H.R. 9246

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9246 Introduced in House (IH)]

<DOC>

119th CONGRESS
2d Session
H. R. 9246

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 HOUSE OF REPRESENTATIVES

June 10, 2026

Mr. Hernandez (for himself, Mr. Bell, Ms. Hoyle of Oregon, Mr. Tran, 
Mr. Larson of Connecticut, and Ms. Ross) introduced the following bill; 
which was referred to the Committee on 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 
Democratic Self Determination 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.
Sec. 4. Plebiscite.
Sec. 5. Nonpartisan voter education campaign.
Sec. 6. Oversight.
Sec. 7. Funds for voter education; plebiscites.
Sec. 8. Bilingual voter educational materials and ballots.
Sec. 9. Puerto Rico Oversight, Management, and Economic Stability Act.
Sec. 10. Severability.
TITLE I--TRANSITION AND IMPLEMENTATION--INDEPENDENCE

Sec. 101. Constitutional convention.
Sec. 102. Character of the constitution.
Sec. 103. Submission; Ratification.
Sec. 104. Election of officers.
Sec. 105. Conforming amendments to existing law.
Sec. 106. Joint transition commission.
Sec. 107. Proclamations by President of the United States; Head of 
State Of Puerto Rico.
Sec. 108. Legal and constitutional provisions.
Sec. 109. Judicial pronouncements.
Sec. 110. Citizenship and immigration laws after Puerto Rican 
independence.
Sec. 111. Individual rights to economic benefits and grants.
TITLE II--TRANSITION AND IMPLEMENTATION--COMMONWEALTH (ESTADO LIBRE 
ASOCIADO)

Sec. 201. United States-Puerto Rico Commonwealth Development 
Commission.
Sec. 202. Approval; effective date.
TITLE III--TRANSITION AND IMPLEMENTATION--STATEHOOD

Sec. 301. Presidential proclamation; admission into the union.
Sec. 302. Conforming amendments to existing law.
Sec. 303. Territory and boundaries.
Sec. 304. Constitution.
Sec. 305. Elections of senators and representatives, certification, and 
legal disputes.
Sec. 306. State title to land and property.
Sec. 307. Continuity of laws, government, and obligations.
Sec. 308. Judicial pronouncements.
TITLE IV--TRANSITION AND IMPLEMENTATION--SOVEREIGNTY IN FREE 
ASSOCIATION WITH THE UNITED STATES

Sec. 401. Constitutional convention.
Sec. 402. Character of the constitution.
Sec. 403. Submission; ratification.
Sec. 404. Election of officers.
Sec. 405. Proclamations by President of the United States; Head of 
State of Puerto Rico.
Sec. 406. Legal and constitutional provisions.
Sec. 407. Judicial pronouncements.
Sec. 408. Citizenship and immigration laws after sovereignty through 
free association.
Sec. 409. Conforming amendments to existing law.
Sec. 410. Bilateral Negotiating Commission.
Sec. 411. Articles of Free Association approval and effective date.
Sec. 412. Termination.
Sec. 413. Individual rights to economic benefits and grants.

SEC. 2. FINDINGS.

Congress finds the following:
(1) The people of Puerto Rico are entitled to a status 
resolution process that is democratic, credible, inclusive, and 
capable of producing clear guidance to Congress.
(2) A legitimate act of self-determination must allow 
voters to express their preference across the full range of 
status options with meaningful public support, including both 
continuation of the current relationship with the United States 
and alternatives to that relationship.
(3) Congress has a responsibility to establish a fair and 
inclusive process that allows the people of Puerto Rico to 
express, in a clear and informed manner, whether they wish to 
continue their current relationship with the United States or 
pursue a different status, and, if a change is preferred, which 
option they choose.

SEC. 3. DEFINITIONS.

In this Act:
(1) United states-puerto rico commonwealth development 
commission.--The term ``United States-Puerto Rico Commonwealth 
Development Commission'' means the United States-Puerto Rico 
Commonwealth Development Commission established pursuant to 
section 201.
(2) Elections commission.--The term ``Elections 
Commission'' means the Puerto Rico State Elections Commission 
(Comision Estatal de Elecciones de Puerto Rico, in Spanish).
(3) Eligible voters.--The term ``eligible voters'' means 
bona fide residents of Puerto Rico who are otherwise qualified 
to vote in general elections in Puerto Rico.
(4) Initial plebiscite.--The term ``initial plebiscite'' 
means the plebiscite required by section 4(a)(1).
(5) Majority.--The term ``majority'' means more than 50 
percent.
(6) Runoff plebiscite.--The term ``runoff plebiscite'' 
means the plebiscite required by section 4(a)(4).

