As used in this act:

    (a) "Local unit of government" means a county, city, village, or township.

    (b) "Processed fish" means fish that have been treated, preserved, or processed in some manner beyond mere cleaning.

    (c) "State agency" means a state department, board, commission, office, agency, institution, or other unit of state government.

    (1) In purchasing or contracting for the purchase of fish to meet the requirements or needs for food purposes of a state agency or a local unit of government, that agency or unit of government shall purchase or contract for, whenever possible, fish harvested in the waters of this state, if such fish are comparable and available at prices equal to or less than other bids. A reasonable percentage of fish harvested in the waters of this state and purchased pursuant to this act shall be fish that are processed.

    (2) Fish that are purchased by a state agency or a local unit of government as required in this act may be processed by state institutions.