Originally Posted by GhostSS

Here in Hawaii all bikes are technically supposed to be registered with the State. It's meant as a theft deterrent and recovery method (it's an island, in the event of recovery from theft it proves ownership, including things like showing you didn't steal the bike you are selling on craigslist) and also supposedly the money is used to help with bike improvements on the island.

Most people with higher end bikes tend to register the serial numbers of the frame with the states registry. All new bikes sold in shops are required to register new bicycle sales to the new owners.