Section 17
SEC. 17. Article 173 of the Code is hereby amended to read as follows: "ART. 173. Liability of third parties.—(a) When the disability or death is caused by circumstances creating a legal liability against a third party, the disabled employee or the dependent in case of his death shall be paid by the System under this Title. In case benefit is paid under this Title, the System shall be subrogated to the rights of the disabled employee or the dependents in case of his death, in accordance with the general law. (b) Where the System recovers from such third party damages in excess of those paid or allowed under this Title, such excess shall be delivered to the disabled employee or other persons entitled thereto, after deducting the cost of proceedings and expenses of the System.