[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8393 Introduced in House (IH)]

<DOC>






117th CONGRESS
  2d Session
                                H. R. 8393

      To enable the people of Puerto Rico to choose a permanent, 
 nonterritorial, fully self-governing political status for Puerto Rico 
   and to provide for a transition to and the implementation of that 
 permanent, nonterritorial, fully self-governing political status, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 15, 2022

  Mr. Grijalva (for himself, Ms. Velazquez, Miss Gonzalez-Colon, Mr. 
Soto, and Mr. Hoyer) introduced the following bill; which was referred 
                 to the Committee on Natural Resources

_______________________________________________________________________

                                 A BILL


 
      To enable the people of Puerto Rico to choose a permanent, 
 nonterritorial, fully self-governing political status for Puerto Rico 
   and to provide for a transition to and the implementation of that 
 permanent, nonterritorial, fully self-governing political status, and 
                          for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Puerto Rico Status Act''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Findings.
Sec. 4. Definitions.
Sec. 5. Plebiscite.
Sec. 6. Nonpartisan voter education campaign.
Sec. 7. Oversight.
Sec. 8. Funds for voter education; plebiscites.
Sec. 9. Bilingual voter educational materials and ballots.
Sec. 10. Puerto Rico Oversight, Management, and Economic Stability Act.
Sec. 11. Severability.
          TITLE I--TRANSITION AND IMPLEMENTATION--INDEPENDENCE

Sec. 101. Constitutional Convention.
Sec. 102. Character of the Constitution.
Sec. 103. Submission; ratification.
Sec. 104. Election of officers.
Sec. 105. Conforming amendments to existing law.
Sec. 106. Joint Transition Commission.
Sec. 107. Proclamations by President of the United States; head of 
                            state of Puerto Rico.
Sec. 108. Legal and constitutional provisions.
Sec. 109. Judicial pronouncements.
Sec. 110. Citizenship and immigration laws after Puerto Rican 
                            independence.
Sec. 111. Individual rights to economic benefits and grants.
     TITLE II--TRANSITION AND IMPLEMENTATION--SOVEREIGNTY IN FREE 
                   ASSOCIATION WITH THE UNITED STATES

Sec. 201. Constitutional Convention.
Sec. 202. Character of the Constitution.
Sec. 203. Submission; ratification.
Sec. 204. Election of officers.
Sec. 205. Proclamations by President of the United States; head of 
                            state of Puerto Rico.
Sec. 206. Legal and constitutional provisions.
Sec. 207. Judicial pronouncements.
Sec. 208. Citizenship and immigration laws after sovereignty through 
                            free association.
Sec. 209. Conforming amendments to existing law.
Sec. 210. Bilateral Negotiating Commission.
Sec. 211. Articles of Free Association approval and effective date.
Sec. 212. Termination.
Sec. 213. Individual rights to economic benefits and grants.
          TITLE III--TRANSITION AND IMPLEMENTATION--STATEHOOD

Sec. 301. Presidential proclamation; Admission into the Union.
Sec. 302. Conforming amendments to existing law.
Sec. 303. Territory and boundaries.
Sec. 304. Constitution.
Sec. 305. Elections of Senators and Representatives, certification, and 
                            legal disputes.
Sec. 306. State title to land and property.
Sec. 307. Continuity of laws, government, and obligations.
Sec. 308. Judicial pronouncements.

SEC. 3. FINDINGS.

    In recognition of the inherent limitations of Puerto Rico's 
territorial status, 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, Congress 
seeks to enable the eligible voters of Puerto Rico to choose a 
permanent, non-territorial, fully self-governing political status for 
Puerto Rico and to provide for a transition to and the implementation 
of said permanent, nonterritorial, fully self-governing status.

SEC. 4. DEFINITIONS.

    In this Act:
            (1) Bilateral negotiating commission.--The term ``Bilateral 
        Negotiating Commission'' means the Bilateral Negotiating 
        Commission established under section 209(a).
            (2) Elections commission.--The term ``Elections 
        Commission'' means the Puerto Rico State Elections Commission 
        (Comision Estatal de Elecciones de Puerto Rico, in Spanish).
            (3) Eligible voters.--The term ``eligible voters'' means 
        bona fide residents of Puerto Rico who are otherwise qualified 
        to vote in general elections in Puerto Rico.
            (4) Initial plebiscite.--The term ``initial plebiscite'' 
        means the plebiscite required by section 5(a)(1).
            (5) Majority.--The term ``majority'' means more than 50 
        percent.
            (6) Runoff plebiscite.--The term ``runoff plebiscite'' 
        means the plebiscite required by section 5(a)(4).

SEC. 5. PLEBISCITE.

