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Puerto Rico - July-December 1989
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470766522
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Puerto Rico - July-December 1989
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Records of the National Security Council (George H. W. Bush Administration)
Latin American Affairs Directorate Subject Files
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Originally Processed With FOIA(s):
FOIA Number:
2015-0017-S
2015-0017-S
FOIA
MARKER
This is not a textual record. This is used as an
administrative marker by the George Bush Presidential
Library Staff.
Record Group/Collection:
George H.W. Bush Presidential Records
Collection/Office of Origin:
National Security Council
Series:
Latin American Affairs Directorate Files
Subseries:
Subject Files 1989
OA/ID Number:
CF00193
Folder ID Number:
CF00193-007
Folder Title:
Puerto Rico - July-December 1989
Stack:
Row:
Section:
Shelf:
Position:
V
8
6
1
4
Withdrawal/Redaction Sheet
(George Bush Library)
Doc. No. / Type
Subject/Title
Date
Restriction
Classification
01. Cable
082036 Dec 89 (2 pp.)
12/8/89
(b)(1)
C
02. Memorandum
To: Brent Scowcroft From: David Pacelli
10/20/89
(b)(i)
/
Re: Your Meeting with Congressman Lagomarsino (1 pp.)
03. Memorandum
To: Philip Hughes From: David Pacelli
9/6/89
(b)(1)
/
Re: Comments on S 712 (1 pp.)
Page I of 1
Collection:
Record Group:
Bush Presidential Records
Office:
National Security Council
Series:
Latin American Affairs Directorate Files
Subseries:
Subject File 1989
WHORM Cat.:
File Location:
Puerto Rico - July-December 1989
Pinksheet Number:
MB8177
OA/ID Number:
CF00193-007
Date Closed:
12/9/2014
FOIA/Sys Case #:
2015-0017-S
Re-review Case #:
P-2/P-5 Review Case #:
Withdrawal/Redaction Sheet
(George Bush Library)
Document No.
Subject/Title of Document
Date
Restriction
Class.
and Type
01. Cable
082036 Dec 89 (2 pp.)
12/8/89
(b)(1)
C
Collection:
Record Group:
Bush Presidential Records
Office:
National Security Council .
Series:
Latin American Affairs Directorate Files
Subseries:
Subject File 1989
WHORM Cat.:
File Location:
Puerto Rico - July-December 1989
Date Closed:
12/9/2014
OA/ID Number:
CF00193-007
FOIA/SYS Case #:
2015-0017-S
Appeal Case #:
Re-review Case #:
Appeal Disposition:
P-2/P-5 Review Case #:
Disposition Date:
AR Case #:
MR Case #:
AR Disposition:
MR Disposition:
AR Disposition Date:
MR Disposition Date:
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)]
Freedom of Information Act - [5 U.S.C. 552(b)]
P-1 National Security Classified Information [(a)(1) of the PRA]
(b)(1) National security classified information [(b)(1) of the FOIA]
P-2 Relating to the appointment to Federal office [(a)(2) of the PRAJ
(b)(2) Release would disclose internal personnel rules and practices of an
P-3 Release would violate a Federal statute [(a)(3) of the PRAJ
agency [(b)(2) of the FOIA]
P-4 Release would disclose trade secrets or confidential commercial or
(b)(3) Release would violate a Federal statute [(b)(3) of the FOIA]
financial information [(a)(4) of the PRA]
(b)(4) Release would disclose trade secrets or confidential or financial
P-5 Release would disclose confidential advice between the President
information [(b)(4) of the FOIA]
and his advisors, or between such advisors [a)(5) of the PRA]
(b)(6) Release would constitute a clearly unwarranted invasion of
P-6 Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
personal privacy [(a)(6) of the PRA]
(b)(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed of
(b)(8) Release would disclose information concerning the regulation of
gift.
financial institutions [(b)(8) of the FOIA]
(b)(9) Release would disclose geological or geophysical information
PRM Removed as a personal record misfile
PACELLI
8381
NATIONAL SECURITY COUNCIL
WASHINGTON, D.C. 20506
File: prent Run
October 23, 1989
MEMORANDUM FOR JAMES J. JUKES
FROM:
G. PHILIP HUGHES Ruly
SUBJECT:
Agency Draft Amendments to S. 712
The NSC staff concurs that agencies should only address
significant issues of concern in their comments on S. 712, a bill
providing for a referendum on Puerto Rico's political status.
The NSC staff requests the opportunity to review agency comments.
8381
NATIONAL SECURITY COUNCIL
WASHINGTON, D.C. 20506
October 20, 1989
SIGNED
ACTION
MEMORANDUM FOR G. PHILIP HUGHES
THROUGH:
WILLIAM T. PRYCE DAS for DAS
FROM:
DAVID A. PACELLI
IVC
SUBJECT:
OMB Memorandum on Agency Amendments to Legislation
on a Puerto Rico Referendum
OMB has sent a memorandum to U.S. government agencies requesting
them to submit only significant amendments to S. 712, a bill
providing for a referendum to determine Puerto Rico's political
status (Tab II). Your memorandum to James Jukes at Tab I
indicates that the NSC concurs in this approach and would like
the opportunity to review agency comments.
Concurrences by: Virginia Lampley and Steven SR Rademaker.
RECOMMENDATION
That you sign the memorandum to Jukes at Tab I.
Attachment
Tab I
Memorandum to Jukes
Tab II
Incoming correspondence
10/18/89
10:47
OMB LRD/LIC
001
8381
3 pager
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
AMERICAN
total
WASHINGTON, D.C. 20503
October 17, 1989
To:
Legislative Liaison Officer:
SEE ATTACHED DISTRIBUTION LIST
Subject:
Agency draft amendments to S. 712 as reported by the
Senate Energy and Natural Resources Committee -- a
bill providing for a referendum on the political
status of Puerto Rico.
Agencies are requested to submit proposed amendments to S. -712
to be offered during Senate floor action. The draft amendments
should only address issues of significant concern to the agency,
if any.
Agencies should submit two separate documents concerning the
amendments. The first document would identify and discuss each
issue for which the department intends to propose an amendment.
This document should be submitted to this office by COB
October 20, 1989.
The second document would be a follow-up to the first, and should
contain the actual language of the proposed amendment. In order
to facilitate review, proposed amendments should be submitted
using the sample format (see attachment). Agencies are requested
to provide the second document to this office by
October 27, 1989.
Questions should be referred to Branden Blum (395-3454), the
legislative attorney in this office.
James James Assistant Legislative J. Jukes Director J. Reference for Julie for
Enclosures
CC:
Boyden Gray
Ron Cogswell
Bob Damus
Arnie Schwartz
Bob Howard
Phil DuSault
Marianne McGettigan
Ken Schwartz
Ken Ryder
John Merck
Bernie Martin
David Kleinberg
Ed Rea
10/18/89
10:48
OMB LRD/LIC
003
[SAMPLE FORMAT - DRAFT AMENDMENTS TO S. 712]
(Due 10/27/89)
Agency Name - Proposed Amendment # to S. 712
I. Statement of Issue:
(Include a brief but adequate discussion of the concern
raised by S. 712 that the amendment would address. This
can be the same discussion contained in the "first
document" that is described in the Legislative Referral
Memorandum.)
II. Proposed Amendment to S. 712:
(This section should contain the actual language that would
be offered as an amendment to S. 712 -- to address the
concern discussed above in I. References should be to
S. 712 as reported by the Senate Energy and Natural
Resources Committee.)
III. Description of the Proposed Amendment:
(This section would correspond to the section-by-section
analysis -- explaining (as necessary) the actual change
that would be made by the language proposed in II.)
10/18/89
10:48
OMB LRD/LIC
002
DISTRIBUTION LIST
AGENCY
CONTACT
PHONE NUMBER
Department of Agriculture (312)
Marvin Shapiro
382-1516
Department of Commerce (324)
Mike Levitt
377-3151
Department of Defense (325)
Sam Brick
697-1305
Department of Education (207)
Nancy Heindel
732-2670
Department of Health
and Human Services (328)
Frances White
245-7760
Department of Housing
and Urban Development (215)
Ed Murphy
755-7093
Department of the Interior (329)
James Spagnole
343-6706
Department of Justice (217)
Jack Perkins
633-2113
Department of Labor (330)
Seth Zinman
523-8201
Department of state (225)
Bronwyn Bachrach
647-4463
Department of Transportation (226)
Tom Herlihy
366-4687
Department of the Treasury (228)
Carole Toth
566-8523
Department of Veterans Affairs (229)
Donald Ivers
233-3832
General Services Administration (237) Rosemarie Whitelock 523-3956
National Security Council (249)
G. Philip Hughes
456-2224
office of Personnel Management (331)
James Woodruff
632-5524
United States Postal Service (211)
Fred Eggleston
268-2958
United States
Trade Representative (223)
Joshua Bolten
395-3150
FACSIMILE TRANSMITTAL SHEET
379
TO:
NSC -
FROM:
M.Williams
DELIVERY TIME:
18-OCT-1989 11:13:27
DELIVERY NODE:
1, 3M FaxXchange
SESSION:
1 - 832
PAGES:
4 (including this page)
CONFIDENTIAL-
July
CONFIDENTIAL
8449
NATIONAL SECURITY COUNCIL
WASHINGTON, D.C. 20506
October 20, 1989
INFORMATION
MEMORANDUM FOR BRENT SCOWCROFT
THROUGH:
WILLIAM T. PRYCE DAS G
FROM:
DAVID A. PACELLI DTr
SUBJECT:
Your Meeting with Congressman Lagomarsino
Congressman Robert Lagomarsino (R-CA), Chairman of the House
Republican Task Force on Puerto Rico, requested this meeting to
discuss his concern that we are not doing enough to support the
statehood option in the projected referendum on Puerto Rico's
future. His letter to the President of August 3 (Tab I) also
complains about lack of communication with the White House.
The NSC has been a peripheral player on the Puerto Rico bill. We
review all the suggestions from the agencies, but interagency
meetings are run by Andy Card, Chairman of the White House Task
Force on Puerto Rico, with OMB playing the second most important
role. Andy is scheduled to attend your meeting with Lagomarsino.
There is a lull in the action on the legislation at the moment.
We objected to the original Senate bill, largely because each of
the political parties associated with the main options --
statehood, commonwealth, or independence -- was allowed to write
the definitions of those options in the bill. The definitions
therefore took extreme forms: the statehood people wanted a
superstate and the commonwealth advocates wrote in "enhanced"
commonwealth status. The first round of agency commentary
removed most of the objectionable parts of the bill.
The Senate Interior Committee finished its work, but did not
resolve the taxation issues because they properly belong to the
Finance Committee. Action there has been delayed because of
procedural issues arising from the traditional lead role of the
House on revenue issues. Because of this confusion, OMB has not
circulated to the agencies the most recent comments on the bill.
It would be useful if you emphasized to the Congressman that the
President has been quite clear about his support for statehood,
but that the bill itself should be worded so that it is neutral
between the different options.
Concurrence by: Virginia Asah Tampley and Steven Rademaker
DAS for
Attachment
Tab I
Lagomarsino Letter to the President
DECLASSIFIED
PER NSC WAIVER, #2021-02
CONFIDENTIAL
CONFIDENTIAL
By MC NARA, Date 7/16/21
Declassify on: OADR
ROBERT J. LAGOMARSINO
19TH DISTRICT, CALIFORNIA
COMMITTEE ON
FOREIGN AFFAIRS
2332 RAYBURN BUILDING
SUBCOMMITTEES:
WASHINGTON, DC 20515
WESTERN HEMISPHERE AFFAIRS
202-225-3601
Congress of the United States
VICE CHAIRMAN
CONFERENCE SECRETARY
ASIAN AND PACIFIC AFFAIRS
CONGRESSIONAL OBSERVER
house of Representatives
COMMITTEE ON
GENEVA ARMS CONTROL TALKS
INTERIOR AND INSULAR
Mashington. DC 20515
AFFAIRS
CONGRESSIONAL TASK FORCE ON
SUBCOMMITTEES
AFGHANISTAN-CO-CHAIRMAN
NSULAR AND INTERNATIONAL AFFAIRS
VICE CHRISMAN
POW/MIA TASK FORCE
CHAIRMAN
August 3, 1989
NATIONAL PARKS AND PUBLIC LANDS
VICE
The President
The White House
FUL
Washington, D. C. 20500
Dear Mr. President:
When we met at the White House in May and discussed Puerto
Rico statehood and the consideration of legislation before the
Congress to authorize a referendum, you asked what help was
needed. I responded with an ernest request for increased and
closer communication with the Administration. You then indicated
that your assistant for legislative affairs would work with me to
develop those links.
The following day, I called your assistant for legislative
affairs who stated he would initiate the closer communications by
first arranging a meeting with General Scowcroft of the National
Security Council. In spite of several follow-up contacts with
your legislative affairs office, I have received no further word
or response.
Frankly, Mr. President, I am perplexed and somewhat
exasperated. How can we develop a cooperative and beneficial
executive-legislative working relationship if your staff does not
follow-through with your directives?
literally millions on lobbyists in Washington to thwart the
Puerto Rico's Popular Democratic Administration is spending
statehood aspirations of the United States Citizens of Puerto
Rico and the platform objective of the Republican National Party.
A number of those firms include well-known Republican politicos.
I certainly hope that the inaction of your staff is not due to
the influence of these "hired guns" who are attempting to use
their presidential campaign connections for their personal
benefit and adversely to the people of Puerto Rico and the
Republican Party.
As the Chairman of the House Republican Task Force on Puerto
Rico and the Ranking House Republican responsible for Puerto Rico
referendum legislation, I consider this matter to be of
tremendous importance and take it very seriously. At stake are
the interests of the people of Puerto Rico, the Republican Party
SUITE 101
5740 RALSTON
STUDIO 121 EL PASEO
104 E. BOONE ST. #E
VENTURA. 93003
814 STATE STREET
SANTA MARIA, 93454
642-2200/856-4344
SANTA BARBARA, 93101
922-2131
963-1708
-2-
and our great country. I will not remain voiceless and let
others undermine and convolute the tremendous gains made to date
for self-determination for the people of Puerto Rico by providing
the opportunity for full participation by U.S. citizens in our
republican form of government.
I admire your sincere and adamant support for statehood for
the people of Puerto Rico. It is the right thing to do,
regardless of what the political hacks and paid doomsday
economists may say. A strong and clear working relationship with
your Administration will be particularly crucial as the House
begins to consider Puerto Rico's future this Fall.
Thank you in advance for your personal attention to this
very important matter.
With best wishes.
ROBERT LAGOMARSINO
Sincerely Bal yours,
Member Congress
THE WHITE HOUSE
WASHINGTON
September 27, 1989
MEMORANDUM FOR:
NICK CALIO
FROM:
HENRY PLASTER
SUBJECT:
Enclosed Lagomarsino Letter
Fred has had the enclosed letter in his office since August. He
recently sent it back to me and asked that I check with you all
to see "what, if anything, we need to do."
Do we need to do anything?
THE WHITE HOUSE
WASHINGTON
September 29, 1989
MEMORANDUM FOR GINNY LAMPLEY
SPECIAL ASSISTANT TO THE PRESIDENT FOR
NATIONAL SECURITY AFFAIRS
FROM:
NICHOLAS E. CALIO
DEPUTY ASSISTANT TO THE PRESIDENT FOR nec
LEGISLATIVE AFFAIRS
SUBJECT:
Lagomarsino and Puerto Rico
The attached material is self-explanatory. We discussed this way
back when in terms of setting up a meeting. Can we please do so
to quiet Lagomarsino (or, more accurately, his staff if I guess
correctly) down.
Let me know. Thanks.
CC: Fred McClure
Panto
pees
THE WHITE HOUSE
Office of the Press Secretary
For Immediate Release
October 10, 1989
The President today reduced the Commonwealth of Puerto Rico's
share of the cost of repairing hurricane-damaged public property
there by directing that the federal government increase its part
of the cost-shared program.
The change will save the Puerto Rican government millions of
dollars. The Federal Emergency Management Agency (FEMA), which
administers disaster relief, said it is unable to estimate the
savings to the Commonwealth because the total amount of damages
is not yet known.
The President approved a similar request earlier from South
Carolina Governor Carroll A. Campbell, Jr.
Under law, FEMA pays no less than 75 percent of the eligible
costs to repair roads, bridges, publicly-held utilities, parks
and certain private, non-profit facilities. The Commonwealth and
affected local governments normally share the remaining 25
percent.
