II 117th CONGRESS 2d Session S. 4560 IN THE SENATE OF THE UNITED STATES July 20, 2022 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.

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. 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. III §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. 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). I Plebiscites 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 November 5, 2023. (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 3, 2024, 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 individuals born in Puerto Rico to parents, both of whom are United States citizens, shall be eligible to acquire United States citizenship 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 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. (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 reaffirmation of the will of the people of Puerto Rico to retain their Commonwealth–Estado Libre Asociado status. (B) To enable the development of Commonwealth–Estado Libre Asociado status, there shall be created a United States–Puerto Rico Negotiating Commission that will examine and propose enhancements to the current status, including the potential substitution of the Act of July 3, 1950 (commonly known as the Puerto Rico Federal Relations Act of 1950 ) (64 Stat. 319, chapter 446) for a formal compact. . (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. 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. 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. 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. II Transition and implementation of independence status 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). 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. 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. 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 . 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. 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. 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). 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. 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. 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. 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. 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. III Transition and implementation of sovereignty in free association with the United States option 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). 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. 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. 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 . 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. 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. 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. 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. 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. 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 initial implementation of the articles of free association under this title, 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. 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. 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. 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. IV Transition and implementation of statehood status 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). 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; and (ii) to provide the applicable State share of the costs of the Federal Government; 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. 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. 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. 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. 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. 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. 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. 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. V Transition and implementation of commonwealth status 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); and (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. 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. VI Miscellaneous 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). 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.