[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 2944 Introduced in Senate (IS)]

<DOC>






118th CONGRESS
  1st Session
                                S. 2944

 To enable the people of the Commonwealth of Puerto Rico to determine 
the political status of the Commonwealth of Puerto Rico, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

           September 27 (legislative day, September 22), 2023

  Mr. Wicker introduced the following bill; which was read twice and 
       referred to the Committee on Energy and Natural Resources

_______________________________________________________________________

                                 A BILL


 
 To enable the people of the Commonwealth of Puerto Rico to determine 
the political status of the Commonwealth of Puerto Rico, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Puerto Rico 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. Definitions.
                          TITLE I--PLEBISCITES

Sec. 101. Initial plebiscite; runoff plebiscite.
Sec. 102. Nonpartisan voter education campaign.
Sec. 103. Oversight.
Sec. 104. Funds for voter education, plebiscites.
     TITLE II--TRANSITION AND IMPLEMENTATION OF INDEPENDENCE STATUS

Sec. 201. Definitions.
Sec. 202. Constitutional convention.
Sec. 203. Character of the constitution.
Sec. 204. Submission; ratification.
Sec. 205. Election of officers.
Sec. 206. Conforming amendments to existing law.
Sec. 207. Joint Transition Commission.
Sec. 208. Proclamation by President.
Sec. 209. Legal and constitutional provisions.
Sec. 210. Judicial pronouncements.
Sec. 211. Citizenship and immigration laws after Puerto Rican 
                            independence.
Sec. 212. Individual rights to economic benefits and grants.
    TITLE III--TRANSITION AND IMPLEMENTATION OF SOVEREIGNTY IN FREE 
               ASSOCIATION WITH THE UNITED STATES OPTION

Sec. 301. Definitions.
Sec. 302. Constitutional convention.
Sec. 303. Character of the constitution.
Sec. 304. Submission; ratification.
Sec. 305. Election of officers.
Sec. 306. Conforming amendments to existing law.
Sec. 307. Proclamation by President; head of state of the nation Puerto 
                            Rico.
Sec. 308. Legal and constitutional provisions.
Sec. 309. Judicial pronouncements.
Sec. 310. Citizenship and immigration laws after sovereignty through 
                            free association.
Sec. 311. Bilateral Negotiating Commission.
Sec. 312. Articles of free association approval, effective date, and 
                            termination.
Sec. 313. Individual rights to economic benefits and grants.
      TITLE IV--TRANSITION AND IMPLEMENTATION OF STATEHOOD STATUS

Sec. 401. Definitions.
Sec. 402. Puerto Rico readiness for statehood; Presidential 
                            proclamation; admission into the Union of 
                            the United States.
Sec. 403. Conforming amendments to existing law.
Sec. 404. Territory and boundaries.
Sec. 405. Constitution.
Sec. 406. Elections of Senators and Representatives; certification; 
                            jurisdiction.
Sec. 407. State title to land and property.
Sec. 408. Continuity of laws, government, and obligations.
Sec. 409. Judicial pronouncements.
     TITLE V--TRANSITION AND IMPLEMENTATION OF COMMONWEALTH STATUS

Sec. 501. Bilateral Negotiating Commission.
Sec. 502. Approval; effective date.
                        TITLE VI--MISCELLANEOUS

