To provide for a federally sanctioned self-determination process for the people of Puerto Rico.

Summary: Puerto Rico Democracy Act of 2006 - Directs the Puerto Rico State Elections Commission to conduct a plebiscite in Puerto Rico during the 110th Congress, giving voters the option to vote for continued U.S. territorial status or for a path toward a constitutionally viable permanent nonterritorial status. Provides for subsequent procedures, depending on ballot results.

 Authorizes the Secretary of the Treasury to allocate certain funds for the self-determination process.

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Puerto Rico 
Democracy Act of 2006''.
    (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. Federally sanctioned process for Puerto Rico's self-
                            determination, including initial plebiscite 
                            and subsequent procedures.
Sec. 4. Applicable laws and other requirements.
Sec. 5. Availability of funds for the self-determination process.

SEC. 2. FINDINGS.

     The Congress finds the following:
            (1) On November 30, 1992, President George H.W. Bush issued 
        a Memorandum to Heads of Executive Departments and Agencies 
        recognizing that ``As long as Puerto Rico is a territory . . . 
        the will of its people regarding their political status should 
        be ascertained periodically by means of a general right of 
        referendum . . .''.
            (2) Consistent with this policy, on December 23, 2000, 
        President William J. Clinton issued Executive Order 13183, 
        establishing the President's Task Force on Puerto Rico's Status 
        for purposes that included identifying the options for the 
        territory's future political status ``. . . that are not 
        incompatible with the Constitution and basic laws and policies 
        of the United States . . .'', as well as the process for 
        realizing such options.
            (3) President George W. Bush adopted Executive Order 13183 
        and, on December 3, 2003, amended it to require that the 
        President's Task Force on Puerto Rico's Status issue a report 
        ``. . . no less frequently than once every 2 years, on progress 
        made in the determination of Puerto Rico's ultimate status.''.
            (4) On December 22, 2005, the Task Force appointed by 
        President George W. Bush issued a report recommending that:
                    (A) The Congress provide within a year for a 
                federally sanctioned plebiscite in which the people of 
                Puerto Rico would be asked to vote on whether they wish 
                to remain a United States territory or pursue a 
                constitutionally viable path toward a permanent 
                nonterritorial status.
                    (B) If the people of Puerto Rico elect to pursue a 
                permanent nonterritorial status, Congress should 
                provide for a subsequent plebiscite allowing the people 
                of Puerto Rico to choose between one of the two 
                permanent nonterritorial status options. Once a 
                majority of the people has selected one of the two 
                options, Congress is encouraged to begin a process of 
                transition toward that option.
                    (C) If the people of Puerto Rico elect to remain as 
                a United States territory, further plebiscites should 
                occur periodically, as long as a territorial status 
                continues, to keep Congress informed of the people's 
                wishes.

SEC. 3. FEDERALLY SANCTIONED PROCESS FOR PUERTO RICO'S SELF-
              DETERMINATION, INCLUDING INITIAL PLEBISCITE AND 
              SUBSEQUENT PROCEDURES.

