Hawaiian outrigger canoe clubs registered with the Hawaiian Canoe Racing Association, Hui Wa'a Association, its affiliates, or its successor organization may keep their Hawaiian outrigger canoes at no charge on state shoreline areas; provided that:
(1) The club shall indemnify, hold harmless, and defend the State, its officers, agents, and employees from and against any and all claims arising out of or resulting from activities carried out or undertaken under this section, and shall procure sufficient insurance to provide this indemnification if requested by the department;(2) The club shall coordinate the placement of canoes with the applicable state or county authority to appropriately accommodate all beach users; and(3) Where required, the club shall secure an annual revocable permit from the applicable state or county agency.