(a) The commissioner shall designate and make available for homestead entry state land, including, after consulting with the Board of Agriculture and Conservation (AS 03.09.010), land classified for agricultural use. State land made available for homestead entry under this chapter shall be distributed throughout the state.
(b) The commissioner shall complete a rectangular survey grid of homestead entry state land under AS 38.04.045 before disposing of state land for homestead entry. A homestead entry parcel shall be established in aliquot parts of a surveyed section or as lots or tracts that are fractions of aliquot parts of a surveyed section. The commissioner shall ensure practical access to each homestead entry parcel but the commissioner may waive the rectangular survey grid if no more than one conveyance is made for each section within a township.
(c) Notice of the designation and offering of land for homestead entry shall be given by the commissioner under AS 38.05.945.
(d) Land designated for homestead entry is not subject to a preference right under AS 38.05.
(e) The commissioner shall prescribe a homestead entry procedure for each area designated under (a) of this section. The homestead entry procedure shall establish
(1) the minimum distance between homestead entries in the area;
(2) the dimensions, configuration, orientation, or other design requirements for a homestead entry in the area;
(3) a description of land within the area that may not be included in a homestead entry;
(4) a requirement that a landmark, monument, or other point be used as a point of reference for the measurement of distances within an area;
(5) a specification of the type of stakes to be used to mark the corners of a homestead entry;
(6) the time within which a homestead entry must be staked.
(f) The commissioner shall establish the maximum size of a homestead entry that may be selected in each area designated under (a) of this section except that the commissioner may not permit an entry on more than
(1) 160 acres of land classified for agricultural use; or
(2) 40 acres of land not classified for agricultural use.
(g) The commissioner may limit the number of persons permitted to obtain homestead entries within an area designated under (a) of this section by a lottery of qualified applicants.