89R9993 BEF-D By: DeAyala H.B. No. 3490 A BILL TO BE ENTITLED AN ACT relating to the authority of the governing board of certain state agencies to conduct a closed meeting with the agency's internal auditor to deliberate or receive information about certain internal audit matters. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter D, Chapter 551, Government Code, is amended by adding Section 551.092 to read as follows: Sec. 551.092. CERTAIN STATE AGENCIES: INTERNAL AUDIT MATTERS; CLOSED MEETING. (a) In this section: (1) "Internal auditor" means the internal auditor appointed for a state agency under Section 2102.006. (2) "State agency" has the meaning assigned by Section 2102.003. (b) This chapter does not require the governing board of a state agency to conduct an open meeting to: (1) confer with or receive information from the agency's internal auditor about a matter the internal auditor determines would compromise the independence, effectiveness, or confidentiality of the agency's internal audit function if disclosed publicly; or (2) deliberate a matter described by Subdivision (1) if the agency's internal auditor is present. SECTION 2. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2025.