; (B) properly carry out the role of the agency as the sole registration agency in the State; (C) submit a report under section 131(b)(1)(B) for any program year; (D) meet the State levels of performance as described in subsection (c)(7)(A) or demonstrate improvements in performance for 3 consecutive program years; or (E) otherwise fulfill or operate in compliance with the requirements of this Act. (3) Derecognition process (A) In general If a State apprenticeship agency fails for any of the reasons described in paragraph (2), the Secretary shall provide technical assistance to such agency for corrective action to remedy such failure, including assistance in the development of a performance improvement plan. (B) Reduction of funds Except in the case of exceptional circumstances, as determined by the Administrator, in a case in which such a State apprenticeship agency continues such failure after the provision of the technical assistance under subparagraph (A)— (i) the percentage of the funds to be allotted to the State apprenticeship agency under subsection (f)(1)(A) for each fiscal year following the fiscal year in which such failure has been identified shall be reduced by 5 percentage points from the amount allotted in such fiscal year; and (ii) the Administrator shall provide notice to the State apprenticeship agency that the recognition of the agency under subsection (a) may be withdrawn if the agency fails to remedy the failure. (C) Termination of proceedings If the Administrator determines that the State apprenticeship agency’s corrective action under subparagraph (A) has addressed the agency’s failure identified under paragraph (2), the Administrator shall— (i) restore the full funding allocation of the agency under subsection (f)(1)(A) for the next full fiscal year