(a) When a vessel other than a small commercial vessel, as defined
in Sec. 702.172, enters a facility which has been certified as exempt
from coverage, the exemption shall automatically terminate as of the
date such a vessel enters the facility. The exemption shall also
terminate on the date a contract for a Federal maritime subsidy is
entered into, and, in the situation where the facility undertakes to
build a vessel other than a small vessel, when the construction first
takes on the characteristics of a vessel, i.e., when the keel is laid.
All duties, obligations and requirements imposed by the Act, including
the duty to secure compensation liability as required by sections 4 and
32 of the Act, 33 U.S.C. 904 and 932, and to keep records and forward
reports, are effective immediately. The employer shall notify the
Director or his/her designee immediately where this occurs.
(b) Where an exemption certification is terminated because of
circumstances described in (a), the employer may apply for reinstatement
of the exemption once the event resulting in termination of the
exemption ends. The reapplication shall consist of a reaffirmation of
the nature of the business, an explanation of the circumstances leading
to the termination of exemption, and an affidavit by the appropriate
person affirming that the circumstances prompting the termination no
longer exists nor will they reoccur in the forseeable future and that
the facility is engaged in building, repairing or dismantling
exclusively small vessels. The Director or the Director's designee shall
respond to the complete reapplication within ten working days of
receipt.
[50 FR 397, Jan. 3, 1985, as amended at 51 FR 4283, Feb. 3, 1986]
