House Bill No. 3490 amends the Government Code by adding Section 551.092, which grants the governing board of certain state agencies the authority to hold closed meetings with the agency's internal auditor regarding specific internal audit matters. The bill defines "internal auditor" as the individual appointed for a state agency under Section 2102.006 and clarifies that "state agency" refers to the definition provided in Section 2102.003. The new provision allows these boards to confer with or receive information from the internal auditor without the requirement of an open meeting if the auditor determines that disclosure could compromise the independence, effectiveness, or confidentiality of the internal audit function.

Additionally, the bill specifies that the governing board can deliberate on matters that could compromise the internal audit function as long as the internal auditor is present during the discussion. This change aims to enhance the confidentiality and effectiveness of internal audits within state agencies while ensuring that sensitive information is protected from public disclosure. The Act is set to take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if such a vote is not achieved.

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