The U.S. Coast Guard has issused a Notice of Proposed Rulemaking
(NPRM) to change 33CFR Part 174.31 It will redisignate parapraph (b)
and paragraph (c), and add a new paragraph (b) to read as follows:

174.31 Terms imposed by states for numbering vessels
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(b) Proof of liability insurance for a vessel except a
recreational-type public vessel of the United States; or

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This proposed rule would allow states to impose proof of liability
insurance as a condition to for obataining state issued vessel number
certificates. Current federal laws/rule limit these conditions to
proof of ownership (title) and payment of state and local taxes. This
proposed rule would not REQUIRE states to make proof of liability
insurance a condition, it just allows them to.

Public comment on this NPRM can be made to the Coast Guard until April
13, 2004.