Deregistration of a Registered Program

(1) Deregistration at the Request of the Sponsor. The sponsor may voluntarily request deregistration of a program and the Department may cancel the registration of an apprenticeship program by written acknowledgment of such request stating the following: (a) The registration is cancelled at the sponsor's request, and the effective date thereof; (b) That, within ten days of the date of the acknowledgment, the sponsor will notify all apprentices of such cancellation and the effective date; that such cancellation automatically deprives the apprentice of individual registration; that the deregistration of the program removes the apprentice from coverage for Federal purposes which require the Secretary of Labor's approval of an apprenticeship program, and that all apprentices are referred to the Division for information about potential transfer to other registered apprenticeship programs. (2) Deregistration by the Division. The Division may undertake formal deregistration upon reasonable cause when the apprenticeship program is not conducted, operated, or administered in accordance with the program's registered provisions or with the requirements of 454 CMR 26.00 or 29 CFR 29.00, including, but not limited to: failure to provide on-the-job learning; failure to provide related instruction; failure to pay the apprentice a progressively increasing schedule of wages consistent with the apprentice's skills acquired; or persistent and significant failure to perform successfully. Deregistration proceedings for violation of equal opportunity requirements must be processed in accordance with the provisions under 29 CFR 30.00. For purposes of 454 CMR 26.09, persistent and significant failure to perform successfully occurs when a program sponsor consistently fails to register at least one apprentice, shows a pattern of poor quality assessment results over a period of several years, demonstrates an ongoing pattern of very low completion rates over a period of several years, or shows no indication of improvement in the areas identified by the Division during a review process as requiring corrective action. (3) Where it appears the program is not being operated in accordance with the registered standards or with requirements 454 CMR 26.00 or 29 CFR 29.00, the Division must notify the program sponsor in writing. (4) The notice sent to the program sponsor's contact person must: (a) Be sent by registered or certified mail, with return receipt requested; (b) State the shortcoming(s) and the remedy required; and (c) State that a determination of reasonable cause for deregistration will be made unless corrective action is effected within 30 days. (5) Upon request by the sponsor for good cause, the 30-day term may be extended for another 30 days. During the period for corrective action, the Division must assist the sponsor in every reasonable way to achieve conformity. (6) If the required correction is not effected within the allotted time, the Division must send a notice to the sponsor, by registered or certified mail, return receipt requested, stating the following: (a) The notice is sent under 454 CMR 26.09(6); (b) Certain deficiencies were called to the sponsor's attention (enumerating them and the remedial measures requested, with the dates of such occasions and letters), and that the sponsor has failed or refused to effect correction; (c) Based upon the stated deficiencies and failure to remedy them, a determination has been made that there is reasonable cause to deregister the program and the program may be deregistered unless, within 15 days of the receipt of this notice, the sponsor requests a hearing with the Department; and (d) If the sponsor does not request a hearing, the Department will make a final determination regarding the proposed deregistration based on the record. (7) If the sponsor requests a hearing, the Division will transmit to the Administrator a report containing all the data listed in 454 CMR 26.09(6)(b), and the Administrator will refer the matter to the Office of Administrative Law Judges. An Administrative Law Judge will convene a hearing in accordance with 29 CFR 29.10, and issue a decision as required in 29 CFR 29.10(c). (8) Every order of deregistration must contain a provision that the sponsor must, within ten days of the effective date of the order, notify all registered apprentices of the deregistration of the program; the effective date thereof; that such cancellation automatically deprives the apprentice of individual registration; that the deregistration removes the apprentice from coverage for Federal purposes which require the Secretary of Labor's approval of an apprenticeship program; and that all apprentices are referred to the Division for information about potential transfer to other registered apprenticeship programs.