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So the light attracts plankton which then attracts the smelt?
I've personally had experience with game officers and "jack lighting". My bassboat is equipped with under water lighting, not for the intent of jacking fish but for navigating in the dark... I even went as far as wiring the lights to only be available when the big motor is running to avoid possible accusations. One officer thought my lighting was legit the way it was setup and a good idea for nighttime navigation and safety... One officer had the ticket book ready and gave me a really hard time about it, if rods had been on the deck we would have ended up with a fist full of tickets. Both officers gave the same definition though... A jack light is a submerged light or a light that has its beam focussed into the water with the INTENT of attracting fish... That's where it gets tricky... Intent is a subjective thing.With that said I wouldn't think twice about using the lighting in my shack or a lantern on the ice as neither focuses their beam into the water...
Regardless of the above situation as you described, I just checked with Lt. Murphy of our Law Enforcement Division and her interpretation is that a light can be used while fishing and can be submerged in the water. If you want the word on this directly from her, she can be reached at 271-3127.