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.
[CGD 72-54R, 37 FR 21402, Oct. 7, 1972, as amended by USCG-2003-15708, 70 FR 13105, Mar. 18, 2005]