When it says 'Any use of a save state voids the run', does it mean you can't use the save files within the game or the save files on the emulator?
In-game saves are allowed for races, but emulator savestates are not. Generally speaking you should reset for a game over regardless, but using those may be valid according to the rules as stated (but don't take my word for that). All that said, the timing rules may change soon, but that has yet to be determined, so in the meantime don't be afraid to run the game!
As of today, any new submissions of S3K from the Steam version will no longer be allowed. This is due to a couple of factors but mostly being inhibited availability as SEGA delisted it when releasing Origins. Any existing runs will remain unaffected.
