[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 856 Engrossed in House (EH)]


  2d Session

                               H. R. 856

_______________________________________________________________________

                                 AN ACT

 To provide a process leading to full self-government for Puerto Rico.
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
105th CONGRESS
  2d Session
                                H. R. 856

_______________________________________________________________________

                                 AN ACT


 
 To provide a process leading to full self-government for Puerto Rico.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``United States-
Puerto Rico Political Status Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title, table of contents.
Sec. 2. Findings.
Sec. 3. Policy.
Sec. 4. Process for Puerto Rican full self-government, including the 
                            initial decision stage, transition stage, 
                            and implementation stage.
Sec. 5. Requirements relating to referenda, including inconclusive 
                            referendum and applicable laws.
Sec. 6. Congressional procedures for consideration of legislation.
Sec. 7. Availability of funds for the referenda.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) Puerto Rico was ceded to the United States and came 
        under this Nation's sovereignty pursuant to the Treaty of Paris 
        ending the Spanish-American War in 1898. Article IX of the 
        Treaty of Paris recognized the authority of Congress to provide 
        for the political status of the inhabitants of the territory.
            (2) Consistent with establishment of United States 
        nationality for inhabitants of Puerto Rico under the Treaty of 
        Paris, Congress has exercised its powers under the Territorial 
        Clause of the Constitution (article IV, section 3, clause 2) to 
        provide by several statutes beginning in 1917, for the United 
        States citizenship status of persons born in Puerto Rico.
            (3) Consistent with the Territorial Clause and rulings of 
        the United States Supreme Court, partial application of the 
        United States Constitution has been established in the 
        unincorporated territories of the United States including 
        Puerto Rico.
            (4) In 1950, Congress prescribed a procedure for 
        instituting internal self-government for Puerto Rico pursuant 
        to statutory authorization for a local constitution. A local 
        constitution was approved by the people of Puerto Rico, 
        approved by Congress, subject to conforming amendment by Puerto 
        Rico, and thereupon given effect in 1952 after acceptance of 
        congressional conditions by the Puerto Rico Constitutional 
        Convention and an appropriate proclamation by the Governor. The 
        approved constitution established the structure for 
        constitutional government in respect of internal affairs 
        without altering Puerto Rico's fundamental political, social, 
        and economic relationship with the United States and without 
        restricting the authority of Congress under the Territorial 
        Clause to determine the application of Federal law to Puerto 
        Rico, resulting in the present ``Commonwealth'' structure for 
        local self-government. The Commonwealth remains an 
        unincorporated territory and does not have the status of ``free 
        association'' with the United States as that status is defined 
        under United States law or international practice.
            (5) In 1953, the United States transmitted to the 
        Secretary-General of the United Nations for circulation to its 
        Members a formal notification that the United States no longer 
        would transmit information regarding Puerto Rico to the United 
        Nations pursuant to Article 73(e) of its Charter. The formal 
        United States notification document informed the United Nations 
        that the cessation of information on Puerto Rico was based on 
        the ``new constitutional arrangements'' in the territory, and 
        the United States expressly defined the scope of the ``full 
        measure'' of local self-government in Puerto Rico as extending 
        to matters of ``internal government and administration, subject 
        only to compliance with applicable provisions of the Federal 
        Constitution, the Puerto Rico Federal Relations Act and the 
        acts of Congress authorizing and approving the Constitution, as 
        may be interpreted by judicial decision.''. Thereafter, the 
        General Assembly of the United Nations, based upon consent of 
        the inhabitants of the territory and the United States 
        explanation of the new status as approved by Congress, adopted 
        Resolution 748 (VIII) by a vote of 22 to 18 with 19 
        abstentions, thereby accepting the United States determination 
        to cease reporting to the United Nations on the status of 
        Puerto Rico.
            (6) In 1960, the United Nations General Assembly approved 