Under the President's order, FEMA now will pay 75 percent of
those costs until the total reaches the equivalent of $10 per
capita. Beyond that, FEMA will pay 100 percent.
There are approximately 3.5 million residents of Puerto Rico.
That means that the federal government will pay 75 percent of all
eligible costs up to $35 million. All costs above that will be
paid by FEMA.
The President's action is in response to a request from the
Office of Governor Rafael Hernandez Colon. The request, received
by FEMA headquarters October 4, was endorsed by the agency,
officials said.
FEMA Contact: Bill McAda (202) 646-4600
###
Tuestques
6595
NATIONAL SECURITY COUNCIL
WASHINGTON, D.C. 20506
=>
Pacelli
September 7, 1989
MEMORANDUM FOR JAMES J. JUKES
FROM:
G. PHILIP HUGHES Philip
SUBJECT:
Comments on S. 712, a Bill Providing for a
Referendum on the Political Status of Puerto Rico
The NSC staff makes no comment on S. 712, as ordered reported on
August 12, 1989. Nevertheless, we request the opportunity to
concur on the comments and suggestions of the other U.S.
Government agencies which are to review the legislation.
CONFIDENTIAL
CONF IDENTIAL
6595
NATIONAL SECURITY COUNCIL
WASHINGTON, D.C. 20506
September 6, 1989
ACTION
MEMORANDUM FOR G. PHILIP HUGHES
THROUGH:
EVERETT ELLIS BRIGGS
FROM:
DAVID A. PACELLI
as
SUBJECT:
Comments on S. 712, a Bill Providing for a
Referendum on the Political Status of Puerto Rico
Attached at Tab II is a Legislative Referral Memorandum from OMB
asking for the comments of the NSC and other agencies on S. 712,
a bill which provides for a referendum on the political status in
Puerto Rico. This bill substitutes for the original version of
S. 712 which was seriously defective.
In July, when the various USG departments and agencies commented
on the original version, we reviewed the submissions of each
(with Steve Rademaker as the lead reviewer within the NSC).
Reviewing the entire bill--without benefit of seeing agency
comments--would be extremely time consuming. We therefore
propose to duplicate our earlier approach and review individual
agency comments. We will pay particular attention to the
observations of Justice, State, and Defense as they relate to
national security concerns.
As of August 31, OMB had not received comments from the other USG
agencies.
SR
Concurrence by: Steve Rademaker
RECOMMENDATION
That you sign the memorandum to Jukes at Tab I.
Attachments
Tab I
Hughes to Jukes Memorandum
Tab II
Bill S. 712 on Puerto Rico
CONF IDENTIAL
DECLASSIFIED
Declassify on: OADR
PER NSC WAIVER, #2021-02
CONFIDENTIAL
By MC NARA, Date 7/16/21
6595
TEXTHER OFFICE I
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
SENS
WASHINGTON. D.C. 20503
August 18, 1989
LEGISLATIVE REFERRAL MEMORANDUM
TO: Legislative Liaison Officer:
SEE ATTACHED DISTRIBUTION LIST
SUBJECT: S. 712 as ordered reported by the Senate Energy and
Natural Resources Committee, a bill providing for a
referendum on the political status of Puerto Rico.
The Office of Management and Budget requests the views of your
agency on the above subject before advising on its relationship
to the program of the President, in accordance with OMB Circular
A-19.
A response to this request for your views is needed no later than
Thursday, August 31, 1989.
Questions should be referred to Branden Blum (395-3454), the
legislative attorney in this office.
James J. Julies for
Assistant Director for
Legislative Reference
Enclosures
cc: B. Gray
B. Martin
P. DuSault
B. Damus
E. Rea
K. Schwartz
B. Howard
R. Cogswell
J. Merck
M. McGettigan
A. Schwartz
D. Kleinberg
K. Ryder
2
TO: Legislative Liaison Officer:
Department of Agriculture - Marvin Shapiro (382-1516)
Department of Commerce - Joyce Smith (377-4264)
Department of Defense - Samuel Brick (697-1305)
Department of Education - John Kristy (732-2670)
General Services Administration - Al Vicchiolla (523-3956)
Department of Health & Human Services - Frances White
(245-7760)
Department of Housing & Urban Development - Edward Murphy
(755-7093)
Department of the Interior - James Spagnole (343-6706)
Department of Justice - Jack Perkins (633-2113)
Department of Labor - Seth Zinman (523-8201)
National Security Council - G. Philip Hughes (456-2224)
Office of Personnel Management - Jim Woodruff (632-5524)
Department of State - Bronwyn Bachrach (647-4463)
Department of Transportation - Tom Herlihy (366-4687)
Department of the Treasury - Carole Toth (566-8523)
United States Postal Service - Fred Eggleston (268-2958)
U.S. Trade Representative - Josh Bolten (395-3150)
Veterans Affairs - Don Ivers (233-3832)
(Senate Energy + Natural Resources Conte.)
1
1
Amendment in the nature of a substitute to S. 712
2
as ordered reported, August 2, 1989.
3
4
5
6
Viz: Be it enacted by the Senate and House of Representatives of
7
the United States of America in Congress assembled, That-
8
(1) the United States of America recognizes the principle of
9
self-determination and other applicable principles of
10
international law with respect to Puerto Rico; and
11
(2) the United States is committed to a process of
12
consultation and negotiation with the people of Puerto Rico
13
leading to a referendum on the issue of political status to be
14
conducted in a fair and equitable manner.
15
SEC.2. This Act may be referred to as "The Puerto Rico Status
16
Referendum Act".
17
TITLE I
18
SEC. 101. REFERENDUM
19
(a) IN GENERAL. - An island-wide referendum shall be held in
20
Puerto Rico in which qualified voters of the Commonwealth of
21
Puerto Rico shall be presented a choice of three status options
22
for Puerto Rico. The options shall appear on the ballot as
23
follows:
24
(1) Statehood as set forth in Title II of the Puerto Rico
25
Status Referendum Act;
26
(2) Independence as set forth in Title III of the Puerto
2
1
Rico Status Referendum Act; and
2
(3) Commonwealth as set forth in Title IV of the Puerto Rico
3
Status Referendum Act.
4
(b) DATE OF REFERENDUM. -The first referendum shall occur on
5
June 4, 1991, or on a date during the summer of calendar year
6
1991 as may be mutually agreed by the three principal political
7
parties of Puerto Rico.
8
(c) RETURNS OF REFERENDUM. -The returns of the referendum
9
held under this Act shall be made to the Governor of Puerto Rico,
10
who shall cause them to be canvassed in the manner provided by
11
law for the canvass of votes cast in general elections for
12
federal office in the Commonwealth of Puerto Rico. If there is
13
not a majority in favor of one of the three options, then there
14
shall be, on August 6, 1991, or on a date during the summer of
15
calendar year 1991 as may be mutually agreed by the three
16
principal political parties, a runoff referendum between the two
17
status options which had received the largest number of votes.
18
Such referendum shall also include an option of "None of the
19
Above". The Governor shall certify to the President and to the
20
Congress of the United States that decision of the people of
21
Puerto Rico which received a majority of the votes cast, if a
22
majority is obtained.
23
(d) APPLICABLE ELECTION LAWS. -The election laws of the
24
Commonwealth of Puerto Rico for a general election for the
25
election of a federal officer, and as in effect on July 15, 1989,
26
shall apply to the referendum held under this Act, except as
3
1
otherwise specifically provided in this Act, and as necessarily
2
modified to recognize that it is a referendum on status options.
3
The Attorney General of the United States shall provide for
4
adequate monitoring of the referendum by United States Marshalls.
5
(e) JUDICIAL REVIEW: Any legal dispute or controversy
6
arising out of this referendum shall be adjudicated in accordance
7
with local laws and procedures, except that:
8
(1) Any aggrieved person (including, without limitation,
9
any political party), within 60 days after the certification
10
by the Governor of the results of the referendum pursuant to
11
Title I, Section 101 (c), may institute an action to
12
challenge the choice certified by the Governor on the basis
13
that (1) an electoral irregularity or irregularities had
14
occurred, and (2) that the irregularity or irregularities
15
were so significant as to affect the outcome of the
16
referendum and call into question the choice certified by
17
the Governor.
18
The three-judge court provided for in paragraph (2)
19
shall have exclusive jurisdiction of proceedings instituted
20
pursuant to this section and shall exercise the same without
21
regard to whether the aggrieved party shall have exhausted
22
any administrative or other remedies provided by federal law
23
or the law of Puerto Rico.
24
In any proceeding instituted pursuant to this paragraph
25
of this subsection, if the court finds that there has been
26
an electoral irregularity or irregularities so significant
4
1
as to affect the outcome of the referendum and call into
2
question the choice certified by the Governor, the court is
3
empowered to grant appropriate relief, including
4
nullification of the entire referendum, ordering a recount
5
or recounts, or any other relief deemed appropriate to
6
preserve the integrity of the electoral process.
7
The Attorney General of the United States is empowered
8
to intervene at the request of the court in any proceeding
9
brought under this section in order to assist in the
10
gathering and presentation of evidence. Any aggrieved
11
person with a federal constitutional or federal statutory
12
claim arising out of the same factual nexus as an action
13
brought under this section may intervene in that action in a
14
manner deemed timely by the court in its discretion.
15
Failure of such an aggrieved person to timely intervene will
16
result in foreclosure of that person's federal
17
constitutional or statutory claim.
18
The court may give such weight as it deems appropriate
19
to the determination of the Commonwealth Elections
20
Commission, the courts of the Commonwealth and any other
21
local authority or tribunal. The court is not required to
22
provide de novo review of any and all claims of
23
irregularities already determined by a local authority or
24
tribunal, except as it deems necessary.
25
(2) Any claim brought under the U.S. Constitution or a
26
federal statute, or any claim brought to challenge the
5
1
result certified by the Governor, whether brought under this
2
Act or under the law of the Commonwealth of Puerto Rico,
3
shall be heard by a three-judge court which shall have
4
exclusive jurisdiction over all such claims.
5
The court shall receive evidence and hear argument, as
6
it deems necessary. The provisions of 28 U.S.C. 2284 (b) (3)
7
shall apply to proceedings of the three-judge court. It
8
shall be the duty of the Chief Judge of the First Circuit
9
Court of Appeals, with proper authorization by the Chief
10
Justice of the United States under 28 U.S.C. 291 (a) where
11
necessary, to designate three judges, of whom at least one
12
shall be a circuit judge and the remaining judge or judges
13
shall be district court judges, to hear and determine any
14
such claim. No judge resident in Puerto Rico shall be
15
designated. Hearings of the three-judge court shall be
16
conducted in Puerto Rico. An appeal from a final judgment
17
of the three-judge court will lie to the Supreme Court of
18
the United States by way of certiorari.
19
(f) IMPLEMENTATION. The procedures for implementing the
20
status option which has been certified by the Governor pursuant
21
to subsection (c), shall go into effect on October 1, 1991 in
22
accordance with the appropriate title of this Act.
23
(g) REFERENDUM INFORMATION OFFICER. - The President shall
24
appoint, from a list provided by the three principal political
25
parties of Puerto Rico, a Referendum Information Officer to be
26
responsible for the translation and distribution of information
6
1
and educational materials on the referendum. If the President is
2
not satisfied with the qualifications of those persons on the
3
initial list, the political parties shall submit such additional
4
lists as may be necessary until an appointment is made. There
5
are authorized to be appropriated such sums as may be necessary
6
for the purposes of this subsection.
7
TITLE II--STATEHOOD
8
SEC.201. PROCLAMATION.
9
Should statehood be certified, under section 101 of this
10
Act, as having obtained a majority of the votes cast in the
11
referendum, and upon the certification of the election of the
12
officers required to be elected as provided in section 206 of
13
this Act, the President shall issue his proclamation announcing
14
the results of said election as so ascertained. Upon the
15
issuance of said proclamation, the Commonwealth of Puerto Rico
16
(hereinafter referred to also as "the State") shall be declared
17
to be a State of the United States of America, and shall be
18
declared admitted into the Union on an equal footing with the
19
other States.
20
SEC.202. CONSTITUTION.
21
The Constitution of the Commonwealth of Puerto Rico shall
22
always be republican in form and shall not be repugnant to the
23
Constitution of the United States and the principles of the
24
Declaration of Independence. The Constitution adopted by a vote
25
of the People of Puerto Rico in the election held on June 4,
26
1951, has been found by Congress to be republican in form and in
7
1
conformity with the Constitution of the United States and the
2
principles of the Declaration of Independence, and was accepted,
3
ratified, and confirmed, through Public Law 447 of the 82nd
4
Congress, March 3, 1952. The current Constitution of the
5
Commonwealth of Puerto Rico as ratified by the people at the
6
referendum held on June 4, 1951 is hereby accepted as the
7
Constitution of the State.
8
SEC.203. TERRITORY AND BOUNDARIES.
9
The State shall consist of all of the territory, together
10
with the waters included in the seaward boundary, of the
11
Commonwealth of Puerto Rico.
12
SEC.204. STATE TITLE TO LANDS AND PROPERTY.
13
(a) The State and its political subdivisions shall have and
14
retain title to all property, real and personal, which it
15
currently holds, including, but not limited to, title to
16
submerged lands heretofore granted to Puerto Rico.
17
(b) Any lands and other properties that, as of the date of
18
admission of Puerto Rico into the Union, are set aside pursuant
19
to law for the use of the United States under any (A) Act of
20
Congress, (B) Executive order, (C) proclamation of the President,
21
or (D) proclamation of the Governor of the Commonwealth of Puerto
22
Rico, shall remain the property of the United States.
23
(c) Not later than five years after the date of admission of
24
the Commonwealth of Puerto Rico as a State of the Union, each
25
Federal agency having control over any land or property that is
26
retained by the United States pursuant to this section shall
8
1
submit a report to the President and the Congress concerning the
2
continued need for such land or property. If the President
3
determines that any such land or property, or portion thereof, or
4
any interest therein, is no longer needed by the Federal
5
Government, it shall be conveyed to the Commonwealth of Puerto
6
Rico at no cost. This section does not authorize the transfer of
7
any interest in the Caribbean National Forest or the San Juan
8
Historic Site.
9
(d) All laws of the United States: 1) reserving to the
10
United States the free use or enjoyment of property which vest in
11
or is conveyed to the Commonwealth of Puerto Rico or its
12
political subdivisions pursuant to this section; or, 2) reserving
13
the right to alter, amend, or repeal laws relating to the
14
ownership of such land; shall cease to be effective upon the
15
conveyance of the land.
16
SEC.205. CLAIMS TO FEDERAL LANDS AND PROPERTY.
17
(a) As a compact with the United States, the Commonwealth
18
and its people recognize all rights and titles to any lands or
19
other property not granted or conferred to the Commonwealth or
20
its political subdivisions by or under the authority of this Act,
21
the right or title to which is now held by the United States or
22
subject to disposition by the United States.
23
(b) (1) Nothing contained in this Act shall recognize, deny,
24
enlarge, impair, or otherwise affect any claim against the United
25.
States, and any such claim shall be governed by applicable laws
26
of the United States.
9
1
(2) Nothing in this Act is intended or shall be construed as
2
a finding, interpretation, or construction by the Congress that
3
any applicable law authorizes, establishes, recognizes, or
4
confirms the validity or invalidity of any such claim, and the
5
determination of the applicability of any law to any such claim
6
shall be unaffected by anything in this Act.
7
(c) No taxes shall be imposed by the State upon any lands or
8
other property now owned or hereafter acquired by the United
9
States.
10
SEC.206. ELECTIONS AND ADMISSION REFERENDUM.
11
(a) (1) Within thirty days after the date of the
12
certification of the results of the referendum under Title I of
13
this Act, the Governor of the Commonwealth of Puerto Rico shall
14
issue a proclamation for the election of two United States
15
Senators and for such number of United States Representatives in
16
Congress as provided in this Act. The Governor of the
17
Commonwealth shall certify the election of the Senators and
18
Representatives in the manner required by law. The Senators and
19
Representatives elected shall be entitled, upon the proclamation
20
issued under Section 201, to be admitted to seats in Congress and
21
to all the rights and privileges of Senators and Representatives
22
of the other States in the Congress of the United States. The
23
Office of Resident Commissioner shall cease to exist upon the
24
swearing in of the first Member of the House of Representatives
25
so elected.