SEC. 4. PLEBISCITE.

(a) In General.--
(1) Initial plebiscite.--A plebiscite to resolve Puerto 
Rico's political status shall be held on March 14, 2027.
(2) Options.--The plebiscite held under paragraph (1) shall 
offer eligible voters a choice of 1 of the 4 options which 
shall be presented on the ballot as follows:
(A) Independence.
(B) Commonwealth (Estado Libre Asociado).
(C) Statehood.
(D) Sovereignty in Free Association with the United 
States.
(3) Majority vote required.--Approval of a status option 
must be by a majority of the valid votes cast.
(4) Runoff plebiscite.--If there is not a majority in favor 
of 1 of the 4 options defined in this Act, then a runoff 
plebiscite shall be held on May 16, 2027, which shall offer 
eligible voters a choice of the 2 options that received the 
most votes in the plebiscite held under paragraph (1).
(b) Ballot Language.--A ballot for a plebiscite required by 
subsection (a) shall include the following language, except that the 
ballot for the runoff plebiscite shall omit the option that received 
the fewest votes in the initial plebiscite:
(1) Instructions.--Mark the status option you choose as 
each is defined below. A ballot with more than 1 option marked 
will not be counted. A ballot with no option marked will not be 
counted.
(2) Independence.--If you agree, mark here ____.
(A) Puerto Rico is a sovereign nation that has full 
authority and responsibility over its territory and 
population under a constitution of its own adoption 
which shall be the supreme law of the nation.
(B) Puerto Rico is vested with full powers and 
responsibilities consistent with the rights and 
responsibilities that devolve upon a sovereign nation 
under international law, including its own fiscal and 
monetary policy, immigration, trade, and the conduct in 
its own name and right of relations with other nations 
and international organizations.
(C) Puerto Rico has full authority and 
responsibility over its citizenship and immigration 
laws, and birth in Puerto Rico or relationship to 
persons with statutory United States citizenship by 
birth in the former territory shall cease to be a basis 
for United States nationality or citizenship, except 
that persons who have such United States citizenship 
have a right to retain United States nationality and 
citizenship for life, by entitlement or election as 
provided by Federal law.
(D) Puerto Rico will no longer be a possession of 
the United States for purposes of the Internal Revenue 
Code. In general, United States citizens and United 
States businesses in the nation of Puerto Rico will be 
subject to United States Federal tax laws (as is the 
case with any other United States citizen or United 
States business abroad) and to Puerto Rican tax laws. 
Puerto Rico's status as an independent, sovereign 
nation will be the controlling factor in the taxation 
of Puerto Rican taxpayers.
(E) The Constitution and laws of the United States 
no longer apply in Puerto Rico and United States 
sovereignty in Puerto Rico is ended.
(3) Commonwealth (estado libre asociado).--If you agree, 
mark here ___.
(A) Puerto Rico is a self-governing Commonwealth of 
the United States. As a Commonwealth, Puerto Rico has a 
measure of autonomy comparable to that possessed by the 
States, and is governed in accordance with Public Law 
600 of 1950, Public Law 447 of 1952, and a constitution 
ratified by the people of Puerto Rico.
(B) Persons born in Puerto Rico are citizens of the 
United States, enjoy the protections of the United 
States Constitution, and are eligible for Federal 
programs, including Social Security, Medicare, 
Medicaid, and nutrition assistance. Federal law applies 
in Puerto Rico, and the Government of the United States 
exercises authority over matters of national interest 
similar to the States.
(C) Puerto Rico exercises autonomy over fiscal and 
economic policy and is not subject to the uniformity 
clause of the United States Constitution. Residents of 
Puerto Rico generally do not pay Federal income tax on 
income earned within Puerto Rico, but pay Social 
Security, Medicare, Self-Employment, Unemployment, and 
customs and excise taxes.
(D) Puerto Rico has a distinct cultural identity, 
history, and language, which the United States 
recognizes and affirms as an integral part of Puerto 
Rico's character within American federalism. This 
distinct cultural identity manifests through 
participation in international events, including the 
Olympic Games, under its own name and flag.
(E) The United States-Puerto Rico Commonwealth 
Development Commission shall be created to examine, 
propose, and negotiate reforms to the current 
Commonwealth relationship. Those reforms may include 
measures that strengthen self-government; preserve, 
protect and promote Puerto Rico's distinct cultural 
identity; identify ways of participation in Federal 
decision-making affecting Puerto Rico; and strengthen 
participation in Federal programs. Any change proposed 
by the United States-Puerto Rico Commonwealth 
Development Commission must be approved by the people 
of Puerto Rico and Congress.
(4) Statehood.--If you agree, mark here ____.
(A) The State of Puerto Rico is admitted into the 
Union on an equal footing with the other States in all 
respects whatever and is a part of the permanent union 