        Resolution 1541 (XV), clarifying that under United Nations 
        standards regarding the political status options available to 
        the people of territories yet to complete the process for 
        achieving full self-government, the three established forms of 
        full self-government are national independence, free 
        association based on separate sovereignty, or full integration 
        with another nation on the basis of equality.
            (7) The ruling of the United States Supreme Court in the 
        1980 case Harris v. Rosario (446 U.S. 651) confirmed that 
        Congress continues to exercise authority over Puerto Rico 
        pursuant to the Territorial Clause found at Article IV, section 
        3, clause 2 of the United States Constitution; and in the 1982 
        case of Rodriguez v. Popular Democratic Party (457 U.S. 1), the 
        Court confirmed that the Congress delegated powers of 
        administration to the Commonwealth of Puerto Rico sufficient 
        for it to function ``like a State'' and as ``an autonomous 
        political entity'' in respect of internal affairs and 
        administration, ``sovereign over matters not ruled by the 
        Constitution'' of the United States. These rulings constitute 
        judicial interpretation of Puerto Rico's status which is in 
        accordance with the clear intent of Congress that establishment 
        of local constitutional government in 1952 did not alter Puerto 
        Rico's fundamental status.
            (8) In a joint letter dated January 17, 1989, cosigned by 
        the Governor of Puerto Rico in his capacity as president of one 
        of Puerto Rico's principal political parties and the presidents 
        of the two other principal political parties of Puerto Rico, 
        the United States was formally advised that ``* * * the People 
        of Puerto Rico wish to be consulted as to their preference with 
        regards to their ultimate political status'', and the joint 
        letter stated ``* * * that since Puerto Rico came under the 
        sovereignty of the United States of America through the Treaty 
        of Paris in 1898, the People of Puerto Rico have not been 
        formally consulted by the United States of America as to their 
        choice of their ultimate political status''.
            (9) In the 1989 State of the Union Message, President 
        George Bush urged the Congress to take the necessary steps to 
        authorize a federally recognized process allowing the people of 
        Puerto Rico, for the first time since the Treaty of Paris 
        entered into force, to freely express their wishes regarding 
        their future political status in a congressionally recognized 
        referendum, a step in the process of self-determination which 
        the Congress has yet to authorize.
            (10) On November 14, 1993, the Government of Puerto Rico 
        conducted a plebiscite initiated under local law on Puerto 
        Rico's political status. In that vote none of the three status 
        propositions received a majority of the votes cast. The results 
        of that vote were: 48.6 percent for a commonwealth option, 46.3 
        percent statehood, and 4.4 percent independence.
            (11) In a letter dated December 2, 1994, President William 
        Jefferson Clinton informed leaders in Congress that an 
        Executive Branch Interagency Working Group on Puerto Rico had 
        been organized to coordinate the review, development, and 
        implementation of executive branch policy concerning issues 
        affecting Puerto Rico, including the November 1993 plebiscite.
            (12) Under the Territorial Clause of the Constitution, 
        Congress has the authority and responsibility to determine 
        Federal policy and clarify status issues in order to resolve 
        the issue of Puerto Rico's final status.
            (13) On January 23, 1997, the Puerto Rico Legislature 
        enacted Concurrent Resolution 2, which requested the 105th 
        Congress ``* * * to respond to the democratic aspirations of 
        the American citizens of Puerto Rico'' by approving legislation 
        authorizing ``* * * a plebiscite sponsored by the Federal 
        Government, to be held no later than 1998''.
            (14) Nearly 4,000,000 United States citizens live in the 
        islands of Puerto Rico, which have been under United States 
        sovereignty and within the United States customs territory for 
        almost 100 years, making Puerto Rico the oldest, largest, and 
        most populous United States island territory at the 
        southeastern-most boundary of our Nation, located astride the 
        strategic shipping lanes of the Atlantic Ocean and Caribbean 
        Sea.
            (15) Full self-government is attainable only through 
        establishment of a political status which is based on either 
        separate sovereignty and nationality or full and equal United 
        States nationality and citizenship through membership in the 
        Union.

