Sec. 5. (a) This section does not apply to a motorboat competing in and during a motorboat race for which a permit has been issued by the department.
(b) A person may not operate a motorboat on Indiana water if the boat motor is equipped with any of the following:
(1) A muffler cutout.
(2) A bypass.
(3) Any device similar to a muffler cutout or bypass.