PREFERENCE IN CONTRACTING WITH IN-STATE ORGANIZATIONS.

SEC. 4092. PREFERENCE IN CONTRACTING WITH IN-STATE ORGANIZATIONS. (a) In General.— Section 1153 of the Social Security Act (42 U.S.C. 1320C–2), as amended by section 4091(b)(1) of this part, is further amended by adding at the end the following new subsection: “(i) (1) Notwithstanding any other provision of this section, the Secretary shall not renew a contract with any organization that is not an in-State organization (as defined in paragraph (3)) unless the Secretary has first complied with the requirements of paragraph (2). “(2) (A) Not later than six months before the date on which a contract period ends with respect to an organization that is not an in-State organization, the Secretary shall publish in the Federal Register— “(i) the date on which such period ends; and “(ii) the period of time in which an in-State organization may submit a proposal for the contract ending on such date. “(B) If one or more qualified in-State organizations submits a proposal within the period of time specified under subparagraph (A)(ii), the Secretary shall not automatically renew the current contract on a noncompetitive basis, but shall provide for competition for the contract in the same manner as a new contract under subsection (b). “(3) For purposes of this subsection, an in-State organization is an organization that has its primary place of business in the State in which review will be conducted (or, which is owned by a parent corporation the headquarters of which is located in such State).”. (b) Effective Date.— The amendment made by subsection (a) shall apply with respect to contracts scheduled to be renewed on or after the first day of the eighth month to begin after the date of enactment of this Act.