    (a) In General.--
            (1) Initial plebiscite.--A plebiscite to resolve Puerto 
        Rico's political status shall be held on November 5, 2023.
            (2) Options.--The plebiscite held under paragraph (1) shall 
        offer eligible voters a choice of one of the three options 
        which shall be presented on the ballot as follows:
                    (A) Independence.
                    (B) Sovereignty in Free Association with the United 
                States.
                    (C) Statehood.
            (3) Majority vote required.--Approval of a status option 
        must be by a majority of the valid votes cast.
            (4) Runoff plebiscite.--If there is not a majority in favor 
        of one of the three options defined in this Act, then a runoff 
        plebiscite shall be held on March 3, 2024, which shall offer 
        eligible voters a choice of the two options that received the 
        most votes in the plebiscite held under paragraph (1).
    (b) Ballot Language.--A ballot for a plebiscite required by 
subsection (a) shall include the following language, except that the 
ballot for the runoff plebiscite shall omit the option that received 
the fewest votes in the initial plebiscite:
            (1) Instructions.--Mark the status option you choose as 
        each is defined below. A ballot with more than 1 option marked 
        will not be counted. A ballot with no option marked will not be 
        counted.
            (2) Independence.--If you agree, mark here ____.
                    (A) Puerto Rico is a sovereign nation that has full 
                authority and responsibility over its territory and 
                population under a constitution of its own adoption 
                which shall be the supreme law of the nation.
                    (B) Puerto Rico is vested with full powers and 
                responsibilities consistent with the rights and 
                responsibilities that devolve upon a sovereign nation 
                under international law, including 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.
                    (C) Puerto Rico has full authority and 
                responsibility over its citizenship and immigration 
                laws, and 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 have such United States citizenship 
                have a right to retain United States nationality and 
                citizenship for life, by entitlement or election as 
                provided by Federal law.
                    (D) Puerto Rico will no longer be a possession of 
                the United States for purposes of the Internal Revenue 
                Code. In general, United States citizens and United 
                States businesses in the nation of Puerto Rico will be 
                subject to United States Federal tax laws (as is the 
                case with any other United States citizen or United 
                States business abroad) and to Puerto Rican tax laws. 
                Puerto Rico's status as an independent, sovereign 
                nation will be the controlling factor in the taxation 
                of Puerto Rican taxpayers.
                    (E) The Constitution and laws of the United States 
                no longer apply in Puerto Rico and United States 
                sovereignty in Puerto Rico is ended.
            (3) Sovereignty in free association with the united 
        states.--If you agree, mark here ___.
                    (A) Puerto Rico is a sovereign nation that has full 
                authority and responsibility over its territory and 
                population under a constitution of its own adoption 
                which shall be the supreme law of the nation.
                    (B) Puerto Rico is vested with full powers and 
                responsibilities consistent with the rights and 
                responsibilities that devolve upon a sovereign nation 
                under international law, including 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, except as otherwise 
                provided for in the Articles of Free Association to be 
                negotiated by Puerto Rico and the United States.
                    (C) Puerto Rico has full authority and 
                responsibility over its citizenship and immigration 
                laws, and persons who have United States citizenship 
                have a right to retain United States nationality and 
                citizenship for life by entitlement or election as 
                provided by Federal law.
                    (D) Birth in Puerto Rico shall cease to be a basis 
                for United States nationality or citizenship. 
                Individuals born in Puerto Rico to parents both of whom 
                are United States citizens shall be United States 
                citizens at birth, consistent with the immigration laws 
                of the United States, for the duration of the first 
                agreement of the Articles of Free Association.
                    (E) Puerto Rico enters into Articles of Free 
                Association with the United States, with such 
                devolution and reservation of governmental functions 
                and other bilateral arrangements as may be agreed to by 
                both Parties under the Articles, which shall be 
                terminable at will by either the United States or 
                Puerto Rico at any time.
                    (F) Puerto Rico will no longer be a possession of 
                the United States for purposes of the Internal Revenue 
                Code. In general, United States citizens and United 
                States businesses in the nation of Puerto Rico will be 
                subject to United States Federal tax laws (as is the 
                case with any other United States citizen or United 
                States business abroad) and to Puerto Rican tax laws. 
                Puerto Rico's status as an independent, sovereign 
                nation will be the controlling factor in the taxation 
                of Puerto Rican taxpayers. In addition, Puerto Rico 
                will enter into an agreement with the United States to 
                provide for ``Sovereignty in Free Association'' between 
                the two nations. This agreement may modify the 
                otherwise applicable tax rules, subject to negotiation 
                and ratification by the two nations.
                    (G) The Constitution of the United States no longer 
                applies in Puerto Rico, the laws of the United States 
                no longer apply in Puerto Rico except as otherwise 
                provided in the Articles of Free Association, and 
                United States sovereignty in Puerto Rico is ended.
                    (H) All matters pertaining to the government-to-
                government relationship between Puerto Rico and the 
                United States, which may include foreign affairs, 
                trade, finance, taxation, currency, economic 
                assistance, security and defense, dispute resolution 
                and termination, shall be provided for in the Articles 
                of Free Association.
            (4) Statehood.--If you agree, mark here ____.
                    (A) The State of Puerto Rico is admitted into the 
                Union on an equal footing with the other States in all 
                respects whatever and is 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 and reserved to the State of 
                Puerto Rico or to its residents.
                    (B) The residents 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 in Puerto Rico as in the other States 
                of the Union.
                    (C) United States citizenship of those born in 
                Puerto Rico is recognized, protected, and secured under 
                the United States Constitution in the same way such 
                citizenship is for all United States citizens born in 
                the other States.
                    (D) Puerto Rico will no longer be a possession of 
                the United States for purposes of the Internal Revenue 
                Code. Instead, the State of Puerto Rico will become a 
                State on equal footing with each of the current 50 
                States in the United States of America. Individuals and 
                businesses resident in the State of Puerto Rico will be 
                subject to United States Federal tax laws as well as 
                applicable State tax laws.
    (c) Implementation of Plebiscite.--The plebiscites authorized by 
this section shall be implemented by the Elections Commission, 
consistent with the laws of Puerto Rico and Federal law.
    (d) Results.--The Elections Commission shall inform the President 
of the United States, the President pro tempore of the United States 
Senate, the Speaker of the United States House of Representatives, the 
Senate Committee on Energy and Natural Resources, and the House 
Committee on Natural Resources of--
            (1) the results of the initial plebiscite not later than 30 
        calendar days after the initial plebiscite is held; and
            (2) the results of the runoff plebiscite, if held, not 
        later than 30 calendar days after the runoff plebiscite is 
        held.
    (e) Jurisdiction of District Court.--The United States District 
Court for the District of Puerto Rico shall have original and exclusive 
jurisdiction of any civil action alleging a dispute or controversy 
pertaining to electoral processes conducted under this section.

SEC. 6. NONPARTISAN VOTER EDUCATION CAMPAIGN.

    (a) In General.--The Elections Commission shall carry out a 
nonpartisan voter education campaign through traditional paid media and 
make available at all voting locations voter education materials 
related to the plebiscites authorized under this Act consistent with 
Department of Justice approval under section 7.
    (b) Voter Education Materials.--At a minimum, the voter education 
materials shall address for each option--
            (1) international representation;
            (2) citizenship and immigration; and
            (3) access and treatment under Federal law and programs.

SEC. 7. OVERSIGHT.

    (a) Submission of Materials.--Not later than 60 days after the date 
of the enactment of this Act, the Elections Commission shall submit the 
ballot design and voter education materials for the plebiscites 
authorized under this Act to the United States Attorney General for 
review and the Elections Commission shall make not more than one 
submission of the ballot design and voter education materials to the 
Attorney General for review.
    (b) Effect of Failure To Comply.--If the Attorney General fails to 
comply with subsection (c) within the 45-day period, the ballot design 
and voter education materials shall be considered approved.
    (c) Review.--Not later than 45 days after receiving the ballot 
design and voter education materials under subsection (a), the Attorney 
General shall review the ballot design and voter education materials to 
ensure consistency with this Act and to ensure that the three options 
defined in this Act are represented fairly, especially in the event 
that any of the three options are not represented on the Elections 
Commission by a member of a political party that supports such option, 
and--
            (1) return the materials to the Elections Commission with 
        comments and instructions for changes; or
            (2) before the expiration of the 45-day period, inform the 
        Elections Commission that no instructions or requests for 
        changes shall be made under paragraph (1), but that the 
        Attorney General reserves the right to submit instructions for 
        changes in accordance with this section if additional 
        information comes to the attention of the Attorney General 
        during the remainder of the 45-day period.
    (d) Revision.--Not later than 45 days after receiving comments and 
instructions for changes from the Attorney General under subsection 
(c), the Elections Commission shall revise the ballot design and voter 
education materials as requested by the Attorney General.

SEC. 8. FUNDS FOR VOTER EDUCATION; PLEBISCITES.

    (a) Authorization of Appropriations.--There is authorized to be 
appropriated such sums as are necessary for the Elections Commission to 
carry out a nonpartisan voter education campaign and an initial 
plebiscite and, if necessary, a runoff plebiscite under this Act.
    (b) Existing Funds.--Notwithstanding any provision of Public Law 
113-76, funds made available under such Act to carry out a plebiscite 
on Puerto Rico's status shall be made available to carry out this Act.

SEC. 9. BILINGUAL VOTER EDUCATIONAL MATERIALS AND BALLOTS.

    All voter educational materials and ballots used to carry out this 
Act shall be made available in English and Spanish.

SEC. 10. PUERTO RICO OVERSIGHT, MANAGEMENT, AND ECONOMIC STABILITY ACT.

