Subject to the provisions of this section, highways or designated portions of highways may be partially or completely closed or restricted for the purpose of conducting athletic or special events thereon or for the purpose of ensuring the safe and efficient movement of traffic to and from or around an athletic event or special event which is in such proximity to a highway that the event or any traffic attendant thereto will have a significant effect on the normal traffic flow.

When the term "close" or "closure" is used in this section, it shall be deemed to include the partial closure of any lane or other portion of a highway or the restriction or regulation of traffic on the highway by the Colorado state patrol, members of the department of transportation, or authorized agents of a municipality or county.

Notwithstanding the provisions of paragraph (c) of this subsection (1), a municipality has the exclusive authority to close a highway or portion thereof for the purposes of paragraph (a) of this subsection (1) if the highway or portion to be closed is contained entirely within the boundaries of the municipality and any attendant disruption of traffic is contained within the boundaries of the municipality; except that, if such closure is on a state highway, the municipality shall coordinate the closure with the executive director of the department of transportation or his designee and shall provide for adequate traffic control and an alternate route where applicable.

Notwithstanding the provisions of paragraphs (c) and (d) of this subsection (1), a board of county commissioners or the duly authorized sheriff, county division of public works, or other county division or department authorized and designated by the board of county commissioners shall have the authority to close a highway or portion thereof for the purposes of paragraph (a) of this subsection (1) when such highway is not a state highway and the highway or portion to be closed does not extend within the boundaries of a municipality. When a proposed event may cause a significant disruption to the normal flow of traffic on a state highway or to any municipal highway, such closure shall be approved by and coordinated among all agencies involved.

In the event that a closure or disruption of traffic resulting from a closure crosses jurisdictional boundaries, such closure shall be coordinated among all agencies involved. If the event requires the active participation of the patrol and if the event may cause a significant disruption to the normal flow of traffic, the chief's authority under paragraph (c) of this subsection (1) shall apply.

A written application therefor is submitted to the chief, containing such information as the chief deems necessary, and the application is approved by the chief; and

The applicant pays to the Colorado state patrol at the time he submits the application the amount estimated by the chief to be the actual costs of said patrol for processing the application and the applicant agrees to pay in accord with subsection (3) of this section the actual costs of the patrol and the department of transportation in providing any services for the conduct of the closure. Such costs shall include any regular or overtime salaries, equipment, and fuel; and

The applicant agrees to pay for and provide evidence of liability coverage in those amounts specified in section 24-10-114 (1) to protect the state from any liability for any injuries or damages which may arise out of the closure or the Colorado state patrol's or the department of transportation's assistance in ensuring the safe conduct of the closure. Such insurance shall provide coverage which corresponds to the requirements of article 10 of this title. Liability claims resulting from the closure of a highway pursuant to this section shall be first paid from the liability insurance required by this paragraph (c) prior to any payment from the risk management fund created in section 24-30-1510. Nothing in this paragraph (c) shall alter or affect the application of article 10 of this title; and

A local jurisdiction approves the closure if the closure of the highway would restrict the use of any road, street, or highway of the affected jurisdiction; and

The closure is implemented in a manner that will cause the least inconvenience to the driving public consistent with the requirements of the athletic or special event and the event can be conducted in a manner consistent with the preservation of the public peace, health, and safety.

No liability shall attach to the state of Colorado for any injuries or damages which are caused solely by the use of a state highway for an athletic or special event when such event has not been approved by the chief. Claims for such injuries or damages shall be subject to the limitations of article 10 of this title.

Any person who conducts an athletic or special event on a state highway when a permit for said event has not been issued or any person conducting said event who violates the terms of a permit which has been issued for an athletic or special event commits a class 1 misdemeanor and shall be punished as provided in section 18-1.3-501, C.R.S.

If a closure application is approved, the applicant shall pay, when applicable, to the Colorado state patrol and the department of transportation prior to the closure the amounts the chief and executive director of the department of transportation estimate to be the costs of the patrol and the department of transportation in conducting the closure and shall provide the chief with evidence of the acquisition of the insurance provided for in paragraph (c) of subsection (2) of this section.

Moneys paid to the Colorado state patrol pursuant to this section shall be transmitted to the state treasurer, who shall credit the same to the Colorado state patrol closure fund created in paragraph (c) of this subsection (3).

There is hereby created in the state treasury the Colorado state patrol closure fund. The moneys in the fund shall be subject to annual appropriation by the general assembly for the purpose of paying salaries for officers performing duties in accord with the provisions of this section and for all other expenses incurred by the Colorado state patrol in carrying out the provisions of this section, and such moneys shall not be transferred to or revert to the general fund of the state at the end of any fiscal year. Such salaries and other expenses shall be paid at the direction of the chief, and, notwithstanding section 24-33.5-207 (2), the chief may authorize payment of such overtime salaries as he deems necessary for officers performing any duties pursuant to this section.

All moneys paid to the department of transportation pursuant to this section shall be transmitted to the state treasurer, who shall credit the same to the state highway supplementary fund.