Sec. 601. Application of Puerto Rico Oversight, Management, and 
                            Economic Stability Act.
Sec. 602. Severability.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) in 1898, the United States gained possession of Puerto 
        Rico following the Spanish-American War;
            (2) Spain formally ceded Puerto Rico to the United States 
        of America under the Treaty of Peace between the United States 
        of America and the Kingdom of Spain, signed at Paris on 
        December 10, 1898 (30 Stat. 1754);
            (3) after a brief period of military rule, the Act of April 
        12, 1900 (commonly known as the ``Foraker Act'') (31 Stat. 77, 
        chapter 191), was enacted to establish a civil government in 
        Puerto Rico, which--
                    (A) provided for--
                            (i) an executive branch headed by a 
                        Governor and an executive council, to be 
                        appointed by the President, with the advice and 
                        consent of the Senate; and
                            (ii) a house of delegates, to be elected by 
                        qualified voters of Puerto Rico; and
                    (B) was replaced in 1917 by a new organic Act for 
                Puerto, the Act of March 2, 1917 (commonly known as the 
                ``Jones-Shafroth Act'') (39 Stat. 951, chapter 145), 
                which--
                            (i) established an elected Senate;
                            (ii) provided a bill of rights;
                            (iii) provided United States citizenship to 
                        the people of Puerto Rico; and
                            (iv) in 1947, was amended to give qualified 
                        voters of Puerto Rico the right to elect a 
                        Governor;
            (4) in 1950, Congress enacted the Act of July 3, 1950 
        (commonly known as the ``Puerto Rico Federal Relations Act of 
        1950'') (64 Stat. 319, chapter 446), which--
                    (A) established that, ``fully recognizing the 
                principle of government by consent'', the law was 
                ``adopted in the nature of a compact so that the people 
                of Puerto Rico may organize a government pursuant to a 
                constitution of their own adoption''; and
                    (B) on approval by the qualified voters of Puerto 
                Rico in a referendum, authorized the Puerto Rico 
                legislature to call a constitutional convention to 
                draft a constitution for Puerto Rico;
            (5) in a popular referendum held on June 4, 1951, 76.5 
        percent of the voters in Puerto Rico voted in favor of drafting 
        a constitution for Puerto Rico;
            (6) during the period beginning on September 17, 1951, and 
        ending on February 6, 1952, a constitutional convention was 
        held in Puerto Rico;
            (7) the constitution of the Commonwealth of Puerto Rico 
        produced by the constitutional convention was submitted to the 
        people of Puerto Rico, who approved the constitution with 81.9 
        percent of the vote in a referendum held on March 3, 1952;
            (8) after receiving the constitution of the Commonwealth of 
        Puerto Rico, the President--
                    (A) declared that the constitution of the 
                Commonwealth of Puerto Rico--
                            (i) conformed fully with the applicable 
                        provisions of--
                                    (I) the Act of July 3, 1950 
                                (commonly known as the ``Puerto Rico 
                                Federal Relations Act of 1950'') (64 
                                Stat. 319, chapter 446); and
                                    (II) the Constitution of the United 
                                States;
                            (ii) contained a bill of rights; and
                            (iii) provided for a republican form of 
                        government; and
                    (B) transmitted the constitution of the 
                Commonwealth of Puerto Rico to Congress for approval;
            (9) after receiving the constitution of the Commonwealth of 
        Puerto Rico from the President, Congress--
                    (A) considered the constitution of the Commonwealth 
                of Puerto Rico;
                    (B) found the constitution of the Commonwealth of 
                Puerto Rico to conform to the applicable requirements; 
                and
                    (C) with the approval of the Joint Resolution of 
                July 3, 1952 (66 Stat. 327, chapter 567), conditionally 
                approved the constitution of the Commonwealth of Puerto 
                Rico;
            (10) under Resolution number 34 of the constitutional 
        convention of Puerto Rico, the constitutional convention of 
        Puerto Rico accepted the conditions of Congress ``in the name 
        of the people of Puerto Rico'';
            (11) the Governor of Puerto Rico subsequently issued a 
        formal proclamation accepting the conditions of Congress on the 
        constitution of the Commonwealth of Puerto Rico;
            (12) the constitution of the Commonwealth of Puerto Rico--
                    (A) was subsequently amended by the constitutional 
                convention; and
                    (B) became effective on July 25, 1952;
            (13) the amendments to the constitution of the Commonwealth 
        of Puerto Rico were ratified by the people of the Commonwealth 
        of Puerto Rico, with 87.8 percent of voters approving the 
        constitution of the Commonwealth of Puerto Rico in a referendum 
        held on November 4, 1952;
            (14) the United States informed the United Nations that, 
        because the Commonwealth of Puerto Rico had become a self-
        governing jurisdiction, the United States would cease reporting 
        on conditions in the Commonwealth of Puerto Rico under article 
        73 of the United Nations Charter, which requires reports from 
        member states responsible ``for the administration of 
        territories whose people have not yet attained the full measure 
        of self-government.'';
            (15) in response to the United States, the United Nations 
        General Assembly acknowledged in United Nations General 
        Assembly Resolution 748 (1953) that ``the people of the 
        Commonwealth of Puerto Rico, by expressing their will in a free 
        and democratic way, have achieved a new constitutional status 
        and have effectively exercised their right to self-
        determination'';
            (16) to bilaterally address the issue of Puerto Rico self-
        determination, Public Law 88-271 (78 Stat. 17) established the 
        United States-Puerto Rico Commission on the Status of Puerto 
        Rico, composed of--
                    (A) 7 members from the United States, of whom--
                            (i) 3 members were to be appointed by the 
                        President;
                            (ii) 2 members were to be members of the 
                        Senate, appointed by the President of the 
                        Senate with the approval of the majority and 
                        minority leaders of the Senate; and
                            (iii) 2 members were to be members of the 
                        House of Representatives appointed by the 
                        Speaker of the House of Representatives, with 
                        the approval of the majority and minority 
                        leaders of the House of Representatives; and
                    (B) 6 members were to be from the Commonwealth of 
                Puerto Rico;
            (17) in the report entitled ``Report of the United States-
        Puerto Rico Commission on the Status of Puerto Rico'' and dated 
        August 1966, the United States-Puerto Rico Commission on the 
        Status of Puerto Rico found that--
                    (A) ``all three forms of political status--the 
                Commonwealth, Statehood, and Independence--are valid 
                and confer upon the people of Puerto Rico equal dignity 
                with equality of status and national citizenship.''; 
                and
                    (B) ``it is inconceivable that either the United 
                States or Puerto Rico would, by an act of unilateral 
                revocation, undermine the very foundation of their 
                common progress: the fundamental political and economic 
                relationships which were established on the basis of 
                mutuality.'';
            (18) pursuant to the findings and recommendations of the 
        United States-Puerto Rico Commission on the Status of Puerto 
        Rico, the Puerto Rico legislature enacted the Act of December 
        23, 1966 (Puerto Rico Act No. 1), which called for a plebiscite 
        on the status of Puerto Rico;
            (19) in the July 23, 1967, plebiscite--
                    (A) 60.4 percent of voters in the Commonwealth of 
                Puerto Rico voted for commonwealth status;
                    (B) 39 percent of voters in the Commonwealth of 
                Puerto Rico voted for statehood; and
                    (C) 0.6 percent of voters in the Commonwealth of 
                Puerto Rico voted for independence;
            (20) in 1989, on the joint request of the pro-Commonwealth 
        Governor of Puerto Rico and the presidents of the pro-statehood 
        and pro-independence parties, the Senate took up the issue of 
        Puerto Rico self-determination through S. 712 (101st Congress) 
        and S. 244 (102nd Congress), which recognized that 
        Commonwealth, statehood, and independence were valid options 
        for the status of Puerto Rico;
            (21) the failure of the 1989 effort with respect to 
        statehood and the coming to power in the Commonwealth of Puerto 
        Rico of a pro-statehood government in 1992, 1996, 2008, and 
        2016 prompted a string of locally legislated referenda, with 
        each subsequent referendum increasingly deviating from Federal 
        policy, particularly with respect to an effort to undermine the 
        commonwealth status to the benefit of statehood;
            (22) the first referendum was held in 1993, allowing each 
        of the political parties to provide the definition of the 
        particular status option, under which--
                    (A) 48.6 percent of voters in the Commonwealth of 
                Puerto Rico voted for commonwealth status;
                    (B) 46.3 percent of voters in the Commonwealth of 
                Puerto Rico voted for statehood; and
                    (C) 4.4 percent of voters in the Commonwealth of 
                Puerto Rico voted for independence;
            (23) during a second referendum held in 1998--
                    (A) the pro-statehood government--
                            (i) drafted the ballot language for all 
                        status options; and
                            (ii) identified each status option by 
                        number rather than by name;
                    (B) in protest for what the pro-Commonwealth party 
                considered to be an ill-defined Commonwealth option, 
                the pro-Commonwealth party asked supporters to vote for 
                ``none of the above''; and
                    (C) the results of the referendum were that--
                            (i) 50.3 percent of voters in the 
                        Commonwealth of Puerto Rico voted for ``none of 
                        the above'';
                            (ii) 46.5 percent of voters in the 
                        Commonwealth of Puerto Rico voted for 
                        statehood;
                            (iii) 2.5 percent of voters in the 
                        Commonwealth of Puerto Rico voted for 
                        independence; and
                            (iv) 0.3 percent of voters in the 
                        Commonwealth of Puerto Rico voted for free 
                        association;
            (24) on May 29, 2009, pro-statehood Resident Commissioner 
        Pedro Pierluisi introduced a bill in the House of 
        Representatives, H.R. 2499 (111th Congress), which provided 
        for--
                    (A) a 2-round vote on the status of the 
                Commonwealth of Puerto Rico that provided for a first 
                vote to ``continue to have its present form of 
                political status'' or for ``a different political 
                status''; and
                    (B) if the ``different political status'' option 
                received the most votes during the first vote, a second 
                vote with the options of--
                            (i) independence;
                            (ii) sovereignty in association with the 
                        United States; and
                            (iii) statehood;
            (25) an amendment to H.R. 2499 (111th Congress) was 
        approved by the House of Representatives on April 29, 2010, to 
        include the Commonwealth option on the second vote, with the 
        proponent of the amendment stating that ``Puerto Ricans' views 
        should be given equal and fair consideration.'';
            (26) H.R. 2499 (111th Congress), as amended, was approved 
        by the House of Representatives, but was not considered in the 
        Senate;
            (27) in April 2011, the White House published a report of 
        the Task Force on Puerto Rico Status that found that--
                    (A) the permissible status options for the 
                Commonwealth of Puerto Rico include--
                            (i) statehood;
                            (ii) independence;
                            (iii) free association; and
                            (iv) commonwealth status; and
                    (B) ``removing the Commonwealth option would raise 
                real questions about the vote's legitimacy'';
            (28) ignoring the amendment to H.R. 2499 (111th Congress) 
        described in paragraph (25), the pro-statehood government 
        called for a locally legislated plebiscite in 2012 that adopted 
        the 2-vote structure rejected by the House of Representatives 
        that excluded the Commonwealth option in the second vote;
            (29) to further stack the deck in the 2012 plebiscite--
                    (A) the first vote would be in favor or against the 
                ``current territorial status'' (a generic term intended 
                to downplay the constitutional process of the Act of 
                July 3, 1950 (commonly known as the ``Puerto Rico 
                Federal Relations Act of 1950'') (64 Stat. 319, chapter 
                446)); and
                    (B) a second vote would be for--
                            (i) statehood;
                            (ii) independence; or
                            (iii) free association (which was 
                        confusingly referred to as ``sovereign 
                        Commonwealth'');
            (30) the voting structure in the 2012 plebiscite had 
        several evident defects, including that--
                    (A) the current commonwealth status could lose even 
                if commonwealth status had the highest voter 
                preference; and
                    (B) by instructing individuals who voted for the 
                current commonwealth status on the first question to 
                answer the second question, regardless, the votes for 
                the options of the second question would be inflated 
                with those ``second-preference'' votes, so it would not 
                be known how many voters actually preferred any of 
                those options;
            (31) the results of the 2012 plebiscite were a mixture of 
        all the potential problems, as--
                    (A) the status quo received 828,077 votes on 
                question 1, and statehood received 834,191 votes on 
                question 2, which is a difference of 6,114 votes;
                    (B) it is not known how many voters that voted for 
                the current status on question 1 voted for statehood on 
                question 2; and
                    (C) since the law authorizing the plebiscite 
                prohibited considering blank ballots for allocating 
                percentages, the commonwealth status was said to have 
                obtained 46 percent of the vote in the first vote and 
                statehood was said to have obtained 61 percent of the 
                vote in the second vote;
            (32) on May 15, 2013, the pro-statehood Resident 
        Commissioner introduced H.R. 2000 (113th Congress), which--
                    (A) stated that statehood had obtained 61.16 
                percent of the votes of ``voters who chose an option'';
                    (B) based on that characterization of the results, 
                called for a ratification vote that would provide for a 
                self-executing implementation of the admission of the 
                Commonwealth Puerto Rico as a State of the Union of the 
                United States; and
                    (C) was not acted on by the House of 
                Representatives;
            (33) instead, the Consolidated Appropriations Act, 2014 
        (Public Law 113-76; 128 Stat. 5), appropriated $2,500,000 ``for 
        objective, nonpartisan voter education about, and a plebiscite 
        on, options that would resolve Puerto Rico's future political 
        status, which shall be provided to the State Elections 
        Commission of Puerto Rico.'', with the accompanying report 
        stating that--
                    (A) the $2,500,000 was ``for objective, nonpartisan 
                voter education about, and a plebiscite on, options 
                that would resolve Puerto Rico's future political 
                status'';
                    (B) the ``funds provided for the plebiscite shall 
                not be obligated until 45 days after the Department of 
                Justice notifies the Committees on Appropriations that 
                it approves of an expenditure plan from the Puerto Rico 
                Elections Commission for voter education and plebiscite 
                administration, including approval of the plebiscite 
                ballot''; and
                    (C) the ``notification shall include a finding that 
                the voter education materials, plebiscite ballot, and 
                related materials are not incompatible with the 
                Constitution and laws and policies of the United 
                State.'';
            (34) on February 3, 2017, with the pro-statehood party back 
        in power locally, the Commonwealth of Puerto Rico passed Law 
        Number 7, which called ``for the immediate decolonization of 
        Puerto Rico'' through a plebiscite to be held on June 11, 2017;
            (35) claiming that the Commonwealth option had been 
        rejected in the 2012 plebiscite, the ballot for the 2017 
        plebiscite would offer only 2 options of--
                    (A) statehood; and
                    (B) free association or independence;
            (36) on April 13, 2017, the Department of Justice denied 
        certification of the plebiscite, stating: ``The Department has 
        concluded that the plebiscite ballot is not compatible with 
        these policies, as it is not drafted in a way that ensures that 
        its result will accurately reflect the current popular will of 
        the people of Puerto Rico. As transmitted, the ballot omits 
        Puerto Rico's current territorial status as an available option 
        and instead provides the people of Puerto Rico with only two 
        choices: `Statehood' or `Free Association/Proclamation of 
        Independence'. This omission appears to be based on a 
        determination that the people of Puerto Rico definitively 
        rejected Puerto Rico's current status in the plebiscite held on 
        November 6, 2012. See Act No. 7-2017, Art. IIISec.  1(a). The 
        Department does not believe that the results of the 2012 
        plebiscite justify omitting Puerto Rico's current status as an 
        option on the ballot. For a variety of reasons, the validity of 
        the 2012 plebiscite's results `have been the subject of 
        controversy' and debate. See Congressional Research Service, 
        Puerto Rico's Political Status and the 2012 Plebiscite: 
        Background and Key Questions, at 8 (June 25, 2013) (`CRS 
        Report'). Furthermore, nearly five years have elapsed since 
        that plebiscite, during which significant political, economic, 
        and demographic changes have occurred in Puerto Rico and the 
        United States. As a result, it is uncertain that it is the 
        present will of the people to reject Puerto Rico's current 
        status. Accordingly, any plebiscite that now seeks to `resolve 
        Puerto Rico's future political status,' as the Appropriations 
        Act contemplates, should include the current territorial status 
        as an option. See 2011 Task Force Report, at 26 (noting that 
        the current status `must be an available option for the people 
        of Puerto Rico'). Otherwise, there would be `real questions 
        about the vote's legitimacy' and its ability to reflect 
        accurately the will of the people. Id. Furthermore, the 
        Department has determined that the plebiscite ballot language 
        contains several ambiguous and potentially misleading 
        statements, which may hinder voters' ability to make a fully 
        informed choice as well as efforts to ascertain the will of the 
        people from the plebiscite results. The statements of concern 
        are as follows: The ballot's description of the `Statehood' 
        option contains the following statement: `I am aware that 
        Statehood is [the] only option that guarantees the American 
        citizenship by birth in Puerto Rico'. This statement is 
        inaccurate when considered in the context of all available 
        status options, as under current law, Puerto Ricans have an 
        unconditional statutory right to birthright citizenship. The 
        sentence therefore is potentially misleading and reinforces the 
        ballot's flawed omission of an option for retaining Puerto 
        Rico's current territorial status.'';
            (37) the local government amended the bill purportedly to 
        comply with the Department of Justice demands, but did not 
        allow for Department of Justice certification, provoking a 
        massive boycott by the Commonwealth supporters and independence 
        supporters;
            (38) in the plebiscite of June 11, 2017--
                    (A) there was a historically low participation rate 
                of 23 percent of registered voters in the Commonwealth 
                of Puerto Rico; and
                    (B) 508,862 voters in the Commonwealth of Puerto 
                Rico voted for statehood, which was 97 percent of votes 
                cast;
            (39) the same pro-statehood administration in the 
        Commonwealth of Puerto Rico called for a new plebiscite in 2020 
        that would include an up-or-down statehood vote;
            (40) by letter of July 29, 2020, addressed to the Chairman 
        of the Puerto Rico Elections Commission, the Department of 
        Justice again rejected certification, stating that--
                    (A) the United States has consistently remained 
                neutral about the legally permissible status options 
                for the Commonwealth of Puerto Rico, of which the 
                current status is 1; and
                    (B) a plebiscite that asks voters if the 
                Commonwealth of Puerto Rico should be admitted 
                immediately into the Union of the United States as a 
                State is regarded as a pro-statehood initiative that 
                departs from that policy of neutrality;
            (41) Executive Order 13183 (48 U.S.C. 731 note; relating to 
        establishment of the President's Task Force on Puerto Rico's 
        Status), states that the policy of the executive branch is ``to 
        work with leaders of the Commonwealth and the Congress to 
        clarify the options to enable Puerto Ricans to determine their 
        preference among options for the islands' future status that 
        are not incompatible with the Constitution and basic laws and 
        policies of the United States; and to implement such an option 
        if chosen by a majority.''; and
            (42) the status options for the Commonwealth of Puerto Rico 
        that are not incompatible with the Constitution and basic laws 
        and policies of the United States are--
                    (A) commonwealth status;
                    (B) statehood;
                    (C) independence; and
                    (D) free association.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Commonwealth government.--The term ``Commonwealth 
        government'' means the government of the Commonwealth of Puerto 
        Rico (including any department, agency, or instrumentality of 
        the government of the Commonwealth of Puerto Rico).
            (2) Elections commission.--The term ``Elections 
        Commission'' means the Puerto Rico State Commission on 
        Elections.
            (3) Eligible voter.--The term ``eligible voter'' means a 
        bona fide resident of the Commonwealth of Puerto Rico who is 
        otherwise qualified to vote in a general election in the 
        Commonwealth of Puerto Rico.
            (4) Governor.--The term ``Governor'' means the Governor of 
        the Commonwealth of Puerto Rico.
            (5) Immigration laws.--The term ``immigration laws'' has 
        the meaning given the term in section 101 of the Immigration 
        and Nationality Act (8 U.S.C. 1101).
            (6) Initial plebiscite.--The term ``initial plebiscite'' 
        means the plebiscite required by section 101(a)(1).
            (7) Legislative assembly.--The term ``Legislative 
        Assembly'' means the Legislative Assembly of Puerto Rico.
            (8) Runoff plebiscite.--The term ``runoff plebiscite'' 
        means the plebiscite required by section 101(a)(4).
            (9) Status option.--The term ``status option'' means an 
        option described in section 101(a)(2).