    (a) First Plebiscite Under This Act.--The Puerto Rico State 
Elections Commission shall conduct a plebiscite in Puerto Rico during 
the 110th Congress, but not later than December 31, 2007. The ballot 
shall provide for voters to choose only between the following two 
options:
            (1) Puerto Rico should continue the existing form of 
        territorial status as defined by the Constitution, basic laws, 
        and policies of the United States. If you agree, mark here____.
            (2) Puerto Rico should pursue a path toward a 
        constitutionally viable permanent nonterritorial status. If you 
        agree, mark here ______.
The two options set forth on the ballot shall be preceded by the 
following statement: Instructions: Mark the option you choose as each 
is defined below. Ballots with more than one option marked will not be 
counted.
    (b) Procedure If Majority in First Plebiscite Favors Continued 
Territorial Status.--If a majority vote in a plebiscite held under 
subsection (a) favors the continuation of the existing territorial 
status, the Puerto Rico State Elections Commission shall conduct 
additional plebiscites under subsection (a) at intervals of every 8 
years from the date that the results of the prior plebiscite are 
certified unless a majority of votes in the prior plebiscite favors 
pursuing a permanent nonterritorial status.
    (c) Procedure If Majority in First Plebiscite Favors Permanent 
Nonterritorial Status.--If a majority vote in any plebiscite held under 
subsection (a) favors permanent nonterritorial status, the Puerto Rico 
State Elections Commission shall conduct a plebiscite under this 
subsection. The ballot on the plebiscite under this subsection shall 
provide for a vote to choose only between the following two options:
            (1) Statehood: Puerto Rico should be admitted as a State of 
        the Union, on equal footing with the other States. If you 
        agree, mark here____.
            (2) Sovereign nation: Puerto Rico should become a sovereign 
        nation, either fully independent from or in free association 
        with the United States under an international agreement that 
        preserves the right of each nation to terminate the 
        association. If you agree, mark here___.
The two options set forth on the ballot shall be preceded by the 
following statement: Instructions: Mark the option you choose as each 
is defined below. Ballots with more than one option marked will not be 
counted.
    (d) Period for Holding Plebiscite.--If a majority vote in the first 
plebiscite under subsection (a) favors permanent nonterritorial status, 
the plebiscite under subsection (c) shall be held during the 111th 
Congress, but no later than December 31, 2009. If a majority vote in a 
plebiscite referred to in subsection (b) favors permanent 
nonterritorial status, the plebiscite under subsection (c) shall be 
held not later than 2 years after the certification of the majority 
vote in such plebiscite under subsection (b).

SEC. 4. APPLICABLE LAWS AND OTHER REQUIREMENTS.

    (a) Applicable Laws.--All Federal laws applicable to the election 
of the Resident Commissioner of Puerto Rico shall, as appropriate and 
consistent with this Act, also apply to any plebiscite held pursuant to 
this Act. Any reference in such Federal laws to elections shall be 
considered, as appropriate, to be a reference to the plebiscites, 
unless it would frustrate the purposes of this Act.
    (b) Federal Court Jurisdiction.--The Federal courts of the United 
States shall have exclusive jurisdiction over any legal claims or 
controversies arising from the implementation of this Act.
    (c) Rules and Regulations.--The Puerto Rico State Elections 
Commission shall issue all rules and regulations necessary to carry out 
the plebiscites under this Act.
    (d) Eligibility.--Each of the following shall be eligible to vote 
in any plebiscite held under this Act:
            (1) All eligible voters under the electoral laws in effect 
        in Puerto Rico at the time the plebiscite is held.
            (2) All United States citizens born in Puerto Rico who 
        comply, to the satisfaction of the Puerto Rico State Elections 
        Commission, with all Puerto Rico State Elections Commission 
        requirements (other than the residency requirement) applicable 
        to eligibility to vote in a general election.
Persons eligible to vote under this subsection shall, upon request 
submitted to the Puerto Rico State Elections Commission prior to the 
plebiscite concerned, be entitled to receive an absentee ballot for 
such plebiscite.
    (e) Certification of Plebiscite Results.--The Puerto Rico State 
Elections Commission shall certify the results of each plebiscite held 
under this Act to the President of the United States and the Senate and 
House of Representatives of the United States.
    (f) Report After Second Plebiscite.--No later than 6 months after 
the plebiscite provided for in section 3(c), the President's Task Force 
on Puerto Rico's Status shall submit a report to the Congress, prepared 
in consultation with the Governor, the Resident Commissioner, the 
President of the Senate of Puerto Rico, and the Speaker of the House of 
Representatives of Puerto Rico, detailing measures that may be taken to 
implement the permanent nonterritorial status option chosen in the 
plebiscite together with such recommendations as the Task Force may 
deem appropriate.

SEC. 5. AVAILABILITY OF FUNDS FOR THE SELF-DETERMINATION PROCESS.

    During the period beginning October 1, 2006, and ending on the date 
the President determines that all the plebiscites required by this Act 
have been held, the Secretary of the Treasury may allocate, from the 
funds provided to the Government of Puerto Rico under section 7652(e) 
of the Internal Revenue Code, not more than $5,000,000 to the State 
Elections Commission of Puerto Rico to be used for expenses of carrying 
out each plebiscite carried out under this Act, including for voter 
education materials certified by the President's Task Force on Puerto 
Rico's Status as not being incompatible with the Constitution and basic 
laws and policies of the United States. Such amounts may be as 
identified by the President's Task Force on Puerto Rico's Status as 
necessary for such purposes.