Section 17-675-67 - Disposal of assets for less than fair market value in the food stamp program(a) At the time of application, households shall be asked to provide information regarding any resources which any household members (or ineligible alien or disqualified person whose resources are being considered available to the household) had transferred, including, but not limited to, bank accounts, title on a car, a trust, or property which is not producing income equal to the fair market value, within the three-month period immediately preceding the date of application. Households which have knowingly transferred resources for the purpose of qualifying or attempting to qualify for food stamp benefits shall be disqualified from participation in the ESP for up to one year from the date of the discovery of the transfer. This disqualification period shall be applied if the resources were transferred knowingly in the three-month period prior to application or if the resources were transferred knowingly after the household was determined eligible for benefits.(b) Eligibility for the program shall not be affected by the following transfers:(1) Resources which do not otherwise affect eligibility;(2) The sale or trade of resources at or near fair market value; and(3) Resources transferred between members of the same household (including ineligible aliens or disqualified persons whose resources are being considered available to the household) or transferred for reasons other than attempting to qualify for ESP benefits.(c) The length of the disqualification period for a household determined to have knowingly transferred resources for the purpose of qualifying or attempting to qualify for ESP benefits shall be based on the amount by which the transferred resources, when added to other countable resources, exceeds the allowable resource limits. The following amounts shall be used to determine the period of disqualification: Amount in Excess of the Resource Limit | Period of Disqualification |
$ 0 - 249.99 | 1 month |
250 - 999.99 | 3 months |
1,000 - 2,999.99 | 6 months |
3,000 - 4,999.99 | 9 months |
5,000 and up | 12 months |
For example, if a one person household with $1,750 in a bank transferred ownership of a car worth $5,000, only $250 would be considered as in excess of the resource limit. The first $4,500 of the car's fair market value is exempt, then $250 of the transferred asset is applied toward the $2,000 resource limit which leaves $250 as the amount in excess of the resource limit. The household shall be disqualified for three months for transferring a resource of $250.
(d) If the branch establishes that an applicant household knowingly transferred resources for the purpose of qualifying or attempting to qualify for food stamp benefits, the branch shall send the household a notice of denial explaining the reason for and length of the disqualification. The period of disqualification shall begin in the month of application. If the household is participating at the time of the discovery of the transfer, a notice of adverse action explaining the reason for and length of the disqualification shall be sent. The period of disqualification shall be effective with the first allotment issued after the adverse action notice period has expired, unless the household requests a fair hearing and continued benefits.[Eff 3/19/93; am 8/18/94] (Auth: HRS § 346-14) (Imp: 7 C.F.R. §273.8(i) )