                          TITLE I--PLEBISCITES

SEC. 101. INITIAL PLEBISCITE; RUNOFF PLEBISCITE.

    (a) Requirement.--
            (1) Initial plebiscite.--A plebiscite to resolve the 
        political status of the Commonwealth of Puerto Rico shall be 
        held on August 4, 2024.
            (2) Options.--The initial plebiscite shall offer eligible 
        voters a choice of 1 of the following 4 options on the ballot:
                    (A) Independence.
                    (B) Sovereignty in Free Association with the United 
                States.
                    (C) Statehood.
                    (D) Commonwealth.
            (3) Majority vote required.--Approval of a status option 
        shall be by a majority of the valid votes cast by eligible 
        voters.
            (4) Runoff plebiscite.--If there is not a majority vote in 
        favor of 1 of the status options in the initial plebiscite, a 
        runoff plebiscite shall be held on March 16, 2025, which shall 
        offer eligible voters a choice on the ballot of the 2 status 
        options that received the most votes in the initial plebiscite.
    (b) Ballot Language.--A ballot for a plebiscite required by 
subsection (a) shall include the following language:
    ``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.
            ``(1) 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. 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 United States law.
                    ``(D) Puerto Rico will no longer be a possession of 
                the United States for purposes of the Internal Revenue 
                Code of 1986 (or any successor code). United States 
                citizens and United States businesses in 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 located abroad) and to Puerto 
                Rican tax laws. The status of Puerto Rico 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.
            ``(2) 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. 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 United States law.
                    ``(D) Birth in Puerto Rico shall cease to be a 
                basis for United States nationality or citizenship, 
                except that children born in Puerto Rico to parents, 
                both of whom are United States citizens, shall be 
                eligible to acquire United States citizenship. The 
                application process for United States citizenship for 
                such children shall be similar to the process for 
                descendants of citizens born in a foreign country, 
                since the children would be born outside the 
                jurisdiction of the United States, despite being 
                children of United States citizens.
                    ``(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 
                the United States and Puerto Rico under the Articles of 
                Free Association, 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 of 1986 (or any successor code). United States 
                citizens and United States businesses in 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 located abroad) and to Puerto 
                Rican tax laws. The status of Puerto Rico as an 
                independent, sovereign nation will be the controlling 
                factor in the taxation of Puerto Rican taxpayers. 
                Puerto Rico will enter into an agreement with the 
                United States to provide for `Sovereignty in Free 
                Association' that may modify the otherwise-applicable 
                tax rules, subject to negotiation and ratification by 
                Puerto Rico and the United States.
                    ``(G) The Constitution and 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, security, defense, dispute 
                resolution, and termination, shall be provided for in 
                the Articles of Free Association.
            ``(3) Statehood.--If you agree, mark here _________.
                    ``(A) The State of Puerto Rico shall request 
                admission into the Union of the United States on an 
                equal footing with the other States in all respects and 
                as a part of the permanent Union of the United States, 
                subject to the Constitution of the United States, with 
                powers not prohibited by the Constitution of the United 
                States to the States reserved to the State of Puerto 
                Rico.
                    ``(B) The residents of Puerto Rico shall, on 
                admission, be fully self-governing with the rights of 
                the residents secured under the Constitution of the 
                United States, 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 of the United States.
                    ``(C) United States citizenship of individuals born 
                in Puerto Rico is recognized, protected, and secured 
                under the Constitution of the United States in the same 
                way citizenship is recognized, protected, and secured 
                for all United States citizens born in the other 
                States. Such rights shall be accompanied by the same 
                responsibilities, including the immediate initiation of 
                full payment of Federal taxes in the same manner as 
                residents of the other States. In the event that Puerto 
                Rico becomes a State of the United States, the 
                provisions of chapter 2205 of title 36, United States 
                Code, relating to the exclusive existence of a single 
                United States Olympic Committee shall apply to Puerto 
                Rico.
                    ``(D) On admission, Puerto Rico will no longer be 
                considered to be a possession of the United States for 
                purposes of the Internal Revenue Code of 1986 (or any 
                successor code). In lieu of such consideration as a 
                possession, the State of Puerto Rico will become a 
                State on equal footing with each of the 50 States in 
                the United States. Individuals and businesses residing 
                in the State of Puerto Rico will be subject to United 
                States Federal tax laws and to tax laws of the State of 
                Puerto Rico.
            ``(4) Commonwealth-estado libre asociado.--If you agree, 
        mark here _________.
                    ``(A) A vote for Commonwealth-Estado Libre Asociado 
                shall be a mandate to empowerment of the Commonwealth 
                of Puerto Rico in accordance with the principles and 
                parameters described in subparagraphs (B) through (E).
                    ``(B) The Commonwealth of Puerto Rico shall be 
                united to the United States by a formal compact of 
                political autonomy. The compact shall have the 
                character of a permanent relationship and shall 
                establish, as public policy of the United States, that 
                any modification to the relationship shall be approved 
                by the people of Puerto Rico by referendum.
                    ``(C) United States citizenship of individuals born 
                in the Commonwealth of Puerto Rico shall be guaranteed 
                and protected as provided in the United States 
                Constitution. The application, protections, and rights 
                associated with citizenship shall be equal to the 
                protections and rights of citizens born in the States 
                of the United States of America.
                    ``(D) Federal laws and programs shall apply to the 
                Commonwealth of Puerto Rico in accordance with the 
                provisions of the autonomous compact. However, if the 
                government of Puerto Rico determines that the enactment 
                of a Federal law or a specific provision of a statute 
                or regulation of the United States modifies or affects 
                the powers granted to the people of Puerto Rico with 
                respect to self-government, fiscal autonomy, or 
                cultural identity, the government of Puerto Rico may 
                request an exemption from the application of the 
                statute or regulation. The compact shall include an 
                expedited mediation mechanism to address such claims.
                    ``(E) The compact shall replace the corresponding 
                provisions of the Act of July 3, 1950 (commonly known 
                as the `Puerto Rico Federal Relations Act of 1950') (64 
                Stat. 319, chapter 446), regarding the application of 
                certain Federal laws that, due to the scope of the 
                Federal laws, could unilaterally modify the nature of 
                the political autonomy relationship.''.
    (c) Implementation of Plebiscite.--The plebiscites authorized by 
this section shall be implemented by the Elections Commission, 
consistent with--
            (1) the laws of Puerto Rico; and
            (2) applicable Federal law.
    (d) Results.--The Elections Commission shall submit to the 
President, the President pro tempore of the Senate, the Speaker of the 
House of Representatives, the Committee on Energy and Natural Resources 
of the Senate, and the Committee on Natural Resources of the House of 
Representatives--
            (1) not later than 30 calendar days after the date on which 
        the initial plebiscite is held, the results of the initial 
        plebiscite; and
            (2) not later than 30 calendar days after the date on which 
        a runoff plebiscite is held, if applicable, the results of the 
        runoff plebiscite.
    (e) Jurisdiction of District Court.--The United States District 
Court for the District of Puerto Rico shall have original and exclusive 
jurisdiction over any civil action alleging a dispute or controversy 
relating to a plebiscite conducted under this section.

SEC. 102. NONPARTISAN VOTER EDUCATION CAMPAIGN.

    (a) In General.--Subject to section 103, the Elections Commission 
shall--
            (1) carry out a nonpartisan voter education campaign with 
        respect to the plebiscites to be conducted under section 101 
        through traditional paid media; and
            (2) make available at all voting locations in the 
        Commonwealth of Puerto Rico voter education materials relating 
        to the plebiscites to be conducted under section 101.
    (b) Requirements for Voter Education Materials.--At a minimum, the 
voter education materials made available under subsection (a)(2) shall 
address, for each status option--
            (1) international representation;
            (2) citizenship and immigration; and
            (3) access and treatment under Federal law and programs.
    (c) Bilingual Voter Educational Materials and Ballots.--All voter 
educational materials and ballots made available for a plebiscite 
required by section 101 shall be made available in English and Spanish.

SEC. 103. OVERSIGHT.

    (a) Submission of Materials.--The Elections Commission shall submit 
to the Attorney General for review--
            (1) not later than 60 days after the date of enactment of 
        this Act--
                    (A) the ballot design for the initial plebiscite; 
                and
                    (B) any voter education materials for the initial 
                plebiscite to be made available in accordance with 
                section 102; and
            (2) not later than 30 days after the date on which an 
        initial plebiscite is held in which there is not a majority 
        vote in favor of 1 of the status options--
                    (A) the ballot design for the runoff plebiscite; 
                and
                    (B) any voter education materials for the runoff 
                plebiscite to be made available in accordance with 
                section 102.
    (b) Review.--Not later than 45 days after receiving ballot design 
and voter education materials under subsection (a), the Attorney 
General shall--
            (1) review the ballot design and voter education materials 
        to ensure--
                    (A) consistency with this Act; and
                    (B) that each of 4 status options are represented 
                fairly, particularly if any of the 4 options are not 
                represented on the Elections Commission by a member of 
                a political party that supports the status option; and
            (2)(A) return the ballot design and voter education 
        materials to the Elections Commission with comments and 
        instructions for changes, as applicable; or
            (B) inform the Elections Commission that--
                    (i) no instructions or requests for changes shall 
                be made under subparagraph (A); but
                    (ii) 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.
    (c) Effect of Failure To Comply.--If the Attorney General fails to 
comply with the requirements of subsection (b) within the 45-day period 
described in that subsection, the ballot design and voter education 
materials submitted under subsection (a) shall be considered to be 
approved.
    (d) Revision.--Not later than 45 days after receiving comments and 
instructions for changes from the Attorney General under subsection 
(b)(2), the Elections Commission shall revise the ballot design and 
voter education materials in accordance with the comments and 
instructions submitted by the Attorney General.

SEC. 104. FUNDS FOR VOTER EDUCATION, PLEBISCITES.

    (a) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary for the Elections Commission to 
carry out--
            (1) a nonpartisan voter education campaign under section 
        102; and
            (2)(A) an initial plebiscite; and
            (B) if necessary, a runoff plebiscite.
    (b) Use of Existing Funds.--Notwithstanding any other provision of 
the Consolidated Appropriations Act, 2014 (Public Law 113-76; 128 Stat. 
5), the unobligated balance of funds made available to carry out a 
plebiscite on the status of the Commonwealth of Puerto Rico under 
paragraph (1) under the heading ``state and local law enforcement 
assistance'' under the heading ``Office of Justice Programs'' under the 
heading ``DEPARTMENT OF JUSTICE'' in title II of division B of that Act 
(Public Law 113-76; 128 Stat. 61) shall be made available to carry out 
this Act.

     TITLE II--TRANSITION AND IMPLEMENTATION OF INDEPENDENCE STATUS

SEC. 201. DEFINITIONS.

