The rego plate thing is a bit stupid, to not pass it because it's "too offensive" is strange, but then again we live in an age where everything is offensive to someone.
I don't know how things work in the US but here when you have a baby you fill out the birth certificate with the baby name, parent's name, etc. That goes to the office of Birth, Deaths and Marriage (or some official name) and an official birth record is created. There is certain names that will always be rejected for obvious reasons, Fuck, Shit, those types of words. Then there is trademarked words/terms which would be rejected, then there would not doubt be secondary words that most of us wouldn't even consider, yet they could be deemed offensive, or some such thing. It's made easier with computer databases these days but it's done to stop idiot parents ruining lives, to stop them naming after a trademark then trying to claim on it, for quite a few reasons really. Idiots here have proven we need such law when over the years names I remember being rejected are things like Satan, Hitler, ABCDE (pronounced ABEECADEE apparently), Ikea, Batman, even Circumcision and Scrotum.