Mich. Comp. Laws § 257.1705

Sec. 5. Before a city issues a racing event permit under sections 3 and 4, the city shall determine all of the following: (a) That the person applying for the permit has adequate insurance to pay any damages incurred because of loss or injury to any person or property. (b) That adequate security and necessary facilities will be provided during the racing event. (c) That the person applying for the permit has demonstrated the ability to protect the health, safety, and welfare of the citizens of the city and those attending the racing event.