26
(2) In the first election of Senators from the State, the
10
1
two senatorial offices shall be separately identified and
2
designated, and no person may be a candidate for both offices.
3
No such identification or designation of either of the two
4
senatorial officers shall refer to or be taken to refer to the
5
terms of such offices, or in any way impair the privilege of the
6
Senate to determine the class to which each of the Senators
7
elected shall be assigned.
8
(b) (1) Election returns shall be made and certified in such
9
manner as provided by the electoral laws of Puerto Rico and in
10
such a manner as the Commonwealth of Puerto Rico may prescribe.
11
The Governor of the Commonwealth of Puerto Rico shall certify the
12
results of such elections to the President of the United States.
13
(2) The new State of Puerto Rico shall be known as The
14
Commonwealth of Puerto Rico.
15
(3) The individuals holding legislative, executive, and
16
judicial offices of the Commonwealth of Puerto Rico, shall
17
continue to discharge the duties of their respective offices,
18
pending the issuance of the proclamation by the President of the
19
United States and the admission of the Commonwealth of Puerto
20
Rico as a State of the Union. The officers elected or appointed
21
under the provisions of the constitution and laws of the
22
Commonwealth shall thereupon proceed to exercise all the
23
functions pertaining to their offices in, under, or by authority
24
of the government of the State, as provided by the constitution
25
and laws of the State.
26
SEC.207. CONGRESSIONAL REPRESENTATION.
11
1
The Commonwealth of Puerto Rico upon its admission into the
2
Union, and until the next reapportionment, shall be entitled to
3
such additional Representatives as would be provided based upon
4
the 1990 census. The permanent membership of the House of
5
Representatives as now prescribed by law, is hereby increased
6
from 435 to 435 plus the number of additional Representatives to
7
which the Commonwealth of Puerto Rico is entitled.
8
SEC.208. LAWS IN EFFECT.
9
(a) Upon admission of the Commonwealth of Puerto Rico into
10
the Union, all of the local laws then in force in the
11
Commonwealth of Puerto Rico shall be and continue in force and
12
effect throughout the State, except as modified or changed by
13
this Act, and shall be subject to repeal- or-amendment by the
14
legislature of the Commonwealth. All of the laws of the United
15
States shall have the same force and effect within the State as
16
on the date immediately prior to the date of admission of the
17
State of Puerto Rico, except as otherwise provided in section 213.
18
or elsewhere in this Act, and except for any provisions of law
19
which provide for grants or other assistance to States or other
20
units of local government or individuals and for which the
21
Commonwealth of Puerto Rico or residents thereof are either
22
excluded or whose eligibility is less than that provided on a
23
uniform basis to other States. Any regulatory or other provision
24
of law, other than grants and other assistance, which does not
25
apply to Puerto Rico solely on the basis of particular geography,
26
especially if such provision does not also apply to either Alaska
12
1
or Hawaii, shall continue to not apply unless specifically
2
extended by Congress.
3
(b) Within 60 days of the certification of a majority vote
4
for statehood in the referendum the President shall appoint a
5
Commission on Federal Laws to survey the laws of the United
6
States and to make recommendations to the United States Congress
7
as to which laws of the United States not applicable to the
8
Commonwealth of Puerto Rico should be made applicable and to what
9
extent and in what manner, and which applicable laws should be
10
made inapplicable and to what extent and in what manner. The
11
Commission will consist of seven persons (at least four of whom
12
will be residents of Puerto Rico who are and have been for at
13
least five years domiciled continuously in Puerto Rico at the
14
time of their appointments) who will be representative of the
15
federal, local, private and public interests in the applicability
16
of laws of the United States to the Commonwealth of Puerto Rico.
17
The Commission will make its final report by Jan. 1, 1994, and
18
before that time will make such interim reports and
19
recommendations to the Congress as it considers appropriate. In
20
formulating its recommendations the Commission will take into
21
consideration the potential effect of each law on local
22
conditions within the Commonwealth of Puerto Rico, the policies
23
embodied in the law and the provisions and purposes of this
24
Title. The United States will bear the cost of the work of the
25
Commission. There are hereby authorized to be appropriated such
26
sums as may be necessary for the purposes of this subsection.
13
1
SEC.209. CONTINUATION OF SUITS.
2
(a) No writ, action, indictment, cause, or proceeding
3
pending in any court of the Commonwealth of Puerto Rico, shall
4
abate by reason of the admission of the Commonwealth of Puerto
5
Rico into the Union, but shall proceed within such appropriate
6
State courts as are now established under the Constitution of the
7
Commonwealth, or shall continue in the United States District
8
Court for the District of Puerto Rico, as the nature of the case
9
may require.
10
(b) All civil causes of action and all criminal offenses,
11
which shall have arisen or been committed prior to the admission
12
of the Commonwealth, but as to which no writ, action, indictment,
13
or proceeding shall be pending at the date of such admission,
14
shall be subject to prosecution in the appropriate State courts
15
or in the United States District Court for the District of Puerto
16
Rico in like manner, to the same extent, and with like right of
17
appellate review, as if such State had been created and such
18
State courts had been established prior to the accrual of such
19
causes of action or the commission of such offenses. The
20
admission of the State shall effect no change in the procedural
21
or substantive laws governing causes of action and criminal
22
offenses which shall have arisen or been committed, and any such
23
criminal offenses as shall have been committed against the laws
24
of the Commonwealth of Puerto Rico, shall be tried and punished
25
by the appropriate courts of the State, and any such criminal
26
offenses as shall have been committed against the laws of the
14
1
United States shall be tried and punished in the United States
2
District Court for the District of Puerto Rico.
3
SEC.210. APPEALS.
4
Parties shall have the same rights of judicial review of
5
final decisions of the United States District Court for the
6
District of Puerto Rico or the Supreme Court of the Commonwealth
7
of Puerto Rico, in any case finally decided prior to the
8
admission of the State of Puerto Rico into the Union, whether or
9
not an appeal therefrom shall have been perfected prior to such
10
admission. The United States Court of Appeals for the First
11
Circuit and the Supreme Court of the United States, shall have
12
the same jurisdiction in such cases as by law provided prior to
13
the admission of the State into the Union. Any mandate issued
14
subsequent to the admission of the State, shall be to the United
15
States District Court for the District of Puerto Rico or a court
16
of the State, as appropriate. Parties shall have the same rights
17
of appeal from and appellate review of all orders, judgments, and
18
decrees of the United States District Court for the District of
19
Puerto Rico and of the Supreme Court of Puerto Rico, in any case
20
pending at the time of admission of the State into the Union, and
21
the Supreme Court of the Commonwealth of Puerto Rico and the
22
Supreme Court of the United States shall have the same
23
jurisdiction therein, as by law provided in any case arising
24
subsequent to the admission of the State into the Union.
25
SEC.211. MILITARY LANDS.
26
(a) Subject to subsection (b) and notwithstanding the
15
1
admission of the Commonwealth of Puerto Rico into the Union,
2
authority is reserved in the United States for the exercise by
3
the Congress of the United States of the power of exclusive
4
legislation, as provided by article I, section 8, clause 17, of
5
the Constitution of the United States, in all cases whatsoever
6
over such tracts or parcels of land as, immediately prior to the
7
admission of the State, are controlled or owned by the United
8
States and held for defense or Coast Guard purposes.
9
(b) (1) The Commonwealth of Puerto Rico shall always have the
10
right to serve civil or criminal process within such tracts or
11
parcels of land in suits or prosecutions for or on account of
12
rights acquired, obligations incurred, or crimes committed within
13
the State but outside of such tracts or parcels of land.
14
(2) The reservation of authority in the United States for
15
the exercise by the Congress of the United States of the power of
16
exclusive legislation over such lands shall not operate to
17
prevent such lands from being a part of the Commonwealth of
18
Puerto Rico, or to prevent the State from exercising over or upon
19
such lands, concurrently with the Federal Government, any
20
jurisdiction which it would have in the absence of such
21
reservation of authority and which is consistent with the laws
22
hereafter enacted by the Congress pursuant to such reservation or
23
authority.
24
(3) The power of exclusive legislation shall vest and remain
25
in the United States only so long as the particular tract or
26
parcel of land involved is controlled or owned by the United
16
1
States and used for defense or Coast Guard purposes, except that
2
the United States shall continue to have sole and exclusive
3
jurisdiction over such military installations as have been or may
4
be determined to be critical areas as designated by the President
5
of the United States or the Secretary of Defense.
6
SEC.212. UNITED STATES NATIONALITY.
7
No provision of this Act shall operate to confer United
8
States nationality, to terminate nationality lawfully acquired,
9
or to restore nationality terminated or lost under any law of the
10
United States or under any treaty to which the United States is
11
or was a party.
12
SEC.213. ECONOMIC ADJUSTMENT
13
The following provisions are enacted pursuant to Congress's
14
power to admit new states, in recognition of the unique federal
15
tax provisions and programs affecting the Commonwealth of Puerto
16
Rico which differ from those which applied to any other newly-
17
admitted state, and solely for the purposes of effecting a smooth
18
and fair transition for the new State with a minimum of economic
19
dislocation and to permit federal agencies to assume or expand
20
responsibilities for the administration and enforcement of
21
federal taxes and programs affecting the citizens residing in the
22
new State.
23
(a) APPLICATION OF EXCISE TAXES. -- Effective on the date of
24
admission of the State of Puerto Rico, all federal excise taxes
25
not heretofore applicable to the former Commonwealth of Puerto
26
Rico are hereby extended to the State in the same manner as
17
1
otherwise applicable in the several States.
2
(b) APPLICATION OF FEDERAL LAWS. -- Effective upon the
3
certification of the results of the referendum, the heads of all
4
federal agencies are directed, as a priority matter, to examine
5
the application of all programs within the jurisdiction of their
6
respective agencies and, after consultation with the Governor of
7
Puerto Rico, to recommend to the President, and to the commission
8
established under section 208 (b), what changes, if any, and what
9
additional administrative requirements, if any, will be needed to
10
properly achieve the application of federal laws in or to the new
11
State with proper regard for the economic, geographic, and
12
cultural circumstances of the new State.
13
(c) TRANSITION FOR CERTAIN ENTITLEMENTS. -- Except as
14
otherwise provided in this subsection, effective on the date of
15
Admission of the State of Puerto Rico, all federal programs which
16
provide assistance to or on behalf of individuals, including, but
17
not limited to, Aid to Families with Dependent Children,
18
Medicaid, Medicare, Foster Care and Adoption Assistance, Social
19
Services block grant, and the Food Stamp Program, shall apply in
20
the Commonwealth of Puerto Rico as they apply within the several
21
States: Provided, That, reimbursements under Medicare shall not
22
exceed the actual cost of providing equivalent health care to the
23
levels of care provided in the several contiguous States; and
24
Provided, further, That the Secretary of Agriculture may, with
25
the consent and agreement of the Governor of Puerto Rico continue
26
to obligate the amount of funds for which Puerto Rico becomes
18
1
eligible under the Food Stamp program as a block grant rather
2
than as coupons as a pilot program until October 1, 1997 unless
3
otherwise provided by Congress. Solely for the purposes of
4
transition and as a matter of administrative necessity, to enable
5
the Secretary of Health and Human Services to properly administer
6
and provide benefits under the Supplemental Security Income
7
program, such program shall not commence until January 1, 1994.
8
Until such date, the present program for Aid to the Aged, Blind
9
and Disabled is continued.
10
(d) TRANSITION FOR TAX. -- The current tax treatment
11
applicable to Puerto Rico is continued until January 1, 1994.
12
Effective upon the certification of the results of the
13
referendum, the Secretary of the Treasury shall consult with the
14
Governor of Puerto Rico on the transition of the new State from a
15
foreign tax jurisdiction. The Secretary is authorized, on a
16
nonreimbursable basis, to provide such technical and other
17
assistance as the Governor may require to reform the present
18
revenue situation of Puerto Rico prior to January 1, 1994. The
19
heads of all federal agencies are directed to assist the
20
Secretary and to provide such support as the Secretary may
21
request. Effective January 1, 1994, the federal internal revenue
22
laws shall apply within the State of Puerto Rico as within the
23
several States subject to such transitional rules or other
24
provisions as Congress may have enacted prior to such date:
25
Provided, That, the credit previously allowed under section 936
26
of the Internal Revenue Code with respect to income or
19
1
investments from activity in Puerto Rico shall be reduced to 80%
2
for taxable years beginning in 1994, 60% for taxable years
3
beginning in 1995, 40% for taxable years beginning in 1996, 20%
4
for taxable years beginning in 1997, and shall not be available
5
with respect to such income or investments thereafter. Congress
6
explicitly reserves authority to enact appropriate transitional
7
rules regarding the implementation of the above credit reductions
8
and the tax treatment of corporations with respect to which an
9
election under Internal Revenue Code section 936 is in effect
10
during the transition period, and the Secretary of the Treasury
11
is authorized to promulgate and implement such regulations as are
12
necessary therefore.
13
(e) STATEHOOD GRANTS AND ASSISTANCE. --
14
(1) The current payment provided by permanent
15
indefinite appropriations of customs duties and equivalency
16
payments on alcohol are hereby continued as a Statehood
17
grant;
18
(2) Until otherwise provided by law, an amount equal to
19
all revenues derived from excise taxes which became
20
applicable in the State pursuant to subsection (a) of this
21
section, or any new excise taxes which become applicable
22
thereafter, shall be deposited into the Treasury of Puerto
23
Rico. As a Compact with the State of Puerto Rico, no
24
alteration in the transfer of funds under this paragraph and
25
paragraph (1) above may be made until after October 1, 1998.
26
The prohibition under section 7652 (d) (2) of the Internal
20
1
Revenue Code shall apply to such funds.
2
(3) As a transitional Statehood grant to the new State
3
to assist in maintenance of government services and to
4
provide for maintenance of infrastructure, and to minimize
5
the impact on local revenues from the transition from being
6
a foreign tax jurisdiction, an amount equal to all revenues
7
derived from the application of the federal internal revenue
8
laws in 1994 and 1995 within the State of Puerto Rico shall
9
be deposited into the Treasury of Puerto Rico. The measure
10
of the amount of income which is so derived will be
11
determined according to such transitional rules or other
12
provisions as Congress may have enacted prior to January 1,
13
1994.
14
TITLE III - INDEPENDENCE
15
SEC.301.CONSTITUTIONAL CONVENTION
16
(a) Should independence be certified, under section 101 of
17
this Act, as having obtained a majority of the votes cast in the
18
referendum, then the Legislative Assembly of the Commonwealth of
19
Puerto Rico shall provide, within 2 months, for the election of
20
delegates to a Constitutional Convention to serve until the
21
proclamation of independence and to draft a Constitution for the
22
Republic of Puerto Rico. The election of delegates must be held
23
within six months after such referendum.
24
(b) Those qualified to vote in the election of delegates to
25
the Constitutional Convention shall be: (1) all persons born and
26
residing in Puerto Rico; (2) all pèrsons residing in Puerto Rico
21
1
and one of whose parents was born in Puerto Rico; (3) all persons
2
who at the time of the adoption of this Act shall have resided in
3
Puerto Rico for a period of twenty years or more; (4) all persons
4
who established their residence in Puerto Rico prior to attaining
5
voting age and still reside in Puerto Rico; and (5) spouses of
6
all persons included in (1), (2), (3), and (4) above.
7
(c) The laws of the Commonwealth of Puerto Rico relating to
8
additional voter qualifications and the electoral process shall
9
apply to this election.
10
(d) The Constitutional Convention shall meet within three
11
months of the election of delegates at such time and place as the
12
Legislative Assembly of the Commonwealth of Puerto Rico shall
13
determine.
14
(e) The Constitutional Convention shall exercise
15
jurisdiction over all of the territory of. Puerto Rico ceded to
16
the United States by Spain by virtue of the Treaty of Paris the
17
10th day of December 1898.
18
SEC. 302. CHARACTER OF THE CONSTITUTION.
19
(a) The Constitutional Convention mandated under the
20
previous section shall formulate and draft a Constitution
21
establishing a republican form of government which shall
22
guarantee the protection of fundamental human rights.
23
(b) The fundamental human rights guaranteed by the
24
aforementioned Constitution shall include such rights as due
25
process and equal protection under the law, freedom of speech,
26
press, assembly, association, and religion, as well as the rights
22
1
of the accused, and economic, social, and cultural rights such as
2
the right to education, adequate nutrition, health services,
3
adequate housing, and work or employment and the right to own
4
private property and to just compensation for the taking thereof.