of the United States of America, subject to the United 
States Constitution, with powers not prohibited by the 
Constitution to the States and reserved to the State of 
Puerto Rico or to its residents.
(B) The residents of Puerto Rico are fully self-
governing with their rights secured under the United 
States Constitution, which shall be fully applicable in 
Puerto Rico and which, with the laws and treaties of 
the United States, is the supreme law and has the same 
force and effect in Puerto Rico as in the other States 
of the Union.
(C) United States citizenship of those born in 
Puerto Rico is recognized, protected, and secured under 
the United States Constitution in the same way such 
citizenship is for all United States citizens born in 
the other States.
(D) Puerto Rico will no longer be a possession of 
the United States for purposes of the Internal Revenue 
Code. Instead, the State of Puerto Rico will become a 
State on equal footing with each of the current 50 
States in the United States of America. Individuals and 
businesses resident in the State of Puerto Rico will be 
subject to United States Federal tax laws as well as 
applicable State tax laws.
(5) Sovereignty in free association with the united 
states.--If you agree, mark here ___.
(A) Puerto Rico is a sovereign nation that has full 
authority and responsibility over its territory and 
population under a constitution of its own adoption 
which shall be the supreme law of the nation.
(B) Puerto Rico is vested with full powers and 
responsibilities consistent with the rights and 
responsibilities that devolve upon a sovereign nation 
under international law, including its own fiscal and 
monetary policy, immigration, trade, and the conduct in 
its own name and right of relations with other nations 
and international organizations, except as otherwise 
provided for in the Articles of Free Association to be 
negotiated by Puerto Rico and the United States.
(C) Puerto Rico has full authority and 
responsibility over its citizenship and immigration 
laws, and persons who have United States citizenship 
have a right to retain United States nationality and 
citizenship for life by entitlement or election as 
provided by Federal law.
(D) Birth in Puerto Rico shall cease to be a basis 
for United States nationality or citizenship. 
Individuals born in Puerto Rico to at least one parent 
who is a citizen of the United States shall be United 
States citizens at birth, consistent with the 
immigration laws of the United States, for the duration 
of the first agreement of the Articles of Free 
Association.
(E) Puerto Rico enters into Articles of Free 
Association with the United States, with such 
devolution and reservation of governmental functions 
and other bilateral arrangements as may be agreed to by 
both Parties under the Articles, which shall be 
terminable at will by either the United States or 
Puerto Rico at any time.
(F) Puerto Rico will no longer be a possession of 
the United States for purposes of the Internal Revenue 
Code. In general, United States citizens and United 
States businesses in the nation of Puerto Rico will be 
subject to United States Federal tax laws (as is the 
case with any other United States citizen or United 
States business abroad) and to Puerto Rican tax laws. 
Puerto Rico's status as an independent, sovereign 
nation will be the controlling factor in the taxation 
of Puerto Rican taxpayers. In addition, Puerto Rico 
will enter into an agreement with the United States to 
provide for ``Sovereignty in Free Association'' between 
the two nations. This agreement may modify the 
otherwise applicable tax rules, subject to negotiation 
and ratification by the two nations.
(G) The Constitution of the United States no longer 
applies in Puerto Rico, the laws of the United States 
no longer apply in Puerto Rico except as otherwise 
provided in the Articles of Free Association, and 
United States sovereignty in Puerto Rico is ended.
(H) All matters pertaining to the government-to-
government relationship between Puerto Rico and the 
United States, which may include foreign affairs, 
trade, finance, taxation, currency, economic 
assistance, security and defense, dispute resolution 
and termination, shall be provided for in the Articles 
of Free Association.
(c) Implementation of Plebiscite.--The plebiscites authorized by 
this section shall be implemented by the Elections Commission, 
consistent with the laws of Puerto Rico and Federal law.
(d) Results.--The Elections Commission shall inform the President 
of the United States, the President pro tempore of the United States 
Senate, the Speaker of the United States House of Representatives, the 
Senate Committee on Energy and Natural Resources, and the House 
Committee on Natural Resources of--
(1) the results of the initial plebiscite not later than 30 
calendar days after the initial plebiscite is held; and
(2) the results of the runoff plebiscite, if held, not 
later than 30 calendar days after the runoff plebiscite is 
held.
(e) Jurisdiction of District Court.--The United States District 
Court for the District of Puerto Rico shall have original and exclusive 
jurisdiction of any civil action alleging a dispute or controversy 
pertaining to electoral processes conducted under this section.