    Upon the admission of the State of Puerto Rico into the Union or on 
the date that the Government of the nation of Puerto Rico initially 
takes office:
            (1) In general.--The Puerto Rico Oversight, Management, and 
        Economic Stability Act (48 U.S.C. 2101 et seq.) shall no longer 
        apply to the State of Puerto Rico or the nation of Puerto Rico, 
        as the case may be.
            (2) Oversight board.--The Financial Oversight and 
        Management Board for Puerto Rico established under section 
        101(b)(1) of the Puerto Rico Oversight, Management, and 
        Economic Stability Act (48 U.S.C. 2121(b)(1)) is terminated and 
        all duties and responsibilities assigned to the Oversight Board 
        shall return to the State of Puerto Rico or the nation of 
        Puerto Rico, as the case may be.
            (3) Transfer.--All funds, property, and assets of the board 
        described in subparagraph (B) shall be transferred to the State 
        of Puerto Rico or the nation of Puerto Rico, as the case may 
        be.

SEC. 11. SEVERABILITY.

    If any provision of this Act, or any section, subsection, sentence, 
clause, phrase, or individual word, or the application thereof to any 
person or circumstance is held invalid by a court of jurisdiction, the 
validity of the remainder of the Act and of the application of any such 
provision, section, subsection, sentence, clause, phrase, or individual 
word to other persons and circumstances shall not be affected thereby.

          TITLE I--TRANSITION AND IMPLEMENTATION--INDEPENDENCE

SEC. 101. CONSTITUTIONAL CONVENTION.

    (a) Election of Delegates.--Not later than 6 months after the 
effective date of certification of a plebiscite result under this Act 
in favor of independence, the legislature of Puerto Rico shall provide 
for the election of delegates to a constitutional Convention to 
formulate and draft a Constitution for the nation of Puerto Rico.
    (b) Eligible Voters.--All eligible voters may vote in the election 
of delegates to the constitutional Convention.
    (c) General Applicability of Electoral Law.--The laws of the 
territory of Puerto Rico relating to the electoral process shall apply 
to a special election held under this Act.
    (d) Initial Meeting.--Not later than 3 months after the election of 
delegates to the constitutional Convention, the elected delegates shall 
meet at such time and place as the legislature of Puerto Rico shall 
determine. The initial meeting shall constitute the establishment of 
the constitutional Convention.

SEC. 102. CHARACTER OF THE CONSTITUTION.

    The constitutional Convention under section 101 shall formulate and 
draft a Constitution for Puerto Rico that guarantees the protection of 
fundamental human rights, including--
            (1) due process and equal protection under the law;
            (2) freedom of speech, press, assembly, association, and 
        religion;
            (3) the rights of the accused;
            (4) any other economic, social, and cultural rights as the 
        constitutional Convention may deem appropriate and necessary; 
        and
            (5) provisions to ensure that no individual born in the 
        nation of Puerto Rico shall be stateless at birth.

SEC. 103. SUBMISSION; RATIFICATION.

    (a) Submission.--Not later than one year after the establishment of 
the constitutional Convention, the Constitution formulated and drafted 
by the constitutional Convention shall be submitted to the eligible 
voters of Puerto Rico for ratification or rejection in a special 
election.
    (b) Manner of Election.--The special election held under this 
subsection shall be held in the manner prescribed by the legislature of 
Puerto Rico.

SEC. 104. ELECTION OF OFFICERS.

    (a) In General.--Not later than one month after the ratification of 
the Constitution under section 103, the Governor of the territory of 
Puerto Rico shall issue a proclamation calling for the election of such 
officers of the nation of Puerto Rico as may be required by the 
ratified Constitution.
    (b) Rejection.--If the special election results in rejection of the 
Constitution, the process provided for in sections 101 through 103 
shall be repeated, except that section 101(a) shall be applied by 
substituting--
            (1) ``the special election'' for ``a plebiscite''; and
            (2) ``rejecting of the Constitution'' for ``in favor of 
        independence''.
    (c) Deadline; Procedures.--The election under subsection (a) shall 
be held--
            (1) not later than 6 months after the date of ratification 
        of the Constitution; and
            (2) in accordance with the procedures and requirements 
        established in the Constitution of the nation of Puerto Rico.
    (d) Certification of Results.--Not later than 10 days after the 
election of officers under subsection (a), the Elections Commission 
shall certify the results of the election. The Governor of the 
territory of Puerto Rico shall inform the results of the election to 
the President of the United States, the President pro tempore of the 
United States Senate, the Speaker of the United States House of 
Representatives, the Committee on Energy and Natural Resources of the 
Senate, and the Committee on Natural Resources of the House of 
Representatives.

SEC. 105. CONFORMING AMENDMENTS TO EXISTING LAW.

    (a) Review.--Not later than 30 days after the initial meeting of a 
constitutional Convention under section 101(d), the President shall 
initiate a review of Federal law with respect to Puerto Rico, including 
those regarding--
            (1) taxation of persons and businesses;
            (2) health care;
            (3) housing;
            (4) transportation;
            (5) education; and
            (6) entitlement programs.
    (b) Recommendations.--Not later than one year after the date on 
which the President initiates a review under subsection (a), the 
President shall submit recommendations to Congress for changes to 
Federal law identified during such review, as the President deems 
appropriate.

SEC. 106. JOINT TRANSITION COMMISSION.

    (a) Appointment.--Not later than 3 months after the establishment 
of a constitutional Convention under section 101(d), a Joint Transition 
Commission shall be appointed in equal numbers by the President of the 
United States and the presiding officer of the Constitutional 
Convention of Puerto Rico.
    (b) Duties.--The Joint Transition Commission shall be responsible 
for expediting the orderly transfer of all functions currently 
exercised by the Federal Government in Puerto Rico, or in relation to 
Puerto Rico to the nation of Puerto Rico, and shall recommend to 
Congress any appropriate legislation to carry out such transfer.
    (c) Collaboration.--The Government of the territory of Puerto Rico 
and the agencies of the Government of the United States shall 
collaborate with the Joint Transition Commission and subsequently the 
officers of the nation of Puerto Rico, to provide for the orderly 
transfer of the functions under subsection (b).

SEC. 107. PROCLAMATIONS BY PRESIDENT OF THE UNITED STATES; HEAD OF 
              STATE OF PUERTO RICO.

    (a) Proclamation.--Not later than one month after the official 
certification of the elected officers of the nation of Puerto Rico 
under section 104(d), the President of the United States shall by 
proclamation--
            (1) withdraw and surrender all rights of possession, 
        supervision, jurisdiction, control, or sovereignty then 
        existing and exercised by the United States over the territory 
        and residents of Puerto Rico;
            (2) recognize, on behalf of the United States of America, 
        the independence of the nation of Puerto Rico and the authority 
        of the government instituted by eligible voters of Puerto Rico 
        under the Constitution of their own adoption; and
            (3) state that the effective date of withdrawal of the 
        sovereignty of the United States and recognition of 
        independence shall be the same as the date of the proclamation.
    (b) Copy of Proclamation Forwarded.--The President of the United 
States shall forward a copy of the proclamation issued under subsection 
(a) not later than one week after signature to the presiding officer of 
the Constitutional Convention of Puerto Rico, the officer elected as 
head of state of the nation, the President pro tempore of the United 
States Senate, the Speaker of the United States House of 
Representatives, the Senate Committee on Energy and Natural Resources, 
and the House Committee on Natural Resources.
    (c) Date Government To Take Office.--Not later than one week after 
the date of receipt of the Presidential proclamation and with the 
advice of the officer elected as head of state of the nation, the 
presiding officer of the constitutional Convention shall determine the 
date on which the Government of the nation shall take office, and shall 
so notify the Governor of the territory of Puerto Rico, the President 
of the United States, the President pro tempore of the United States 
Senate, and the Speaker of the United States House of Representatives.