5
(c) The property rights of the United States and Puerto Rico
6
shall be promptly adjusted and settled, and all existing property
7
rights of citizens or corporations of the United States shall be
8
acknowledged, respected, and safeguarded to the same extent as
9
property rights of citizens of Puerto Rico.
10
SEC.303. RATIFICATION OF THE CONSTITUTION.
11
(a) The Constitution adopted by the Constitutional
12
Convention shall be submitted to the people of Puerto Rico for
13
its ratification or rejection.
14
(b) The Legislative Assembly of the Commonwealth of Puerto
15
Rico shall call for a special election for such ratification or
16
rejection, to be held within three months of the adoption of the
17
Constitution by the Constitutional Convention.
18
(c) The special election providing all qualified voters the
19
opportunity to cast a vote for or against the proposed
20
Constitution shall be held in the manner prescribed by the
21
Legislative Assembly of the Commonwealth of Puerto Rico. In the
22
event such constitution is not approved in the election, it shall
23
be resubmitted to the convention for further consideration and
24
resubmission to the voters as provided in this section.
25
(d) Those qualified to vote in this election shall be those
26
possessing the qualifications established in section 301 of this
23
1
title.
2
SEC. 304. ELECTION OF OFFICERS OF THE REPUBLIC.
3
(a) Within thirty days of the ratification of the
4
Constitution as provided for by section 303 of this title, the
5
Governor of the Commonwealth of Puerto Rico shall issue a
6
proclamation calling for the election of such officers of the
7
Republic of Puerto Rico as may be required by the ratified
8
Constitution.
9
(b) The election of officers of the Republic shall be held
10
not later than six months after the date of ratification of the
11
Constitution.
12
(c) The aforesaid election shall be held in accordance with
13
the procedures and requirements established in the Constitution
14
of the Republic of Puerto Rico.
15
(d) The Governor of the Commonwealth of Puerto Rico shall
16
certify the results of the election to the President of the
17
United States.
18
SEC.305. JOINT TRANSITION COMMISSION.
19
(a) A Joint Transition Commission shall be appointed in
20
equal numbers by the President of the United States and the
21
Presiding Officer of the Constitutional Convention of Puerto
22
Rico.
23
(b) The Joint Transition Commission shall be responsible for
24
expediting the orderly transfer of all functions currently
25
exercised by the Government of the United States in Puerto Rico,
26
or in relation to Puerto Rico; including the recommendation of
24
1
appropriate legislation to the appropriate officials of each
2
government.
3
(c) Any necessary task forces established by the Joint
4
Transition Commission shall be constituted in the same manner as
5
the Commission.
6
(d) The Government of the Commonwealth of Puerto Rico and
7
the agencies of the Government of the United States shall
8
cooperate with the Joint Transition Commission and subsequently
9
with the new officers of the Republic of Puerto Rico, to provide
10
for the orderly transfer of the functions of government.
11
(e) The costs of the Transition Commission shall be evenly
12
divided between the United States and Puerto Rico, and there is
13
hereby authorized to be appropriated such sums as are necessary
14
for the United States' share of these costs. Agencies of the
15
United States Government shall provide technical assistance to
16
the Joint Transition Commission on a reimbursable basis.
17
SEC.306. RESOLUTION OF CONTROVERSIES PRIOR TO INDEPENDENCE.
18
(a) Except as provided in Title I of this Act and beginning
19
on the date of the certification provided for in title I of this
20
Act, and until the date of proclamation of independence, any
21
action arising from this Title filed in courts of the United
22
States shall be stayed and referred to the Joint Transition
23
Commission for resolution within a reasonable period of time.
24
SEC.307. PROCLAMATIONS BY THE PRESIDENT OF THE UNITED STATES AND
25
THE HEAD OF STATE OF THE REPUBLIC OF PUERTO RICO.
26
(a) Not later than one month after the official
25
1
certification of the elected officers of the Republic of Puerto
2
Rico under section 304, and the approval, in accordance with the
3
constitutional processes of Puerto Rico and the United States, of
4
the agreements set forth in sections 312 and 313, the President
5
of the United States shall by proclamation withdraw and surrender
6
all rights of possession, supervision, jurisdiction, control or
7
sovereignty then existing and exercised by the United States over
8
the territory and people of Puerto Rico, and shall furthermore
9
recognize on behalf of the United States of America the
10
independence of the Republic of Puerto Rico and the authority of
11
the government instituted by the people of Puerto Rico under the
12
Constitution of their own adoption. The proclamation shall state
13
that the effective date of withdrawal of the sovereignty of the
14
United States and the recognition of independence shall be the
15
same as the date of the proclamation of independence, 23 provided
16
in subsection (d)
17
(b) The President of the United States shall forward a copy
18
of the proclamation issued by him to the presiding officer of the
19
Constitutional Convention of Puerto Rico within a week after
20
signature.
21
(c) Within one week after receiving the presidential
22
proclamation and with the advice of the officer elected as head
23
of state of the Republic, the presiding officer of the
24
Constitutional Convention shall determine the date in which the
25
Government of the Republic shall take office, and shall so notify
26
the Governor of the Commonwealth of Puerto Rico and the President
26
1
of the United States.
2
(d) Upon taking office, the head of state of the Republic of
3
Puerto Rico shall immediately issue a proclamation declaring: (1)
4
that Puerto Rico has become a sovereign, independent nation; (2)
5
that the Constitution of the Republic is thenceforth in effect;
6
(3) that the Commonwealth of Puerto Rico and its Government have
7
ceased to exist; and (4) that the Government of the Republic will
8
henceforth exercise its powers and duties under its Constitution.
9
SEC.308. EFFECTS OF THE PROCLAMATION OF INDEPENDENCE ON LEGAL AND
10
CONSTITUTIONAL PROVISIONS.
11
(a) Upon the proclamation of independence as provided in
12
Section 307, and except as otherwise provided in this title or in
13
any separate agreements hereinafterwards concluded between the
14
United States and the Republic of Puerto Rico -
15
(1) all property, rights and interests which the United
16
States may have acquired over Puerto Rico by virtue of the
17
Treaty of Paris of 1898, and thereafter by cession,
18
purchase, or eminent domain, with the exception of such land
19
and other property, rights, or interests as may have been
20
sold or otherwise legally disposed of prior to the enactment
21
of this Act, shall vest in the Republic of Puerto Rico;
22
(2) all laws of the United States applicable to the
23
Commonwealth of Puerto Rico immediately prior to the
24
proclamation of independence shall no longer apply in the
25
Republic of Puerto Rico; and
26
(3) all laws and regulations of the Commonwealth of
27
1
Puerto Rico in force immediately before the proclamation of
2
independence shall continue in force and shall be read with
3
such modifications, adaptions, qualifications and exceptions
4
as may be necessary to bring them into conformity with the
5
Constitution of the Republic of Puerto Rico until such time
6
as they shall be replaced with new legislation: Provided,
7
That any provisions that may be incompatible with the
8
sovereignty of the Republic of Puerto Rico shall be deemed
9
invalid.
10
SEC.309. EFFECTS OF THE PROCLAMATION OF INDEPENDENCE ON JUDICIAL
11
PRONOUNCEMENTS.
12
Unless otherwise agreed by the governments of the United
13
States and Puerto Rico in accordance with their respective
14
constitutional processes:
15
(a) The Republic of Puerto Rico shall recognize and give
16
effect to all orders and judgments rendered by United States or
17
Commonwealth courts prior to the proclamation of independence
18
pursuant to the laws of the United States then applicable to the
19
Commonwealth of Puerto Rico.
20
(b) All judicial proceedings pending in the courts of the
21
Commonwealth of Puerto Rico prior to the proclamation of
22
independence shall be continued in the corresponding courts under
23
the Constitution of the Republic of Puerto Rico.
24
(c) Upon the proclamation of independence, the judicial
25
power of the United States shall no longer extend to Puerto Rico.
26
All proceedings pending in the United States District Court for
28
1
the District of Puerto Rico shall be transferred to the
2
corresponding Puerto Rican courts of competence under the
3
Constitution of the Republic of Puerto Rico for disposition in
4
conformity with laws applicable at the time when the controversy
5
in process arose. All proceedings pending in the United States
6
Court of Appeals for the First Circuit, or in the Supreme Court
7
of the United States, which may have initiated in the courts of
8
the Commonwealth or in the United States District Court for the
9
District of Puerto Rico shall continue until their final
10
disposition and shall be submitted to the competent authority of
11
the Republic of Puerto Rico for proper execution: Provided, That
12
neither the United States nor any of its officers is a party, in
13
which case any final judgment shall be properly executed by the
14
competent authority of the United States.
15
Sec. 310. STATE SUCCESSION.
16
(a) The Government of the Republic of Puerto Rico shall be
17
deemed successor to the Government of the Commonwealth of Puerto
18
Rico and of all the rights and obligations thereof.
19
(b) Upon proclamation of independence the President of the
20
United States shall notify the governments with which the United
21
States is in diplomatic correspondence, to the United Nations
22
Organization, and to the Organization of American States, that:
23
(1) the United States has recognized the independence of the
24
Republic of Puerto Rico; and
25
(2) all obligations and responsibilities of the Government
26
of the United States which arise from any valid bilateral or
29
1
multilateral international instruments affecting Puerto Rico,
2
insofar as said instruments may be held to have consequences for
3
the United States because of their application to or in respect
4
to Puerto Rico, shall cease; Provided, That such obligations and
5
responsibilities may be assumed by the Government of the Republic
6
of Puerto Rico in a manner to be determined and proclaimed by the
7
appropriate officer of the Republic of Puerto Rico in accordance
8
with its Constitution.
9
SEC. 311. CITIZENSHIP AND MIGRATION.
10
(a) All matters pertaining to Puerto Rican citizenship shall be
11
regulated pursuant to the Constitution and laws of the
12
Republic of Puerto Rico.
13
(b)
Upon the certification of the referendum under section
14
101 (c) of this Act, Puerto Rico shall no longer be deemed to
15
be it part of the United States for the purposes of acquiring
16
citizenship of the United States by place of birth.
17
Provisions of the Jones Act and Immigration and Nationality
18
Act declaring Puerto Rico to be a part of the United States
19
for the purpose of extending citizenship to persons born in
20
Puerto Rico are repealed or modified, as appropriate, to
21
delete any reference to Puerto Rico and Puerto Rico shall
22
not be considered to be a part of the United States for such
23
purposes: Provided, That nothing in this section shall
24
affect the citizenship of any person born prior to the date
25
of the certification of the referendum.
26
(c)
Notwithstanding any other provision of law, no person born
30
1
outside of the United States after the Proclamation of
2
Independence shall be a citizen of the United States at
3
birth if the parents of such person acquired citizenship in
4
the United States solely by virtue of being born in Puerto
5
Rico prior to the Proclamation of Independence pursuant to
6
the provisions of the Jones Act and the Immigration and
7
Nationality Act.
8
(d)
Every person who is not a citizen of the United States and
9
becomes a citizen of the Republic of Puerto Rico upon
10
proclamation of Independence, or becomes a citizen of the
11
Republic by birth after the proclamation of Independence, or
12
is a naturalized citizen of the Republic who has been an
13
actual resident of Puerto Rico for not less than five years,
14
may, after proclamation of Independence, enter into,
15
lawfully engage in occupations, and establish residence as
16
immigrants in the United States, as provided by law and
17
regulations of the United States: Provided, That,
18
notwithstanding any other provision of law, persons
19
identified under subsection (c) above may, for a period of
20
25 years after such proclamation, enter into, lawfully
21
engage in occupations, and establish residence as a
22
nonimmigrant in the United States and its territories and
23
possessions, and such persons shall be considered to have
24
the permission of the Attorney General of the United States
25
to accept employment in the United States: Provided, further
26
That, this subsection does not confer on such citizens of
31
1
Puerto Rico the right to establish the residence necessary
2
for naturalization under the Immigration and Nationality
3
Act, or to petition for benefits for alien relatives under
4
that Act. This subsection, however, shall not prevent a
5
citizen of Puerto Rico from otherwise acquiring such rights
6
or lawful permanent resident alien status in the United
7
States.
8
SEC. 312. DEFENSE.
9
(a) Specific arrangements for the use of military areas by
10
the United States in Puerto Rico, and to meet United States
11
defense interests, shall be negotiated by a task force
12
established by the Joint Transition Commission, and approved in
13
accordance with the constitutional processes of the United States
14
and Puerto Rico, and shall come into effect simultaneously with
15
the proclamation of independence. These specific arrangements
16
shall include:
17
(1) Detailed operating rights and status of forces
18
agreements executed by the Government of Puerto Rico
19
and the Government of the United States of America
20
providing for continued use and unrestricted access, by
21
the Government of the United States, to military
22
installations and facilities, and Coast Guard
23
facilities, to the same extent, and in the same manner,
24
of use and access as existed during the period of time
25
prior to the referendum provided for in section 101 of
26
this Act.
32
1
(2) An agreement by the Government of Puerto Rico to deny
2
to third countries any access to or use of the
3
territory of Puerto Rico for military purposes, except
4
as specifically authorized by the Government of the
5
United States; and
6
(3) An agreement by the Government of Puerto Rico that the
7
foregoing conditions will remain in full force and
8
effect until terminated or otherwise amended by mutual
9
consent of the Governments of Puerto Rico and of the
10
United States: Provided, That, either party may at any
11
time request the initiation of renegotiations of such
12
conditions.
13
(b) Mutual consent by the United States to any alteration,
14
modification, amendment, limitation, termination, or other change
15
in the agreement referred to in paragraph (2) shall occur only
16
pursuant to a specific Act of Congress.
17
SEC. 313. FEDERAL PROGRAMS
18
The following provisions of this Title are enacted in
19
recognition of the unique relationship between the United States
20
and Puerto Rico, to affect a smooth and fair transition for the
21
new Republic of Puerto Rico with a minimum of economic
22
disruption, and to promote the development of a viable economy in
23
the new Republic of Puerto Rico.
24
(a) All federal programs shall continue to apply in Puerto
25
Rico until the end of the fiscal year in which independence is
26
proclaimed, at which time, a grant shall be paid to the Republic
33
1
of Puerto Rico pursuant to subsection (3)
2
(b) Specific arrangements for the continuation or phase-out
3
of federal programs shall be negotiated by a Task Force on
4
Economic Assistance established by the Joint Transition
5
Commission and approved in accordance with the constitutional
6
processes of Puerto Rico and the United States, and shall come
7
into effect simultaneously with the proclamation of independence.
8
In general, the specific arrangements shall provide that:
9
(1) All federal pension programs, such as veterans and
10
civil service benefits, shall continue as provided by
11
United States law;
12
(2) Prior to the end of the fiscal year in which
13
independence is proclaimed, an estimate will be
14
determined by the Comptroller General of the United
15
States of the total amount of grants, programs and
16
services, including Medicare, provided by the Federal
17
Government in Puerto Rico in such fiscal year, except
18
for those grants, programs and services which will
19
otherwise continue under this Act;
20
(3) A grant equal to the amount established under paragraph
21
(2) shall be paid annually to the Republic of Puerto
22
Rico beginning in the fiscal year following the year in
23
which independence is proclaimed, through the ninth
24
year following the certification of the referendum;
25
(4) The United States will fulfill any contractual
26
obligations outstanding at the time of the proclamation
34
1
of independence; and
2
(5) Puerto Rico may request that the United States renew or
3
continue any existing contractual obligations, provided
4
that Puerto Rico agrees that the cost of such renewal
5
or continuation shall be deducted from the annual grant
6
made under paragraph (3).
7
(c) There are authorized to be appropriated such sums as
8
may be necessary to fulfill the purposes of this section.
9
SEC. 314. SOCIAL SECURITY.
10
(a). The Joint Transition Commission established under
11
section 305 of this Act shall establish a Task Force on Social
12
Security to protect the rights of workers who have permanently
13
insured status under the Old Age, Survivors and Disability
14
Insurance programs under Title II of the Social Security Act, as
15
of 5 years subsequent to the certification of the referendum, and
16
to negotiate agreements necessary for the coordination of the
17
Social Security System of the United States with a similar system
18
to be established in the new Republic of Puerto Rico. Any such
19
agreement shall be approved in accordance with the constitutional
20
processes of Puerto Rico and the United States.
21
(b) In order to provide adequate time for the negotiation
22
and implementation of the agreements provided for in (a), the
23
current provisions of the Old Age, Survivors, and Disability
24
Insurance programs under Title II of the Social Security Act
25
shall apply for 5 years subsequent to the certification of the
26
referendum under section 101 of this Act.
