B.__An executive agency is not eligible to receive funding from the trust unless the agency jointly undertakes a research proposal with another entity that is not an executive agency.

C.__The department shall give preference to institutions, organizations and entities located and operated in the State.

D.__Principal, or interest earned from principal, with special instructions from contributors must be awarded in accordance with the contributors' instructions.

E.__All money in the trust not immediately required for payment, pursuant to the provisions of this section, must be invested by the Treasurer of State as authorized by Title 5, section 138, except that the securities in which the trust money is invested must remain part of the trust until exchanged for other securities and the income from all investments must remain a part of the trust unless prohibited by federal law.

5.__Report, amendment and termination of trust.__The department shall file a report as follows.

A.__The department shall report to the Legislature on a biennial basis concerning the activities of the trust.

B.__In the event the department determines that the provisions of the trust should be amended, the department shall make appropriate recommendations to the Legislature in its biennial report.

C.__The department may recommend in its biennial report that the trust be terminated if termination is determined to be appropriate.__In the event that the Legislature terminates the trust, the principal and operating funds must be disbursed in a manner consistent with the purpose of the trust.

Sec. 2. Development of competitive grant program; report. The Department of Marine Resources shall develop a competitive grant program, including qualifications and application procedures,