(A) Racing in approved event authorized. Notwithstanding the provisions of SDCL § 32-25-23, a person may race a bicycle on a highway when competing in a racing event which has been approved by the transportation commission or local authorities on a highway under their jurisdictions. Approval of a bicycle highway racing event shall be granted only under conditions which assure reasonable safety for all race participants, spectators, and other highway users, and which prevent unreasonable interference with traffic flow which would seriously inconvenience other highway users. Tests of endurance are not considered bicycle racing.
(SDCL § 32-20B-7)
(B) Exemption from traffic laws. The municipality may exempt participants in an approved bicycle highway racing event on a highway under their jurisdiction from compliance with any traffic laws otherwise applicable thereto, provided that traffic control is adequate to assure the safety of all highway users.
(SDCL § 32-20B-8)