SEC. 3. POLICY.

    (a) Congressional Commitment.--In recognition of the significant 
level of local self-government which has been attained by Puerto Rico, 
and the responsibility of the Federal Government to enable the people 
of the territory to freely express their wishes regarding political 
status and achieve full self-government, this Act is adopted with a 
commitment to encourage the development and implementation of 
procedures through which the permanent political status of the people 
of Puerto Rico can be determined.
    (b) Official English Language.--In the event that a referendum held 
under this Act results in approval of sovereignty leading to Statehood, 
upon accession to Statehood, the official language requirements of the 
Federal Government shall apply to Puerto Rico in the same manner and to 
the same extent as throughout the United States.
    (c) English Language Empowerment.--It is in the best interest of 
the Nation for Puerto Rico to promote the teaching of English as the 
language of opportunity and empowerment in the United States in order 
to enable students in public schools to achieve English language 
proficiency by the age of 10.

SEC. 4. PROCESS FOR PUERTO RICAN FULL SELF-GOVERNMENT, INCLUDING THE 
              INITIAL DECISION STAGE, TRANSITION STAGE, AND 
              IMPLEMENTATION STAGE.

    (a) Initial Decision Stage.--A referendum on Puerto Rico's 
political status is authorized to be held not later than December 31, 
1998. The referendum shall be held pursuant to this Act and in 
accordance with the applicable provisions of Puerto Rico's electoral 
law and other relevant statutes consistent with this Act. Approval of a 
status option must be by a majority of the valid votes cast. The 
referendum shall be on the approval of 1 of the 3 options presented on 
the ballot as follows:
    ``Instructions: Mark the status option you choose as each is 
defined below. Ballot with more than 1 option marked will not be 
counted.
    ``A. Commonwealth.--If you agree, mark here ______
    ``Puerto Rico should retain Commonwealth, in which--
            ``(1) Puerto Rico is joined in a relationship with and 
        under the national sovereignty of the United States. It is the 
        policy of the Congress that this relationship should only be 
        dissolved by mutual consent.
            ``(2) Under this political relationship, Puerto Rico like a 
        State is an autonomous political entity, sovereign over matters 
        not ruled by the Constitution of the United States. In the 
        exercise of this sovereignty, the laws of the Commonwealth 
        shall govern in Puerto Rico to the extent that they are 
        consistent with the Constitution, treaties, and laws of the 
        United States. Congress retains its constitutional authority to 
        enact laws it deems necessary relating to Puerto Rico.
            ``(3) Persons born in Puerto Rico have United States 
        citizenship by statute as secured by the Constitution. It is 
        the policy of the United States that citizenship will continue 
        to be granted to persons born in Puerto Rico. The rights, 
        privileges, and immunities provided for by the United States 
        Constitution apply in Puerto Rico, except where limited by the 
        Constitution to citizens residing in a State.
            ``(4) Puerto Rico will continue to participate in Federal 
        programs and may be enabled to participate equally with the 
        States in the programs where it is not now participating 
        equally contingent on the payment of contributions, which may 
        include payment of taxes, as provided by Federal law.
    ``B. Separate Sovereignty.--If you agree, mark here ______
    ``The people of Puerto Rico should become fully self-governing 
through separate sovereignty in the form of independence or free 
association, in which--
            ``(1) Puerto Rico is a sovereign Republic which has full 
        authority and responsibility over its territory and population 
        under a constitution which is the supreme law, providing for a 
        republican form of government and the protection of human 
        rights;
            ``(2) the Republic of Puerto Rico is a member of the 
        community of nations vested with full powers and 
        responsibilities for its own fiscal and monetary policy, 
        immigration, trade, and the conduct in its own name and right 
        of relations with other nations and international 
        organizations, including the rights and responsibilities that 
        devolve upon a sovereign nation under the general principles of 
        international law;
            ``(3) the residents of Puerto Rico owe allegiance to and 
        have the nationality and citizenship of the Republic of Puerto 
        Rico;
            ``(4) the Constitution and laws of the United States no 
        longer apply in Puerto Rico, and United States sovereignty in 
        Puerto Rico is ended; thereupon birth in Puerto Rico or 
        relationship to persons with statutory United States 
        citizenship by birth in the former territory shall cease to be 
        a basis for United States nationality or citizenship, except 
        that persons who had such United States citizenship have a 
        statutory right to retain United States nationality and 
        citizenship for life, by entitlement or election as provided by 
        the United States Congress, based on continued allegiance to 
        the United States: Provided, That such persons will not have 
        this statutory United States nationality and citizenship status 
        upon having or maintaining allegiance, nationality, and 
        citizenship rights in any sovereign nation, including the 
        Republic of Puerto Rico, other than the United States;
            ``(5) the previously vested rights of individuals in Puerto 
        Rico to benefits based upon past services rendered or 
        contributions made to the United States shall be honored by the 
        United States as provided by Federal law;
            ``(6) Puerto Rico and the United States seek to develop 
        friendly and cooperative relations in matters of mutual 
        interest as agreed in treaties approved pursuant to their 
        respective constitutional processes, and laws including 
        economic and programmatic assistance at levels and for a 
        reasonable period as provided on a government-to-government 
        basis, trade between customs territories, transit of citizens 
        in accordance with immigration laws, and status of United 
        States military forces; and
            ``(7) a free association relationship may be established 
        based on separate sovereign republic status as defined above, 
        but with such delegations of government functions and other 
        cooperative arrangements as may be agreed to by both parties 
        under a bilateral pact terminable at will by either the United 
        States or Puerto Rico.
    ``C. Statehood.--If you agree, mark here ______
    ``Puerto Rico should become fully self governing through Statehood, 
in which--
            ``(1) the people of Puerto Rico are fully self-governing 
        with their rights secured under the United States Constitution, 
        which shall be fully applicable in Puerto Rico and which, with 
        the laws and treaties of the United States, is the supreme law 
        and has the same force and effect as in the other States of the 
        Union;
            ``(2) the State of Puerto Rico becomes a part of the 
        permanent union of the United States of America, subject to the 
        United States Constitution, with powers not prohibited by the 
