(a) It is the primary purpose and intent of this subchapter that when islands are formed in navigable waters of this state, title to the islands should be retained in the state if the island is appropriate for use by any state agency or may become appropriate for any use by the state and that the islands should be sold by the state only when it is determined that they have no present or future use to the state.

(b) It is not the purpose of this subchapter to require any state agency to accept the responsibility and duty for the operation, management, or development of any island but only that appropriate state agencies, as determined by the Commissioner of State Lands, shall have an opportunity to assume control over the islands.

(c) It is also the intent of this subchapter that when any state agency accepts the duties and responsibility of operating, managing, or developing any island, the agency shall have the authority to permit and regulate activities upon the lands, including the cutting of timber. The agency may use or permit the use of the lands for such purposes as it shall deem appropriate.

(d) It is further the intent of this subchapter to establish the policy that all submerged lands following the navigable waterways of this state shall remain in the state domain. "Submerged lands" shall be those lands found at and below the line of ordinary highwater and shall include, but not be limited to, the beds, channels, chutes, and adjoining areas of rivers, lakes, and streams.