Texas Senate Bill SB1226

Texas 2019 - 86th Regular

Caption

Relating to the release of a reversionary interest in certain real property by the Health and Human Services Commission and conditions related to that release.

Impact

The primary impact of SB1226 is on the management of real property associated with mental health services within Texas. By enabling the HHSC to nullify the right of reverter, it allows for flexibility in property use and ownership as long as the delivery of mental health and intellectual disability services is secured. The bill represents an effort to ensure continuity of services even in the context of real estate transactions, thus potentially improving mental health service delivery in the region.

Summary

Senate Bill 1226 addresses the conditions under which the Texas Health and Human Services Commission (HHSC) may release a reversionary interest in particular real property held by the West Texas Centers for Mental Health and Mental Retardation. The bill stipulates that this release is contingent upon specific transactions involving the transfer of real property between the West Texas Centers and Cap Rock Holdings, LLC. The bill emphasizes that the transfer must maintain fair market value equivalence as verified by an independent appraisal to ensure that state interests are protected.

Contention

However, the bill could bring about discussions on the long-term implications of property management for mental health services. Concerns may arise about the effectiveness and accountability of the organizations involved in maintaining these properties. The stipulation of a right of reverter after 180 days of discontinuation of services adds a layer of oversight aimed at ensuring that these properties serve their intended purpose and do not fall into disuse or alternate uses that could be considered detrimental to the community.