Department's right to intervene -- Department's interests protected -- Remitting funds -- Disbursements -- Liability and penalty for noncompliance

(1) The department has an unconditional right to intervene in an action commenced by a recipient against a third party for the purpose of recovering medical costs for which the department has provided or has become obligated to provide medical assistance. (2) (a) If the recipient proceeds without complying with the provisions of Section 26B-3-1011, the department is not bound by any decision, judgment, agreement, settlement, or compromise rendered or made on the claim or in the action. (b) The department: (i) may recover in full from the recipient, or any party to which the proceeds were made payable, all medical assistance that the department has provided; and (ii) retains its right to commence an independent action against the third party, subject to Subsection 26B-3-1009(3). (3) Any amounts assigned to and recoverable by the department pursuant to Sections 26B-3-1003 and 26B-3-1009 collected directly by the recipient shall be remitted to the Bureau of Medical Collections within the Office of Recovery Services no later than five business days after receipt. (4) (a) Any amounts assigned to and recoverable by the department pursuant to Sections 26B-3-1003 and 26B-3-1009 collected directly by the recipient's attorney shall be remitted to the Bureau of Medical Collections within the Office of Recovery Services no later than 30 days after the funds are placed in the attorney's trust account. (b) The date by which the funds shall be remitted to the department may be modified based on agreement between the department and the recipient's attorney. (c) The department's consent to another date for remittance may not be unreasonably withheld. (d) If the funds are received by the recipient's attorney, no disbursements shall be made to the recipient or the recipient's attorney until the department's claim has been paid. (5) A recipient or recipient's attorney who knowingly and intentionally fails to comply with this section is liable to the department for: (a) the amount of the department's claim or lien pursuant to Subsection (1); (b) a penalty equal to 10% of the amount of the department's claim; and (c) attorney fees and litigation expenses related to recovering the department's claim.