The biggest controversy seems to be that the regulations impose similar burdens on lower speed ebikes:
The law treats a low-speed 15-20 mph (25-32 km/h) throttle-equipped Class 2 e-bike much more like a motorcycle than like a bicycle, despite its similar performance to a standard Class 1 pedal-assist bike. Bike shops and advocacy groups have instead urged lawmakers to exempt low-speed e-bikes under 20 mph (32 km/h) from licensing, registration, and insurance requirements while focusing regulation on higher-speed, higher-powered machines that more closely resemble electric mopeds.