35
1
SEC. 315. MEDICARE.
2
The Joint Transition Commission established under section
3
305 of this Act shall establish a Task Force on Medicare to
4
negotiate agreements necessary for the coordination of the
5
Medicare system of the United States with a similar system to be
6
established in the new Republic of Puerto Rico. Any such.
7
agreement shall be approved in accordance with the constitutional
8
processes of Puerto Rico and the United States.
9
SEC. 316. TRADE RELATIONS.
10
(a) Until the proclamation of independence trade relations
11
between Puerto Rico and the United States shall be as currently
12
provided by law.
13
(b) The Joint Transition Commission shall establish a Task
14
Force on Trade to consider and develop specific provisions
15
governing trade between the United States and Puerto Rico
16
following the Proclamation of Independence. Congress expresses
17
its willingness to consider a mutual free trade arrangement if
18
negotiated. In the absence of any such agreement, Puerto Rico
19
shall be afforded most favored nation status and, provided that
20
Puerto Rico meets all criteria and requirements under the
21
Caribbean Basin Economic Recovery Act, designation as a
22
beneficiary country under the Caribbean Basin Initiative.
23
(c) In order to assist Puerto Rico subsequent to the
24
Proclamation of Independence, the President is encouraged to seek
25
to obtain favorable tariff treatment for exports from Puerto Rico
26
from other nations and to encourage other countries to designate
36
1
Puerto Rico as a beneficiary under their respective General
2
Systems of Trade Preferences.
3
SEC. 317. TAXATION.
4
(a) Effective on the date of proclamation of independence,
5
the tax credit allowed under section 936 of the United States
6
Internal Revenue Code shall not be available with respect to
7
income or investments from activity in Puerto Rico.
8
(b) The Joint Commission established under section 305 of
9
this Act shall establish a Task Force on Taxation to negotiate
10
appropriate Tax Treaties to govern relations between the United
11
States and Puerto Rico. Such agreements shall be approved by the
12
government of Puerto Rico and the United States in accordance
13
with their respective constitutional processes.
14
SEC. 318. CURRENCY AND FINANCE.
15
(a) The Joint Transition Commission established under
16
section 305 shall establish a Task Force on Currency and Finance
17
to negotiate an agreement to assist the Republic of Puerto Rico
18
in the design and establishment of a deposit insurance system, to
19
determine the extent of financial support to be provided for the
20
system by United States insurance organizations in which Puerto
21
Rico's financial institutions currently participate, and to make
22
the necessary arrangements with respect to the use of United
23
States currency by the Republic of Puerto Rico if so requested by
24
the Republic. Any such agreement shall be approved in accordance
25
with the constitutional processes of Puerto Rico and the United
26
States.
37
1
(b) The guarantees provided by the Government of the United
2
States to investors in the secondary market for existing loans,
3
particularly mortgage loans guaranteed by the Government National
4
Mortgage Association (G.N.M.A.), the Federal National Mortgage
5
Association (F.N.M.A.), the Federal Home Loan Mortgage
6
Corporation (F.H.L.M.) and other United States Government
7
instrumentalities, shall be maintained for Puerto Rico-originated
8
loans existing on the date of the proclamation until maturity.
9
SEC. 319. PUBLIC DEBT.
10
The debts, liabilities, and obligations of the Commonwealth
11
of Puerto Rico, its municipalities and instrumentalities, valid
12
and outstanding upon the date of the proclamation of
13
independence, shall be assumed by the Republic of Puerto Rico.
14
The tax treatment of any such obligations shall be unaffected by
15
the proclamation of independence to the extent that similar
16
obligations issued by states are so treated.
17
TITLE IV - COMMONWEALTH
18
SEC. 401. Should Commonwealth be certified, under section 101 of
19
this Act, as having obtained a majority of the votes cast in the
20
referendum, the provisions of this Title shall go into effect on
21
October 1, 1991.
22
SEC. 402. PRINCIPLES OF COMMONWEALTH.
23
(a) The Commonwealth of Puerto Rico is a self-governing body
24
politic joined in political relationship with the United States
25
and under the sovereignty of the United States. This
26
relationship is permanent unless revoked by mutual consent.
27
(b) The policy of the United States shall be to enhance the
38
1
Commonwealth relationship enjoyed by the Commonwealth of Puerto
2
Rico and the United States to enable the people of Puerto Rico to
3
accelerate their economic and social development, to attain
4
maximum cultural autonomy, and in matters of government to take
5
into account local conditions in Puerto Rico.
6
SEC. 403. APPLICATION OF FEDERAL LAW
7
(a) Notwithstanding any other provision of law, the Governor of
8
the Commonwealth of Puerto Rico may certify from time to time to
9
the Speaker of the House of Representatives and the President of
10
the Senate, that the Legislature of the Commonwealth of Puerto
11
Rico has adopted a resolution that states that a federal law or
12
provision thereof should no longer apply to the Commonwealth of
13
Puerto Rico because there is no overriding national interest in
14
having such federal law be applicable in the Commonwealth of
15
Puerto Rico and such applicability does not serve the interests
16
of the people of the Commonwealth of Puerto Rico. A federal law
17
or laws or provision thereof so certified shall no longer apply
18
to the Commonwealth of Puerto Rico if a joint resolution
19
approving the recommendation of the Government of the
20
Commonwealth of Puerto Rico is enacted.
21
(b) Expedited Congressional Review.
22
(1) Congressional Rulemaking. This subsection is
23
enacted by Congress as an exercise of the rulemaking power
24
of the Senate and the House of Representatives,
25
respectively, and as such it is deemed a part of the rules
26
of each House, respectively, but is applicable only with
39
1
respect to the procedure to be followed in this subsection;
2
and it supersedes other rules only to the extent that it is
3
inconsistent therewith.
4
(2) Resolution. For purposes of this subpart, the term
5
"resolution" means only a joint resolution, the matter after
6
the resolving clause of which is as follows: "That the
7
House of Representatives and the Senate approve the
8
recommendation of the Government of the Commonwealth of
9
Puerto Rico in the certification submitted to the Congress
10
on
, 19 . " Such resolution shall also include
11
the certification received from the Governor of the
12
Commonwealth of Puerto Rico and a copy of the resolution
13
adopted by the Legislature of the Commonwealth of Puerto
14
Rico.
15
(3) Referral. --A resolution once introduced with
16
respect to such a certification by the Governor of the
17
Commonwealth of Puerto Rico shall immediately be referred by.
18
the Speaker of the House of Representatives and the
19
President of the Senate, as the case may be, to the House
20
Committee on Interior and Insular Affairs and to the Senate
21
Committee on Energy and Natural Resources and at the same
22
time to such other committees as the Speaker of the House of
23
Representatives or the President of the Senate,
24
respectively, shall determine.
25
(4) Discharge. --
26
(A) In General. If the committee or committees to
40
1
which a resolution with respect to a certification by
2
the Governor of the Commonwealth of Puerto Rico has
3
been referred has not reported it at the end of 45
4
calendar days after its referral, it shall be in order
5
to move to discharge the committee from further
6
consideration of such resolution.
7
(B) Motions. --A motion of discharge may be made
8
only by an individual favoring the resolution and shall
9
be highly privileged (except that it may not be made
10
after the committee has reported a resolution with
11
respect to the same submittal), and debate thereon
12
shall be limited to not more than one hour, to be
13
divided equally between those favoring and those
14
opposing the resolution. An amendment to the motion
15
shall not be in order, and it shall not be in order to
16
move to reconsider the vote by which the motion was
17
agreed to or disagreed to.
18
(C) Renewal If the motion to discharge is agreed
19
to or disagreed to, the motion may not be renewed, nor
20
may another motion to discharge the committee be made
21
with respect to any other resolution with respect to
22
the same submittal.
23
(5) Floor Consideration --
24
(A) Motion to Consider. When the last committee
25
has reported, or has been discharged from further
26
consideration of a resolution, it shall be at any time
41
1
thereafter in order (even though a previous motion to
2
the same effect has been disagreed to) to move to
3
proceed to the consideration of the resolution. The
4
motion shall be highly privileged and shall not be
5
debatable. An amendment to the motion shall not be in
6
order, and it shall not be in order to move to
7
reconsider the vote by which the motion was agreed to
8
or disagreed to.
9
(B) Debate and Consideration. Debate on the
10
resolution referred to in subparagraph (A) of this
11
paragraph shall be limited to not more than 10 hours,
12
which shall be divided equally between those favoring
13
and those opposing such resolution. A motion further
14
to limit debate shall not be debatable. An amendment
15
to or motion to recommit the resolution shall not be in
16
order, and it shall not be in order to move to
17
reconsider the vote by which such resolution was agreed
18
to or disagreed to.
19
(6) Determination on Motions.
20
(A) Motions to Postpone or to Proceed to Other
21
Business. Motions to postpone, made with respect to
22
the discharge from committee, or the consideration of a
23
resolution and motions to proceed to the consideration
24
of other business, shall be decided without debate.
25
(B) Appeals From the Decision of the Chair. --
26
Appeals from the decision of the Chair relating to the
42
1
application of the rules of the Senate or the House of
2
Representatives, as the case may be, to the procedure
3
relating to a resolution shall be decided without
4
debate.
5
(7) Subsequent Action. Notwithstanding any of the
6
provisions of this subsection, if a House has approved a
7
resolution with respect to a submittal, then it shall not be
8
in order to consider in that House any other resolution with
9
respect to the same such submittal.
10
(8) Computation of period. For the purpose of this
11
subsection-
12
(A) continuity of session is broken only by an
13
adjournment of the congress sine die; and
14
(B) the days on which either House is not in
15
session because of any adjournment of more than 3 days
16
to a day certain are excluded in the computation of any
17
period of time in which Congress is in continuous
18
session.
19
(c) This section shall not apply to:
20
(1) Any Federal statutory law, or provision thereof,
21
establishing directly or indirectly grants and/or services
22
to citizens of the United States as individuals, or
23
(2) any Federal statutory law or provision thereof
24
relating to citizenship, or
25
(3) any Federal statutory law or provision thereof
26
pertaining to the foreign relations, defense or national
43
1
security.
2
(d) The Governor of Puerto Rico may enter into international
3
agreements to promote the international interests of Puerto Rico
4
as authorized by the President of the United States and
5
consistent with the laws and international obligations of the
6
United States.
7
SEC. 404. Regulatory Review
8
(a) For the purposes of this section, the definitions in 5
9
U.S.C. section 551 apply.
10
(b) All agencies shall be guided by the policy stated in
11
section 402 when carrying out their duties under statutes and
12
rules applicable in or affecting the Commonwealth of Puerto Rico.
13
Any agency that engages in rule making pursuant to 5 U.S.C.
14
section 553 shall include in the concise general statement of the
15
basis and purpose of any final rules adopted in response to any
16
data, views or arguments submitted to it that raise a question of
17
the consistency of such rules with such policy.
18
(c) When an agency publishes in the Federal Register any
19
final rule (other than a rule issued after notice and hearing
20
required by statute), that does by its terms apply in the
21
Commonwealth of Puerto Rico, the Governor of Commonwealth of
22
Puerto Rico may submit to the agency within 30 days (or such
23
longer period as the agency may have prescribed as the period
24
between publication of the rule and its effectiveness) the
25.
Governor's determination that such rule is inconsistent with such
26
policy and, if appropriate, of how it could be made consistent.
44
1
Thereupon, the agency shall reconsider the question of the
2
consistency of its rule with such policy and shall, within 45
3
days of its receipt of the Governor's determination, publish in
4
the Federal Register its finding either--
5
(1) that
6
(A) by the terms of the statute pursuant to which
7
the rule is made the agency has no discretion to make
8
the rule inapplicable in the Commonwealth of Puerto
9
Rico or to vary the terms of the rule in its
10
application to the Commonwealth or,
11
(B) there is a national interest that the rule be
12
applicable in Puerto Rico in the terms in which it was
13
published, or
14
(2) that the rule is not consistent with such policy,
15
in which case the rule, whether or not previously applicable
16
in the Commonwealth of Puerto Rico in accordance with its
17
terms as published, shall not be so applicable or shall be
18
applicable only in accordance with the terms specified in
19
the agency's finding.
20
(3) Within 60 days of the publication by an agency of
21
the finding provided for in paragraph (1) the Governor of
22
the Commonwealth of Puerto Rico, if aggrieved by such
23
finding, may petition for review thereof in the United
24
States Court of Appeals of the First Circuit or the D.C.
25
Circuit. In any such review proceeding the scope of review
26
shall be as prescribed in 5 U.S.C. 706. Federal courts
45
1
shall have no jurisdiction to entertain any action brought
2
by any other party challenging agency compliance with this
3
subsection.
4
SEC. 405. AVIATION.
5
The officials of the Department of State and the Department
6
of Transportation shall seek the advise of appropriate officials
7
of the Commonwealth of Puerto Rico when negotiating any air
8
transportation agreements which would affect air traffic to or
9
from the Commonwealth of Puerto Rico.
10
SEC. 406. INTERNATIONAL TRADE
11
(a) Section 2 of the Act of April 12, 1900, 48 U.S.C. 739,
12
is amended by inserting the following subsection:
13
"1. As strictly limited by the international obligations of
14
the United States, the Commonwealth of Puerto Rico is
15
authorized to impose tariff duties on foreign origin
16
products imported into Puerto Rico from outside the customs
17
territory of the United States. Such tariff duties may be
18
in addition to the general tariff duties imposed by the
19
United States if such general tariff duties are not subject
20
to U.S. international obligations, or in cases where the
21
general duty is applied at a rate below that which is
22
subject to U.S. international obligations. In the latter
23
case, the combined duties shall not exceed the level for
24
which a U.S. international obligation exists."
25
(b) Section 1102 of the Omnibus Trade and Competitiveness
26
Act of 1988, 19 U.S.C. 2902, is amended by adding a new
46
1
subsection (e) as follows:
2
(e) (1) During the negotiation of any trade agreement under
3
subsections (a), (b) and (c), it is the sense of the Senate that
4
the President should consider the effects of any proposed tariff
5
rate or any proposed changes in non-tariff measures on the
6
economy of Puerto Rico and consult with the Governor of the
7
Commonwealth of Puerto Rico concerning such potential impact
8
before concluding international trade negotiations.
9
(2) It is the sense of the Senate that the President should
10
seek to obtain favorable treatment from foreign countries for
11
exports from the Commonwealth of Puerto Rico and should take
12
steps to encourage other countries to consider Puerto Rico as a
13
developing area for purposes of their respective Generalized
14
Systems of Trade Preferences schemes, and any such regional
15
systems of trade preferences
16
SEC. 407. FEDERAL PROGRAMS
17
CONSOLIDATION OF GRANT-IN-AID PROGRAMS.- -
18
Section 501 of Public Law 95-134 (91 Stat. 1159, 1164) as
19
amended, is further amended by deleting "Virgin Islands," and
20
inserting in lieu thereof "Virgin Islands, Puerto Rico,
21
SEC. 408. CONSULTATION IN APPOINTEES AND NOMINATIONS.
22
a)
In considering the qualifications of persons who may be
23
appointed to serve as: Supervisor, Caribbean National Forest;
24
Superintendent, San Juan Historic Site; Manager, Department of
25
Housing and Urban Development, San Juan; Director, Caribbean
26
Field Office, Environmental Protection Agency; Director, Farmer's
47
1
Home Administration, San Juan; District Director, U.S. Customs
2
Service, San Juan; District Director, Small Business
3
Administration; and District Director, Immigration and
4
Naturalization Service; the head of such department or agency
5
shall consult with the Governor or other appropriate official in
6
Puerto Rico as to whether there are special circumstances or
7
qualifications which should be considered in making the
8
appointment.
9
b)
Prior to nominating any person to serve in Puerto Rico whose
10
appointment requires the advice and consent of the Senate of the
11
United States, the President shall consult with the Governor as
12
to whether there are any special circumstances or qualifications
13
which should be considered in deciding on a nomination. Nothing
14
in this section requires or prohibits the disclosure of
15
individuals under consideration for such position nor as a
16
limitation on the ability of the heads of agencies to appoint, or
17
the President to nominate any individual. This subsection shall
18
not apply with respect to any position in the Armed Forces of the
19
United States, the Coast Guard, and in agencies engaged in law
20
enforcement.