    In this title:
            (1) Constitutional convention.--The term ``constitutional 
        convention'' means a constitutional convention established 
        under section 202(d)(2).
            (2) Proclamation.--The term ``Proclamation'' means a 
        Presidential proclamation issued under section 208(a).

SEC. 202. CONSTITUTIONAL CONVENTION.

    (a) Election of Delegates.--Not later than 180 days after the 
effective date of certification of a plebiscite under this Act that 
favors independence, the Legislative Assembly 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 under subsection (a).
    (c) General Applicability of Electoral Law.--The laws of the 
Commonwealth of Puerto Rico relating to the electoral process shall 
apply to an election held under subsection (a).
    (d) Initial Meeting.--
            (1) In general.--Not later than 180 days after the date of 
        the election of delegates to the constitutional convention 
        under subsection (a), the elected delegates shall meet at such 
        time and place as the Legislative Assembly shall determine.
            (2) Establishment.--The initial meeting of the elected 
        delegates to the constitutional convention under paragraph (1) 
        shall be considered to be the establishment of the 
        constitutional convention.

SEC. 203. CHARACTER OF THE CONSTITUTION.

    The constitutional convention shall formulate and draft a 
constitution for the nation of 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 determine to be necessary; and
            (5) provisions to ensure that no individual born in the 
        nation of Puerto Rico shall be stateless at birth.

SEC. 204. SUBMISSION; RATIFICATION.

    (a) Submission.--Not later than 1 year after the date of 
establishment of the constitutional convention, the Elections 
Commission shall submit the constitution formulated and drafted by the 
delegates to the constitutional convention to the eligible voters for 
ratification or rejection in a special election.
    (b) Manner of Election.--The special election held under subsection 
(a) shall be held in the manner prescribed by the Legislative Assembly.
    (c) Rejection.--If the constitution of the nation of Puerto Rico is 
rejected in a special election held under subsection (a), the process 
provided for under sections 202 and 203 and subsections (a) and (b) 
shall be repeated, except that section 202(a) shall be applied by 
substituting--
            (1) ``the special election'' for ``a plebiscite''; and
            (2) ``rejects the Constitution'' for ``favors 
        independence''.

SEC. 205. ELECTION OF OFFICERS.

    (a) In General.--Not later than 30 days after the date of 
ratification of the constitution of the nation of Puerto Rico under 
section 204, the Governor shall issue a proclamation calling for the 
election of any officers of the nation of Puerto Rico that may be 
required by the ratified constitution of the nation of Puerto Rico.
    (b) Deadline; Procedures.--The election of the officers under 
subsection (a) shall be held--
            (1) not later than 180 days after the date of ratification 
        of the constitution of the nation of Puerto Rico; and
            (2) in accordance with the procedures and requirements 
        established by the constitution of the nation of Puerto Rico.
    (c) Certification of Results.--Not later than 10 days after the 
date of the election of officers under subsection (a), the Elections 
Commission shall certify the results of the election under that 
subsection.
    (d) Notice.--As soon as practicable after the date of the 
certification under subsection (c), the Governor shall submit notice of 
the results of the election certified under that subsection to--
            (1) the President;
            (2) the President pro tempore of the Senate;
            (3) the Speaker of the House of Representatives;
            (4) the Committee on Energy and Natural Resources of the 
        Senate; and
            (5) the Committee on Natural Resources of the House of 
        Representatives.

SEC. 206. CONFORMING AMENDMENTS TO EXISTING LAW.

    (a) Review.--Not later than 30 days after the initial meeting of 
the constitutional convention under section 202(d), the President shall 
initiate a review of Federal laws with respect to Puerto Rico, 
including Federal laws relating to--
            (1) taxation of persons and businesses;
            (2) health care;
            (3) housing;
            (4) transportation;
            (5) education; and
            (6) entitlement programs.
    (b) Recommendations.--Not later than 1 year after the date on which 
the President initiates a review under subsection (a), the President 
shall submit to Congress recommendations for changes to Federal laws 
identified during the review, as the President determines to be 
appropriate.

SEC. 207. JOINT TRANSITION COMMISSION.

    (a) Appointment.--Not later than 180 days after the date of 
establishment of the constitutional convention, a Joint Transition 
Commission shall be established, with the President and the presiding 
officer of the constitutional convention appointing an equal number of 
members to the Joint Transition Commission.
    (b) Duties.--The Joint Transition Commission established under 
subsection (a) shall--
            (1) be responsible for expediting the orderly transfer to 
        the nation of Puerto Rico of all functions exercised by the 
        Federal Government in the Commonwealth of Puerto Rico or with 
        respect to the Commonwealth of Puerto Rico;
            (2) develop procedures relating to the operations and 
        governance of the Joint Transition Commission; and
            (3) provide to the appropriate committees of Congress 
        recommendations for any appropriate legislation to carry out 
        the transfer under paragraph (1).
    (c) Collaboration.--The Commonwealth government and Federal 
agencies shall collaborate with the Joint Transition Commission and the 
officers of the nation of Puerto Rico to provide for the orderly 
transfer of the functions under subsection (b)(1).

SEC. 208. PROCLAMATION BY PRESIDENT.

    (a) Proclamation.--Not later than 30 days after the date of 
certification of the elected officers of the nation of Puerto Rico 
under section 205(c), the President shall, by proclamation--
            (1) withdraw and surrender all rights of possession, 
        supervision, jurisdiction, control, or sovereignty exercised by 
        the United States over the Commonwealth of Puerto Rico and 
        residents of the Commonwealth of Puerto Rico on the day before 
        the date of issuance of the Proclamation;
            (2) recognize, on behalf of the United States, the 
        independence of the nation of Puerto Rico and the authority of 
        the government of the nation of Puerto Rico adopted by eligible 
        voters under the constitution of the nation of Puerto Rico; and
            (3) state that the effective date of withdrawal of the 
        sovereignty of the United States and recognition of 
        independence of the nation of Puerto Rico shall be the date of 
        issuance of the Proclamation.
    (b) Transmission of Proclamation.--Not later than 7 days after the 
date of issuance of the Proclamation, the President shall transmit a 
copy of the Proclamation to each of--
            (1) the presiding officer of the constitutional convention;
            (2) the officer elected as head of state of the nation of 
        Puerto Rico;
            (3) the President pro tempore of the Senate;
            (4) the Speaker of the House of Representatives;
            (5) the Committee on Energy and Natural Resources of the 
        Senate; and
            (6) the Committee on Natural Resources of the House of 
        Representatives.
    (c) Date Government To Take Office.--Not later than 7 days after 
the date of receipt of the Proclamation under subsection (b) and with 
the advice of the officer elected as head of state of the nation of 
Puerto Rico, the presiding officer of the constitutional convention 
shall--
            (1) determine the date on which the government of the 
        nation of Puerto Rico shall take office; and
            (2) submit notice of the date determined under paragraph 
        (1) to--
                    (A) the Governor;
                    (B) the President;
                    (C) the President pro tempore of the Senate; and
                    (D) the Speaker of the House of Representatives.

SEC. 209. LEGAL AND CONSTITUTIONAL PROVISIONS.

    On the date of issuance of the Proclamation and except as otherwise 
provided in this title or in any agreements between the United States 
and the nation of Puerto Rico--
            (1) all property, rights, and interests that the United 
        States may have acquired in the Commonwealth of Puerto Rico 
        under the Treaty of Peace between the United States of America 
        and the Kingdom of Spain, signed at Paris on December 10, 1898 
        (30 Stat. 1754), and otherwise by cession, purchase, or eminent 
        domain, with the exception of land and other property, rights, 
        or interests that may have been sold or otherwise legally 
        disposed of before the date of issuance of the Proclamation, 
        shall vest in the nation of Puerto Rico; and
            (2) except as provided in section 212, all laws of the 
        United States applicable to the Commonwealth of Puerto Rico on 
        the day before the date of issuance of the Proclamation shall 
        no longer apply in the nation of Puerto Rico.

SEC. 210. JUDICIAL PRONOUNCEMENTS.

    (a) Judgments Before Proclamation.--The nation of Puerto Rico shall 
recognize and give effect to all orders and judgments rendered by 
courts of the United States or the Commonwealth of Puerto Rico on the 
day before the date of issuance of the Proclamation pursuant to the 
laws of the United States applicable to the Commonwealth of Puerto 
Rico.
    (b) Continuity of Pending Proceedings.--All judicial proceedings 
pending in the courts of the Commonwealth of Puerto Rico on the date of 
issuance of the Proclamation shall be continued in the corresponding 
courts under the constitution of the nation of Puerto Rico.
    (c) Transfer of Judicial Power.--
            (1) In general.--Beginning on the date of issuance of the 
        Proclamation--
                    (A) the judicial power of the United States shall 
                no longer extend to the nation of Puerto Rico;
                    (B) any proceeding pending in the United States 
                District Court for the District of Puerto Rico as of 
                that date shall be transferred to the applicable court 
                in the nation of Puerto Rico or other competent 
                judicial authority under the constitution of the nation 
                of Puerto Rico for disposition in accordance with laws 
                applicable on the date on which the controversy that is 
                the subject of the proceeding arose; and
                    (C) any proceeding pending in the United States 
                Court of Appeals for the First Circuit or in the 
                Supreme Court of the United States as of that date that 
                initiated in, or that could have been initiated in, the 
                courts of the Commonwealth of Puerto Rico or in the 
                United States District Court for the District of Puerto 
                Rico shall--
                            (i) continue until the date of final 
                        disposition; and
                            (ii) be submitted to the competent 
                        authority of the nation of Puerto Rico for 
                        proper execution.
            (2) Exception.--Notwithstanding paragraph (1), if the 
        United States or any officer of the United States is a party to 
        a proceeding described in subparagraph (B) or (C) of that 
        paragraph, any final judgment in that proceeding shall be 
        properly executed by the competent authority of the United 
        States.

SEC. 211. CITIZENSHIP AND IMMIGRATION LAWS AFTER PUERTO RICAN 
              INDEPENDENCE.

