Senate Majority Leader Jake Corman and state Treasurer Rob McCord on Thursday asked a Commonwealth Court judge to mark the case as settled.
A letter between Penn State and the treasury department calls for the university to send the state $36 million within 10 days of the dismissal order and another $12 million by July. The money will fund child-abuse prevention efforts.
The parties reached a deal last week to restore 112 wins to Penn State, ending punitive sanctions imposed after Sandusky's 2012 conviction on child molestation charges.
Sandusky was Penn State's assistant football coach. He's serving a lengthy prison sentence but maintains he's innocent.