21
SEC. 409. PUERTO RICO LIAISON OFFICE.
22
a)
There is hereby established the Office of Senate Liaison for
23
the Commonwealth of Puerto Rico ("Office"). The Office shall be
24
headed by an individual appointed by the Governor of Puerto Rico
25
and who shall serve at the pleasure of the Governor and who shall
26
be known as the Puerto Rico Liaison. The purposes of the Office
48
1
shall be to facilitate the exchange of information between the
2
Senate and the Government of Puerto Rico.
3
b)
The Committee on Rules and Administration shall determine
4
what facilities and services shall be available to such Office.
5
All personnel of such Office shall be issued such identification
6
as will entitle them to the same privileges as are afforded to
7
employees of the Congressional Research Service and no employee
8
of the Office shall be permitted privilege of the Senate floor.
9
c)
There are authorized to be appropriated annually $600,000
10
for salaries and $56,000 for office expenses of the Office. The
11
Liaison shall appoint and fix the compensation of such personnel
12
as may be necessary to carry out the duties and functions of the
13
Office. All personnel of the Office, including the Liaison,
14
while not employees of the Senate, shall, other than as provided
15
in subsection (b), be treated as if they were employees of the
16
Senate with respect to pay and employment benefits, rights,
17
privileges, and restrictions and shall be subject to all
18
requirements otherwise applicable to employees of the Senate.
19
d)
The Office shall be subject to the jurisdiction of the
20
Committee on Rules and Administration.
21
SEC. 410. PASSPORTS.
22
(a) The following new section shall be added to title 22 as
23
section 211b:
24
"SECTION 211b. UNITED STATES PASSPORT OFFICE IN PUERTO RICO.
25
"The Secretary of State shall establish a Passport Office
26
for the Caribbean located in San Juan, Puerto Rico.
49
1
(b) The Secretary of State and the Attorney General shall
2
consult with the Governor of Puerto Rico to determine what
3
administrative actions can be taken to expedite the processing of
4
visas and also to provide an expedited consideration of visas
5
where the Governor makes such a request to accommodate an
6
individual or individuals who have been invited to Puerto Rico by
7
the Governor and shall report to Congress on such consultations
8
and administrative action by March 15, 1990.'
9
SEC.411. COMMUNITY VALUES.
10
The actions specified in subsection (b) shall be exempt from
11
the antitrust laws of the United States.
12
(a) Definitions. -
13
(1) "antitrust laws" has the meaning given such term in the
14
first section of the Clayton Act (15 U.S.C. 12) and shall also
15
include section 5 of. the Federal Trade Commission Act (15 U.S.C.
16
45) ;
17
(2) "person in the television industry" means a television
18
network, any entity which produces programming for television
19
distribution, including theatrical motion pictures, the National
20
Cable Television Association, the Association of Independent
21
Television Stations, Inc., the National Association of
22
Broadcasters, the Motion Picture Association of America, and each
23
of the networks' affiliate organizations, and television stations
24
and cable television operators licensed to operate in Puerto Rico
25
and shall include any individual acting on behalf of such person;
26
and
50
1
(3) "telecast" means any program broadcast by a television
2
broadcast station or transmitted by a cable television system.
3
(b) The antitrust laws shall not apply to any joint
4
discussion, consideration, review, action or agreement by or
5
among persons in the television industry for the purpose of, and
6
limited to, developing and disseminating voluntary guidelines
7
designed to: (1) alleviate the negative impact of violence in
8
telecast material, (2) alleviate the negative impact of illegal
9
drug use in telecast material, (3) alleviate the negative impact
10
of sexually explicit material in telecast material, and promote
11
local programming in the Commonwealth of Puerto Rico.
12
(c) (1) The exemption provided in subsection (b) shall not
13
apply to any joint discussion, consideration, review, action, or
14
agreement which results in a boycott of any person.
15
(2) The exemption provided in section 2 shall apply only to
16
activities conducted within 36 months after the date of enactment
17
of this Act, but may be extended for other 36 month periods upon
18
declaration by the Governor of Puerto Rico.
19
SEC. 412. FEDERAL PROPERTIES.
20
(a)
(1) The President shall report to Congress by March 15,
21
1990, on the eight federal properties listed in paragraph
22
(3) below. The report shall include an assessment of the
23
federal need for each property, the costs and/or benefits of
24
disposal of each property, and the comments of the
25
Government of the Commonwealth of Puerto Rico regarding each
26
property.
51
1
(2) Unless the President finds that there is a national
2
interest which requires continued Federal ownership of each
3
property, then he shall provide for the transfer of such
4
properties to the Commonwealth of Puerto Rico according to
5
such terms as he determines to be appropriate with respect
6
to each.
7
(3) Identified Properties:
8
(A) The federal courthouse in Old San Juan;
9
(B) Former Stop 7-1/2 Naval Residence;
10
(C) San Geronimo Quarters;
11
(D) Custom House in San Juan;
12
(E) Custom House in Mayaguez;
13
(F) Custom House in Ponce;
14
(G) Custom House in Fajardo;
15
(H) Coast Guard facility at Puntilla.
16
SEC. 413. SAN JUAN NATIONAL HISTORIC SITE ADVISORY COMMISSION.
17
a)
There is hereby established a commission to be known as the
18
San Juan National Historic Site Advisory Commission ("the
19
commission") which shall regularly advise the Secretary of the
20
Interior ("the Secretary") on the operation, management, and
21
administration of the San Juan National Historic Site ("the
22
site").
23
b)
The commission shall consist of the Governor of the
24
Commonwealth of Puerto Rico (or the Governor's designee), the
25
Director of the National Park Service (or the Director's
26
designee), three members to be appointed by the Governor of the
52
1
Commonwealth of Puerto Rico, and three members to be appointed by
2
the Secretary. One of the members appointed by the Governor and
3
one member appointed by the Secretary shall serve as co-
4
chairpersons of the commission.
5
c)
(1) Members appointed to the commission by the Governor and
6
the Secretary shall be appointed for a term of four years. A
7
member may serve after the expiration of his term until his
8
successor has taken office;
9
(2) Any vacancy on the commission shall be filled in the
10
manner the original appointment was made;
11
(3) Members of the commission shall receive no additional
12
pay, allowances, or benefits as a result of their service on the
13
commission, but the Secretary may pay expenses reasonably
14
incurred in carrying out their responsibilities under this
15
section on vouchers signed by the co-chairpersons;
16
(4) A majority of the members of the commission shall
17
constitute a quorum but a lesser number may hold hearings. Each
18
member of the commission shall be entitled to one vote, which
19
shall be equal to the vote of every other member of the
20
commission; and
21
(5) The provisions of section 14 (b) of the Federal Advisory
22
Committee Act (Act of October 6, 1972; 86 Stat. 776) are hereby
23
waived with respect to the commission.
24
d)
The Secretary shall from time to time, but at least
25
annually, meet with the commission on matters relating to the
26
planning, management and administration of the site. Such
53
1
meetings shall be open to the public and shall be held at such
2
times and in such places as to encourage public participation.
3
The commission shall provide the public with adequate notice of
4
such meetings.
5
e)
The commission shall prepare annually and transmit to the
6
Secretary, the Committee on Energy and Natural Resources of the
7
United States Senate, and the Committee on Interior and Insular
8
Affairs of the United States House of Representatives, a report
9
containing such information and recommendations regarding the
10
operation, management, and administration of the site as the
11
commission deems desirable, including but not limited to
12
recommendations with respect to the revision of the general
13
management plan for the site.
UNCLASSIFIED
RECORD ID: 8905904
NSC/S PROFILE
RECEIVED: 27 JUL 89 11
TO: HUGHES
FROM: JUKES. J
DOC DATE: 27 JUL 89
SOURCE REF:
KEYWORDS: PUERTO RICO
LEGISLATIVE REFERRAL
PERSONS:
SUBJECT: HHS COMMENTS RE SUBSTITUTE FOR S-712 / REFERENDUM ON POLITICAL
STATUS OF PUERTO RICO
ACTION: PREPARE MEMO HUGHES TO JUKES
DUE DATE: 31 JUL 89
STATUS: S
STAFF OFFICER: RADEMAKER
LOGREF: 8905709 8905746
FILES: WH
NSCIF:
CODES:
DOCUMENT DISTRIBUTION
FOR ACTION
FOR CONCURRENCE
FOR INFO
RADEMAKER
LAMPLEY
PACELLI
ROSTOW
COMMENTS:
DISPATCHED BY
DATE
BY HAND W/ATTCH
OPENED BY: NSRSC
CLOSED BY:
DOC 1 OF 1
UNCLASSIFIED
07/27/89
10:00
001
6 pages total
SERVICE
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
5904
July 27, 1989
LEGISLATIVE REFERRAL MEMORANDUM
TO: Legislative Liaison Officer:
SEE ATTACHED DISTRIBUTION LIST
SUBJECT: Department of Health and Human Services comments on
the amendment in the nature of a substitute for S. 712,
a bill providing for a referendum on the political
status of Puerto Rico.
The Office of Management and Budget requests the views of your
agency on the above subject before advising on its relationship
A-19. to the program of the President, in accordance with OMB Circular
A response to this request for your views is needed no later than
3:30 P.M. today, Thursday, July 27, 1989.
Questions should be referred to Branden Blum (395-3454), the
legislative attorney in this office.
Assistant James J. Jukes Director for for
Legislative Reference
Enclosures
CC: B. Gray
B. Martin
P. DuSault
B. Damus
E. Rea
B. Howard
K. Schwartz
D. Gibbons
J. Merck
E. Mead
A. Schwartz
K. Ryder
D. Kleinberg
07/27/89
10:01
002
2
TO: Legislative Liaison Officer:
Department of Agriculture - Wanda Worsham (447-7095)
Department of Commerce - Joyce Smith (377-4264)
Department of Defense - Samuel Brick (697-1305)
Department of Education - John Kristy (732-2670)
General Services Administration - Al Vicchiolla (523-3956)
Department of Health & Human Services - Frances White
(245-7760)
Department (755-7093) of Housing & Urban Development - Edward Murphy
Department of the Interior - Ralph Hill (343-4547)
Department of Justice - Jack Perkins (633-2113)
Department of Labor - Seth Zinman (523-8201)
National Security Council - G. Philip Hughes (456-2224)
Office of Personnel Management - Jim Woodruff (632-5524)
Department of State - Bronwyn Bachrach (647-4463)
Department of Transportation - Tom Herlihy (366-4687)
Department of the Treasury - Carole Toth (566-8523)
United States Postal Service - Fred Eggleston (268-2958)
U.S. Trade Representative - Josh Bolten (395-3150)
Veterans Affairs - Don Ivers (233-3832)
07/27/89
10:01
003
HHS CONCERNS WITH REVISED S. 712
(PROVIDING FOR A REFERENDUM ON POLITICAL STATUS
OF PUERTO RICO)
statehood: Laws in effect: SAC. 208 (pp. 11-121:
We believe the intent of the second and third sentences in
subsection (a) is to provide that, effective November 19, 1993,
all federal laws (other than those inspplicable to Puerto Rico
solely on the basis of particular geography) shall have the same
force and effect in Puerto Rico as in any other state.
Subsection (b) provides for review and recommendations by a
Commission on Federal Laws as to what changes in federal laws
would be appropriate. We note these concerns:
1. Flawed drafting: The second sentence of subsection
(a), as drafted, does not achieve the presumed intent, as
stated above: read literally, it would make programs such
as AFDC and Medicaid unavailable to Puerto Rico. The third
sentence, as drafted, is confusing, and the reference to
provisions inapplicable to Alaska or Hawaii is superfluous
we recommend that it be revised by striking "which does not
apply" through the end of the sentence and inserting instead
"which is inapplicable to Puerto Rico solely on the basis of
particular yeography shall continue to be inapplicable
unless specifically extended by Congress.".
2. Use of November 19 as the changeover date: Choice
of a date in the middle of a month will substantially
increase the administrative difficulty of the changeover,
the likelihood of accounting and auditing errors, and the
like. We recommend making the changeover date the beginning
of a quarter of the federal fiscal year; failing that, we
would at the least want the change to fall at the beginning
of a month.
3. Timing of changes in federal laws applicable (or
inapplicable) to Puerto Rico: This section as drafted could
result in inappropriate treatment of the State of Puerto
Rico under federal laws for what could be an extended
period. All federal laws (subject to certain exceptions)
would apply to Puerto Rico as to the several states
immediately upon Puerto Rico's admission into the Union.
The Commission on Federal Laws would then have until January
1, 1994 to submit its recommendations as to which of these
laws should not 80 apply, and substantial additional time
would elapse before federal legislation could be enacted
making the appropriate changes.
We would recommend an alternative timetable, in order
to prevent inappropriate application to Puerto Rico of a
statutory scheme not in effect prior to statehood. We would
07/27/89
10:02
004
2
recommend that the bill be revised to require that the
review of the commission on Federal Laws take place in the
interim between completion of the referendum and the
effective date of statehood, and that the Commission's
recommendations be final before such date. The bill could
further provide that, where the Commission found that
application of the law in effect for states would be
inappropriate for Puerto Rico, the law applicable to the
Commonwealth of Puerto Rico could be continued in effect
during a transition period ending on the effective date of
legislation responding to the Commission's concerns or, if
no such legislation was enacted, the end of the first
congress beginning after the effective date of statehood.
4. Comparison to SBC. 213: We do not understand what,
if any, 1s the difference between seco. 213 and 208 with
respect to HHS programs listed in sec. 223 (c) (other than
the provise concerning Medicare).
Statehood: effect on certain federal benefit programs: sec, 213
(DD. 16-18):
Sec. 213 (c) provides for continuation of current treatment
of Puerto Rico under specified public assistance programs until
November 19, 1993, at which time full State-like treatment would
become effective, with a proviso that "reimbursements under
Medicare shall not exceed the actual cost of providing equivalent
health care to the levels of care provided in the several
contiguous States". We note several concerns:
1. Use of November 19 as the changeover date: This
raises the same concerns noted above in our discussion of
sec. 208.
2. Proviso concerning Medicare: We support the
recognition that application of the Medicare program in
Puerto Rico may need to be different in some respects from
its application in the several contiguous states. Mowever,
we do not agree with the bill's approach of limiting
reimbursements in Puerto Rico to actual cost. In recent
years, in an effort to control costs in this program, major
amendments have been made to the Medicare program, designed
to force hospitals and other health care providers to
control their costs, including substitution of a system of
prospective payments tailored to specific diagnoses for the
previous system of "reasonable cost reimbursement" of
hospitals. We recommend that this proviso be deleted: we
believe the Medicare issue should be dealt with by the
mechanism provided in sec. 213 (b), under which the
Department, in consultation with the Governor of Puerto
Rico, would consider and make recommendations to the
President as to what statutory or regulatory changes would
2
07/27/89
10:03
005
3
be needed to properly achieve the application of the law in
Puerto Rico, with regard to its economic, geographic, and
cultural circumstances.
3. Treatment of Supplemental Security Income (SSI)
The reference to SSI on P. 17, lines 10-11 should be
deleted: SSI is not currently applicable to Puerto Rico.
We also believe that the Commission on Federal Laws provided
for in sec. 208 (b) should consider the impact of the SSI
program on Puerto Rico and whether any modifications in that
program as it would apply to Puerto Rico would be
appropriate, in light of the specific social and economic
circumstances in Puerto Rico. It is not clear to us whether
the bill as drafted permits the Commission to consider such
questions in relation to the federal benefit programs,
including SSI, enumerated in sec. 213(c).
Independence: social Security: seca, 313 and 314 (pps. 32-331:
We recommend the following revisions to the bill, in order
to wliminate ambiguities, and to provide for a clearer and more
flexible timetable for the transition to Puerto Rico's separate
social security system.
Sec. 313. Federal Programs.
on P. 32, line 2, strike "All federal programs" and
insert instead "Except as otherwise provided in this title,
all federal programs".
On p. 32, line 3, insert "certification of the" before
"referendum".
on p. 32, line 11, insert "(other than those referred
to in section 314 (a) after "All federal pension
programs,".
Sec. 324. Social Security.
on P. 33, line 11, strike "shall apply" and insert
instead "shall continue to apply in Puerto Rico as In the
United States".
On P. 33, line 17, insert after the period at the end
"Such agreements shall be approved by the government of
Puerto Rico and the government of the United states in
accordance with their respective constitutions and statutory
processes. These agreements may provide for an earlier date
for termination of the United States social security program
in Puerto Rico than the date provided in subsection (a) .".