    (a) Citizenship Status.--
            (1) Puerto rican nationality.--Beginning on the date of 
        issuance of the Proclamation, 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 provided in 
        this section, beginning on the date of issuance of the 
        Proclamation, a citizen of Puerto Rico seeking to enter into 
        the United States or obtain citizenship in the United States 
        shall be subject to the immigration laws.
    (b) Effect of Puerto Rican Citizenship.--
            (1) In general.--Except as provided in paragraph (2), 
        nothing in this title precludes or limits the applicability of 
        section 349 of the Immigration and Nationality Act (8 U.S.C. 
        1481).
            (2) Exception.--The provision of citizenship by the laws of 
        the nation of Puerto Rico under subsection (a)(1) shall not 
        constitute, or otherwise serve as the basis of, loss or 
        relinquishment of United States citizenship under section 349 
        of the Immigration and Nationality Act (8 U.S.C. 1481).
    (c) Citizenship at Birth After Independence.--An individual born in 
the nation of Puerto Rico after the date of issuance of the 
Proclamation to at least 1 parent who became a United States citizen 
under section 302 of the Immigration and Nationality Act (8 U.S.C. 
1402) shall not be considered to be a United States citizen at birth 
under subsection (c), (d), or (g) of section 301 of that Act (8 U.S.C. 
1401).
    (d) Travel and Work Authorization.--
            (1) In general.--An individual in any of the following 
        categories may enter, lawfully engage in occupations, and 
        establish residence as a nonimmigrant in the United States and 
        territories and possessions of the United States without regard 
        to paragraphs (5)(A) and (7) of section 212(a) of the 
        Immigration and Nationality Act (8 U.S.C. 1182(a)):
                    (A) An individual who acquires citizenship of 
                Puerto Rico at birth, on or after the date of issuance 
                of the Proclamation.
                    (B) A naturalized citizen of Puerto Rico who--
                            (i) has been an actual resident of Puerto 
                        Rico for not fewer than 5 years after attaining 
                        naturalization; and
                            (ii) holds a proof of that residence.
            (2) Employment permission.--An individual described in 
        subparagraph (A) or (B) of paragraph (1) shall be considered to 
        have the permission of the Secretary of Homeland Security to 
        accept employment in the United States.
            (3) Limitations.--The right of an individual described in 
        subparagraph (A) or (B) of paragraph (1) to establish habitual 
        residence in a territory or possession of the United States may 
        be subjected to nondiscriminatory limitations provided for--
                    (A) in laws or regulations of the United States; or
                    (B) in laws or regulations of the applicable 
                territory or possession that are authorized by Federal 
                law.
            (4) Termination of effectiveness.--This subsection shall 
        expire on the date that is 25 years after the date of issuance 
        of the Proclamation.
    (e) Conforming Amendments.--
            (1) In general.--Section 101(a) of the Immigration and 
        Nationality Act (8 U.S.C. 1101(a)) is amended--
                    (A) in paragraph (36), by striking ``Puerto 
                Rico,''; and
                    (B) in paragraph (38), by striking ``Puerto 
                Rico,''.
            (2) Effective date.--The amendments made by paragraph (1) 
        shall take effect on the date of issuance of the Proclamation.
    (f) Rule of Construction.--Nothing in this section limits the 
authority of the United States to change any requirement for United 
States citizenship.

SEC. 212. INDIVIDUAL RIGHTS TO ECONOMIC BENEFITS AND GRANTS.

    (a) Rights and Benefits.--
            (1) In general.--Any vested rights and benefits that accrue 
        to residents of the Commonwealth of Puerto Rico under the laws 
        of the United States from past services or contributions, such 
        as rights and benefits for veterans of the Armed Forces or 
        eligible relatives of veterans of the Armed Forces, retired 
        Federal Government employees, or beneficiaries of old age, 
        disability, or survivor benefits under the Social Security Act 
        (42 U.S.C. 301 et seq.), shall not be interrupted after the 
        date of issuance of the Proclamation, but shall continue until 
        the date on which the rights and benefits are extinguished 
        according to applicable Federal law.
            (2) Agreement required.--All services to be provided as 
        part of the rights and benefits described in paragraph (1) 
        shall be made available through the government of the nation of 
        Puerto Rico in accordance with agreements entered into by the 
        government of the nation of Puerto Rico and the Government of 
        the United States.
    (b) Social Security System.--
            (1) In general.--Notwithstanding subsection (a) and subject 
        to paragraph (2), the Secretary of the Treasury shall transfer 
        all contributions made by employees and employers in the 
        Commonwealth of Puerto Rico to the Social Security system under 
        the Social Security Act (42 U.S.C. 301 et seq.) with respect to 
        individuals who, as of the date of issuance of the 
        Proclamation, are residents of the nation of Puerto Rico and 
        are not yet eligible for old age, disability, or survivor 
        benefits under the Social Security system to the government of 
        the nation of Puerto Rico on the date on which the government 
        of the nation of Puerto Rico establishes a social security 
        system for the nation of Puerto Rico.
            (2) Use of funds.--The government of the nation of Puerto 
        Rico may not use the amounts transferred under paragraph (1) 
        for any purpose other than the establishment and operation of a 
        social security system for the nation of Puerto Rico.
            (3) Obligations.--On the transfer of the amounts under 
        paragraph (1), the obligations of the Federal Government under 
        the Social Security Act (42 U.S.C. 301 et seq.) with respect to 
        the residents of the nation of Puerto Rico shall cease.
    (c) Other Federal Transfer Payments.--
            (1) Block grants.--Any Federal transfer payments to 
        individuals and to the Commonwealth government not described in 
        subsection (a) or (b) shall be maintained in the form of annual 
        block grants to be used by the government of the nation of 
        Puerto Rico at the discretion of the government of the nation 
        of Puerto Rico.
            (2) Annual aggregate funding.--During the 10-fiscal-year 
        period beginning on the date of issuance of the Proclamation, 
        the amount of an annual block grant described in paragraph (1) 
        shall be equal to the greater of--
                    (A) the annual aggregate funding of all programs 
                described in that paragraph that extend to the 
                Commonwealth of Puerto Rico during the applicable 
                fiscal year; and
                    (B) the annual aggregate funding of all programs 
                described in that paragraph that were extended to the 
                Commonwealth of Puerto Rico during the fiscal year 
                immediately prior to the date of issuance of the 
                Proclamation.
            (3) Decrease in amount.--Beginning in the 11th fiscal year 
        after the date of issuance of the Proclamation, the amount of 
        the annual block grants described in paragraph (1), as 
        calculated under paragraph (2), shall decrease at the rate of 
        10 percent each year.
            (4) Modification of terms.--The terms of this subsection 
        may be modified by agreement between the United States and the 
        nation of Puerto Rico.

    TITLE III--TRANSITION AND IMPLEMENTATION OF SOVEREIGNTY IN FREE 
               ASSOCIATION WITH THE UNITED STATES OPTION

SEC. 301. DEFINITIONS.

    In this title:
            (1) Constitutional convention.--The term ``constitutional 
        convention'' means a constitutional convention established 
        under section 302(d)(2).
            (2) Proclamation.--The term ``Proclamation'' means a 
        Presidential proclamation issued under section 307(a).

SEC. 302. CONSTITUTIONAL CONVENTION.

    (a) Election of Delegates.--Not later than 180 days after the 
effective date of certification of a plebiscite under this Act that 
favors sovereignty in free association with the United States, the 
Legislative Assembly 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 under subsection (a).
    (c) General Applicability of Electoral Law.--The laws of the 
Commonwealth of Puerto Rico relating to the electoral process shall 
apply to an election held under subsection (a).
    (d) Initial Meeting.--
            (1) In general.--Not later than 180 days after the date of 
        the election of delegates to the constitutional convention 
        under subsection (a), the elected delegates shall meet at such 
        time and place as the Legislative Assembly shall determine.
            (2) Establishment.--The initial meeting of the elected 
        delegates to the constitutional convention under paragraph (1) 
        shall be considered to be the establishment of the 
        constitutional convention.

SEC. 303. CHARACTER OF THE CONSTITUTION.

    The constitutional convention shall formulate and draft a 
constitution for the nation of 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 determine to be necessary; and
            (5) provisions to ensure that no individual born in the 
        nation of Puerto Rico shall be stateless at birth.

SEC. 304. SUBMISSION; RATIFICATION.

    (a) Submission.--Not later than 2 years after the date of 
establishment of the constitutional convention, the Elections 
Commission shall submit the constitution formulated and drafted by the 
delegates to the constitutional convention to the eligible voters for 
ratification or rejection in a special election.
    (b) Manner of Election.--The special election held under subsection 
(a) shall be held in the manner prescribed by the Legislative Assembly.
    (c) Rejection.--If the constitution of the nation of Puerto Rico is 
rejected in a special election held under subsection (a), the process 
provided for under sections 302 and 303 and subsections (a) and (b) 
shall be repeated, except that section 302(a) shall be applied by 
substituting--
            (1) ``the special election'' for ``a plebiscite''; and
            (2) ``rejects the Constitution'' for ``favors sovereignty 
        in free association with the United States''.

SEC. 305. ELECTION OF OFFICERS.

    (a) In General.--Not later than 30 days after the date of 
ratification of the constitution of the nation of Puerto Rico under 
section 304, the Governor shall issue a proclamation calling for the 
election of any officers of the nation of Puerto Rico that may be 
required by the ratified constitution of the nation of Puerto Rico.
    (b) Deadline; Procedures.--The election of the officers under 
subsection (a) shall be held--
            (1) not later than 180 days after the date of ratification 
        of the constitution of the nation of Puerto Rico; and
            (2) in accordance with the procedures and requirements 
        established by the constitution of the nation of Puerto Rico.
    (c) Certification of Results.--Not later than 10 days after the 
date of the election of officers under subsection (a), the Elections 
Commission shall certify the results of the election under that 
subsection.
    (d) Notice.--As soon as practicable after the date of the 
certification under subsection (c), the Governor shall submit notice of 
the results of the election certified under that subsection to--
            (1) the President;
            (2) the President pro tempore of the Senate;
            (3) the Speaker of the House of Representatives;
            (4) the Committee on Energy and Natural Resources of the 
        Senate; and
            (5) the Committee on Natural Resources of the House of 
        Representatives.

SEC. 306. CONFORMING AMENDMENTS TO EXISTING LAW.

    (a) Review.--Not later than 30 days after the initial meeting of 
the constitutional convention under section 302(d), the President shall 
initiate a review of Federal laws with respect to Puerto Rico, 
including Federal laws relating to--
            (1) taxation of persons and businesses;
            (2) health care;
            (3) housing;
            (4) transportation;
            (5) education; and
            (6) entitlement programs.
    (b) Recommendations.--Not later than 1 year after the date on which 
the President initiates a review under subsection (a), the President 
shall submit to Congress recommendations for changes to Federal laws 
identified during the review, as the President determines to be 
appropriate.

SEC. 307. PROCLAMATION BY PRESIDENT; HEAD OF STATE OF THE NATION PUERTO 
              RICO.

    (a) Proclamation.--Not later than 30 days after the date of 
certification of the elected officers of the nation of Puerto Rico 
under section 305(c), the President shall, by proclamation--
            (1) withdraw and surrender all rights of possession, 
        supervision, jurisdiction, control, or sovereignty exercised by 
        the United States over the Commonwealth of Puerto Rico and 
        residents of the Commonwealth of Puerto Rico on the day before 
        the date of issuance of the Proclamation;
            (2) recognize, on behalf of the United States, the 
        international sovereignty through free association of the 
        nation of Puerto Rico and the authority of the government of 
        the nation of Puerto Rico instituted by eligible voters under 
        the constitution of the nation of Puerto Rico; 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 
        date of issuance of the Proclamation.
    (b) Transmission of Proclamation.--Not later than 7 days after the 
date of issuance of the Proclamation, the President shall transmit a 
copy of the Proclamation to--
            (1) the presiding officer of the constitutional convention;
            (2) the officer elected as head of state of the nation of 
        Puerto Rico;
            (3) the President pro tempore of the Senate;
            (4) the Speaker of the House of Representatives;
            (5) the Committee on Energy and Natural Resources of the 
        Senate; and
            (6) the Committee on Natural Resources of the House of 
        Representatives.
    (c) Date Government To Take Office.--Not later than 7 days after 
the date of receipt of the Proclamation under subsection (b) and with 
the advice of the officer elected as head of state of the nation of 
Puerto Rico, the presiding officer of the constitutional convention 
shall--
            (1) determine the date on which the government of the 
        nation of Puerto Rico shall take office; and
            (2) submit notice of the date determined under paragraph 
        (1) to--
                    (A) the Governor;
                    (B) the President;
                    (C) the President pro tempore of the Senate; and
                    (D) the Speaker of the House of Representatives.

SEC. 308. LEGAL AND CONSTITUTIONAL PROVISIONS.

