Maryland Code § HG-15-120

Section HG-15-120
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(a) If a Program recipient has a cause of action against a person, the
Department shall be subrogated to that cause of action to the extent of any payments
made by the Department on behalf of the Program recipient that result from the
occurrence that gave rise to the cause of action.
(b) (1) An attorney representing a Program recipient in a cause of action
to which the Department has a right of subrogation shall notify the Department prior
to filing a claim, commencing an action, or negotiating a settlement.
(2) The attorney shall notify the Department in advance of the
resolution of a cause of action and shall allow the Department 3 business days from
the receipt of the notice to establish its subrogated interest.
(3) This subsection may not be construed to create a cause of action
for notifying or failing to notify the Department.
(c) (1) Any Program recipient or attorney, guardian, or personal
representative of a Program recipient who receives money in settlement of or under

a judgment or award in a cause of action in which the Department has a subrogation
claim shall, after receiving written notice of the subrogation claim, hold that money,
for the benefit of the Department, to the extent required for the subrogation claim,
after deducting applicable attorney's fees and litigation costs.
(2) A person who, after written notice of a subrogation claim and
possible liability under this paragraph, disposes of the money, without the written
approval of the Department, is liable to the Department for any amount that, because
of the disposition, is not recoverable by the Department.
(3) The Department may compromise or settle and release its
subrogation claim if, in its judgment, collection of the claim will cause substantial
hardship:
(i) To the Program recipient; or
(ii) In a wrongful death action, to the surviving dependents of
a deceased Program recipient.
(4) (i) The Department is not liable for payment of or contribution
to any attorney's fees or litigation costs of any Program recipient or attorney,
guardian, or personal representative of any Program recipient.
(ii) The deduction of applicable attorney's fees and litigation
costs under paragraph (1) of this subsection may not be considered as payment for or
contribution to those fees or costs by the Department.
(d) Any action brought under this section is not exclusive and is
independent of and in addition to any right, remedy, or cause of action available to
the State, the Department, any other State agency, or a Program recipient or any
other individual.
(e) (1) (i) In this subsection the following words have the meanings
indicated.
(ii) "Cigarette" means any roll of tobacco wrapped in:
1. Paper;
2. A substance not containing tobacco; or
3. A substance containing tobacco which because of its
appearance, the type of tobacco used in the filler, or its packaging and labeling, is
likely to be used by the consumers of ordinary paper-wrapped cigarettes.

(iii) 1. "Manufacturer of a tobacco product" means a
designer, producer, or processor of a tobacco product engaged in the marketing or
promotion of a tobacco product.
2. "Manufacturer of a tobacco product" includes an
entity not otherwise a manufacturer of a tobacco product that imports a tobacco
product or otherwise holds itself out as a manufacturer of a tobacco product.
3. "Manufacturer of a tobacco product" does not
include:
A. A grower, buyer, dealer, distributor, or wholesaler of
leaf tobacco; or
B. A retailer, distributor, or wholesaler of a tobacco
product.
(iv) "Smokeless tobacco" means a product that consists of cut,
ground, powdered, or leaf tobacco that is intended to be placed in the oral cavity.
(v) "Tobacco product" means cigarettes or smokeless tobacco.
(2) In any action under this section or pursuant to any other right,
remedy, or cause of action brought by the State against a manufacturer of a tobacco
product, the causation and the amount of medical assistance expenditures
attributable to the use of a tobacco product may be proved or disproved by evidence
of statistical analysis, without proof of the causation or the amount of expenditures
for any particular Program recipient or any other individual.
(3) Nothing contained in paragraph (2) of this subsection prohibits or
limits the right of any party to introduce any other evidence, otherwise admissible,
that supports or rebuts the evidence of statistical analysis described in paragraph (2)
of this subsection.

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