In awarding grants under the competitive grants program, the department shall give preference to all of the following:

1. (a) Nonprofit or community-based organizations.

2. (b) Current contractors that meet both of the following requirements:

   1. (1) Have demonstrated effectiveness and capacity in providing tobacco education services.
   2. (2) Serve populations and areas with substantial unmet service needs.
3. (c) Proposals that provide new or expanded services to geographic areas or target populations underserved, as determined by the department.