Substitute House Bill No. 5578 amends Special Act 22-18 to facilitate the conveyance of a 2-acre parcel of state land in Cheshire to the Chesprocott Health District. The bill stipulates that the Commissioner of Administrative Services, on behalf of the Commissioner of Correction, will oversee this conveyance, which will occur at a cost equal to the administrative expenses involved. The land is intended for the establishment of a regional health district, which will include facilities for public health and emergency management. The conveyance is subject to approval by the State Properties Review Board, which must complete its review within thirty days of receiving a proposed agreement.

The bill introduces new provisions allowing the Chesprocott Health District to permit or convey portions of the land to nonprofit organizations for temporary housing, provided that such arrangements comply with local zoning laws. If the health district fails to utilize the land for the specified purposes, does not retain ownership, or leases it out (except to a nonprofit for temporary housing), the land will revert to the state. Additionally, any sale of the land to a nonprofit must be at fair market value, determined by independent appraisals, and any funds generated from such transactions will be directed to the State Treasurer for deposit in the General Fund. The bill also updates the responsible parties for the conveyance process, replacing references to the Department of Correction with the Department of Administrative Services.