SEC. 108. LEGAL AND CONSTITUTIONAL PROVISIONS.

    Upon the proclamation of independence as provided in this title, 
and except as otherwise provided in this title or in any separate 
agreements thereafter concluded between the United States and the 
nation of Puerto Rico--
            (1) all property, rights and interests which the United 
        States may have acquired over Puerto Rico by virtue of the 
        Treaty of Paris of 1898, and thereafter by cession, purchase, 
        or eminent domain, with the exception of such land and other 
        property, rights, or interests as may have been sold or 
        otherwise legally disposed of prior to the proclamation of 
        Independence, shall vest ipso facto in the nation of Puerto 
        Rico; and
            (2) except as provided in section 110, all laws of the 
        United States applicable to the territory of Puerto Rico 
        immediately prior to the proclamation of Independence shall no 
        longer apply in the nation of Puerto Rico.

SEC. 109. JUDICIAL PRONOUNCEMENTS.

    (a) Judgments Before Proclamation.--The nation of Puerto Rico shall 
recognize and give effect to all orders and judgments rendered by 
United States or territorial courts before the date of the proclamation 
of independence pursuant to the laws of the United States then 
applicable to the territory of Puerto Rico.
    (b) Continuity of Pending Proceedings.--All judicial proceedings 
pending in the courts of the territory of Puerto Rico on the day of the 
proclamation of independence shall be continued in the corresponding 
courts under the Constitution of the nation of Puerto Rico.
    (c) Transfer of Judicial Power.--Upon the proclamation of 
independence, the judicial power of the United States shall no longer 
extend to Puerto Rico. All proceedings pending in the United States 
District Court for the District of Puerto Rico shall be transferred to 
the corresponding Puerto Rican courts of competence or other competent 
judicial authority under the Constitution of the nation of Puerto Rico 
for disposition in conformity with laws applicable at the time when the 
controversy in process arose. All proceedings pending in the United 
States Court of Appeals for the First Circuit, or in the Supreme Court 
of the United States, that initiated in, or that could have been 
initiated in, the courts of the territory or in the United States 
District Court for the District of Puerto Rico shall continue until 
their final disposition and shall be submitted to the competent 
authority of the nation of Puerto Rico for proper execution: Provided, 
That neither the United States nor any of its officers is a party, in 
which case any final judgment shall be properly executed by the 
competent authority of the United States.

SEC. 110. CITIZENSHIP AND IMMIGRATION LAWS AFTER PUERTO RICAN 
              INDEPENDENCE.

    (a) In General.--
            (1) Puerto rican nationality.--After the effective date of 
        independence, the citizenship status of each individual born in 
        Puerto Rico shall be determined in accordance with the 
        Constitution and laws of the nation of Puerto Rico.
            (2) United states immigration laws.--Except as described in 
        this section, after the effective date of independence citizens 
        of Puerto Rico seeking to enter into the United States or 
        obtain citizenship in the United States shall be subject to the 
        immigration laws of the United States (as such term is defined 
        in section 101 of the Immigration and Nationality Act (8 U.S.C. 
        1101)).
    (b) Effect of Puerto Rican Citizenship.--Nothing in this Act 
precludes or limits the applicability of section 349 of the Immigration 
and Nationality Act (8 U.S.C. 1481), except that the provision of 
citizenship by the laws of Puerto Rico shall not constitute or 
otherwise serve as the basis of loss, or relinquishment of United 
States citizenship under such section.
    (c) Citizenship at Birth After Independence.--An individual born in 
Puerto Rico after the effective date of independence to at least one 
parent who became a United States citizen under section 302 of the 
Immigration and Nationality Act (8 U.S.C. 1402) is not a United States 
citizen at birth under subsections (c), (d), or (g) of section 301 of 
the Immigration and Nationality Act (8 U.S.C. 1401(c), (d) or (g)).
    (d) Travel and Work Authorization.--
            (1) Any person in the following categories may enter, 
        lawfully engage in occupations, and establish residence as a 
        nonimmigrant in the United States and its territories and 
        possessions without regard to paragraphs (5)(A) and (7) of 
        section 212(a) of the Immigration and Nationality Act (8 U.S.C. 
        1182(a); (5)(A) and (7))--
                    (A) a person who acquires the citizenship of Puerto 
                Rico, at birth, on or after the effective date of 
                independence; or
                    (B) a naturalized citizen of Puerto Rico, who has 
                been an actual resident there for not less than five 
                years after attaining such naturalization and who holds 
                a proof of such residence.
        Such persons shall be considered to have the permission of the 
        Secretary of Homeland Security to accept employment in the 
        United States.
            (2) The right of such persons to establish habitual 
        residence in a territory or possession of the United States 
        may, however, be subjected to nondiscriminatory limitations 
        provided for--
                    (A) in statutes or regulations of the United 
                States; or
                    (B) in those statutes or regulations of the 
                territory or possession concerned which are authorized 
                by the laws of the United States.
            (3) This subsection shall expire 25 years after the date of 
        independence.
    (e) Conforming Amendments.--
            (1) In general.--Section 101 of the Immigration and 
        Nationality Act (8 U.S.C. 1101) is amended by striking ``Puerto 
        Rico,'' in subsection (a) paragraph (36) and in subsection (a) 
        paragraph (38).
            (2) Prior to independence.--Puerto Rico shall be considered 
        to be in the United States, as such term is defined in section 
        101(a)(38) of the Immigration and Nationality Act (8 U.S.C. 
        1101(a)(38)) prior to the effective date of independence.
    (f) Rule of Construction.--Nothing in this section shall limit the 
power and authority of the United States to change policy requirements 
for United States citizenship.

SEC. 111. INDIVIDUAL RIGHTS TO ECONOMIC BENEFITS AND GRANTS.

    (a) Rights and Benefits.--All vested rights and benefits which 
accrue to residents of the territory of Puerto Rico under the laws of 
the United States from past services or contributions, such as rights 
and benefits for veterans or relatives of veterans of the Armed Forces 
of the United States, retired Government employees, or beneficiaries of 
old age, disability, or survivors' insurance benefits under the Social 
Security Act, shall not be interrupted after the proclamation of 
independence but will continue until such time as said rights and 
benefits are completely extinguished according to the applicable laws 
of the United States. All services which must be rendered as part of 
these rights and benefits shall be made available through the 
Government of the nation of Puerto Rico in accordance with agreements 
reached by the two nations.
    (b) Social Security System.--Notwithstanding the provisions in 
subsection (a), all contributions made by employees and employers in 
Puerto Rico to the Social Security system with respect to persons who, 
upon the proclamation of independence, are residents of the nation of 
Puerto Rico and are not yet eligible for old age, disability, or 
survivors' insurance benefits under the system, shall be transferred to 
the Government of the nation of Puerto Rico once said Government 
establishes its own social security system. The Government of the 
nation of Puerto Rico may not use these funds for any purpose other 
than the establishment and operation of a social security system. Upon 
the transfer described herein, the obligations of the United States 
Government under the Social Security Act with respect to such residents 
of the nation of Puerto Rico shall cease.
    (c) Other Federal Transfer Payments.--
            (1) Block grants.--All other Federal transfer payments to 
        individuals and to the Government of the territory of Puerto 
        Rico shall be maintained in the form of annual block grants to 
        be used discretionally by the Government of the nation of 
        Puerto Rico.
            (2) Annual aggregate funding.--During the ten fiscal years 
        following the proclamation of independence, the annual block 
        grants shall amount to the annual aggregate funding of all 
        programs which currently extend to the territory of Puerto 
        Rico, or of all programs which shall have been extended to the 
        territory of Puerto Rico during the fiscal year immediately 
        prior to the proclamation of independence, whichever shall be 
        greater.
            (3) Decrease in amount.--The annual block grants shall 
        decrease thereafter on a straight-line basis, at the rate of 
        ten percent each year, beginning on the eleventh fiscal year 
        after the proclamation of independence. At any time during the 
        aforementioned transition period the terms of this subsection 
        may be modified by agreement between the United States and the 
        nation of Puerto Rico.

