Contributing On-Behalf of an organization - profile loses State/Province selection if Country is not US

This has been reported several by folks trying to contribute to MIH campaigns on CiviCRM.org. I recreated it by selecting a country other than United States on this contribution page:

http://civicrm.org/index.php?q=civicrm/contribute/transact&reset=1&id=23

Click "On behalf ..." and select Australia for organization's Country, then select New South Wales for State/Province. Click Continue. On the Confirmation page the State / Province field for the organization will be empty and if you try to continue you got form validation error (State / Province required).

For some reason this problem does not occur if country is US.