(a) To the extent that it is consistent with federal law and regulations, a special racing event of limited duration that is conducted according to (b) of this section may be held on a state highway.
(b) The Department of Public Safety, with the concurrence of the Department of Transportation and Public Facilities, may grant, and for cause cancel, permission to conduct a special racing event as provided in this section on terms and conditions and at times and places the department may determine. If the Department of Public Safety refuses or cancels an applicant's permission, the applicant may request a hearing. The hearing shall be conducted under the provisions of AS 44.62 (Administrative Procedure Act).