I'm gonna finally be finishing this project, "project spend all of my money and extra time". it's going to draw a lot of unwanted attention from Jonn'y law. I want to be up on all the current laws, rules, and regulations. I know you have to have a life jacket for each person on the boat. a air horn, flair kit =gun and water flairs. Un sure on how many throw cushion's.
One throwable, the flare kit is for offshore only, just to add, it don't have to be a law for me to consider it required, basic tools including a good flashlight and a first aid kit...
Do I need a fire extinguisher by law?
Absolutely, maybe even two. Make sure they're charged also.
Do I have to run water with the exhaust pictured bellow? the do have some what mufflers and soposably are 98 decible legal.
The exhaust type does not determin whether they are dry or not, most lakes prohibit dry exhaust no matter what, rivers are hit and miss. I think it depends on sound restrictions of the park you're at.
I know the sun up to sun down rule without a bow light or stern light pole.
Filling fuel with gas cans while the boat is in the water, Against the law?
Total no no, boat must be pulled in order to fuel up (thanks jetskiers

)
have paddles but are they required?
A paddling device, not necissarily an oar (water ski always worked for me).
Definitely have a tow strap, probably not required.
Have one on the river no matter what, also a float ball and a 150' rope (in case shit happen).
Any other things i need to know about?
Probably....

Safety tips will help as well. This is mainly for the Colorado river. Parker and lower!
100 mph and up Southwind 
If you are going to be driving the boat over 75-80 MPH, Lifeline jacket (not required, but highly recommended) for everyone in the boat. I will not bend on this one...

GT