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.

HB 3490 allows governing boards of certain Texas state agencies to hold closed meetings with their internal auditors to discuss matters that could compromise the audit function's independence, effectiveness, or confidentiality if disclosed publicly. It directly affects state agencies with appointed internal auditors (as defined under Section 2102.006 of the Government Code). The bill creates an exception to standard open meeting requirements, permitting these closed sessions only when the internal auditor determines public disclosure would harm the audit process. The law specifies that such meetings must involve the internal auditor and pertain solely to audit matters they identify as sensitive. This change modifies Chapter 551 of the Government Code, adding Section 551.092.