(a) Where the Department, as a result of a compliance review or
other reason, determines that there is reasonable cause to believe that
an apprenticeship program is not operating in accordance with this part
and voluntary corrective action has not been taken by the program
sponsor, the Department shall institute proceedings to deregister the
program or it shall refer the matter to the Equal Employment Opportunity
Commission or to the Attorney General with recommendations for the
institution of a court action under title VII of the Civil Rights Act of
1964, as amended, or to the Attorney General for other court action as
authorized by law.
(b) Deregistration proceedings shall be conducted in accordance with
the following procedures:
(1) The Department shall notify the sponsor, in writing, that a
determination of reasonable cause has been made under paragraph (a) of
this section and
that the apprenticeship program may be deregistered unless, within 15
days of the receipt of the notice, the sponsor requests a hearing. The
notification shall specify the facts on which the determination is
based.
(2) If within 15 days of the receipt of the notice provided for in
paragraph (b)(1) of this section the sponsor mails a request for a
hearing, the Secretary shall convene a hearing in accordance with
Sec. 30.16.
(3) The Secretary shall make a final decision on the basis of the
record, which shall consist of the compliance review file and other
evidence presented and, if a hearing was conducted pursuant to
Sec. 30.16, the proposed findings and recommended decision of the
hearing officer. The Secretary may allow the sponsor a reasonable time
to achieve voluntary corrective action. If the Secretary's decision is
that the apprenticeship program is not operating in accordance with this
part, the apprenticeship program shall be deregistered. In each case in
which deregistration is ordered, the Secretary shall make public notice
of the order and shall notify the sponsor and the complainant, if any.
