(1) The department may issue confidential vessel registrations to units of local government and to agencies of the federal government for law enforcement purposes only.
(2) The department shall limit confidential vessel registrations owned or operated by the state of Washington or by any officer or employee of the state, to confidential, investigative, or undercover work of state law enforcement agencies.
(3) The director may adopt rules governing applications for and the use of confidential vessel registrations.