Sponsor asks committee to amend SB 481 so Sunnu Center sale proceeds go to SYSC settlement fund

Senator Cindy Rosenwald, sponsor of Senate Bill 481, told the Finance Committee that the bill "fixes a statutory conflict created by House Bill Two of last year" and recommended amending the text so proceeds from the sale of the Sunnu Center are deposited in the SYSC settlement fund regardless of when the sale occurs.

Rosenwald said House Bill 2 contains two conflicting sections: section 181 directs sale proceeds to the general fund, while section 357 directs the proceeds to the youth development center claims and administration settlement fund. She told the committee that LBA had flagged the conflict and that SB 481, as amended by the Senate, attempts to resolve it.

Committee members pressed the sponsor on valuation language. Representative Dan Magcguire asked whether the statute should require a $75 million sale or simply accept market value; Rosenwald said the $75 million figure was an estimate tied to settlement-law limits and the bill text refers to market value.

Members also sought details about the timeline for sale and the status of a new facility that would affect when the existing property could be vacated and sold. Nathan White, chief financial officer at the Department of Health and Human Services, said construction of the replacement facility "continues as scheduled" but offered to provide a written status update to the committee.

The committee did not vote on the bill. Members agreed to send SB 481 to division three for a work session and to have staff prepare an amendment that would redirect sale proceeds to the settlement fund and provide a fuller update on construction and sale logistics.