Here is a loop hole.. Maybe..
Here is what I think may be your loophole. It defines a motorized bicycle with an engine of less than 50cc, pedals, and auto transmission. Here may be your loop hole.. The Typical motor Assisted Bicycle has no Transmission. They are direct drive with Dry clutch. They have no transmission and allow for no gear selection that a transmission affords. Since they have no Transmission, they do not fit under that ruling of motorized bicycle. They are still motor Assisted bicycles and thus falls under the Federal Regs and makes them still a bicycle. That is..As long as they are less than 50 cc and do not exceed 25mph on level ground. That is how I see it. But then again .. I am no lawyer, but you should speak to one and point these things out to that lawyer. A lot of states have that requirement that as soon as you add a transmission that allows you to change gears, it is no longer a bicycle and is motorized bicycle. Thanks..Enjoy the ride..