S.Amdt. 555

SA 555. Mr. FLAKE submitted an amendment intended to be proposed by
him to the bill H.R. 2810, to authorize appropriations for fiscal year
2018 for military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe military personnel strengths for such fiscal year, and for
other purposes; which was ordered to lie on the table; as follows:

At the end of subtitle G of title X, add the following:

SEC. 1088. INVESTMENT OF ASSETS OF BARRY GOLDWATER
SCHOLARSHIP AND EXCELLENCE IN EDUCATION FUND.

Subsection (b) of section 1408 of the Barry Goldwater
Scholarship and Excellence in Education Act (20 U.S.C. 4707)
is amended to read as follows:
``(b) Investment of Fund Assets.--(1) It shall be the duty
of the Secretary of the Treasury to invest in full the
amounts appropriated to the fund.
``(2) Subject to paragraph (3), investments of amounts
appropriated to the fund shall be made in public debt
securities of the United States with maturities suitable to
the fund. For such purpose, such obligations may be acquired
(A) on original issue at the issue price, or (B) by purchase
of outstanding obligations at the market price. The purposes
for which obligations of the United States may be issued
under chapter 31 of title 31, United States Code, are hereby
extended to authorize the issuance at par of special
obligations exclusively to the fund. Such special obligations
shall bear interest at a rate equal to the average rate of
interest, computed as to the end of the calendar month next
preceding the date of such issue, borne by all marketable
interest-bearing obligations of the United States then
forming a part of the public debt, except that where such
average rate is not a multiple of \1/8\ of 1 percent, the
rate of interest of such special obligations shall be the
multiple of \1/8\ of 1 percent next lower than such average
rate. Such special obligations shall be issued only if the
Secretary determines that the purchases of other interest-
bearing obligations of the United States, or of obligations
guaranteed as to both principal and interest by the United
States or original issue or at the market price, is not in
the public interest.
``(3)(A) Notwithstanding paragraph (2), upon receiving a
determination of the Board described in subparagraph (B), the
Secretary may invest up to 40 percent of the fund's assets in
securities other than public debt securities of the United
States, provided that the securities are traded in
established United States markets.
``(B) A determination described in this subparagraph is a
determination by the Board that investments as described in
subparagraph (A) are necessary to enable the Foundation to
carry out the purposes of this title without any diminution
of the number of scholarships provided under section 1405, or
of the stipend authorized by section 1406.
``(C) Nothing in this paragraph shall be construed to limit
the authority of the Board to increase the number of
scholarships provided under section 1405, or to increase the
amount of the stipend authorized by section 1406, as the
Board considers appropriate and is otherwise consistent with
the requirements of this title.''.
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