Sister getting rid of dog? Advice please

My sister had this dog for 4 years. He’s a really good dog, never any problems. He’s a mixed. Medium size dog. My sister had a baby 6 months ago and the dog didn’t mind my niece at all. The introduced the dog and baby properly and never left alone. Baby has her space and dog has his space. My sister was changing my niece on the couch. And out of no where the dog comes and hits my nieces hand. My sister yelled and the dog left. Long story short- my niece needed stitches and her hand is pretty badly bitten. This literally happen in 3 seconds. Out of no where. Stocking. Anyway, the hospital called animal control and cps . The dog legally cannot go back into the house with the baby now. I was asked if I would take the dog and I said no. I have a very active one year old son and I don’t feel comfortable. Any advice what should happen now? The other option is a shelter we have no one else that will take the dog

Update- there’s literally no more to this story. The hospital called because of how badly my nieces hand was. This is an anonymous post and I would not lie for no reason. Especially anonymous asking for advice from strangers.