        Constitution to the States, reserved to the State of Puerto 
        Rico in its sovereignty or to the people;
            ``(3) United States citizenship of those born in Puerto 
        Rico is recognized, protected and secured in the same way it is 
        for all United States citizens born in the other States;
            ``(4) rights, freedoms, and benefits as well as duties and 
        responsibilities of citizenship, including payment of Federal 
        taxes, apply in the same manner as in the several States;
            ``(5) Puerto Rico is represented by two members in the 
        United States Senate and is represented in the House of 
        Representatives proportionate to the population;
            ``(6) United States citizens in Puerto Rico are 
        enfranchised to vote in elections for the President and Vice 
        President of the United States; and
            ``(7) Official English language requirements of the Federal 
        Government apply in Puerto Rico to the same extent as Federal 
        law requires throughout the United States.''.
    (b) Transition Stage.--
            (1) Plan.--(A) Within 180 days of the receipt of the 
        results of the referendum from the Government of Puerto Rico 
        certifying approval of a ballot choice of full self-government 
        in a referendum held pursuant to subsection (a), the President 
        shall develop and submit to Congress legislation for a 
        transition plan of not more than 10 years which leads to full 
        self-government for Puerto Rico consistent with the terms of 
        this Act and the results of the referendum and in consultation 
        with officials of the three branches of the Government of 
        Puerto Rico, the principal political parties of Puerto Rico, 
        and other interested persons as may be appropriate.
            (B) Additionally, in the event of a vote in favor of 
        separate sovereignty, the Legislature of Puerto Rico, if deemed 
        appropriate, may provide by law for the calling of a 
        constituent convention to formulate, in accordance with 
        procedures prescribed by law, Puerto Rico's proposals and 
        recommendations to implement the referendum results. If a 
        convention is called for this purpose, any proposals and 
        recommendations formally adopted by such convention within time 
        limits of this Act shall be transmitted to Congress by the 
        President with the transition plan required by this section, 
        along with the views of the President regarding the 
        compatibility of such proposals and recommendations with the 
        United States Constitution and this Act, and identifying which, 
        if any, of such proposals and recommendations have been 
        addressed in the President's proposed transition plan.
            (C) Additionally, in the event of a vote in favor of 
        continued United States sovereignty leading to Statehood, the 
        transition plan required by this subsection shall--
                    (i) include proposals and incentives to increase 
                the opportunities of the people of Puerto Rico to 
                expand their English proficiency in order to promote 
                and facilitate communication with residents of all 
                other States of the United States and with the Federal 
                Government, including teaching in English in public 
                schools, awarding fellowships and scholarships, and 
                providing grants to organizations located in various 
                communities that have, as a purpose, the promotion of 
                English language skills;
                    (ii) promote the use of English by the United 
                States citizens in Puerto Rico in order to ensure--
                            (I) efficiency in the conduct and 
                        coordination of the official business 
                        activities of the Federal and State 
                        Governments;
                            (II) that the citizens possess the language 
                        skill necessary to contribute to and 
                        participate in all aspects of the Nation; and
                            (III) the ability of all citizens of Puerto 
                        Rico to take full advantage of the 
                        opportunities and responsibilities accorded to 
                        all citizens, including education, economic 
                        activities, occupational opportunities, and 
                        civic affairs; and
                    (iii) include the effective date of incorporation, 
                thereby permitting the greatest degree of flexibility 
                for the phase-in of Federal programs and the 
                development of the economy through fiscal incentives, 
                alternative tax arrangements, and other measures.
            (D) In the event of a vote in favor of Commonwealth, the 
        Government of Puerto Rico may call a Special Convention to 
        develop proposals for submission to the President and the 
        Congress for changes in Federal policy on matters of economic 
        and social concern to the people of Puerto Rico. The President 
        and the Congress, as appropriate, shall expeditiously consider 
        any such proposals. The Commonwealth would assume any expenses 
        related to increased responsibilities resulting from such 
        proposals.
            (2) Congressional consideration.--The plan shall be 
        considered by the Congress in accordance with section 6.
            (3) Puerto rican approval.--
                    (A) Not later than 180 days after enactment of an 
                Act pursuant to paragraph (1) providing for the 
                transition to full self-government for Puerto Rico as 
                approved in the initial decision referendum held under 
                subsection (a), a referendum shall be held under the 
                applicable provisions of Puerto Rico's electoral law on 
                the question of approval of the transition plan.
                    (B) Approval must be by a majority of the valid 
                votes cast. The results of the referendum shall be 
                certified to the President of the United States.
    (c) Implementation Stage.--
            (1) Presidential recommendation.--Not less than two years 
        prior to the end of the period of the transition provided for 
        in the transition plan approved under subsection (b), the 
        President shall submit to Congress a joint resolution with a 
        recommendation for the date of termination of the transition 
        and the date of implementation of full self-government for 
        Puerto Rico within the transition period consistent with the 
        ballot choice approved under subsection (a).
            (2) Congressional consideration.--The joint resolution 
        shall be considered by the Congress in accordance with section 
        6.
            (3) Puerto rican approval.--
                    (A) Within 180 days after enactment of the terms of 
                implementation for full self-government for Puerto 
                Rico, a referendum shall be held under the applicable 
                provisions of Puerto Rico's electoral laws on the 
                question of the approval of the terms of implementation 
                for full self-government for Puerto Rico.
                    (B) Approval must be by a majority of the valid 
                votes cast. The results of the referendum shall be 
                certified to the President of the United States.