3
07/27/89
10:03
006
4
on P. 33, lines 18-19, strike "This Task Force" and all
that follows through "insured status" and insert instead
"Such agreements shall take into account the interests of
affected individuals who have at least 40 quartrers of
coverage".
on P. 33, lines 21-22, strike "5 years subsequent to
the certification of the referendum" and insert instead "the
termination of the United States social security program in
Puerto Rico".
Commonwealth: Consolidation of grant-in-aid programs; sec. 407
(RR. 44-45)
This provision would make applicable to Puerto Rico section
501 of P.L. 95-134, which permits consolidation of any or all
grants to small insular territories (other than grants for the
purpose of providing direct payments to individuals), and permits
the affected territory to use the consolidated grant for any or
all of the purposes of the individual grants 50 consolidated. We
question the appropriateness of extending this authority to
Puerto Rico, The purpose of this law was to permit small insular
territories to make effective use of grant funds which, on a
program-by-program basis, are in such small amounts that
effective use is difficult or impossible. This concern does not
apply with respect to Puerto Rico which, under applicable MMS
programs, receives more federal funds than several of the smaller
states.
4
UNCLASSIFIED
RECORD ID: 8905904
NSC/S PROFILE
RECEIVED: 27 JUL 89 11
TO: JUKES, J
FROM: HUGHES
DOC DATE: 29 JUL 89
SOURCE REF:
KEYWORDS: PUERTO RICO
LEGISLATIVE REFERRAL
PERSONS:
SUBJECT: HHS COMMENTS RE SUBSTITUTE FOR S-712 / REFERENDUM ON POLITICAL
STATUS OF PUERTO RICO
ACTION: HUGHES SGD MEMO
DUE DATE: 31 JUL 89
STATUS: C
STAFF OFFICER: RADEMAKER
LOGREF: 8905709 8905746
FILES: WH
NSCIF:
CODES:
DOCUMENT DISTRIBUTION
FOR ACTION
FOR CONCURRENCE
FOR INFO
HUGHES
LAMPLEY
PACELLI
RADEMAKER
ROSTOW
COMMENTS:
DISPATCHED BY
DATE
BY HAND W/ATTCH
OPENED BY: NSRSC
CLOSED BY: NSDGR
DOC 3 OF 3
UNCLASSIFIED
UNCLASSIFIED
RECORD ID: 8905904
ACTION DATA SUMMARY REPORT
DOC ACTION OFFICER
CAO ASSIGNED ACTION REQUIRED
001 RADEMAKER
Z 89072711 PREPARE MEMO HUGHES TO JUKES
002 HUGHES
Z 89072818 FOR SIGNATURE
003
X 89072912 HUGHES SGD MEMO
UNCLASSIFIED
5904
NATIONAL SECURITY COUNCIL
WASHINGTON, D.C. 20506
July 29, 1989
MEMORANDUM FOR JAMES J. JUKES
FROM:
G. PHILIP HUGHES Chilip
SUBJECT:
Department of Health and Human Services Comments
on the Amendment in the Nature of a Substitute to
S. 712, a Bill Providing for a Referendum on the
Political Status of Puerto Rico
Pursuant to your request, the National Security Council staff has
reviewed the above-referenced matter. We concur in the
Department of Health and Human Services comments.
NATIONAL SECURITY COUNCIL
5904
WASHINGTON, D.C. 20506
July 28, 1989
ACTION
MEMORANDUM FOR G. PHILIP HUGHES
THROUGH:
NICHOLAS ROSTOW SR for
FROM:
STEPHEN RADEMAKER
SR
SUBJECT:
Department of Health and Human Services Comments
on the Amendment in the Nature of a Substitute to
S. 712, a Bill Providing for a Referendum on the
Political Status of Puerto Rico
Attached at Tab I is a memorandum for your signature to James J.
Jukes forwarding NSC staff concurrence in the Department of
Health and Human Services comments on the amendment in the nature
of a substitute for S. 712, a bill providing for a referendum on
the political status of Puerto Rico.
Concurrence by: Virginia Lampley BCfn and David Pacelli
DAP
RECOMMENDATION
That you sign the memorandum to James Jukes at Tab I.
Attachments
Tab I Hughes Memorandum to Jukes
Tab II Incoming Correspondence
07/27/89
10:00
001
6 pages total
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
5904
July 27, 1989
LEGISLATIVE REFERRAL MEMORANDUM
TO: Legislative Liaison Officer:
SEE ATTACHED DISTRIBUTION LIST
SUBJECT: Department of Health and Human Services comments on
the amendment in the nature of a substitute for S. 712,
a bill providing for a referendum on the political
status of Puerto Rico.
The Office of Management and Budget requests the views of your
agency on the above subject before advising on its relationship
A-19. to the program of the President, in accordance with OMB Circular
A response to this request for your views is needed no later than
3:30 p.m. today, Thursday, July 27, 1989.
Questions should be referred to Branden Blum (395-3454), the
legislative attorney in this office.
James Assistant J. Jukes Director for for
Legislative Reference
Enclosures
CC: B. Gray
B. Martin
P. DuSault
B. Damus
E. Rea
B. Howard
K. Schwartz
D. Gibbons
J. Merck
E. Mead
A. Schwartz
K. Ryder
D. Kleinberg
07/27/89
10:01
002
2
TO: Legislative Liaison Officer:
Department of Agriculture - Wanda Worsham (447-7095)
Department of Commerce - Joyce Smith (377-4264)
Department of Defense - Samuel Brick (697-1305)
Department of Education - John Kristy (732-2670)
General Services Administration - Al Vicchiolla (523-3956)
Department of Health & Human Services - Frances White
(245-7760)
Department of Housing & Urban Development - Edward Murphy
(755-7093)
Department of the Interior - Ralph Hill (343-4547)
Department of Justice - Jack Perkins (633-2113)
Department of Labor - Seth Zinman (523-8201)
National Security Council - G. Philip Hughes (456-2224)
Office of Personnel Management - Jim Woodruff (632-5524)
Department of State - Bronwyn Bachrach (647-4463)
Department of Transportation - Tom Herlihy (366-4687)
Department of the Treasury - Carole Toth (566-8523)
United States Postal Service - Fred Eggleston (268-2958)
U.S. Trade Representative - Josh Bolten (395-3150)
Veterans Affairs - Don Ivers (233-3832)
07/27/89
10:01
003
HHS CONCERNS WITH REVISED S. 712
(PROVIDING FOR A REFERENDUM ON POLITICAL STATUS
OF PUERTO RICO)
statehood: Laws in effect: sac. 208 (pp. 11-12):
We believe the intent of the second and third sentences in
subsection (a) is to provide that, effective November 19, 1993,
all federal laws (other than those inapplicable to Puerto Rico
solely on the basis of particular geography) shall have the same
force and effect in Puerto Rico as in any other state.
Subsection (b) provides for review and recommendations by a
Commission on Federal Laws as to what changes in federal laws
would be appropriate. We note these concerns:
1. Flawed drafting: The second sentence of subsection
(a), as drafted, does not achieve the presumed intent, as
stated above: read literally, it would make programs such
as AFDC and Medicaid unavailable to Puerto Rico. The third
sentence, as drafted, is confusing, and the reference to
provisions inapplicable to Alaska or Hawaii is superfluous:
we recommend that it be revised by striking "which does not
apply" through the and of the sentence and inserting instead
"which is inapplicable to Puerto Rico solely on the basis of
particular geography shall continue to be inapplicable
unless specifically extended by Congress.".
2. Use of November 19 as the changeover date: Choice
of a date in the middle of a month will substantially
increase the administrative difficulty of the changeover,
the likelihood of accounting and auditing errors, and the
like. We recommend making the changeover date the beginning
of a quarter of the federal fiscal year; failing that, we
would at the least want the change to fall at the beginning
of a month.
3. Timing of changes in federal laws applicable (or
inapplicable) to Puerto Rico: This section as drafted could
result in inappropriate treatment of the State of Puerto
Rico under federal laws for what could be an extended
period. All federal laws (subject to certain exceptions)
would apply to Puerto Rico as to the ocveral states
immediately upon Puerto Rico's admission into the Union.
The Commission on Federal Laws would then have until January
1, 1994 to submit its recommendations as to which of these
laws should not 50 apply, and substantial additional time
would elapse before federal legislation could be enacted
making the appropriate changes.
we would recommend an alternative timetable, in order
to prevent inappropriate application to Puerto Rico of a
statutory scheme not in effect prior to statehood. We would
07/27/89
10:02
004
2
recommend that the bill be revised to require that the
review of the Commission on Federal Laws take place in the
interim between completion of the referendum and the
effective date of statehood, and that the Commission's
recommendations be final before such date. The bill could
further provide that, where the Commission found that
application of the law in effect for states would be
inappropriate for Puerto Rico, the law applicable to the
Commonwealth of Puerto Rico could be continued in effect
during a transition period ending on the affective date of
legislation responding to the Commission's concerns or, if
no such legislation was enacted, the end of the first
Congress beginning after the effective date of statehood.
4. Comparison to sec. 213; We do not understand what,
if any, 18 the difference between secs. 213 and 208 with
respect to HHS programs listed in sec. 213 (c) (other than
the proviso concerning Medicare).
Statehood: effect on certain federal benefit programs: sec, 213
(RR. 16-18):
Sec. 213 (c) provides for continuation of current treatment
of Puerto Rico under specified public assistance programs until
November 19, 1993, at which time full State-like treatment would
become effective, with a provise that "reimbursements under
Medicare shall not exceed the actual cost of providing equivalent
health care to the levels of care provided in the several
contiguous States". We note several concerns:
1. Use of November 19 as the changeover date: This
raises the same concerns noted above in our discussion of
sec. 208.
2. Proviso concerning Medicare: We support the
recognition that application of the Medicare program in
Puerto Rico may need to be different in some respects from
its application in the several contiguous states. Mowever,
we do not agree with the bill's approach of limiting
reimbursements in Puerto Rico to actual cost. In recent
years, in an effort to control costs in this program, major
amendments have been made to the Medicare program, designed
to force hospitals and other health care providers to
control their costs, including substitution of a system of
prospective payments tailored to specific diagnoses for the
previous system of "reasonable cost reimbursement" of
hospitals. We recommend that this provisc be deleted: we
believe the Medicare issue should be dealt with by the
mechanism provided in sec. 213 (b), under which the
Department, in consultation with the Governor of Puerto
Rico, would consider and make recommendations to the
President as to what statutory or regulatory changes would
2
07/27/89
10:03
005
3
be needed to properly achieve the application of the law in
Puerto Rico, with regard to its economic, geographic, and
cultural circumstances.
3. Treatment of Supplemental Security Income (SSI)
The reference to SSI on P. 17, lines 10-11 should be
deleted: SSI is not currently applicable to Puerto Rico.
We also believe that the Commission on Federal Laws provided
for in sec. 208 (b) should consider the impact of the SSI
program on Puerto Rico and whether any modifications in that
program as it would apply to Puerto Rico would be
appropriate, in light of the specific social and economic
circumstances in Puerto Rico. It is not clear to us whether
the bill as drafted permits the Commission to consider such
questions in relation to the federal benefit programs,
including SSI, enumerated in sac. 213(c).
Independence: Social Security: seca, 313 and 314 (pps. 32-331:
We recommend the following revisions to the bill, in order
to eliminate ambiguities, and to provide for a clearer and more
flexible timetable for the transition to Puerto Rico's separate
social security system.
Sec. 313. Federal Programs.
on P. 32, line 2, strike "All federal programs" and
insert instead "Except as otherwise provided in this title,
all federal programs".
on p. 32, line 3, insert "certification of the" before
"referendum".
On P. 32, line 11, insert "(other than those referred
to in section 314 (a))" after "All federal pension
programs,
Sec. 324, Social Security,
on P. 33, line 11, strike "shall apply" and insert
instead "shall continue to apply in Puerto Rico as In the
United States".
on P. 33, line 17, insert after the period at the end
"Such agreements shall be approved by the government of
Puerto Rico and the government of the United States in
accordance with their respective constitutions and statutory
processes. These agreements may provide for an earlier date
for termination of the United States social security program
in Puerto Rice than the date provided in subsection (a) .".
3
07/27/89
10:03
006
4
on p. 33, lines 18-29, strike "This Task Force" and mll
that follows through "insured status" and insert instead
"Such agreements shall take into account the interests of
affected individuals who have at least 40 quartrers of
coverage".
on P. 33, lines 21-22, strike "5 years subsequent to
the certification of the referendum" and insert instead "the
termination of the United States social security program in
Puerto Rico".
Commonwealth: Consolidation of grant-in-aid programs: sec. 407
(PR. 44-45)
This provision would make applicable to Puerto Rico section
501 of P.L. 95-134, which permits consolidation of any or all
grants to small insular territories (other than grants for the
purpose of providing direct payments to individuals), and permits
the affected territory to use the consolidated grant for any or
all or the purposes of the individual grants 50 consolidated. We
question the appropriateness of extending this authority to
Puerto Rico. The purpose of this law was to permit small insular
territories to make effective use of grant funds which, on a
program-by-program basis, are in such small amounts that
effective use is difficult or impossible. This concern does not
apply with respect to Puerto Rico which, under applicable MKS
programs, receives more federal funds than several of the smaller
states.
4
FACSIMILE TRANSMITTAL SHEET
TO:
NSC
379,
FROM:
Jennifer Al-Faqih
DELIVERY TIME:
27-JUL-1989 11:10:58
DELIVERY NODE:
1, 3M FaxXchange
SESSION:
1 - 662
PAGES:
7 (including this page)
UNCLASSIFIED
RECORD ID: 8905904
NSC/S PROFILE
RECEIVED: 27 JUL 89 11
TO: HUGHES
FROM: JUKES. J
DOC DATE: 27 JUL 89
SOURCE REF:
KEYWORDS: PUERTO RICO
LEGISLATIVE REFERRAL
PERSONS:
SUBJECT: HHS COMMENTS RE SUBSTITUTE FOR S-712 / REFERENDUM ON POLITICAL
STATUS OF PUERTO RICO
ACTION: PREPARE MEMO HUGHES TO JUKES
DUE DATE: 31 JUL 89
STATUS: S
STAFF OFFICER: RADEMAKER
LOGREF: 8905709 8905746
FILES: WH
NSCIF:
CODES:
DOCUMENT DISTRIBUTION
FOR ACTION
FOR CONCURRENCE
FOR INFO
RADEMAKER
LAMPLEY
PACELLI
ROSTOW
COMMENTS:
DISPATCHED BY
DATE
BY HAND W/ATTCH
OPENED BY: NSRSC
CLOSED BY:
DOC 1 OF 1
UNCLASSIFIED
File : PR
NATIONAL SECURITY COUNCIL
5747
WASHINGTON, D.C. 20506
July 21, 1989
ACTION
MEMORANDUM FOR G. PHILIP HUGHES
THROUGH:
NICHOLAS ROSTOW Sh for
FROM:
STEPHEN RADEMAKER SR
SUBJECT:
Draft U.S. Trade Representative Recommendations
Regarding S. 712, a Bill Providing for a
Referendum on the Political Status of Puerto Rico
Attached at Tab I is a memorandum for your signature to James J.
Jukes forwarding NSC staff concurrence in the Office of the U.S.
Trade Representative draft recommendations with respect to a bill
providing for a referendum on the political status of Puerto
Rico. A response was requested by 5:00 p.m. today, Friday,
Concurrence by: Virginia not available Sampley and David Spafer Papelli
July 21, 1989.
RECOMMENDATION
That you sign the memorandum to James Jukes at Tab I.
Attachments
Tab I Hughes Memorandum to Jukes
Tab II Incoming Correspondence
5747
NATIONAL SECURITY COUNCIL
WASHINGTON, D.C. 20506
MEMORANDUM FOR JAMES J. JUKES
FROM:
G. PHILIP HUGHES
SUBJECT:
Draft U.S. Trade Representative Recommendations
Regarding S. 712, a Bill Providing for a
Referendum on the Political Status of Puerto Rico
The National Security Council staff has reviewed the draft
recommendations from the Office of the U.S. Trade Representative
regarding S. 712, a bill providing for a referendum on the
political status of Puerto Rico, and concurs.
