“Electric bicycle” means a device upon which an individual may ride that satisfies all of the following:

  (a) The device is equipped with all of the following:

  (i) A seat or saddle for use by the rider.

  (ii) Fully operable pedals for human propulsion.

  (iii) An electric motor of not greater than 750 watts.

  (b) The device falls within 1 of the following categories:

  (i) Class 1 electric bicycle. As used in this subparagraph, “class 1 electric bicycle” means an electric bicycle that is equipped with an electric motor that provides assistance only when the rider is pedaling and that disengages or ceases to function when the electric bicycle reaches a speed of 20 miles per hour.

  (ii) Class 2 electric bicycle. As used in this subparagraph, “class 2 electric bicycle” means an electric bicycle that is equipped with a motor that propels the electric bicycle to a speed of no more than 20 miles per hour, whether the rider is pedaling or not, and that disengages or ceases to function when the brakes are applied.

  (iii) Class 3 electric bicycle. As used in this subparagraph, “class 3 electric bicycle” means an electric bicycle that is equipped with a motor that provides assistance only when the rider is pedaling and that disengages or ceases to function when the electric bicycle reaches a speed of 28 miles per hour.