SEC. 5. REQUIREMENTS RELATING TO REFERENDA, INCLUDING INCONCLUSIVE 
              REFERENDUM AND APPLICABLE LAWS.

    (a) Applicable Laws.--
            (1) Referenda under puerto rican laws.--The referenda held 
        under this Act shall be conducted in accordance with the 
        applicable laws of Puerto Rico, including laws of Puerto Rico 
        under which voter eligibility is determined and which require 
        United States citizenship and establish other statutory 
        requirements for voter eligibility of residents and 
        nonresidents.
            (2) Federal laws.--The Federal laws applicable to the 
        election of the Resident Commissioner of Puerto Rico shall, as 
        appropriate and consistent with this Act, also apply to the 
        referenda. Any reference in such Federal laws to elections 
        shall be considered, as appropriate, to be a reference to the 
        referenda, unless it would frustrate the purposes of this Act.
    (b) Certification of Referenda Results.--The results of each 
referendum held under this Act shall be certified to the President of 
the United States and the Senate and House of Representatives of the 
United States by the Government of Puerto Rico.
    (c) Consultation and Recommendations for Inconclusive Referendum.--
            (1) In general.--If a referendum provided in section 4(b) 
        or (c) of this Act does not result in approval of a fully self-
        governing status, the President, in consultation with officials 
        of the three branches of the Government of Puerto Rico, the 
        principal political parties of Puerto Rico, and other 
        interested persons as may be appropriate, shall make 
        recommendations to the Congress within 180 days of receipt of 
        the results of the referendum regarding completion of the self-
        determination process for Puerto Rico under the authority of 
        Congress.
            (2) Additional referenda.--To ensure that the Congress is 
        able on a continuing basis to exercise its Territorial Clause 
        powers with due regard for the wishes of the people of Puerto 
        Rico respecting resolution of Puerto Rico's permanent future 
        political status, in the event that a referendum conducted 
        under section 4(a) does not result in a majority vote for 
        separate sovereignty or statehood, there is authorized to be 
        further referenda in accordance with this Act, but not less 
        than once every 10 years.

