The Transportation Commission, as established in chapter 1-44, or local authorities, may exempt any person or motor vehicle from compliance with a traffic law if:
(1) The driver or vehicle is participating in a race, competition, contest, or exhibition that is approved by the Transportation Commission or local authorities pursuant to § 32-24-17, occurring on a public highway, roadway, or parking lot under the jurisdiction of the Transportation Commission or local authorities; and
(2) Traffic control is adequate to reasonably assure the safety of all public highway, roadway, or parking lot users and spectators.