     TITLE II--TRANSITION AND IMPLEMENTATION--SOVEREIGNTY IN FREE 
                   ASSOCIATION WITH THE UNITED STATES

SEC. 201. CONSTITUTIONAL CONVENTION.

    (a) Election of Delegates.--Not later than 6 months after the 
effective date of certification of a plebiscite result under this Act 
in favor of Sovereignty in Free Association with the United States, the 
legislature of Puerto Rico shall provide for the election of delegates 
to a constitutional Convention to formulate and draft a Constitution 
for the nation of Puerto Rico.
    (b) Eligible Voters.--All eligible voters may vote in the election 
of delegates to the constitutional Convention.
    (c) General Applicability of Electoral Law.--The laws of the 
territory of Puerto Rico relating to the electoral process shall apply 
to a special election held under this Act.
    (d) Initial Meeting.--Not later than 3 months after the election of 
delegates to the constitutional Convention, the elected delegates shall 
meet at such time and place as the legislature of Puerto Rico shall 
determine. The initial meeting shall constitute the establishment of 
the constitutional Convention.

SEC. 202. CHARACTER OF THE CONSTITUTION.

    The constitutional Convention under section 201 shall formulate and 
draft a Constitution for Puerto Rico that guarantees the protection of 
fundamental human rights, including--
            (1) due process and equal protection under the law;
            (2) freedom of speech, press, assembly, association, and 
        religion;
            (3) the rights of the accused;
            (4) any other economic, social, and cultural rights as the 
        constitutional Convention may deem appropriate and necessary; 
        and
            (5) provisions to ensure that no individual born in the 
        nation of Puerto Rico shall be stateless at birth.

SEC. 203. SUBMISSION; RATIFICATION.

    (a) Submission.--Not later than 2 years after the establishment of 
the constitutional Convention, the Constitution formulated and drafted 
by the constitutional Convention shall be submitted to the eligible 
voters of Puerto Rico for ratification or rejection in a special 
election.
    (b) Manner of Election.--The special election held under this 
subsection shall be held in the manner prescribed by the legislature of 
Puerto Rico.

SEC. 204. ELECTION OF OFFICERS.

    (a) In General.--Not later than one month after the ratification of 
the Constitution under section 203, the Governor of the territory of 
Puerto Rico shall issue a proclamation calling for the election of such 
officers of the nation of Puerto Rico as may be required by the 
ratified Constitution.
    (b) Rejection.--If the special election results in rejection of the 
Constitution, the process provided for in sections 201 through 203 
shall be repeated, except that section 201(a) shall be applied by 
substituting--
            (1) ``the special election'' for ``a plebiscite''; and
            (2) ``rejecting the Constitution'' for ``in favor of 
        sovereignty in free association with the United States''.
    (c) Deadline; Procedures.--The election under subsection (a) shall 
be held--
            (1) not later than 6 months after the date of ratification 
        of the Constitution; and
            (2) in accordance with the procedures and requirements 
        established in the Constitution of the nation of Puerto Rico.
    (d) Certification of Results.--Not later than 10 days after the 
election of officers under subsection (a), the Elections Commission 
shall certify the results of the election. The Governor of the 
territory of Puerto Rico shall inform the results of the election to 
the President of the United States, the President pro tempore of the 
United States Senate, the Speaker of the United States House of 
Representatives, the Committee on Energy and Natural Resources of the 
Senate, and the Committee on Natural Resources of the House of 
Representatives.

SEC. 205. PROCLAMATIONS BY PRESIDENT OF THE UNITED STATES; HEAD OF 
              STATE OF PUERTO RICO.

    (a) Proclamation.--Not later than one month after the official 
certification of the elected officers of the nation of Puerto Rico 
under section 204, the President of the United States shall by 
proclamation--
            (1) withdraw and surrender all rights of possession, 
        supervision, jurisdiction, control, or sovereignty then 
        existing and exercised by the United States over the territory 
        and residents of Puerto Rico;
            (2) recognize, on behalf of the United States of America, 
        the international sovereignty through free association of the 
        nation of Puerto Rico and the authority of the government 
        instituted by eligible voters of Puerto Rico under the 
        Constitution of their own adoption; and
            (3) state that the effective date of withdrawal of the 
        sovereignty of the United States and recognition of 
        international sovereignty through free association shall be the 
        same as the date of the proclamation.
    (b) Copy of Proclamation Forwarded.--The President of the United 
States shall forward a copy of the proclamation issued under subsection 
(a) not later than one week after signature to the presiding officer of 
the Constitutional Convention of Puerto Rico, the officer elected as 
head of state of the nation, the President pro tempore of the United 
States Senate, the Speaker of the United States House of 
Representatives, the Senate Committee on Energy and Natural Resources, 
and the House Committee on Natural Resources.
    (c) Date Government To Take Office.--Not later than one week after 
the date of receipt of the Presidential proclamation and with the 
advice of the officer elected as head of state of the nation, the 
presiding officer of the constitutional Convention shall determine the 
date on which the Government of the nation shall take office, and shall 
so notify the Governor of the territory of Puerto Rico, the President 
of the United States, the President pro tempore of the United States 
Senate, and the Speaker of the United States House of Representatives.

SEC. 206. LEGAL AND CONSTITUTIONAL PROVISIONS.

    Upon the proclamation of international sovereignty through free 
association as provided in this title, and except as otherwise provided 
in this title or in any separate agreements thereafter concluded 
between the United States and the nation of Puerto Rico--
            (1) all property, rights and interests which the United 
        States may have acquired over Puerto Rico by virtue of the 
        Treaty of Paris of 1898, and thereafter by cession, purchase, 
        or eminent domain, with the exception of such land and other 
        property, rights, or interests as may have been sold or 
        otherwise legally disposed of prior to the proclamation of 
        international sovereignty through free association, shall vest 
        ipso facto in the nation of Puerto Rico; and
            (2) except as provided in section 209, all laws of the 
        United States applicable to the territory of Puerto Rico 
        immediately prior to the proclamation of international 
        sovereignty through free association shall no longer apply in 
        the nation of Puerto Rico.

SEC. 207. JUDICIAL PRONOUNCEMENTS.

