This Act may be cited as the “Barry Goldwater Scholarship and Excellence in Education Modernization Act”.

(a) Clarifying amendments to definitions.—Section 1403 of the Barry Goldwater Scholarship and Excellence in Education Act (20 U.S.C. 4702) is amended—

(1) by striking paragraph (5) and inserting the following:

“(5) The term ‘State’ means each of the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the United States Virgin Islands, American Samoa, the Commonwealth of the Northern Marianas, the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau.”; and

(2) in paragraph (6) by inserting “, a resident of a State,” after “national of the United States”.

(b) Barry Goldwater Scholarship and Excellence in Education awards.—

(1) Section 1405(a) of the Barry Goldwater Scholarship and Excellence in Education Program (20 U.S.C. 4704(a)) is amended—

(A) in the subsection heading, by striking “award of scholarships and fellowships” and inserting “award of scholarships, fellowships, and research internships”;

(B) in paragraph (1)—

(i) by striking “scholarships and fellowships” and inserting “scholarships, fellowships, and research internships” each place the term appears; and

(ii) by striking “science and mathematics” and inserting “the natural sciences, engineering, and mathematics”;

(C) in paragraph (2), by striking “mathematics and the natural sciences” and inserting “the natural sciences, engineering, and mathematics”;

(D) in paragraph (3), by striking “mathematics and the natural sciences” and inserting “the natural sciences, engineering, and mathematics”;

(E) by redesignating paragraph (4) as paragraph (5);

(F) in paragraph (5), as so redesignated, by striking “scholarships and fellowships” and inserting “scholarships, fellowships, and research internships”; and

(G) by inserting after paragraph (3) the following:

“(4) Research internships shall be awarded to outstanding undergraduate students who intend to pursue careers in the natural sciences, engineering, and mathematics, which shall be prioritized for students attending community colleges.”.

(2) Section 1405(b) of the Barry Goldwater Scholarship and Excellence in Education Program (20 U.S.C. 4704(b)) is amended by adding at the end the following: “Recipients of research internships under this title shall be known as ‘Barry Goldwater Interns’.”.

(c) Stipends.—Section 1406 of the Barry Goldwater Scholarship and Excellence in Education Act (20 U.S.C. 4705) is amended by adding at the end the following: “Each person awarded a research internship under this title shall receive a stipend as may be prescribed by the Board, which shall not exceed the maximum stipend amount awarded for a scholarship or fellowship.”.

(d) Scholarship and research internship conditions.—Section 1407 of the Barry Goldwater Scholarship and Excellence in Education Act (20 U.S.C. 4706) is amended—

(1) in the section heading, by inserting “and research internship” after “scholarship”;

(2) in subsection (a), by striking the subsection heading and inserting “Scholarship conditions”;

(3) in subsection (b), by striking the subsection heading and inserting “Reports on scholarships”; and

(4) by inserting at the end the following:

“(c) Research internship conditions.—A person awarded a research internship under this title may receive payments authorized under this title only during such periods as the Foundation finds that the person is maintaining satisfactory proficiency and is not engaging in gainful employment other than employment approved by the Foundation pursuant to regulations of the Board.

“(d) Reports on research internships.—The Foundation may require reports containing such information in such form and to be filed at such times as the Foundation determines to be necessary from any person awarded a research internship under this title. Such reports may be accompanied by a certificate from an appropriate official at the institution of higher education or internship employer, approved by the Foundation, stating that such person is maintaining satisfactory progress in the internship, and is not engaged in gainful employment, except as otherwise provided in subsection (c).”.

(e) Sustainable investments of funds.—Section 1408 of the Barry Goldwater Scholarship and Excellence in Education Act (20 U.S.C. 4707) is amended—

(1) in subsection (a), by striking “subsection (d)” and inserting “subsection (f)”;

(2) by redesignating subsections (c) and (d) as subsections (e) and (f), respectively; and

(3) by inserting after subsection (b) the following:

“(c) Investment in securities.—Notwithstanding subsection (b), the Secretary of the Treasury may invest not more than 40 percent of the fund’s assets in securities other than public debt securities of the United States, if—

“(1) the Secretary receives a determination from the Board that such investments are necessary to enable the Foundation to carry out the purposes of this title; and

“(2) the securities in which such funds are invested are traded in established United States markets.

“(d) Construction.—Nothing in this section 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.”.

(f) Administrative provisions.—Section 1411(a) of the Barry Goldwater Scholarship and Excellence in Education Act (20 U.S.C. 4710(a)) is amended—

(1) by striking paragraph (1) and inserting the following:

“(1) appoint and fix the rates of basic pay of such personnel (in addition to the Executive Secretary appointed under section 1410) as may be necessary to carry out the provisions of this chapter, without regard to the provisions in chapter 33 of title 5, United States Code, governing appointment in the competitive service or the provisions of chapter 51 and subchapter III of chapter 53 of such title, except that—

“(A) a rate of basic pay set under this paragraph may not exceed the maximum rate provided for employees in grade GS–15 of the General Schedule under section 5332 of title 5, United States Code; and

“(B) the employee shall be entitled to the applicable locality-based comparability payment under section 5304 of title 5, United States Code, subject to the applicable limitation established under subsection (g) of such section;”;

(2) in paragraph (2) by striking “grade GS–18 under section 5332 of such title” and inserting “level IV of the Executive Schedule”;

(3) in paragraph (7), by striking “and” at the end;

(4) by redesignating paragraph (8) as paragraph (10); and

(5) by inserting after paragraph (7) the following:

“(8) expend not more than 5 percent of the Foundation’s annual operating budget on programs that, in addition to or in conjunction with the Foundation’s scholarship financial awards, support the development of Barry Goldwater Scholars and Barry Goldwater interns throughout their professional careers;

“(9) expend not more than 5 percent of the Foundation’s annual operating budget to pay the costs associated with fundraising activities, including public and private gatherings; and”.