SEC. 5. NONPARTISAN VOTER EDUCATION CAMPAIGN.

(a) In General.--The Elections Commission shall carry out a 
nonpartisan voter education campaign through traditional paid media and 
make available at all voting locations voter education materials 
related to the plebiscites authorized under this Act consistent with 
the approval, in accordance with section 6, of the Attorney General.
(b) Voter Education Materials.--At a minimum, the voter education 
materials shall address for each option--
(1) international representation;
(2) citizenship and immigration; and
(3) access and treatment under Federal law and programs.

SEC. 6. OVERSIGHT.

(a) Submission of Materials.--Not later than 60 days after the date 
of the enactment of this Act, the Elections Commission shall submit the 
ballot design and voter education materials for the plebiscites 
authorized under this Act to the Attorney General for review and the 
Elections Commission shall make not more than 1 submission of the 
ballot design and voter education materials to the Attorney General for 
review.
(b) Effect of Failure To Comply.--If the Attorney General fails to 
comply with subsection (c) within the 45-day period, the ballot design 
and voter education materials shall be considered approved.
(c) Review.--Not later than 45 days after receiving the ballot 
design and voter education materials under subsection (a), the Attorney 
General shall review the ballot design and voter education materials to 
ensure consistency with this Act and to ensure that the 4 options 
defined in this Act are represented fairly, especially in the event 
that any of the 4 options are not represented on the Elections 
Commission by a member of a political party that supports such option, 
and--
(1) return the materials to the Elections Commission with 
comments and instructions for changes; or
(2) before the expiration of the 45-day period, inform the 
Elections Commission that no instructions or requests for 
changes shall be made under paragraph (1), but that the 
Attorney General reserves the right to submit instructions for 
changes in accordance with this section if additional 
information comes to the attention of the Attorney General 
during the remainder of the 45-day period.
(d) Revision.--Not later than 45 days after receiving comments and 
instructions for changes from the Attorney General under subsection 
(c), the Elections Commission shall revise the ballot design and voter 
education materials as requested by the Attorney General.
(e) Election Observers.--The Elections Commission shall invite 
national and international election observers to ensure transparency 
and confidence in the electoral process. Observers shall be present 
during the initial plebiscite vote and during the runoff plebiscite 
vote.

SEC. 7. FUNDS FOR VOTER EDUCATION; PLEBISCITES.

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

SEC. 8. BILINGUAL VOTER EDUCATIONAL MATERIALS AND BALLOTS.

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

SEC. 9. PUERTO RICO OVERSIGHT, MANAGEMENT, AND ECONOMIC STABILITY ACT.

Upon the admission of the State of Puerto Rico into the Union, on 
the date that the Government of the nation of Puerto Rico initially 
takes office, or 2 years after the certification that the Commonwealth 
option received the majority of votes cast--
(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 Commonwealth of Puerto Rico, or 
the nation of Puerto Rico, as the case may be;
(2) the Financial Oversight and Management Board for Puerto 
Rico established under section 101(b)(1) of the Puerto Rico 
Oversight, Management, and Economic Stability Act (48 U.S.C. 
2121(b)(1)) is terminated and all duties and responsibilities 
assigned to the Oversight Board shall return to the State of 
Puerto Rico, the Commonwealth of Puerto Rico, or the nation of 
Puerto Rico, as the case may be; and
(3) all funds, property, and assets of the board described 
in paragraph (2) shall be transferred to the State of Puerto 
Rico, the Commonwealth of Puerto Rico, or the nation of Puerto 
Rico, as the case may be.

SEC. 10. SEVERABILITY.

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

TITLE I--TRANSITION AND IMPLEMENTATION--INDEPENDENCE

SEC. 101. CONSTITUTIONAL CONVENTION.

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

SEC. 102. CHARACTER OF THE CONSTITUTION.

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

SEC. 103. SUBMISSION; RATIFICATION.

(a) Submission.--Not later than 1 year after the establishment of 
the constitutional Convention, the Constitution formulated and drafted 
by the constitutional Convention shall be submitted to the eligible 
voters of Puerto Rico for ratification or rejection in a special 
election.
(b) Manner of Election.--The special election held under this 
subsection shall be held in the manner prescribed by the legislature of 
Puerto Rico.

SEC. 104. ELECTION OF OFFICERS.

