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(1) GRANTS AND CONTRACTS- The Secretary is authorized to make direct grants to, or enter into contracts with

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(A) Native Hawaiian educational organizations;

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(B) Native Hawaiian community-based organizations;

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(C) public and private nonprofit organizations, agencies, and institutions with experience in developing or operating Native Hawaiian programs or programs of instruction in the Native Hawaiian language; and

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(D) consortia of the organizations, agencies, and institutions described in subparagraphs (A) through (C),
to carry out programs that meet the purposes of this part.

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(2) PRIORITIES- In awarding grants or contracts to carry out activities described in paragraph (3), the Secretary shall give priority to entities proposing projects that are designed to address

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(A) beginning reading and literacy among students in kindergarten through third grade;

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(B) the needs of at-risk children and youth;

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(C) needs in fields or disciplines in which Native Hawaiians are underemployed; and

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(D) the use of the Hawaiian language in instruction.

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(3) AUTHORIZED ACTIVITIES- Activities provided through programs carried out under this part may include

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(A) the development and maintenance of a statewide Native Hawaiian early education and care system to provide a continuum of services for Native Hawaiian children from the prenatal period of the children through age 5;

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(B) the operation of family-based education centers that provide such services as

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(i) programs for Native Hawaiian parents and their infants from the prenatal period of the infants through age 3;

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(ii) preschool programs for Native Hawaiians; and

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(iii) research on, and development and assessment of, family-based, early childhood, and preschool programs for Native Hawaiians;

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(C) activities that enhance beginning reading and literacy in either the Hawaiian or the English language among Native Hawaiian students in kindergarten through third grade and assistance in addressing the distinct features of combined English and Hawaiian literacy for Hawaiian speakers in fifth and sixth grade;

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(D) activities to meet the special needs of Native Hawaiian students with disabilities, including

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(i) the identification of such students and their needs;

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(ii) the provision of support services to the families of those students; and

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(iii) other activities consistent with the requirements of the Individuals with Disabilities Education Act;

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(E) activities that address the special needs of Native Hawaiian students who are gifted and talented, including

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(i) educational, psychological, and developmental activities designed to assist in the educational progress of those students; and

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(ii) activities that involve the parents of those students in a manner designed to assist in the students educational progress;

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(F) the development of academic and vocational curricula to address the needs of Native Hawaiian children and adults, including curriculum materials in the Hawaiian language and mathematics and science curricula that incorporate Native Hawaiian tradition and culture;

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(G) professional development activities for educators, including

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(i) the development of programs to prepare prospective teachers to address the unique needs of Native Hawaiian students within the context of Native Hawaiian culture, language, and traditions;

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(ii) in-service programs to improve the ability of teachers who teach in schools with concentrations of Native Hawaiian students to meet those students unique needs; and

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(iii) the recruitment and preparation of Native Hawaiians, and other individuals who live in communities with a high concentration of Native Hawaiians, to become teachers;

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(H) the operation of community-based learning centers that address the needs of Native Hawaiian families and communities through the coordination of public and private programs and services, including

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(i) preschool programs;

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(ii) after-school programs;

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(iii) vocational and adult education programs; and

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(iv) programs that recognize and support the unique cultural and educational needs of Native Hawaiian children, and incorporate appropriately qualified Native Hawaiian elders and seniors;

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(I) activities, including program co-location, to enable Native Hawaiians to enter and complete programs of postsecondary education, including

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(i) provision of full or partial scholarships for undergraduate or graduate study that are awarded to students based on their academic promise and financial need, with a priority, at the graduate level, given to students entering professions in which Native Hawaiians are underrepresented;

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(ii) family literacy services;

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(iii) counseling and support services for students receiving scholarship assistance;

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(iv) counseling and guidance for Native Hawaiian secondary students who have the potential to receive scholarships; and

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(v) faculty development activities designed to promote the matriculation of Native Hawaiian students;

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(J) research and data collection activities to determine the educational status and needs of Native Hawaiian children and adults;

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(K) other research and evaluation activities related to programs carried out under this part; and

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(L) other activities, consistent with the purposes of this part, to meet the educational needs of Native Hawaiian children and adults.

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(A) INSTITUTIONS OUTSIDE HAWAII- The Secretary shall not establish a policy under this section that prevents a Native Hawaiian student enrolled at a 2- or 4-year degree granting institution of higher education outside of the State of Hawaii from receiving a scholarship pursuant to paragraph (3)(I).

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(B) SCHOLARSHIP CONDITIONS- The Secretary shall establish conditions for receipt of a scholarship awarded under paragraph (3)(I). The conditions shall require that an individual seeking such a scholarship enter into a contract to provide professional services, either during the scholarship period or upon completion of a program of postsecondary education, to the Native Hawaiian community.

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(b) ADMINISTRATIVE COSTS- Not more than 5 percent of funds provided to a recipient of a grant or contract under subsection (a) for any fiscal year may be used for administrative purposes.

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(1) IN GENERAL- There are authorized to be appropriated to carry out this section and section 7204 such sums as may be necessary for fiscal year 2002 and each of the 5 succeeding fiscal years.

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(2) RESERVATION- Of the funds appropriated under this subsection, the Secretary shall reserve $500,000 for fiscal year 2002 and each of the 5 succeeding fiscal years to make a direct grant to the Education Council to carry out section 7204.

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(3) AVAILABILITY- Funds appropriated under this subsection shall remain available until expended.