174.31—Terms imposed by States for numbering of vessels.
A State numbering system may condition the issuance of a certificate of number on—
(a)
Title to, or other proof of ownership of a vessel except a recreational-type public vessel of the United States; or
(b)
Proof of liability insurance for a vessel except a recreational-type public vessel of the United States; or
(c)
The payment of State or local taxes, except for a recreational-type public vessel of the United States.