(a) In General.--Not later than 30 days after the ratification of 
the Constitution under section 103, the Governor of the Commonwealth of 
Puerto Rico shall issue a proclamation calling for the election of such 
officers of the nation of Puerto Rico as may be required by the 
ratified Constitution.
(b) Rejection.--If the special election results in rejection of the 
Constitution, the process provided for in sections 101 through 103 
shall be repeated, except that section 101(a) shall be applied by 
substituting--
(1) ``the special election'' for ``a plebiscite''; and
(2) ``rejecting of the Constitution'' for ``in favor of 
independence''.
(c) Deadline; Procedures.--The election under subsection (a) shall 
be held--
(1) not later than 6 months after the date of ratification 
of the Constitution; and
(2) in accordance with the procedures and requirements 
established in the Constitution of the nation of Puerto Rico.
(d) Certification of Results.--Not later than 10 days after the 
election of officers under subsection (a), the Elections Commission 
shall certify the results of the election. The Governor of the 
Commonwealth of Puerto Rico shall inform the results of the election to 
the President of the United States, the President pro tempore of the 
United States Senate, the Speaker of the United States House of 
Representatives, the Committee on Energy and Natural Resources of the 
Senate, and the Committee on Natural Resources of the House of 
Representatives.

SEC. 105. CONFORMING AMENDMENTS TO EXISTING LAW.

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

SEC. 106. JOINT TRANSITION COMMISSION.

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

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

(a) Proclamation.--Not later than 30 days after the official 
certification of the elected officers of the nation of Puerto Rico 
under section 104(d), the President of the United States shall by 
proclamation--
(1) withdraw and surrender all rights of possession, 
supervision, jurisdiction, control, or sovereignty then 
existing and exercised by the United States over the territory 
and residents of Puerto Rico;
(2) recognize, on behalf of the United States of America, 
the independence of the nation of Puerto Rico and the authority 
of the government instituted by eligible voters of Puerto Rico 
under the Constitution of their own adoption; and
(3) state that the effective date of withdrawal of the 
sovereignty of the United States and recognition of 
independence shall be the same as the date of the proclamation.
(b) Copy of Proclamation Forwarded.--The President of the United 
States shall forward a copy of the proclamation issued under subsection 
(a) not later than 1 week after signature to the presiding officer of 
the Constitutional Convention of Puerto Rico, the officer elected as 
head of state of the nation, the President pro tempore of the United 
States Senate, the Speaker of the United States House of 
Representatives, the Senate Committee on Energy and Natural Resources, 
and the House Committee on Natural Resources.
(c) Date Government To Take Office.--Not later than 1 week after 
the date of receipt of the Presidential proclamation and with the 
advice of the officer elected as Head of State of the nation, the 
presiding officer of the constitutional Convention shall determine the 
date on which the Government of the nation shall take office, and shall 
so notify the Governor of the Commonwealth of Puerto Rico, the 
President of the United States, the President pro tempore of the United 
States Senate, and the Speaker of the United States House of 
Representatives.

SEC. 108. LEGAL AND CONSTITUTIONAL PROVISIONS.

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

SEC. 109. JUDICIAL PRONOUNCEMENTS.

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

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

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

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

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

TITLE II--TRANSITION AND IMPLEMENTATION--COMMONWEALTH (ESTADO LIBRE 
ASOCIADO)

SEC. 201. UNITED STATES-PUERTO RICO COMMONWEALTH DEVELOPMENT 
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 ``United States-Puerto Rico Commonwealth 
Development Commission'', which shall examine, propose, and negotiate 
reforms to the Commonwealth-Estado Libre Asociado.
(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) 6 appointed by the political party or organization that 
advocates for Commonwealth in the plebiscite;
(2) 2 members of the United States Senate, 1 appointed by 
the Majority Leader and 1 appointed by the Minority Leader;
(3) 2 members of the House of Representatives, 1 appointed 
by the Speaker and 1 appointed by the Minority Leader; and
(4) 2 members appointed by the President of the United 
States.
(c) Initial Meeting.--
(1) In general.--Not later than 90 days after the date on 
which the members of the United States-Puerto Rico Commonwealth 
Development Commission are appointed under subsection (b), the 
United States-Puerto Rico Commonwealth Development Commission 
shall hold a meeting at such time and such place as the members 
of the United States-Puerto Rico Commonwealth Development 
Commission determine to be appropriate.
(2) Establishment.--The initial meeting under paragraph (1) 
shall be considered to be the establishment of the United 
States-Puerto Rico Commonwealth Development Commission.
(d) Duties.--The United States-Puerto Rico Commonwealth Development 
Commission shall propose reforms to the Commonwealth-Estado Libre 
Asociado status not later than 2 years after the date of the initial 
meeting of the United States-Puerto Rico Commonwealth Development 
Commission.
(e) Collaboration.--The Commonwealth government and Federal 
agencies shall collaborate with the United States-Puerto Rico 
Commonwealth Development Commission in carrying out the duties of the 
United States-Puerto Rico Commonwealth Development Commission under 
this title.
(f) Termination.--The Commission shall operate for a period no 
longer than 5 years or until a majority of its members agree to its 
termination.

