Hi, In my experiences in the past I have never has a CO check if my headlight and tail light actually work. The big thing is insurance and registration. I have had buddies get their bikes impounded for not having their documents on them, even though they were insured. And they had to comeback...
It's definitely not true. Although there are some restrictions it looks like. Just check out this website
Find your favorite riding area and check on the map for "no camping"areas. All of the FLUZ state that "Random Camping" is allowed. Some just have restrictions like campsites must be 100m...