(a) When the State Highway Administration or a local authority approves a motor vehicle or bicycle racing event on a highway or a highway bridge under its respective jurisdiction, motor vehicle or bicycle racing shall be lawful. (b) The State Highway Administration or a local authority may approve a motor vehicle or bicycle racing event only if: (1) The racing event is held under conditions that: (i) Provide reasonable safety for race participants, spectators, and other highway or highway bridge users; and (ii) Prevent unreasonable interference with traffic flow that would seriously inconvenience other highway or highway bridge users; (2) The sponsors of the racing event: (i) Indemnify the State and local governments from any loss arising out of or relating to the racing event; and (ii) Provide comprehensive liability insurance, in an amount to be determined by the State Highway Administration or local authority with jurisdiction over the highway on which the racing event is to be held, for the benefit of the State and local governments, spectators, and other highway or highway bridge users; (3) The county or other local jurisdiction in which the racing event is held provides written authorization for the racing event; and (4) The highway on which the racing event is held is closed, in a manner approved by the State Highway Administration or local authority with jurisdiction over the highway, with appropriate access measures in place. (c) If traffic control adequately assures the safety of participants, spectators, and other highway or highway bridge users, the State Highway Administration or a local authority may exempt participants in an approved motor vehicle or bicycle racing event from compliance with other provisions of the Maryland Vehicle Law that otherwise would be applicable to the participants in the motor vehicle or bicycle racing event.
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