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UNOFFICIAL 1725.1-45 §17-1725.1-58 Waiver of a transfer of asset penalty period due to undue hardship. (a) A penalty period may be waived if the department determines that the imposition of the penalty will cause undue hardship for the individual. (b) Undue hardship exists if the application of a penalty period would deprive the individual of: (1) Medical care such that the individual’s life or health would be endangered; or (2) Food, clothing, shelter, or other necessities of life. (c) A waiver of a penalty period due to undue hardship may be granted if the individual provides satisfactory evidence to the department that the asset transferred: (1) Has been depleted below the resource standard specified in section 17-1725.1-43; (2) Has been converted to another asset that is not liquid or redeemable; (3) The return of the transferred assets would put the receiving party in serious deprivation such that the loss of income or the asset would qualify the receiving party for medical assistance; (4) The receiving party cannot be located by the individual or another including but not limited to the individual’s spouse, other family member, representative, or an agent of the nursing facility, after all attempts to locate the receiving party have been exhausted; or (5) The asset was transferred due to theft, fraud, or financial exploitation upon the individual or their community spouse. (d) The process for requesting and reviewing a waiver of a penalty period imposed for a transfer of asset due to undue hardship is as follows: (1) The department shall send the individual a notice of denial or a notice of adverse action according to the requirements of chapter 17-1713.1 to inform the individual of the establishment of the penalty period