(1) Bicycle, moped, or motorized scooter racing on a highway is prohibited except as authorized in this section.
(2) Bicycle, moped, or motorized scooter racing on a highway is lawful when a racing event is approved by state or local authorities on any highway under their respective jurisdictions. Approval of highway racing events may be granted only under conditions that ensure reasonable safety for all race participants, spectators, and other highway users and that prevent unreasonable interference with traffic flow.
(3) By agreement with the approving authority, participants in an approved bicycle, moped, or motorized scooter highway racing event may be exempted from compliance with any traffic laws otherwise applicable if traffic control is adequate to ensure the safety of all highway users.