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 analyzing their budgets, spending, administration, 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 fails to meet efficiency and budget goals. Additionally, the bill mandates that each agency prepare an annual performance plan with measurable goals and indicators, which must be updated every two years and reported to the governor and the commission.

The bill also includes 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 performance reports must be conducted solely by state employees, reinforcing the governmental nature of these functions. The commission is tasked with assessing the effectiveness of the performance plans and identifying challenges faced by agencies, with findings reported to the House Finance Committee by September 30, 2028. While the fiscal impact of the bill is indeterminable due to the lack of funding or new positions, it is anticipated to increase expenditures due to the reporting requirements imposed on agency heads. Overall, the bill aims to enhance program efficiency and accountability within state agencies while providing flexibility in achieving performance goals.