    (a) Judgments Before Proclamation.--The nation of Puerto Rico shall 
recognize and give effect to all orders and judgments rendered by 
United States or territorial courts before the date of the proclamation 
of international sovereignty through free association pursuant to the 
laws of the United States then applicable to the territory of Puerto 
Rico.
    (b) Continuity of Pending Proceedings.--All judicial proceedings 
pending in the courts of the territory of Puerto Rico on the day of the 
proclamation of international sovereignty through free association 
shall be continued in the corresponding courts under the Constitution 
of the nation of Puerto Rico.
    (c) Transfer of Judicial Power.--Upon the proclamation of 
international sovereignty through free association, the judicial power 
of the United States shall no longer extend to Puerto Rico. All 
proceedings pending in the United States District Court for the 
District of Puerto Rico shall be transferred to the corresponding 
Puerto Rican courts of competence or other competent judicial authority 
under the Constitution of the nation of Puerto Rico for disposition in 
conformity with laws applicable at the time when the controversy in 
process arose. All proceedings pending in the United States Court of 
Appeals for the First Circuit, or in the Supreme Court of the United 
States, that initiated in, or that could have been initiated in, the 
courts of the territory or in the United States District Court for the 
District of Puerto Rico shall continue until their final disposition 
and shall be submitted to the competent authority of the nation of 
Puerto Rico for proper execution: Provided, That neither the United 
States nor any of its officers is a party, in which case any final 
judgment shall be properly executed by the competent authority of the 
United States.

SEC. 208. CITIZENSHIP AND IMMIGRATION LAWS AFTER SOVEREIGNTY THROUGH 
              FREE ASSOCIATION.

    (a) In General.--
            (1) Puerto rican nationality.--After the proclamation of 
        international sovereignty through free association, the 
        citizenship status of each individual born in Puerto Rico shall 
        be determined in accordance with the Constitution and laws of 
        the nation of Puerto Rico.
            (2) United states immigration laws.--Except as described in 
        this section, after the proclamation of international 
        sovereignty through free association, citizens of Puerto Rico 
        seeking to enter into the United States or obtain citizenship 
        in the United States shall be subject to the immigration laws 
        of the United States (as such term is defined in section 101 of 
        the Immigration and Nationality Act (8 U.S.C. 1101)).
    (b) Effect of Puerto Rican Citizenship.--Nothing in this Act 
precludes or limits the applicability of section 349 of the Immigration 
and Nationality Act (8 U.S.C. 1481), except that the provision of 
citizenship by the laws of Puerto Rico shall not constitute or 
otherwise serve as the basis of loss, or relinquishment of United 
States citizenship under such section.
    (c) Citizenship at Birth After Sovereignty.--
            (1) In general.--Except as described in paragraph (2), an 
        individual born in Puerto Rico after the proclamation of 
        international sovereignty through free association to at least 
        one parent who became a United States citizen under section 302 
        of the Immigration and Nationality Act (8 U.S.C. 1402) is not a 
        United States citizen at birth under subsections (c), (d), or 
        (g) of section 301 of the Immigration and Nationality Act (8 
        U.S.C. 1401 (c), (d) or (g)).
            (2) Transition period.--During the implementation of the 
        first Articles of Free Association, an individual born in 
        Puerto Rico to two parents who are citizens of the United 
        States shall be a United States citizen at birth under 
        subsection (c) of section 301(c) of the Immigration and 
        Nationality Act (8 U.S.C. 1401(c)) if otherwise eligible.
    (d) Travel and Work Authorization.--
            (1) Any person in the following categories may enter, 
        lawfully engage in occupations, and establish residence as a 
        nonimmigrant in the United States and its territories and 
        possessions without regard to paragraphs (5)(A) and (7) of 
        section 212(a) of the Immigration and Nationality Act (8 U.S.C. 
        1182(a); (5)(A) and (7)):
                    (A) a person who acquires the citizenship of Puerto 
                Rico, at birth, on or after the effective date of 
                international sovereignty through free association; or
                    (B) a naturalized citizen of Puerto Rico, who has 
                been an actual resident there for not less than five 
                years after attaining such naturalization and who holds 
                a proof of such residence.
        Such persons shall be considered to have the permission of the 
        Secretary of Homeland Security to accept employment in the 
        United States.
            (2) The right of such persons to establish habitual 
        residence in a territory or possession of the United States 
        may, however, be subjected to nondiscriminatory limitations 
        provided for--
                    (A) in statutes or regulations of the United 
                States; or
                    (B) in those statutes or regulations of the 
                territory or possession concerned which are authorized 
                by the laws of the United States.
            (3) This subsection shall expire upon the termination of 
        the Articles of Free Association in accordance with section 
        211.
    (e) Conforming Amendments.--
            (1) In general.--Section 101 of the Immigration and 
        Nationality Act (8 U.S.C. 1101) is amended by striking ``Puerto 
        Rico,'' in subsection (a) paragraph (36) and in subsection (a) 
        paragraph (38).
            (2) Prior to sovereignty.--Puerto Rico shall be considered 
        to be in the United States, as such term is defined in section 
        101(a)(38) of the Immigration and Nationality Act (8 U.S.C. 
        1101(a)(38)) prior to the date of international sovereignty 
        through free association.
    (f) Rule of Construction.--Nothing in this section shall limit the 
power and authority of the United States to change policy requirements 
for United States citizenship.

SEC. 209. CONFORMING AMENDMENTS TO EXISTING LAW.

    (a) Review.--Not later than 30 days after the initial meeting of a 
constitutional Convention under section 201(d), the President shall 
initiate a review of Federal law with respect to Puerto Rico, including 
those regarding--
            (1) taxation of persons and businesses;
            (2) health care;
            (3) housing;
            (4) transportation;
            (5) education; and
            (6) entitlement programs.
    (b) Recommendations.--Not later than one year after the date on 
which the President initiates a review under subsection (a), the 
President shall submit recommendations to Congress for changes to 
Federal law identified during such review, as the President deems 
appropriate.

SEC. 210. BILATERAL NEGOTIATING COMMISSION.

    (a) In General.--If a plebiscite held under this Act results in a 
majority vote for sovereignty in free association with the United 
States, there shall be a Bilateral Negotiating Commission which shall 
conduct negotiations on Articles of Free Association with the United 
States.
    (b) Members.--Not later than 3 months after the establishment of 
the constitutional Convention under section 201--
            (1) the Convention shall elect, by majority vote, 5 members 
        from among its delegates to join the Bilateral Negotiating 
        Commission on behalf of Puerto Rico; and
            (2) the President of the United States shall designate 5 
        members to the Bilateral Negotiating Commission, one of whom 
        shall also be nominated for the rank of Ambassador, to 
        negotiate on behalf of the United States.
    (c) Initial Meeting.--Not later than 3 months after the election 
and designation of members to the Bilateral Negotiating Commission, 
members shall meet at such time and place as the legislature of Puerto 
Rico shall determine. Such meeting shall constitute the establishment 
of the Bilateral Negotiating Commission.
    (d) Duties.--The Bilateral Negotiating Commission shall--
            (1) be responsible for expediting the orderly transfer of 
        all functions currently exercised by the Government of the 
        United States in Puerto Rico, to Puerto Rico, and shall 
        recommend to Congress any appropriate legislation to carry into 
        effect such transfer, including any appropriate enabling 
        legislation as may be required by the Articles of Free 
        Association;
            (2) negotiate all matters pertaining to the government-to-
        government relationship between Puerto Rico and the United 
        States through the development of the Articles of Free 
        Association, including foreign affairs, trade, finance, 
        taxation, currency, economic assistance, security and defense, 
        dispute resolution, immigration, economic benefits (including 
        grants), and termination of the free association status; and
            (3) endeavor to complete the Articles of Free Association 
        not later than 2 years after the commencement of the 
        constitutional Convention.
    (e) Collaboration.--The Government of the territory of Puerto Rico 
and the agencies of the Government of the United States shall 
collaborate with the Bilateral Negotiating Commission to provide for 
the orderly transfer of the functions of government as required by the 
Articles of Free Association.