    On the date of issuance of the Proclamation and except as otherwise 
provided in this title or in any agreements between the United States 
and the nation of Puerto Rico--
            (1) all property, rights, and interests that the United 
        States may have acquired in and to the Commonwealth of Puerto 
        Rico under the Treaty of Peace between the United States of 
        America and the Kingdom of Spain, signed at Paris on December 
        10, 1898 (30 Stat. 1754), and otherwise by cession, purchase, 
        or eminent domain, with the exception of land and other 
        property, rights, or interests that may have been sold or 
        otherwise legally disposed of before the date of issuance of 
        the Proclamation, shall vest in the nation of Puerto Rico; and
            (2) except as provided in section 313, all laws of the 
        United States applicable to the Commonwealth of Puerto Rico on 
        the day before the date of issuance of the Proclamation shall 
        no longer apply in the nation of Puerto Rico.

SEC. 309. JUDICIAL PRONOUNCEMENTS.

    (a) Judgments Before Proclamation.--The nation of Puerto Rico shall 
recognize and give effect to all orders and judgments rendered by 
courts of the United States or the Commonwealth of Puerto Rico on the 
day before the date of issuance of the Proclamation pursuant to the 
laws of the United States applicable to the Commonwealth of Puerto 
Rico.
    (b) Continuity of Pending Proceedings.--All judicial proceedings 
pending in the courts of the Commonwealth of Puerto Rico on the date of 
issuance of the Proclamation shall be continued in the corresponding 
courts under the constitution of the nation of Puerto Rico.
    (c) Transfer of Judicial Power.--
            (1) In general.--Beginning on the date of issuance of the 
        Proclamation--
                    (A) the judicial power of the United States shall 
                no longer extend to the nation of Puerto Rico;
                    (B) any proceeding pending in the United States 
                District Court for the District of Puerto Rico as of 
                that date shall be transferred to the applicable court 
                in the nation of Puerto Rico or other competent 
                judicial authority under the constitution of the nation 
                of Puerto Rico for disposition in accordance with laws 
                applicable on the date on which the controversy that is 
                the subject of the proceeding arose; and
                    (C) any proceeding pending in the United States 
                Court of Appeals for the First Circuit or in the 
                Supreme Court of the United States as of that date that 
                initiated in, or that could have been initiated in, the 
                courts of the Commonwealth of Puerto Rico or in the 
                United States District Court for the District of Puerto 
                Rico shall--
                            (i) continue until the date of final 
                        disposition; and
                            (ii) be submitted to the competent 
                        authority of the nation of Puerto Rico for 
                        proper execution.
            (2) Exception.--Notwithstanding paragraph (1), if the 
        United States or any officer of the United States is a party to 
        a proceeding described in subparagraph (B) or (C) of that 
        paragraph, any final judgment in that proceeding shall be 
        properly executed by the competent authority of the United 
        States.

SEC. 310. CITIZENSHIP AND IMMIGRATION LAWS AFTER SOVEREIGNTY THROUGH 
              FREE ASSOCIATION.

    (a) Citizenship Status.--
            (1) Puerto rican nationality.--Beginning on the date of 
        issuance of the Proclamation, 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 provided in 
        this section, beginning on the date of issuance of the 
        Proclamation, a citizen of Puerto Rico seeking to enter into 
        the United States or obtain citizenship in the United States 
        shall be subject to the immigration laws.
    (b) Effect of Puerto Rican Citizenship.--
            (1) In general.--Except as provided in paragraph (2), 
        nothing in this title precludes or limits the applicability of 
        section 349 of the Immigration and Nationality Act (8 U.S.C. 
        1481).
            (2) Exception.--The provision of citizenship by the laws of 
        the nation of Puerto Rico under subsection (a)(1) shall not 
        constitute, or otherwise serve as the basis of, loss or 
        relinquishment of United States citizenship under section 349 
        of the Immigration and Nationality Act (8 U.S.C. 1481).
    (c) Citizenship at Birth After Sovereignty.--
            (1) In general.--Except as provided in paragraph (2), an 
        individual born in the nation of Puerto Rico after the date of 
        issuance of the Proclamation to at least 1 parent who became a 
        United States citizen under section 302 of the Immigration and 
        Nationality Act (8 U.S.C. 1402) shall not be considered to be a 
        United States citizen at birth under subsection (c), (d), or 
        (g) of section 301 of that Act (8 U.S.C. 1401).
            (2) Transition period.--During the period beginning on the 
        effective date of certification of a plebiscite under this Act 
        that favors sovereignty in free association with the United 
        States and ending on the date of issuance of the Proclamation, 
        an individual born in the nation of Puerto Rico to 2 parents 
        who are citizens of the United States shall be considered to be 
        a United States citizen at birth under section 301(c) of the 
        Immigration and Nationality Act (8 U.S.C. 1401(c)) if the 
        individual is otherwise eligible for United States citizenship.
    (d) Travel and Work Authorization.--
            (1) In general.--An individual in any of the following 
        categories may enter, lawfully engage in occupations, and 
        establish residence as a nonimmigrant in the United States and 
        territories and possessions of the United States without regard 
        to paragraphs (5)(A) and (7) of section 212(a) of the 
        Immigration and Nationality Act (8 U.S.C. 1182(a)):
                    (A) An individual who acquires citizenship of 
                Puerto Rico at birth, on or after the date of issuance 
                of the Proclamation.
                    (B) A naturalized citizen of Puerto Rico who--
                            (i) has been an actual resident of Puerto 
                        Rico for not fewer than 5 years after attaining 
                        naturalization; and
                            (ii) holds a proof of that residence.
            (2) Employment permission.--An individual described in 
        subparagraph (A) or (B) of paragraph (1) shall be considered to 
        have the permission of the Secretary of Homeland Security to 
        accept employment in the United States.
            (3) Limitations.--The right of an individual described in 
        subparagraph (A) or (B) of paragraph (1) to establish habitual 
        residence in a territory or possession of the United States may 
        be subjected to nondiscriminatory limitations provided for--
                    (A) in laws or regulations of the United States; or
                    (B) in laws or regulations of the applicable 
                territory or possession that are authorized by Federal 
                law.
            (4) Termination of effectiveness.--This subsection shall 
        expire on termination of the articles of free association in 
        accordance with section 312(c).
    (e) Conforming Amendments.--
            (1) In general.--Section 101(a) of the Immigration and 
        Nationality Act (8 U.S.C. 1101(a)) is amended--
                    (A) in paragraph (36), by striking ``Puerto 
                Rico,''; and
                    (B) in paragraph (38), by striking ``Puerto 
                Rico,''.
            (2) Effective date.--The amendments made by paragraph (1) 
        shall take effect on the date of issuance of the Proclamation.
    (f) Rule of Construction.--Nothing in this section limits the 
authority of the United States to change any requirement for United 
States citizenship.

SEC. 311. 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 established, in accordance with this section, a 
commission, to be known as the ``Bilateral Negotiating Commission'', 
which shall conduct negotiations on articles of free association with 
the United States.
    (b) Members.--Not later than 90 days after the date of 
establishment of the constitutional convention--
            (1) the constitutional convention shall elect, by majority 
        vote of the delegates to the constitutional convention, 5 
        members from among the delegates of the constitutional 
        convention to join the Bilateral Negotiating Commission on 
        behalf of Puerto Rico; and
            (2) the President shall appoint 5 members to the Bilateral 
        Negotiating Commission, 1 of whom shall be nominated as 
        ambassador, to negotiate on behalf of the United States.
    (c) Initial Meeting.--
            (1) In general.--Not later than 180 days after the date of 
        the election and appointment of the members to the Bilateral 
        Negotiating Commission under subsection (b), the members of the 
        Bilateral Negotiating Commission shall meet at such time and 
        place as the Legislative Assembly determines to be appropriate.
            (2) Establishment.--The initial meeting under paragraph (1) 
        shall be considered to be the establishment of the Bilateral 
        Negotiating Commission.
    (d) Duties.--The Bilateral Negotiating Commission shall--
            (1) be responsible for expediting the orderly transfer to 
        the nation of Puerto Rico of all functions exercised on the day 
        before the date of the Proclamation by the Government of the 
        United States in the Commonwealth of Puerto Rico;
            (2) provide to Congress recommendations on any appropriate 
        legislation to carry out the transfer under paragraph (1), 
        including such appropriate enabling legislation as may be 
        required by the articles of free association;
            (3) 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, security, and defense, dispute resolution, 
        immigration, economic benefits (including grants), and 
        termination of the free association status; and
            (4) to the maximum extent practicable, complete the 
        articles of free association not later than 2 years after the 
        date of establishment of the constitutional convention.
    (e) Collaboration.--The Commonwealth government and Federal 
agencies 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 completed under this 
section.

SEC. 312. ARTICLES OF FREE ASSOCIATION APPROVAL, EFFECTIVE DATE, AND 
              TERMINATION.

    (a) Approval.--The articles of free association completed by the 
Bilateral Negotiating Commission under section 311 shall take effect on 
mutual agreement between the Government of the United States and the 
Government of Puerto Rico after approval by--
            (1) a separate ratification vote on the articles of free 
        association by the eligible voters in the special election held 
        under section 304; and
            (2) the Government of the United States, in accordance with 
        procedures under the Constitution of the United States.
    (b) Rejection.--If a special election under subsection (a)(1) 
results in rejection of the articles of free association, the process 
provided for in section 311 and subsection (a) shall be repeated.
    (c) Termination.--The articles of free association between the 
United States and the nation of Puerto Rico approved under this section 
may be terminated at will by the United States or the nation of Puerto 
Rico at any time.

SEC. 313. INDIVIDUAL RIGHTS TO ECONOMIC BENEFITS AND GRANTS.

    (a) Rights and Benefits.--
            (1) In general.--Any vested rights and benefits that accrue 
        to residents of the Commonwealth of Puerto Rico under the laws 
        of the United States from past services or contributions, such 
        as rights and benefits for veterans of the Armed Forces or 
        relatives of veterans of the Armed Forces, retired Federal 
        Government employees, or beneficiaries of old age, disability, 
        or survivor benefits under the Social Security Act (42 U.S.C. 
        301 et seq.), shall not be interrupted after the date of 
        issuance of the Proclamation, but shall continue until the date 
        on which the rights and benefits are extinguished according to 
        applicable Federal law.
            (2) Agreement required.--All services to be provided as 
        part of the rights and benefits described in paragraph (1) 
        shall be made available through the government of the nation of 
        Puerto Rico in accordance with agreements entered into by the 
        government of the nation of Puerto Rico and the Government of 
        the United States.
    (b) Social Security System.--
            (1) In general.--Notwithstanding subsection (a) and subject 
        to paragraph (2), on the date on which the government of the 
        nation of Puerto Rico establishes a social security system for 
        the nation of Puerto Rico, the Secretary of the Treasury shall 
        transfer to the government of the nation of Puerto Rico all 
        contributions made by employees and employers in the 
        Commonwealth of Puerto Rico to the Social Security system under 
        the Social Security Act (42 U.S.C. 301 et seq.) with respect to 
        individuals who, as of the date of issuance of the 
        Proclamation, are residents of the nation of Puerto Rico and 
        are not yet eligible for old age, disability, or survivor 
        benefits under the Social Security system under the Social 
        Security Act (42 U.S.C. 301 et seq.).
            (2) Use of funds.--The government of the nation of Puerto 
        Rico may not use the amounts transferred under paragraph (1) 
        for any purpose other than the establishment and operation of a 
        social security system for the nation of Puerto Rico.
            (3) Obligations.--On the transfer of the amounts under 
        paragraph (1), the obligations of the United States Government 
        under the Social Security Act (42 U.S.C. 301 et seq.) with 
        respect to residents of the nation of Puerto Rico shall cease.
    (c) Other Federal Transfer Payments.--
            (1) In general.--Any Federal transfer payments to 
        individuals and to the Commonwealth government not described in 
        subsection (a) or (b) shall be maintained in the form of annual 
        block grants to be used by the government of the nation of 
        Puerto Rico at the discretion of the government of the nation 
        of Puerto Rico.
            (2) Annual aggregate funding.--During the 10-fiscal-year 
        period beginning on the date of issuance of the Proclamation, 
        the amount of an annual block grant described in paragraph (1) 
        shall be equal to the greater of--
                    (A) the annual aggregate funding of all programs 
                described in that paragraph that extend to the 
                Commonwealth of Puerto Rico during the applicable 
                fiscal year; and
                    (B) the annual aggregate funding of all programs 
                described in that paragraph that have been extended to 
                the Commonwealth of Puerto Rico during the fiscal year 
                immediately prior to the date of issuance of the 
                Proclamation.
            (3) Decrease in amount.--Beginning in the 11th fiscal year 
        after the date of issuance of the Proclamation, the amount of 
        the annual block grants described in paragraph (1), as 
        calculated under paragraph (2), shall decrease at the rate of 
        10 percent each year.
            (4) Modification of terms.--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 subsections (a) and (b) 
may be revised as part of an agreement under the articles of free 
association approved under section 312.