SEC. 6. CONGRESSIONAL PROCEDURES FOR CONSIDERATION OF LEGISLATION.

    (a) In General.--The majority leader of the House of 
Representatives (or his designee) and the majority leader of the Senate 
(or his designee) shall each introduce legislation (by request) 
providing for the transition plan under section 4(b) and the 
implementation recommendation under section 4(c) not later than 5 
legislative days after the date of receipt by Congress of the 
submission by the President under that section, as the case may be.
    (b) Referral.--The legislation shall be referred on the date of 
introduction to the appropriate committee or committees in accordance 
with rules of the respective Houses. The legislation shall be reported 
not later than the 120th calendar day after the date of its 
introduction. If any such committee fails to report the bill within 
that period, that committee shall be automatically discharged from 
consideration of the legislation, and the legislation shall be placed 
on the appropriate calendar.
    (c) Consideration.--
            (1) After the 14th legislative day after the date on which 
        the last committee of the House of Representatives or the 
        Senate, as the case may be, has reported or been discharged 
        from further consideration of such legislation, it is in order 
        after the legislation has been on the calendar for 14 
        legislative days for any Member of that House in favor of the 
        legislation to move to proceed to the consideration of the 
        legislation (after consultation with the presiding officer of 
        that House as to scheduling) to move to proceed to its 
        consideration at any time after the third legislative day on 
        which the Member announces to the respective House concerned 
        the Member's intention to do so. All points of order against 
        the motion to proceed and against consideration of that motion 
        are waived. The motion is highly privileged in the House of 
        Representatives and is privileged in the Senate and is not 
        debatable. The motion is not subject to amendment, or to a 
        motion to postpone, or to a motion to proceed to the 
        consideration of other business. A motion to reconsider the 
        vote by which the motion is agreed to or disagreed to shall not 
        be in order. If a motion to proceed to the consideration of the 
        legislation is agreed to, the respective House shall 
        immediately proceed to consideration of the legislation without 
        intervening motion (exception one motion to adjourn), order, or 
        other business.
            (2)(A) In the House of Representatives, during 
        consideration of the legislation in the Committee of the Whole, 
        the first reading of the legislation shall be dispensed with. 
        General debate shall be confined to the legislation, and shall 
        not exceed 4 hours equally divided and controlled by a 
        proponent and an opponent of the legislation. After general 
        debate, the legislation shall be considered as read for 
        amendment under the five-minute rule. Consideration of the 
        legislation for amendment shall not exceed 4 hours excluding 
        time for recorded votes and quorum calls. At the conclusion of 
        the bill for amendment, the Committee shall rise and report the 
        bill to the House with such amendments as may have been 
        adopted. The previous question shall be considered as ordered 
        on the legislation and amendments thereto to final passage 
        without intervening motion, except one motion to recommit with 
        or without instructions. A motion to reconsider the vote on 
        passage of the legislation shall not be in order.
            (B) In the Senate, debate on the legislation, and all 
        amendments thereto and debatable motions and appeals in 
        connection therewith, shall be limited to not more than 25 
        hours. The time shall be equally divided between, and 
        controlled by, the majority leader and the minority leader or 
        their designees. No amendment that is not germane to the 
        provisions of such legislation shall be received. A motion to 
        further limit debate is not debatable.
            (3) Appeals from the decisions of the Chair relating to the 
        application of the rules of the Senate or the House of 
        Representatives, as the case may be, to the procedure relating 
        to the legislation described in subsection (a) shall be decided 
        without debate.
    (d) Consideration by Other House.--(1) If, before the passage by 
one House of the legislation described in subsection (a) that was 
introduced in that House, that House receives from the other House the 
legislation described in subsection (a)--
            (A) the legislation of the other House shall not be 
        referred to a committee and may not be considered in the House 
        that receives it otherwise than on final passage under 
        subparagraph (B)(ii) or (iii); and
            (B)(i) the procedure in the House that receives such 
        legislation with respect to such legislation that was 
        introduced in that House shall be the same as if no legislation 
        had been received from the other House; but
            (ii) in the case of legislation received from the other 
        House that is identical to the legislation as engrossed by the 
        receiving House, the vote on final passage shall be on the 
        legislation of the other House; or
            (iii) after passage of the legislation, the legislation of 
        the other House shall be considered as amended with the text of 
        the legislation just passed and shall be considered as passed, 
        and that House shall be considered to have insisted on its 
        amendment and requested a conference with the other House.
    (2) Upon disposition of the legislation described in subsection (a) 
that is received by one House from the other House, it shall no longer 
be in order to consider such legislation that was introduced in the 
receiving House.
    (e) Conference.--Upon receiving from the other House a message in 
which that House insists upon its amendment to the legislation and 
requests a conference with the House of Representatives or the Senate, 
as the case may be, on the disagreeing votes thereon, the House 
receiving the request shall be considered to have disagreed to the 
amendment of the other House and agreed to the conference requested by 
that House.
    (f) Definition.--For the purposes of this section, the term 
``legislative day'' means a day on which the House of Representatives 
or the Senate, as appropriate, is in session.
    (g) Exercise of Rulemaking Power.--The provisions of this section 
are enacted by the Congress--
            (1) as an exercise of the rulemaking power of the Senate 
        and the House of Representatives and, as such, shall be 
        considered as part of the rules of each House and shall 
        supersede other rules only to the extent that they are 
        inconsistent therewith; and
            (2) with full recognition of the constitutional right of 
        either House to change the rules (so far as they relate to the 
        procedures of that House) at any time, in the same manner, and 
        to the same extent as in the case of any other rule of that 
        House.