SEC. 211. ARTICLES OF FREE ASSOCIATION APPROVAL AND EFFECTIVE DATE.

    (a) Approval.--The Articles of Free Association shall come into 
effect upon mutual agreement between the Government of the United 
States and the Government of Puerto Rico after completion of approval 
by--
            (1) a separate ratification vote on the Articles by the 
        eligible voters in the special election held under section 203; 
        and
            (2) the Government of the United States in accordance with 
        its constitutional processes.
    (b) Rejection.--If the special election under subsection (a)(1) 
results in rejection of the Articles of Free Association, the process 
provided for in section 210 and subsection (a) shall be repeated.

SEC. 212. TERMINATION.

    The Articles of Free Association between the United States and 
Puerto Rico may be terminated at will by either party at any time.

SEC. 213. INDIVIDUAL RIGHTS TO ECONOMIC BENEFITS AND GRANTS.

    (a) Rights and Benefits.--All vested rights and benefits which 
accrue to residents of the territory of Puerto Rico under the laws of 
the United States from past services or contributions, such as rights 
and benefits for veterans or relatives of veterans of the Armed Forces 
of the United States, retired Government employees, or beneficiaries of 
old age, disability, or survivors' insurance benefits under the Social 
Security Act, shall not be interrupted after the proclamation of 
international sovereignty through free association but will continue 
until such time as said rights and benefits are completely extinguished 
according to the applicable laws of the United States. All services 
which must be rendered as part of these rights and benefits shall be 
made available through the Government of the nation of Puerto Rico in 
accordance with agreements reached by the two nations.
    (b) Social Security System.--Notwithstanding subsection (a), all 
contributions made by employees and employers in Puerto Rico to the 
Social Security system with respect to persons who, upon the 
proclamation of international sovereignty through free association, are 
residents of the nation of Puerto Rico and are not yet eligible for old 
age, disability, or survivors' insurance benefits under the system, 
shall be transferred to the Government of the nation of Puerto Rico 
once said Government establishes its own social security system. The 
Government of the nation of Puerto Rico may not use these funds for any 
purpose other than the establishment and operation of a social security 
system. Upon the transfer described herein, the obligations of the 
United States Government under the Social Security Act with respect to 
such residents of the nation of Puerto Rico shall cease.
    (c) Other Federal Transfer Payments.--All other Federal transfer 
payments to individuals and to the Government of the territory of 
Puerto Rico shall be maintained in the form of annual block grants to 
be used discretionally by the Government of the nation of Puerto Rico--
            (1) during the 10 fiscal years following the proclamation 
        of international sovereignty through free association, the 
        annual block grants shall amount to the annual aggregate 
        funding of all programs which currently extend to the territory 
        of Puerto Rico, or of all programs which shall have been 
        extended to the territory of Puerto Rico during the fiscal year 
        immediately prior to the proclamation of international 
        sovereignty through free association, whichever shall be 
        greater; and
            (2) the annual block grants shall decrease thereafter on a 
        straight-line basis, at the rate of ten percent each year, 
        beginning on the eleventh fiscal year after the proclamation of 
        international sovereignty through free association. At any time 
        during the aforementioned transition period the terms of this 
        subsection may be modified by agreement between the United 
        States and the nation of Puerto Rico.
    (d) Revision.--The terms and conditions of this subsection may be 
revised as part of an agreement under the Articles of Free Association.

          TITLE III--TRANSITION AND IMPLEMENTATION--STATEHOOD

SEC. 301. PRESIDENTIAL PROCLAMATION; ADMISSION INTO THE UNION.

    If a plebiscite held under this Act results in a majority vote for 
statehood:
            (1) Presidential proclamation; date of admission.--Upon 
        receipt of the Elections Commission's certification of the 
        plebiscite results pursuant to section 5(d), the President 
        shall issue a proclamation declaring the date that Puerto Rico 
        is admitted as a State of the Union on an equal footing with 
        all other States, which shall be a date not later than one year 
        after the effective date of the plebiscite results.
            (2) Submission of proclamation.--The President shall cause 
        such proclamation to be submitted to the Governor of Puerto 
        Rico, the legislature of Puerto Rico, the President pro tempore 
        of the United States Senate, the Speaker of the United States 
        House of Representatives, the Senate Committee on Energy and 
        Natural Resources, and the House Committee on Natural 
        Resources.
            (3) Admission into the union.--Subject to the provisions of 
        this Act, and upon the date declared by the President for 
        admission of Puerto Rico as a State under the proclamation 
        under paragraph (1), the territory of Puerto Rico shall be a 
        State of the United States of America and as such admitted into 
        the Union on an equal footing with the other States in all 
        respects. Upon admission, Puerto Rico shall be known as the 
        State of Puerto Rico.
            (4) Incorporation.--Puerto Rico shall remain unincorporated 
        until its admission as a State of the Union under paragraph 
        (3).

SEC. 302. CONFORMING AMENDMENTS TO EXISTING LAW.

    (a) Review.--Not later than 30 days after the certification of a 
plebiscite result under this Act in favor of statehood, the President 
shall initiate a review of Federal law with respect to Puerto Rico, 
including those regarding--
            (1) taxation of persons and businesses;
            (2) health care;
            (3) housing;
            (4) transportation;
            (5) education; and
            (6) entitlement programs.
    (b) Recommendations.--Not later than one year after the date on 
which the President initiates a review under subsection (a), the 
President shall submit any recommendations to Congress for changes to 
Federal law identified during such review, as the President deems 
appropriate.

SEC. 303. TERRITORY AND BOUNDARIES.

    The State of Puerto Rico shall consist of all of the islands, 
together with their appurtenant reefs, seafloor, submerged lands, and 
territorial waters in the seaward boundary, presently under the 
jurisdiction of the territory of Puerto Rico.

SEC. 304. CONSTITUTION.

    (a) In General.--The Constitution of the territory of Puerto Rico, 
as approved by Public Law 82-447 and subsequently amended as of the 
date of enactment of this Act is hereby found to be republican in form 
and in conformity with the Constitution of the United States and the 
principles of the Declaration of Independence, and is hereby accepted, 
ratified, and confirmed as the Constitution of the State of Puerto 
Rico.
    (b) Future Constitutions.--The Constitution of the State of Puerto 
Rico--
            (1) shall always be republican in form; and
            (2) shall not be repugnant to the Constitution of the 
        United States and the principles of the Declaration of 
        Independence.

SEC. 305. ELECTIONS OF SENATORS AND REPRESENTATIVES, CERTIFICATION, AND 
              LEGAL DISPUTES.