SEC. 202. APPROVAL; EFFECTIVE DATE.

Any reform, including a new compact agreement, or a set of reforms 
between the Federal Government and the Commonwealth government proposed 
by the United States-Puerto Rico Commonwealth Development Commission 
under section 201 shall take effect on the date of approval of the 
proposed reform--
(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 United States-Puerto Rico Commonwealth Development 
Commission releases the proposed reform; 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.

TITLE III--TRANSITION AND IMPLEMENTATION--STATEHOOD

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

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

SEC. 302. CONFORMING AMENDMENTS TO EXISTING LAW.

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

SEC. 303. TERRITORY AND BOUNDARIES.

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

SEC. 304. CONSTITUTION.

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

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

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

SEC. 306. STATE TITLE TO LAND AND PROPERTY.

(a) State Title.--The State of Puerto Rico and its political 
subdivisions and dependencies shall have and retain title to all 
property, real and personal, held by the Commonwealth of Puerto Rico 
and its political subdivisions and dependencies on the date of the 
admission of Puerto Rico into the Union.
(b) Federal Title.--Any lands and other properties that, as of the 
date of admission of Puerto Rico into the Union, are set aside pursuant 
to law for the use of the United States under any of the following 
shall remain the property of the United States:
(1) Act of Congress.
(2) Executive order.
(3) Proclamation of the President.
(4) Proclamation of the Governor of the Commonwealth of 
Puerto Rico.
(c) Continental Shelf.--The State of Puerto Rico shall have the 
exclusive right to explore, exploit, lease, possess, and use all 
seabed, natural, and mineral resources lying within 3 marine leagues (9 
nautical miles) from its shore, as granted under section 8 of the Act 
of March 2, 1917 (48 U.S.C. 749; 39 Stat. 954). All other rights of 
sovereignty in regards to the continental shelf and waters, shall 
belong to the United States, except those already vested in Puerto 
Rico.

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

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

SEC. 308. JUDICIAL PRONOUNCEMENTS.

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

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

SEC. 401. CONSTITUTIONAL CONVENTION.

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

SEC. 402. CHARACTER OF THE CONSTITUTION.

The constitutional Convention under section 401 shall formulate and 
draft a Constitution for Puerto Rico that guarantees the protection of 
fundamental human rights, including--
(1) due process and equal protection under the law;
(2) freedom of speech, press, assembly, association, and 
religion;
(3) the rights of the accused;
(4) any other economic, social, and cultural rights as the 
constitutional Convention may deem appropriate and necessary; 
and
(5) provisions to ensure that no individual born in the 
nation of Puerto Rico shall be stateless at birth.

SEC. 403. SUBMISSION; RATIFICATION.

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

SEC. 404. ELECTION OF OFFICERS.

(a) In General.--Not later than one month after the ratification of 
the Constitution under section 403, the Governor of the Commonwealth of 
Puerto Rico shall issue a proclamation calling for the election of such 
officers of the nation of Puerto Rico as may be required by the 
ratified Constitution.
(b) Rejection.--If the special election results in rejection of the 
Constitution, the process provided for in sections 401 through 403 
shall be repeated, except that section 401(a) shall be applied by 
substituting--
(1) ``the special election'' for ``a plebiscite''; and
(2) ``rejecting the Constitution'' for ``in favor of 
sovereignty in free association with the United States''.
(c) Deadline; Procedures.--The election under subsection (a) shall 
be held--
(1) not later than 6 months after the date of ratification 
of the Constitution; and
(2) in accordance with the procedures and requirements 
established in the Constitution of the nation of Puerto Rico.
(d) Certification of Results.--Not later than 10 days after the 
election of officers under subsection (a), the Elections Commission 
shall certify the results of the election. The Governor of the 
Commonwealth of Puerto Rico shall inform the results of the election to 
the President of the United States, the President pro tempore of the 
United States Senate, the Speaker of the United States House of 
Representatives, the Committee on Energy and Natural Resources of the 
Senate, and the Committee on Natural Resources of the House of 
Representatives.

SEC. 405. PROCLAMATIONS BY PRESIDENT OF THE UNITED STATES; HEAD OF 
STATE OF PUERTO RICO.

