In general
A State agency may permit a vendor that, but for this paragraph, would be disqualified under paragraph (1), to continue to participate in the program if the State agency determines, in its sole discretion according to criteria established by the Secretary, that—
(i)#
disqualification of the vendor would cause hardship to participants in the program authorized under this section; or
(ii)#
(I) the vendor had, at the time of the violation under paragraph (1), an effective policy and program in effect to prevent violations described in paragraph (1); and
(II) the ownership of the vendor was not aware of, did not approve of, and was not involved in the conduct of the violation.
(ii)(I)#
the vendor had, at the time of the violation under paragraph (1), an effective policy and program in effect to prevent violations described in paragraph (1); and
(ii)(II)#
the ownership of the vendor was not aware of, did not approve of, and was not involved in the conduct of the violation.