(a) The department or a local authority may not prohibit the operation of an electric bicycle:
(1) on a highway that is used primarily by motor vehicles; or
(2) in an area in which the operation of a nonelectric bicycle is permitted, unless the area is a path that:
(A) is not open to motor vehicles; and
(B) has a natural surface tread made by clearing and grading the native soil without adding surfacing materials.
(b) The department or a local authority may:
(1) prohibit the operation of a bicycle on a sidewalk; and
(2) establish speed limits for bicycles on paths set aside for the exclusive operation of bicycles and other paths on which bicycles may be operated.

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