11:41
001
6 pages total
5747
EXECUTIVE OFFICE OF THE PRESIDENT
Bar: 1
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
July 21, 1989
LEGISLATIVE REFERRAL MEMORANDUM
TO: Legislative Liaison Officer:
SEE ATTACHED DISTRIBUTION LIST
SUBJECT: Draft U.S. Trade Representative recommendations
regarding S. 712, a bill providing for a referendum on
the political status of Puerto Rico.
The Office of Management and Budget requests the views of your
agency on the above subject before advising on its relationship
to the program of the President, in accordance with OMB Circular
A-19.
A response to this request for your views is needed no later than
5:00 p.m. today, Friday, July 21, 1989.
NOTE: This draft report should be shared with members of the
White House Interagency Task force on Puerto Rico
(membership list attached).
Questions should be referred to Branden Blum (395-3454), the
legislative attorney in this office.
James J. Jukes for
Assistant Director for
Legislative Reference
Enclosures
CC: B. Gray
B. Martin
P. DuSault
B. Damus
E. Rea
K. Schwartz
B. Howard
D. Gibbons
J. Merck
E. Mead
A. Schwartz
D. Kleinberg
K. Ryder
07/21/89
11:41
002
2
TO: Legislative Liaison Officer:
Department of Agriculture - Wanda Worsham (447-7095)
Department of Commerce - Joyce Smith (377-4264)
Department of Defense - Samuel Brick (697-1305)
Department of Education - John Kristy (732-2670)
General Services Administration - Al Vicchiolla (523-3956)
Department of Health & Human Services - Frances White
(245-7760)
Department of Housing & Urban Development - Edward Murphy
(755-7093)
Department of the Interior - Ralph Hill (343-4547)
Department of Justice - Jack Perkins (633-2113)
Department of Labor - Seth Zinman (523-8201)
National Security Council - G. Philip Hughes (456-2224)
is
Office of Personnel Management - Jim Woodruff (632-5524)
Department of State - Bronwyn Bachrach (647-4463)
Department of Transportation - Tom Herlihy (366-4687)
Department of the Treasury - Carole Toth (566-8523)
United States Postal Service - Fred Eggleston (268-2958)
Veterans Affairs - Don Ivers (233-3832)
THE WHITE HOUSE
WASHINGTON
INTERDEPARTMENTAL TASK FORCE ON PUERTO RICO
Pat Agriculture Kearney, Chief of Staff
447-5696
Commerce Richard L. Johnston, Acting Assistant Secretary 377-2993
International Economic Policy
Defense Brig. General Michael Byron, Regional Director
697-4946
for Interamerican Affairs, Office of
International Security Affairs
15
Health & Human Services
Arnold Tompkins, Acting Ausistant Secretary
245-1858
for Planning and Ivaluation
Mousing & Urban Development
Kristina Arriaga, Intergovernmental Relations
755-6480
Officer
Kan Blackwell, Deputy Undersecratary
Interior Tim Glidden, Counsellor to the Secretary
343-7351
(Should be Assistant Secretary for
Territorial & International Affairs)
Justice John Howard, Associate Deputy Attorney General
633-2105
Lisa Farringer, Special Assistant to the
533-4945
Attorney General
National Security Council
David Pacelli, Director for Latin American
395-3860
Affairs
Office of Management & Budget
Janet Hale, Associate Director for Economics
395-3120
and Government
David State fweifel, Director for Caribbean Affairs
647-3210
Transportation Jeff Shane, Assistant Secretary for Policy
366-4544
and International Affairs
THE WHITE HOUSE
WASHINGTON
- 2 -
Rom Treasury Watson, Attorney, Office of Tax Policy
343-0247
Mary Bennett, Deputy International Tax Counsel
966-5992
U.S. Trade Representative
Melissa Coyle, Director for Caribbean Affairs
395-5190
White House Legislative Affaire
Boyd Hollingsworth, Deputy Assistant to the
456-7054
for Legislative Affairs
Task Force Chairman
Andrew H. Card, JI., Assistant to the President 456-2533
and Deputy to the Chief of Staff
07/21/89
11:43
005
PUERTO RICO STATUS
Legislative Suggestions
Statehood
Coffee (Report language) :
It is the expectation of this committee that, because Puerto Rico
is a part of the U.S. Customs territory under its current status,
and because the United States has applied the General Agreement
on Tariffs and Trade (GATT) to Puerto Rico since January 1, 1948,
its GATT obligations should not change under either Statehood or
enhanced Commonwealth. Nevertheless, Congress would have to make
a determination whether Puerto Rico would be authorized to
continue levying a tariff on coffee imported from other States.
with respect to the International Coffee Agreement (ICA), the
Committee expects that Puerto Rico, if a State, would abide by
the requirements of the ICA, as they apply to the United States
generally, at the time it accedes to the Union. Specifically,
Puerto Rico would be able to import coffee only from coffee-
producing countries which are members of the Agreement, if the
ICA has quota requirements, as it has had in the past.
Independence
Free Trade Agreement:
It is the Sense of the Senate that the President should explore
with Puerto Rico, following its proclamation of independence, its
interest in negotiating a bilateral free trade area with the
United States, subject to the requirements of section 1102 (c) of
the Omnibus Trade and Competitiveness Act of 1988.
Enhanced Commonwealth
Additional Tariffs:
Amend Subpart 7 (a) as follows:
"1. As strictly limited by the international
obligations of the United States, the Commonwealth of
Puerto Rico is authorized to impose tariff duties on
foreign origin products imported into Puerto Rico from
outside the customs territory of the United States.
Such tariff duties may be in addition to the general
tariff duties imposed by the United States if such
general tariff duties are not subject to U.S.
international obligations, or in cases where the
general duty is applied at a rate below that which is
subject to U.S. international obligations. In the
latter case, the combined duties shall not exceed the
level for which a U.S. international obligation exists."
**
COO
acce
TOTOL
Participation by the Commonwealth in International Trade
Negotiations:
Substitute the following for the new subsection (e) of section
1102 of the Omnibus Trade and Competitiveness Act of 1988 (OTCA)
in Subpart 7 (b) :
It is the sense of the Senate that the President should
consider the effects of any proposed tariff rate on the
economy of Puerto Rico and consult with the Governor of
the Commonwealth of Puerto Rico concerning such
potential impact before concluding international trade
negotiations.
Eligibility for Generalized System of Trade Preferences:
Substitute the following for the second paragraph proposed in the
suggested subsection (a) to be added to section 1102 of the OTCA:
It is the sense of the Senate that the President should
take steps to encourage other countries to consider
Puerto Rico as a developing area for purposes of their
respective Generalized Systems of Trade Preferences
schemes, and any such regional systems of trade
preferences.
HAM THANK sn FROM 01:21 68. 02 701
NATIONAL SECURITY COUNCIL
5746
WASHINGTON, D.C. 20506
July 21, 1989
ACTION
MEMORANDUM FOR G. PHILIP HUGHES
THROUGH:
NICHOLAS ROSTOW SR for
FROM:
STEPHEN RADEMAKER SR
SUBJECT:
Draft Bill Language for S. 712, a Bill Providing
for a Referendum on the Political Status of Puerto
Rico
Attached at Tab I is a memorandum for your signature to James J.
Jukes forwarding NSC staff concurrence in the draft bill language
with respect to a bill providing for a referendum on the
political status of Puerto Rico. A response was requested by
3:00 p.m. today, Friday, July 21, 1989.
Concurrence by: Virginia Lampley and David Shafti Pacelli
not
RECOMMENDATION
That you sign the memorandum to James Jukes at Tab I.
Attachments
Tab I Hughes Memorandum to Jukes
Tab II Incoming Correspondence
5746
NATIONAL SECURITY COUNCIL
WASHINGTON, D.C. 20506
MEMORANDUM FOR JAMES J. JUKES
FROM:
G. PHILIP HUGHES
SUBJECT:
Draft Bill Language Regarding S. 712, a Bill
Providing for a Referendum on the Political Status
of Puerto Rico
The National Security Council staff has reviewed the draft bill
language regarding S. 712, a bill providing for a referendum on
the political status of Puerto Rico, and concurs.
07/21/89
11:28
001
9 pages total
5746
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
July 21, 1989
LEGISLATIVE REFERRAL MEMORANDUM
TO: Legislative Liaison Officer:
SEE ATTACHED DISTRIBUTION LIST
SUBJECT: Draft bill language for S. 712, a bill providing for a
referendum on the political status of Puerto Rico.
The Office of Management and Budget requests the views of your
agency on the above subject before advising on its relationship
to the program of the President, in accordance with OMB Circular
A-19.
A response to this request for your views is needed no later than
3:00 p.m. today, Friday, July 21, 1989.
NOTE: This draft report should be shared with members of the
White House Interagency Task force on Puerto Rico
(membership list attached)
Questions should be referred to Branden Blum (395-3454), the
legislative attorney in this office.
James J. Jukes for
Assistant Director for
Legislative Reference
Enclosures
CC: B. Gray
B. Martin
P. DuSault
B. Damus
E. Rea
K. Schwartz
B. Howard
D. Gibbons
J. Merck
E. Mead
A. Schwartz
D. Kleinberg
K. Ryder
07/21/89
11:29
002
2
TO: Legislative Liaison Officer:
Department of Agriculture - Wanda Worsham (447-7095)
Department of Commerce - Joyce Smith (377-4264)
Department of Defense - Samuel Brick (697-1305)
Department of Education - John Kristy (732-2670)
General Services Administration - Al Vicchiolla (523-3956)
Department of Health & Human Services - Frances White
(245-7760)
Department of Housing & Urban Development - Edward Murphy
(755-7093)
Department of the Interior - Ralph Hill (343-4547)
Department of Justice - Jack Perkins (633-2113)
Department of Labor - Seth Zinman (523-8201)
National Security Council - G. Philip Hughes (456-2224)
&
Office of Personnel Management - Jim Woodruff (632-5524)
Department of State - Bronwyn Bachrach (647-4463)
Department of Transportation - Tom Herlihy (366-4687)
Department of the Treasury - Carole Toth (566-8523)
United States Postal Service - Fred Eggleston (268-2958)
United States Trade Representative - Joshua Bolten
(395-3150)
Veterans Affairs - Don Ivers (233-3832)
07/21/89
11:29
003
THE WHITE HOUSE
WASHINGTON
INTERDEPARTMENTAL TASK FORCE ON PUERTO RICO
Agriculture
Pat Kearney, Chief of Staff
447-5696
Commerce Richard L. Johnston, Acting Assistant Secretary 377-2993
International Economic Policy
Defense
Brig. General Michael Byron, Regional Director
697-4946
for Interamerican Affairs, Office of
International Security Affairs
Health G Human Services
Arnold Tompkins, Acting Assistant Secretary
245-1858
for Flanning and Evaluation
Housing & Urban Development
Kristina Arriaga, Intergovernmental Relations
Officer
755-6480
Ken Blackwell, Deputy Undersecretary
Interior
Tim Glidden, Counsellor to the Secretary
343-7351
(Should be Assistant Secretary for
Territorial & International Affairs)
Justice
John Howard, Associate Deputy Attorney General
633-2105
Lisa Farringer, Special Assistant to the
Attorney General
633-4945
National Security Council
David Pacelli, Director for Latin American
395-3860
Affairs
Office of Management & Budget
Janet Hale, Associate Director for Economics
395-3120
and Government
State
David Eweifel, Director for Caribbean Affaire
647-3210
Transportation
Jeff Shane, Assistant Secretary for Policy
366-4544
and International Affairs
07/21/89
11:30
004
THE WHITE HOUSE
WASHINGTON
- 2 -
Treasury
Rom Watson, Attorney, Office of Tax Policy
343-0247
Mary Bennett, Deputy International Tax Counsel
566-5992
U.S. Trade Representative
Melissa Coyle, Director for Caribbean Affairs
395-5190
White House Legislative Affairs
Boyd Hellingsworth, Deputy Assistant to the
456-7054
for Legislative Affairs
Task Force Chairman
Andrew H. Card, Jr., Assistant to the President
456-2533
and Deputy to the Chief of Staff
Rec'd OMB/LRD
Iraft
7/21/89-10:10
The following provisions are enacted pursuant to Congress's power
to admit Dew states, in recognition of the unique circumstances
affecting Puerto Rico as a result of uneven application of
federal tax and programs unlike the situation of any other newly-
admitted state, and solely for the purposes of effecting & smooth
and fair transition for the new State with a minimum or economic
dislocation and to permit federal agencies to assume OF expand
responsibilities for the administration and enforcement of
federal tax and programs affecting the citizens residing in the
pew State.
(a) APPLICATION OF EXCISE TAXES. -- Effective on the date of
the Proclemation of Statehood all federal excise taxes not
heretofore applicable to Puarto Rice are hereby ortended to
Poarto Rico in the same manner as otherwise applicable in the
several States: Provided, that, an excupt equivalent to the
amount of revenues derived from such taxes until January 1, 1994
shall be deposited 10 a special transition fund hereby
actablished in the Treasury for transfer to the state of Fuerto
Rico 0-0 provided in subsection (w) of this section.
(b) APPLICATION or FEDERAL LAWS. -- Effective upon the
certification of the results of the referendum, the heads of all
federal agencies are directed, ** a priority matter, to examine
the application of all programs within the jurisciction of their
respective agencies and, after consultation with the Governor of
-/- /
Pueito Rico, to recommend to the President what changes, 12 any,
and what additional administrative requirements, if any, will be
needed to properly achieve the application of federal laws in or
to the now State with proper regard for the economic, geographic,
and cultural circumstances of the ngw State.
(c) TRANSITION FOR CERTAIN ENTITLEMENTS. - Unless otherwise
altered by Congress, the present application of SSI, AFDC, Food
Stemp Block Grant, Medicare, and Medicaid shall be continued
until January 1, 1994, and the heads of agencies (EHS and USDA)
administering such programs are directed to consult with the
Governor of Puerto Rico and to take such administrative action,
including requesting sufficient budget authority to hire and
train tuew personnel, matablish rolls, and determine eligibility
to permit full application of such programs in the State of
Fuerto nico effective January 1, 1994: Provided, That,
reimbursements under Medicare shall not exceed the actual cost of
providing equivalent health care to the levels of care provided
10 the_several contiguous States, and Provided, further, That the
Secretary of Agriculture may, with the consent and agreement of
is
the Covernor of Puerto Rico continue to obligate the amount of
funds for which Puarto Rico would be eligible for in Food Stamps
as # block grant rather than as coupons as a pilot program until
October 1. 1997 unless otherwise provided by Congress.
(d) TRANSITION FOR TAX. -- The current tax treatment
applicable to Puerto Rico is continued until January 1, 1994,
effective upon the certification of the results of the
referendum, the Secretary of the Treasury shall consult with the
- 2 -
68/12/10
11:31
007
30:60
COMM. EAN RES.
2001
Governor of Puorto Rico on the transition of the new State from a
Foreign tax jurisdiction. The Secretary is authorized, on a
nonreinbursable busis, to provide such technical and other
assistance as the Governor may require to reform the present
revenue situation of Facate Rico prior to January 1, 1994. The
heads of all federal agancies are directed to assist the
Secretary and to provide such support as the Secretary may
request. Effective January 11, 1994, the federal internal
revenue laws shull apply within the State of Puerto Rico as
within the several States subject to such transitional #0400 or
other provisions a.e Congress may have provided prior to such
date: Provided, That, the credit previously allowed under section
936 of the Internal Revenue Code shall be reduced to 80% in 1996,
60% in 1995, 400 in 1996, 20% in 1997, and shall not be available
with respect to income or Investments from activity in Fuerto
Rico thereafter.
(o) STATEHOOD GRANTS AND ASSISTANCE. -
-
(1) The funds covered into the transition fund pursuant
to subsection (a) shall be transferred to the State of
Puerto Rico on January 1, 19947
(2) The current cover over provided by permanent
indefinite appropriations of customs duties and equivalency
payments on alcohol are hereby made persenant -- a Statehood
grant,
(3) For the years beginning as January 1, 1934 all
revenues derived from excise taxes which became applicable
in Puerto Rico parsuant to subsection (a) of this section.
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or any new exclas taxes which become applicable during such
period, shall be covered over date the Treasury of Puerto
Rico;
(4) As a transitional Statehood grant to the new State
to assist in maintenance of government earrices and to
provide for raintepance of infrastructure, from the
additional revenues derived as a result of the phase-out of
section 936, the following amounts shall be covered over to
the State of Puerto Rico:
for 1994 - $
million
for 1995 - 1
million
for 1996 - $
willion
for 1997 - $
million
for 1998 - $
million
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