report on the benefits and challenges of the plans by September 30, 2028. The fiscal impact of the bill is indeterminable, as it does not provide funding or authorize new positions, but it is expected to increase expenditures due to the reporting requirements imposed on agency heads.