(a) Proclamation.--Not later than one month after the official 
certification of the elected officers of the nation of Puerto Rico 
under section 404, the President of the United States shall by 
proclamation--
(1) withdraw and surrender all rights of possession, 
supervision, jurisdiction, control, or sovereignty then 
existing and exercised by the United States over the 
Commonwealth and residents of Puerto Rico;
(2) recognize, on behalf of the United States of America, 
the international sovereignty through free association of the 
nation of Puerto Rico and the authority of the government 
instituted by eligible voters of Puerto Rico under the 
Constitution of their own adoption; and
(3) state that the effective date of withdrawal of the 
sovereignty of the United States and recognition of 
international sovereignty through free association shall be the 
same as the date of the proclamation.
(b) Copy of Proclamation Forwarded.--The President of the United 
States shall forward a copy of the proclamation issued under subsection 
(a) not later than one week after signature to the presiding officer of 
the Constitutional Convention of Puerto Rico, the officer elected as 
head of state of the nation, the President pro tempore of the United 
States Senate, the Speaker of the United States House of 
Representatives, the Senate Committee on Energy and Natural Resources, 
and the House Committee on Natural Resources.
(c) Date Government To Take Office.--Not later than one week after 
the date of receipt of the Presidential proclamation and with the 
advice of the officer elected as head of state of the nation, the 
presiding officer of the constitutional Convention shall determine the 
date on which the Government of the nation shall take office, and shall 
so notify the Governor of the Commonwealth of Puerto Rico, the 
President of the United States, the President pro tempore of the United 
States Senate, and the Speaker of the United States House of 
Representatives.

SEC. 406. LEGAL AND CONSTITUTIONAL PROVISIONS.

Upon the proclamation of international sovereignty through free 
association as provided in this title, and except as otherwise provided 
in this title or in any separate agreements thereafter concluded 
between the United States and the nation of Puerto Rico--
(1) all property, rights and interests which the United 
States may have acquired over Puerto Rico by virtue of the 
Treaty of Paris of 1898, and thereafter by cession, purchase, 
or eminent domain, with the exception of such land and other 
property, rights, or interests as may have been sold or 
otherwise legally disposed of prior to the proclamation of 
international sovereignty through free association, shall vest 
ipso facto in the nation of Puerto Rico; and
(2) except as provided in section 409, all laws of the 
United States applicable to the Commonwealth of Puerto Rico 
immediately prior to the proclamation of international 
sovereignty through free association shall no longer apply in 
the nation of Puerto Rico.

SEC. 407. JUDICIAL PRONOUNCEMENTS.

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

SEC. 408. CITIZENSHIP AND IMMIGRATION LAWS AFTER SOVEREIGNTY THROUGH 
FREE ASSOCIATION.

(a) In General.--
(1) Puerto rican nationality.--After the proclamation of 
international sovereignty through free association, the 
citizenship status of each individual born in Puerto Rico shall 
be determined in accordance with the Constitution and laws of 
the nation of Puerto Rico.
(2) United states immigration laws.--Except as described in 
this section, after the proclamation of international 
sovereignty through free association, citizens of Puerto Rico 
seeking to enter into the United States or obtain citizenship 
in the United States shall be subject to the immigration laws 
of the United States (as such term is defined in section 101 of 
the Immigration and Nationality Act (8 U.S.C. 1101)).
(b) Effect of Puerto Rican Citizenship.--Nothing in this Act 
precludes or limits the applicability of section 349 of the Immigration 
and Nationality Act (8 U.S.C. 1481), except that the provision of 
citizenship by the laws of Puerto Rico shall not constitute or 
otherwise serve as the basis of loss, or relinquishment of United 
States citizenship under such section.
(c) Citizenship at Birth After Sovereignty.--
(1) In general.--Except as described in paragraph (2), an 
individual born in Puerto Rico after the proclamation of 
international sovereignty through free association to at least 
one parent who became a United States citizen under section 302 
of the Immigration and Nationality Act (8 U.S.C. 1402) is not a 
United States citizen at birth under subsection (c), (d), or 
(g) of section 301 of the Immigration and Nationality Act (8 
U.S.C. 1401 (c), (d) or (g)).
(2) Transition period.--During the implementation of the 
first Articles of Free Association, an individual born in 
Puerto Rico to at least one parent who is a citizen of the 
United States shall be a United States citizen at birth under 
section 301 of the Immigration and Nationality Act (8 U.S.C. 
1401) if otherwise eligible.
(d) Travel and Work Authorization.--
(1) Any person in the following categories may enter, 
lawfully engage in occupations, and establish residence as a 
nonimmigrant in the United States and its territories and 
possessions without regard to paragraphs (5)(A) and (7) of 
section 212(a) of the Immigration and Nationality Act (8 U.S.C. 
1182(a); (5)(A) and (7)):
(A) a person who acquires the citizenship of Puerto 
Rico, at birth, on or after the effective date of 
international sovereignty through free association; or
(B) a naturalized citizen of Puerto Rico, who has 
been an actual resident there for not less than five 
years after attaining such naturalization and who holds 
a proof of such residence.
Such persons shall be considered to have the permission of the 
Secretary of Homeland Security to accept employment in the 
United States.
(2) The right of such persons to establish habitual 
residence in a territory or possession of the United States 
may, however, be subjected to nondiscriminatory limitations 
provided for--
(A) in statutes or regulations of the United 
States; or
(B) in those statutes or regulations of the 
territory or possession concerned which are authorized 
by the laws of the United States.
(3) This subsection shall expire upon the termination of 
the Articles of Free Association in accordance with section 
411.
(e) Conforming Amendments.--
(1) In general.--Section 101 of the Immigration and 
Nationality Act (8 U.S.C. 1101) is amended by striking ``Puerto 
Rico,'' in subsection (a) paragraph (36) and in subsection (a) 
paragraph (38).
(2) Prior to sovereignty.--Puerto Rico shall be considered 
to be in the United States, as such term is defined in section 
101(a)(38) of the Immigration and Nationality Act (8 U.S.C. 
1101(a)(38)) prior to the date of international sovereignty 
through free association.
(f) Rule of Construction.--Nothing in this section shall limit the 
power and authority of the United States to change policy requirements 
for United States citizenship.

