This report provides results of the Select Committee on Indian Affairs' consideration of a bill to improve the education status of Native Hawaiians through grants to the University of Hawaii; community colleges; the Hawaii Department of Education; and Native Hawaiian organizations for educational programs, curriculum development, preschool education centers, and special education. The Committee recommends that the bill be passed with an amendment establishing a native Hawaiian Gifted and Talented Center. The report includes the following information: (1) information on purpose and background of, and need for, the bill; (2) analysis of the legal and historical relationship between the Federal government and Native Hawaiians; (3) summary of the major provisions of the bill; (4) legislative history of the bill; (5) explanation of the Committee Amendment; (6) section-by-section analysis of the bill as amended; and (7) several letters in support of and opposing the bill. (PS)