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.

Under the new provisions, the governing board is not required to conduct an open meeting when conferring with or receiving information from the internal auditor about matters that could compromise the independence, effectiveness, or confidentiality of the internal audit function if disclosed publicly. Additionally, the board may deliberate on such matters in the presence of the internal auditor without the need for an open meeting. The bill is set to take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if that vote is not achieved.

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