(a) If a municipality that receives state money seeks to purchase an agricultural product and an agricultural product harvested in the state is available that is of like quality compared with a similar agricultural product harvested outside the state, the municipality

(1) shall purchase the product harvested in the state if the product is priced not more than seven percent above the similar product harvested outside the state;

(2) may purchase the product harvested in the state only if the product is priced not more than 15 percent above the similar product harvested outside the state.

(b) If a municipality that receives state money seeks to purchase a fisheries product and a fisheries product harvested or processed within the jurisdiction of the state is available that is of like quality compared with a similar fisheries product harvested or processed outside the jurisdiction of the state, the municipality

(1) shall purchase the product harvested or processed within the jurisdiction of the state if the product is priced not more than seven percent above the similar product harvested or processed outside the jurisdiction of the state;

(2) may purchase the product harvested or processed in the jurisdiction of the state only if the product is priced not more than 15 percent above the product harvested or processed outside the jurisdiction of the state.

(c) A solicitation by a municipality for the purchase of agricultural or fisheries products must include written notice of the purchase requirements and limitations under (a) and (b) of this section and specify that agricultural products harvested in the state and fisheries products harvested or processed within the jurisdiction of the state will be used where possible, subject to the limitations under (a) and (b) of this section. If a municipality that receives state money purchases agricultural products harvested outside the state or fisheries products harvested or processed outside the jurisdiction of the state, the municipal officer responsible for the purchase shall certify in writing the reasons that agricultural products harvested in the state or fisheries products harvested or processed within the jurisdiction of the state were not purchased.

(d) If a contractor fails to comply with this section, the municipality shall withhold payment until the contractor complies. If a municipality fails to comply with this section, the state department responsible for disbursing state money to the municipality shall withhold the money until the municipality complies.

(e) An interested party, as defined in AS 36.30.699, may seek administrative or judicial review of the award of a contract in violation of this section.

(f) Compliance with this section is not required if an exception to this section is mandated for participation in a federal program.

(g) This section applies to general law and home rule municipalities.

(h) In this section,

(1) “agricultural products” includes dairy products, timber and lumber, and products manufactured from timber and lumber;

(2) “state money” includes state reimbursement to municipalities for school or related construction, foundation funding for education, municipal assistance, community assistance, revenue sharing, and state funds for capital projects.