This is what happens when ebike companies take every opportunity to skirt the laws like putting easily removable limiters on motorcycles with pedals and a chain with a gear ratio that makes pedalling practically impossible.
I don't know if there was an existing attempt at regulation in NJ specifically but that's happening all around the country.
The problem is that, while ebikes have a ton of really good use cases, the big market for them is basically kids who want to drive a motorcycle before they're allowed. Ebike companies are going to try to sell to that market any way they can.
Why is it even legal to import illegal bikes into a country? Shut this thing at the source, make Amazon & co liable for ebikes that don't respect national legislation. The entire problem disappears in 6 months.