(a) Exclusions from the definition of ``employee'' under Sec.
701.301(a)(12), and the employees of small vessel facilities otherwise
covered which are exempted from coverage under Sec. 702.171, are
dependent upon coverage under a state workers' compensation program. For
these purposes, a worker or dependent must first claim compensation
under the appropriate state program and receive a final decision on the
merits of the claim, denying coverage, before any claim may be filed
under this Act.
(b) The intent of the Act is that state law will apply to those
categories of employees if it otherwise would. Accordingly, not
withstanding any contrary state law, claims by any of the categories of
workers excluded under Sec. 701.301 or 702.171 must be made to and
processed by the state and a merit decision denying coverage on
jurisdictional grounds must be made before coverage or benefits under
the Act may be sought.
(c) The time for filing notice and claim under the Act (see subpart
B of part 702) does not begin to run for purposes of claims by those
workers or dependents described in Sec. 701.301(a)(12) and Sec.
702.171, until a final adverse decision denying coverage under a state
compensation act is received.
[50 FR 392, Jan. 3, 1985]