    (a) Elections of Senators and Representatives.--Not more than one 
month after the proclamation under section 301, the Governor of Puerto 
Rico shall issue a declaration that shall designate and announce the 
dates and other requirements for primary and general elections under 
applicable Federal and local law for representation in the Senate and 
the House of Representatives of the United States upon admission of 
Puerto Rico as a State.
    (b) Resident Commissioner.--The office of Resident Commissioner of 
Puerto Rico shall cease to exist upon the swearing in of the first 
Representative from the State of Puerto Rico to the House of 
Representatives.
    (c) Senators and Representatives.--
            (1) In general.--Upon its admission into the Union, the 
        State of Puerto Rico shall be entitled to Senators and 
        Representatives who shall be entitled to be admitted to seats 
        in the Congress of the United States and to all the rights and 
        privileges of Senators and Representatives of the other States 
        in the Congress of the United States.
            (2) First election of senators.--In the first election of 
        Senators, the two senatorial offices shall be separately 
        identified and designated, and no person may be a candidate for 
        both offices. Nothing in this section shall impair the 
        privilege of the Senate to determine the class and term to 
        which each of the Senators elected shall be assigned, with the 
        exception that the Senators shall not be in the same class.
            (3) First election of representatives.--In the first 
        election of Representatives, and subsequent elections until the 
        next Census-based reapportionment cycle, the State of Puerto 
        Rico shall be entitled to the same number of Representatives as 
        the State whose most recent Census population was closest to, 
        but less than, that of Puerto Rico, and such Representatives 
        shall be in addition to the membership of the House of 
        Representatives as now prescribed by law. Any such increase in 
        the membership shall not operate to either increase or decrease 
        the permanent membership of the House of Representatives as 
        prescribed in the Act of August 8, 1911 (37 Stat. 13), nor 
        shall such temporary increase affect the basis of apportionment 
        established by the Act of November 15, 1941 (55 Stat. 761), for 
        the 83d Congress and each Congress thereafter, unless Congress 
        acts to increase the total number of Members of the House of 
        Representatives. Thereafter, the State of Puerto Rico shall be 
        entitled to such number of Representatives as provided for by 
        applicable law based on the next reapportionment. The 
        apportionment of congressional districts for the first election 
        and subsequent election of Representatives shall be conducted 
        as provided for by the Constitution and laws of the State of 
        Puerto Rico for state legislative districts.
    (d) Certification of Results.--The Elections Commission shall 
certify the results of primary and general elections for representation 
in the Senate and the House of Representatives of the United States to 
the Governor. Not later than 10 days after the date of each 
certification, the Governor shall declare the results of the primary 
and general elections, and transmit the results of each election to the 
President of the United States, the President pro tempore of the 
Senate, and the Speaker of the House of Representatives.
    (e) Jurisdiction of District Court.--The United States District 
Court for the District of Puerto Rico shall have original and exclusive 
jurisdiction of any civil action alleging a dispute or controversy 
pertaining to electoral processes conducted under this section.

SEC. 306. STATE TITLE TO LAND AND PROPERTY.

    (a) State Title.--The State of Puerto Rico and its political 
subdivisions and dependencies shall have and retain title to all 
property, real and personal, held by the territory of Puerto Rico and 
its political subdivisions and dependencies on the date of the 
admission of Puerto Rico into the Union.
    (b) Federal Title.--Any lands and other properties that, as of the 
date of admission of Puerto Rico into the Union, are set aside pursuant 
to law for the use of the United States under any--
            (1) Act of Congress;
            (2) Executive order;
            (3) proclamation of the President; or
            (4) proclamation of the Governor of the territory of Puerto 
        Rico,
shall remain the property of the United States.
    (c) Continental Shelf.--The State of Puerto Rico shall have the 
exclusive right to explore, exploit, lease, possess, and use all 
seabed, natural, and mineral resources lying within three marine 
leagues (nine nautical miles) from its shore, as granted under section 
8 of the Act of March 2, 1917 (48 U.S.C. 749; 39 Stat. 954). All other 
rights of sovereignty in regards to the continental shelf and waters, 
shall belong to the United States, except those already vested in 
Puerto Rico.

SEC. 307. CONTINUITY OF LAWS, GOVERNMENT, AND OBLIGATIONS.

    Upon the admission of the State of Puerto Rico into the Union:
            (1) Continuity of laws.--All of the territorial laws in 
        force in Puerto Rico on the date of issuance of the 
        proclamation described in section 301(1) not inconsistent with 
        this Act or the Constitution of the State of Puerto Rico shall 
        be and continue in force and effect throughout the State, until 
        amended, modified, or repealed by the State. All of the laws of 
        the United States shall have the same force and effect within 
        the State as in the other several States.
            (2) Continuity of government.--The individuals holding 
        legislative, executive, and judicial offices of Puerto Rico 
        shall continue to discharge the duties of their respective 
        offices when Puerto Rico becomes a State of the Union in, 
        under, or by authority of the government of the State, as 
        provided by the constitution and laws of the State.
            (3) Continuity of obligations.--All contracts, obligations, 
        liabilities, debts, and claims of the territory of Puerto Rico 
        and its instrumentalities at the moment of admission shall 
        continue in full force and effect as the contracts, 
        obligations, liabilities, debts, and claims of the State of 
        Puerto Rico and its instrumentalities when Puerto Rico becomes 
        a State of the Union.
            (4) Use and enjoyment of property.--All laws of the United 
        States reserving to the United States the free use or enjoyment 
        of property which vests in or is conveyed to the State of 
        Puerto Rico or its political subdivisions pursuant to this 
        section or reserving the right to alter, amend, or repeal laws 
        relating thereto, shall cease to be effective.

SEC. 308. JUDICIAL PRONOUNCEMENTS.

    (a) Pending.--No writ, action, indictment, cause, or proceeding 
pending in any court of the territory of Puerto Rico, shall abate by 
reason of the admission of the State of Puerto Rico into the Union, but 
shall proceed within such appropriate State courts as shall be 
established under the Constitution of the State of Puerto Rico, or 
shall continue in the United States District Court for the District of 
Puerto Rico, as the nature of the case may require.
    (b) Not Yet Pending.--All civil causes of action and all criminal 
offenses, which shall have arisen or been committed before the 
admission of the State, but as to which no writ, action, indictment, or 
proceeding shall be pending at the date of such admission, shall be 
subject to prosecution in the appropriate State courts or in the United 
States District Court for the District of Puerto Rico in like manner, 
to the same extent, and with like right of appellate review, as if such 
State had been created and such State courts had been established prior 
to the accrual of such causes of action or the commission of such 
offenses. The admission of the State shall effect no change in the 
procedural or substantive laws governing causes of action and criminal 
offenses which shall have arisen or been committed, and any such 
criminal offenses as shall have been committed against the laws of the 
territory of Puerto Rico, shall be tried and punished by the 
appropriate courts of the State, and any such criminal offenses as 
shall have been committed against the laws of the United States shall 
be tried and punished in the United States District Court for the 
District of Puerto Rico.
    (c) Appeals.--Parties shall have the same rights of judicial review 
of final decisions of the United States District Court for the District 
of Puerto Rico or the Supreme Court of Puerto Rico, in any case finally 
decided prior to the admission of the State of Puerto Rico into the 
Union, whether or not an appeal therefrom shall have been perfected 
prior to such admission. The United States Court of Appeals for the 
First Circuit and the Supreme Court of the United States, shall have 
the same jurisdiction in such cases as by law provided prior to the 
admission of the State into the Union. Any mandate issued subsequent to 
the admission of the State, shall be to the United States District 
Court for the District of Puerto Rico or a court of the State, as 
appropriate. Parties shall have the same rights of appeal from and 
appellate review of all orders, judgments, and decrees of the United 
States District Court for the District of Puerto Rico and of the 
Supreme Court of Puerto Rico, in any case pending at the time of 
admission of the State into the Union, and the Supreme Court of Puerto 
Rico and the Supreme Court of the United States shall have the same 
jurisdiction therein, as by law provided in any case arising subsequent 
to the admission of the State into the Union.
                                 <all>