      TITLE IV--TRANSITION AND IMPLEMENTATION OF STATEHOOD STATUS

SEC. 401. DEFINITIONS.

    In this title:
            (1) Admission date.--The term ``admission date'' means the 
        date on which the Commonwealth of Puerto Rico is admitted as a 
        State of the Union of the United States, as established under 
        section 402(b)(1).
            (2) Proclamation.--The term ``Proclamation'' means a 
        Presidential proclamation issued under section 402(b)(1).

SEC. 402. PUERTO RICO READINESS FOR STATEHOOD; PRESIDENTIAL 
              PROCLAMATION; ADMISSION INTO THE UNION OF THE UNITED 
              STATES.

    (a) Assessment of Readiness for Statehood.--
            (1) In general.--On receipt of a certification of the 
        plebiscite results of the Elections Commission pursuant to 
        section 101(d) in which the statehood status option is favored, 
        the Comptroller General of the United States shall conduct a 
        study on the readiness of the Commonwealth of Puerto Rico for 
        statehood, under which the Comptroller General of the United 
        States shall examine--
                    (A) whether the majority of eligible voters that 
                voted for statehood in the plebiscite reflects a 
                sufficiently stable majority such that it is likely 
                that the majority of the eligible votes would not 
                revert to a minority of eligible voters in a future 
                plebiscite;
                    (B) whether the proposed new State, with a per 
                capita income of $13,318, according to the 2020 
                decennial census, has sufficient resources--
                            (i) to support the State government;
                            (ii) to meet the restructured debt payment 
                        obligations, as set forth in the applicable 
                        plan of adjustment filed under section 312 of 
                        PROMESA (48 U.S.C. 2172); and
                            (iii) to provide the applicable State share 
                        of the costs of the Federal Government, 
                        including demonstrating the capacity to comply 
                        with full payment of Federal taxes and other 
                        contributions in the same manner as existing 
                        States of the United States; and
                    (C) the impact on existing States of the United 
                States and the United States as a whole of--
                            (i) the fact that the population of the 
                        Commonwealth of Puerto Rico--
                                    (I) is greater than the population 
                                of 29 other States; and
                                    (II) is greater than the population 
                                of any State as of the date on which 
                                the State entered the Union of the 
                                United States;
                            (ii) the fact that, of the 98.7 percent of 
                        the population of the Commonwealth of Puerto 
                        Rico that is Hispanic, a substantial proportion 
                        considers Puerto Rico to be a Spanish-speaking, 
                        Latino nation; and
                            (iii) the fact that 43.4 percent of the 
                        population of the Commonwealth of Puerto Rico 
                        is below the poverty line, according to the 
                        2020 decennial census.
            (2) Deadline.--Not later than 2 years after the date of 
        enactment of this Act, the Comptroller General of the United 
        States shall submit to the appropriate committees of Congress a 
        report describing the results of the study under paragraph (1).
            (3) Vote.--As soon as practicable after the date of 
        submission of the study under paragraph (2), the Senate and the 
        House of Representatives shall each hold a vote on the 
        admission of the Commonwealth of Puerto Rico as a State of the 
        Union of the United States.
    (b) Presidential Proclamation; Date of Admission.--
            (1) In general.--On receipt of notice of a majority vote in 
        the Senate and the House of Representatives in favor of the 
        admission of the Commonwealth of Puerto Rico as a State of the 
        Union of the United States under subsection (a)(3), the 
        President shall issue a proclamation declaring the date on 
        which the Commonwealth of Puerto Rico is admitted as a State of 
        the Union of the United States, subject to paragraph (2).
            (2) Requirement.--The date referred to in paragraph (1) 
        shall be a date not later than 1 year after the date on which 
        the President receives the notice under that paragraph.
            (3) Submission of proclamation.--The President shall submit 
        the Proclamation to--
                    (A) the Governor;
                    (B) the President pro tempore of the Senate;
                    (C) the Speaker of the House of Representatives;
                    (D) the Committee on Energy and Natural Resources 
                of the Senate; and
                    (E) the Committee on Natural Resources of the House 
                of Representatives.
            (4) Admission into the union of the united states.--
                    (A) In general.--Subject to the provisions of this 
                Act, on the admission date, the Commonwealth of Puerto 
                Rico shall be a State of the United States and admitted 
                into the Union of the United States on an equal footing 
                with the other States in all respects.
                    (B) Designation.--On admission into the Union of 
                the United States under subparagraph (A), the 
                Commonwealth of Puerto Rico shall be known as ``the 
                State of Puerto Rico''.
                    (C) Incorporation.--The Commonwealth of Puerto Rico 
                shall remain unincorporated until the admission date.

SEC. 403. CONFORMING AMENDMENTS TO EXISTING LAW.

    (a) Review.--Not later than 30 days after the date of certification 
of the plebiscite results of the Elections Commission pursuant to 
section 101(d) in which the statehood status option is favored, the 
President shall initiate a review of Federal laws with respect to 
Puerto Rico, including Federal laws relating to--
            (1) taxation of persons and businesses;
            (2) health care;
            (3) housing;
            (4) transportation;
            (5) education; and
            (6) entitlement programs.
    (b) Recommendations.--Not later than 1 year after the date on which 
the President initiates a review under subsection (a), the President 
shall submit to Congress recommendations for changes to Federal laws 
identified during the review, as the President determines to be 
appropriate.

SEC. 404. TERRITORY AND BOUNDARIES.

    The State of Puerto Rico shall consist of all of the islands, 
appurtenant reefs, seafloor, submerged land, and territorial waters in 
the seaward boundary under the jurisdiction of the Commonwealth of 
Puerto Rico on the day before the admission date.

SEC. 405. CONSTITUTION.

    (a) Finding; Declaration.--Congress--
            (1) finds that the constitution of the Commonwealth of 
        Puerto Rico approved by Public Law 82-447 (66 Stat. 327, 
        chapter 567), as subsequently amended and in effect as of the 
        day before the date of enactment of this Act is--
                    (A) republican in form; and
                    (B) in conformity with the Constitution of the 
                United States and the principles of the Declaration of 
                Independence; and
            (2) declares that the constitution of the Commonwealth of 
        Puerto Rico approved by Public Law 82-447 (66 Stat. 327, 
        chapter 567), as subsequently amended and in effect as of the 
        day before the date of enactment of this Act, is accepted, 
        ratified, and confirmed as the constitution of the State of 
        Puerto Rico.
    (b) Requirement.--The constitution of the State of Puerto Rico--
            (1) shall remain republican in form; and
            (2) shall not be repugnant to--
                    (A) the Constitution of the United States; or
                    (B) the principles of the Declaration of 
                Independence.

SEC. 406. ELECTIONS OF SENATORS AND REPRESENTATIVES; CERTIFICATION; 
              JURISDICTION.

    (a) Elections of Senators and Representatives.--Not later than 30 
days after the date of issuance of the Proclamation, the Governor shall 
issue a declaration to designate and announce the dates and other 
requirements for primary and general elections under applicable Federal 
and local law for representation of the State of Puerto Rico in the 
Senate and the House of Representatives on admission of the State of 
Puerto Rico into the Union of the United States.
    (b) Resident Commissioner.--The office of Resident Commissioner of 
Puerto Rico shall cease to exist on the swearing in of the first Member 
of the House of Representatives from the State of Puerto Rico.
    (c) Senators and Representatives.--
            (1) In general.--On admission into the Union of the United 
        States, the State of Puerto Rico shall be entitled to 
        representation in the Senate and House of Representatives, with 
        the Senators and Representatives from the State of Puerto Rico 
        entitled--
                    (A) to be admitted to seats in Congress; and
                    (B) to all the rights and privileges of Senators 
                and Representatives of the other States in Congress.
            (2) First election of senators.--
                    (A) In general.--In the first election of Senators 
                from the State of Puerto Rico held after the admission 
                date--
                            (i) the 2 senatorial offices shall be 
                        separately identified and designated; and
                            (ii) no individual may be a candidate for 
                        both Senatorial offices designated under clause 
                        (i).
                    (B) Effect.--Nothing in this paragraph affects the 
                privilege of the Senate to determine the class and term 
                to which each of the Senators elected under this 
                paragraph shall be assigned, except that the 2 Senators 
                may not be in same class.
            (3) Election of representatives.--
                    (A) Initial elections.--
                            (i) In general.--In the first election of 
                        Representatives from the State of Puerto Rico 
                        held after the admission date and each election 
                        thereafter until the first census-based 
                        reapportionment election held after the 
                        admission date--
                                    (I) the State of Puerto Rico shall 
                                be entitled to the same number of 
                                Representatives as the State, the most 
                                recent census population of which was 
                                closest to, but not more than, the 
                                population of the State of Puerto Rico; 
                                and
                                    (II) the Representatives elected 
                                shall be in addition to the number of 
                                Members of the House of Representatives 
                                as prescribed by law.
                            (ii) Increase.--Any temporary increase in 
                        the membership in the number of Members of the 
                        House of Representatives under clause (i)(II) 
                        shall not--
                                    (I) increase or decrease the 
                                permanent membership of the House of 
                                Representatives as prescribed in 
                                sections 1 and 2 of the Act entitled 
                                ``An Act for the apportionment of 
                                Representatives in Congress among the 
                                several States under the Thirteenth 
                                Census'', approved August 8, 1911 (2 
                                U.S.C. 2); or
                                    (II) affect the basis of 
                                reapportionment established by section 
                                22 of the Act entitled ``An Act to 
                                provide for the fifteenth and 
                                subsequent decennial censuses and to 
                                provide for apportionment of 
                                Representatives in Congress'', approved 
                                June 18, 1929 (2 U.S.C. 2a), unless 
                                Congress increases the total number of 
                                Members of the House of 
                                Representatives.
                    (B) Census-based reapportionment elections.--
                            (i) In general.--During the first census-
                        based reapportionment election held after the 
                        admission date and each election thereafter, 
                        the State of Puerto Rico shall be entitled to 
                        the number of Representatives as provided for 
                        by applicable law, based on the applicable 
                        reapportionment.
                            (ii) Applicable law.--The apportionment of 
                        congressional districts for an election under 
                        clause (i) 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.--
            (1) In general.--The Elections Commission shall certify the 
        results of the initial primary and general elections for 
        representation in the Senate and the House of Representatives 
        from the State of Puerto Rico under paragraph (2) or (3)(A) of 
        subsection (c) to the Governor of the State of Puerto Rico.
            (2) Transmission; declaration.--Not later than 10 days 
        after the date of a certification under paragraph (1), the 
        Governor of the State of Puerto Rico shall--
                    (A) declare the results of the primary or general 
                election, as applicable; and
                    (B) transmit the results of the election to--
                            (i) the President;
                            (ii) the President pro tempore of the 
                        Senate; and
                            (iii) 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 over any civil action alleging a dispute or controversy 
relating to any electoral process conducted under this section.