SEC. 409. CONFORMING AMENDMENTS TO EXISTING LAW.

(a) Review.--Not later than 30 days after the initial meeting of a 
constitutional Convention under section 401(d), the President shall 
initiate a review of Federal law with respect to Puerto Rico, including 
those regarding--
(1) taxation of persons and businesses;
(2) health care;
(3) housing;
(4) transportation;
(5) education; and
(6) entitlement programs.
(b) Recommendations.--Not later than one year after the date on 
which the President initiates a review under subsection (a), the 
President shall submit recommendations to Congress for changes to 
Federal law identified during such review, as the President deems 
appropriate.

SEC. 410. BILATERAL NEGOTIATING COMMISSION.

(a) In General.--If a plebiscite held under this Act results in a 
majority vote for sovereignty in free association with the United 
States, there shall be a Bilateral Negotiating Commission which shall 
conduct negotiations on Articles of Free Association with the United 
States.
(b) Members.--Not later than 3 months after the establishment of 
the constitutional Convention under section 401--
(1) the Convention shall elect, by majority vote, 5 members 
from among its delegates to join the Bilateral Negotiating 
Commission on behalf of Puerto Rico; and
(2) the President of the United States shall designate 5 
members to the Bilateral Negotiating Commission, one of whom 
shall also be nominated for the rank of Ambassador, to 
negotiate on behalf of the United States.
(c) Initial Meeting.--Not later than 3 months after the election 
and designation of members to the Bilateral Negotiating Commission, 
members shall meet at such time and place as the legislature of Puerto 
Rico shall determine. Such meeting shall constitute the establishment 
of the Bilateral Negotiating Commission.
(d) Duties.--The Bilateral Negotiating Commission shall--
(1) be responsible for expediting the orderly transfer of 
all functions currently exercised by the Government of the 
United States in Puerto Rico, to Puerto Rico, and shall 
recommend to Congress any appropriate legislation to carry into 
effect such transfer, including any appropriate enabling 
legislation as may be required by the Articles of Free 
Association;
(2) negotiate all matters pertaining to the government-to-
government relationship between Puerto Rico and the United 
States through the development of the Articles of Free 
Association, including foreign affairs, trade, finance, 
taxation, currency, economic assistance, security and defense, 
dispute resolution, immigration, economic benefits (including 
grants), and termination of the free association status; and
(3) endeavor to complete the Articles of Free Association 
not later than 2 years after the commencement of the 
constitutional Convention.
(e) Collaboration.--The Government of the Commonwealth of Puerto 
Rico and the agencies of the Government of the United States shall 
collaborate with the Bilateral Negotiating Commission to provide for 
the orderly transfer of the functions of government as required by the 
Articles of Free Association.

SEC. 411. ARTICLES OF FREE ASSOCIATION APPROVAL AND EFFECTIVE DATE.

(a) Approval.--The Articles of Free Association shall come into 
effect upon mutual agreement between the Government of the United 
States and the Government of Puerto Rico after completion of approval 
by--
(1) a separate ratification vote on the Articles by the 
eligible voters in the special election held under section 403; 
and
(2) the Government of the United States in accordance with 
its constitutional processes.
(b) Rejection.--If the special election under subsection (a)(1) 
results in rejection of the Articles of Free Association, the process 
provided for in section 410 and subsection (a) shall be repeated.

SEC. 412. TERMINATION.

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

SEC. 413. INDIVIDUAL RIGHTS TO ECONOMIC BENEFITS AND GRANTS.

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