SEC. 7. AVAILABILITY OF FUNDS FOR THE REFERENDA.

    (a) In General.--
            (1) Availability of amounts derived from tax on foreign 
        rum.--During the period beginning October 1, 1997, and ending 
        on the date the President determines that all referenda 
        required by this Act have been held, from the amounts covered 
        into the treasury of Puerto Rico under section 7652(e)(1) of 
        the Internal Revenue Code of 1986, the Secretary of the 
        Treasury--
                    (A) upon request and in the amounts identified from 
                time to time by the President, shall make the amounts 
                so identified available to the treasury of Puerto Rico 
                for the purposes specified in subsection (b); and
                    (B) shall transfer all remaining amounts to the 
                treasury of Puerto Rico, as under current law.
            (2) Report of referenda expenditures.--Within 180 days 
        after each referendum required by this Act, and after the end 
        of the period specified in paragraph (1), the President, in 
        consultation with the Government of Puerto Rico, shall submit a 
        report to the United States Senate and United States House of 
        Representatives on the amounts made available under paragraph 
        (1)(A) and all other amounts expended by the State Elections 
        Commission of Puerto Rico for referenda pursuant to this Act.
    (b) Grants for Conducting Referenda and Voter Education.--From 
amounts made available under subsection (a)(1), the Government of 
Puerto Rico shall make grants to the State Elections Commission of 
Puerto Rico for referenda held pursuant to the terms of this Act, as 
follows:
            (1) Fifty percent shall be available only for costs of 
        conducting the referenda.
            (2) Fifty percent shall be available only for voter 
        education funds for the central ruling body of the political 
        party, parties, or other qualifying entities advocating a 
        particular ballot choice. The amount allocated for advocating a 
        ballot choice under this paragraph shall be apportioned equally 
        among the parties advocating that choice.
    (c) Additional Resources.--In addition to amounts made available by 
this Act, the Puerto Rico Legislature may allocate additional resources 
for administrative and voter education costs to each party so long as 
the distribution of funds is consistent with the apportionment 
requirements of subsection (b).

            Passed the House of Representatives March 4, 1998.

            Attest:

                                                                 Clerk.