SEC. 407. STATE TITLE TO LAND AND PROPERTY.

    (a) State Title.--The State of Puerto Rico and political 
subdivisions of the State of Puerto Rico shall have and retain title in 
and to all property, real and personal, held by the Commonwealth of 
Puerto Rico and political subdivisions of the Commonwealth of Puerto 
Rico on the day before the admission date.
    (b) Federal Title.--There shall remain the property of the United 
States any land and other property that, as of the admission date, is 
set aside for the use of the United States under--
            (1) an Act of Congress;
            (2) an Executive order;
            (3) a Presidential proclamation; or
            (4) a proclamation of the Governor.
    (c) Outer Continental Shelf.--
            (1) State of puerto rico.--The State of Puerto Rico shall 
        have the exclusive right to explore, exploit, lease, possess, 
        and use all seabed and natural and mineral resources lying 
        within 3 marine leagues or 9 nautical miles from the shoreline 
        of the State of Puerto Rico, as granted under section 8 of the 
        Act of March 2, 1917 (39 Stat. 954, chapter 145; 48 U.S.C. 
        749).
            (2) United states.--All other rights of sovereignty with 
        respect to the outer Continental Shelf of the State of Puerto 
        Rico shall belong to the United States, except in cases in 
        which the rights are vested in the Commonwealth of Puerto Rico 
        on the day before the admission date.

SEC. 408. CONTINUITY OF LAWS, GOVERNMENT, AND OBLIGATIONS.

    As of the admission date--
            (1) all of the territorial laws in effect in the 
        Commonwealth of Puerto Rico on the date of issuance of the 
        Proclamation that are not inconsistent with this Act or the 
        constitution of the State of Puerto Rico shall continue in 
        force and effect throughout the State of Puerto Rico, until 
        amended, modified, or repealed by the State of Puerto Rico;
            (2) all of the laws of the United States shall have the 
        same force and effect within the State of Puerto Rico as in the 
        other States;
            (3) the individuals holding legislative, executive, and 
        judicial offices of the Commonwealth of Puerto Rico shall 
        continue to discharge the duties of the respective offices in, 
        under, or by authority of the government of the State of Puerto 
        Rico, as provided by the constitution and laws of the State;
            (4) all contracts, obligations, liabilities, debts, and 
        claims of the Commonwealth of Puerto Rico and instrumentalities 
        of the Commonwealth of Puerto Rico in effect on the admission 
        date shall continue in full force and effect as the contracts, 
        obligations, liabilities, debts, and claims of the State of 
        Puerto Rico and instrumentalities of the State of Puerto Rico; 
        and
            (5) all laws of the United States reserving to the United 
        States the free use or enjoyment of property that vests in or 
        is conveyed to the State of Puerto Rico or political 
        subdivisions of the State of Puerto Rico pursuant to this 
        section or reserving the right to alter, amend, or repeal laws 
        relating to the property shall cease to be effective.

SEC. 409. JUDICIAL PRONOUNCEMENTS.

    (a) Pending.--A writ, action, indictment, cause, or proceeding 
pending in any court of the Commonwealth of Puerto Rico as of the 
admission date--
            (1) shall not abate by reason of the admission of the State 
        of Puerto Rico into the Union of the United States; but
            (2) shall, as the nature of the case may require--
                    (A) proceed within any appropriate State court 
                established under the constitution of the State of 
                Puerto Rico; or
                    (B) continue in the United States District Court 
                for the District of Puerto Rico.
    (b) Not Yet Pending.--
            (1) In general.--Any civil cause of action or criminal 
        offense that arose or was committed before the admission date, 
        but with respect to which no writ, action, indictment, or 
        proceeding is pending on the admission date, shall be subject 
        to prosecution in the appropriate State court or in the United 
        States District Court for the District of Puerto Rico, to the 
        same extent, and with the same right of appellate review, as if 
        the State court had been established before the accrual of the 
        cause of action or the commission of the offense.
            (2) Procedural or substantive laws.--
                    (A) In general.--The admission of the State of 
                Puerto Rico into the Union of the United States shall 
                not affect a change in the procedural or substantive 
                laws with respect to a cause of action or criminal 
                offense that arose or was committed as of the admission 
                date.
                    (B) Trial.--Any criminal offense described in 
                subparagraph (A)--
                            (i) that was committed in violation of the 
                        laws of the Commonwealth of Puerto Rico shall 
                        be tried by the appropriate court of the State 
                        of Puerto Rico; and
                            (ii) that was committed in violation of the 
                        laws of the United States shall be tried in the 
                        United States District Court for the District 
                        of Puerto Rico.
    (c) Appeals.--
            (1) Before admission date.--
                    (A) In general.--Parties to an action 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 decided before the admission date, regardless of 
                whether an appeal was perfected prior to the admission 
                date.
                    (B) Jurisdiction.--The United States Court of 
                Appeals for the First Circuit and the Supreme Court of 
                the United States shall have the same jurisdiction in 
                an action described in subparagraph (A) as by law 
                provided prior to the admission date.
            (2) After admission date.--Any mandate issued after the 
        admission date shall be to the United States District Court for 
        the District of Puerto Rico or a court of the State of Puerto 
        Rico, as appropriate.
            (3) Pending action.--
                    (A) In general.--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 on the 
                admission date.
                    (B) Jurisdiction.--The Supreme Court of Puerto Rico 
                and the Supreme Court of the United States shall have 
                the same jurisdiction in an action described in 
                subparagraph (A) as the jurisdiction provided in any 
                case arising after the admission date.

     TITLE V--TRANSITION AND IMPLEMENTATION OF COMMONWEALTH STATUS

SEC. 501. BILATERAL NEGOTIATING COMMISSION.

    (a) In General.--If a plebiscite conducted under this Act results 
in a majority vote for the Commonwealth-Estado Libre Asociado status 
option, there shall be established, in accordance with this section, a 
commission, to be known as the ``Bilateral Negotiating Commission'', 
which shall conduct studies and negotiations on changes to the 
Commonwealth-Estado Libre Asociado status within the general framework 
of commonwealth status, including the potential for a compact agreement 
between the United States and the Commonwealth of Puerto Rico to 
replace the Act of July 3, 1950 (commonly known as the ``Puerto Rico 
Federal Relations Act of 1950'') (64 Stat. 319, chapter 446).
    (b) Membership.--Not later than 180 days after the date on which 
the results of a plebiscite in favor of commonwealth status are 
submitted under section 101(d)--
            (1) the political party or organization representing the 
        Commonwealth-Estado Libre Asociado status option in the 
        plebiscite shall appoint 5 members to the Bilateral Negotiating 
        Commission; and
            (2) the President shall appoint 5 members to the Bilateral 
        Negotiating Commission.
    (c) Initial Meeting.--
            (1) In general.--Not later than 90 days after the date on 
        which the members of the Bilateral Negotiating Commission are 
        appointed under subsection (b), the Bilateral Negotiating 
        Commission shall hold a meeting at such time and such place as 
        the members of the Bilateral Negotiating Commission determine 
        to be appropriate.
            (2) Establishment.--The initial meeting under paragraph (1) 
        shall be considered to be the establishment of the Bilateral 
        Negotiating Commission.
    (d) Duties.--The Bilateral Negotiating Commission shall--
            (1)(A) examine, discuss, and negotiate improvements to the 
        Commonwealth-Estado Libre Asociado status;
            (B) draft a compact agreement that would replace the Act of 
        July 3, 1950 (commonly known as the ``Puerto Rico Federal 
        Relations Act of 1950'') (64 Stat. 319, chapter 446), within 
        the general framework of the Commonwealth-Estado Libre Asociado 
        status; and
            (C) propose the draft compact agreement to eligible voters 
        in a ratification vote in accordance with section 502(a)(1);
            (2) to the maximum extent practicable, complete the work of 
        the Bilateral Negotiating Commission not later than 2 years 
        after the date of the initial meeting of the Bilateral 
        Negotiating Commission.
    (e) Collaboration.--The Commonwealth government and Federal 
agencies shall collaborate with the Bilateral Negotiating Commission in 
carrying out the duties of the Bilateral Negotiating Commission under 
this title.

SEC. 502. APPROVAL; EFFECTIVE DATE.

    (a) Approval.--A compact agreement between the Federal Government 
and the Commonwealth government proposed by the Bilateral Negotiating 
Commission under section 501 shall take effect on the date of approval 
of the proposed compact agreement--
            (1) in a ratification vote by eligible voters in a special 
        election that is held--
                    (A) not later than 180 days after the date on which 
                the Bilateral Negotiating Commission releases the 
                proposed compact agreement; and
                    (B) in accordance with procedures developed by the 
                Legislative Assembly; and
            (2) by the Federal Government, in accordance with 
        applicable Federal law and the Constitution.
    (b) Rejection.--If the special election under subsection (a)(1) 
results in a rejection of the proposed compact agreement, the process 
provided in section 501 and subsection (a) shall be repeated.

                        TITLE VI--MISCELLANEOUS

SEC. 601. APPLICATION OF PUERTO RICO OVERSIGHT, MANAGEMENT, AND 
              ECONOMIC STABILITY ACT.

    (a) In General.--On the applicable date described in subsection 
(b)--
            (1) 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, the nation of Puerto Rico, or the 
        Commonwealth of Puerto Rico, as applicable; and
            (2)(A) the Financial Oversight and Management Board 
        established by section 101(b)(1) of the Puerto Rico Oversight, 
        Management, and Economic Stability Act (48 U.S.C. 2121(b)(1)) 
        shall be terminated;
            (B) all duties and responsibilities assigned to the 
        Financial Oversight and Management Board under that Act as of 
        that date shall return to the State of Puerto Rico, the nation 
        of Puerto Rico, or the Commonwealth of Puerto Rico, as 
        applicable; and
            (C) all funds, property, and assets of the Financial 
        Oversight and Management Board as of that date shall be 
        transferred to the State of Puerto Rico, the nation of Puerto 
        Rico, or the Commonwealth of Puerto Rico, as applicable.
    (b) Applicable Date Described.--The applicable date described in 
this subsection is--
            (1) the date on which the government of the nation of 
        Puerto Rico takes office, as established under section 208(c) 
        or 307(c);
            (2) the date on which the Commonwealth of Puerto Rico is 
        admitted as a State of the Union of the United States, as 
        declared under a Presidential proclamation issued under section 
        402(b)(1); or
            (3) the date of ratification by eligible voters of a 
        compact agreement for the Commonwealth of Puerto Rico under 
        section 502(a)(1).

SEC. 602. SEVERABILITY.

    If any provision of this Act, or the application of a provision of 
this Act to any person or circumstance, is held to be invalid by a 
court of jurisdiction, the remainder of this Act, and the application 
of the provisions to any person or circumstance, shall not be affected 
by the holding.
                                 <all>