1. Findings Congress finds the following: (1) In order to ensure the legitimate interests of Puerto Rico and the United States, Congress should recognize Puerto Rico as a sovereign nation. (2) Consistent with article IV, section 3 of the Constitution, only Congress has the power to dispose of and make all needful rules and regulations respecting Puerto Rico. (3) Puerto Rico’s territorial condition constitutes an unsustainable status of political subordination. (4) Annexation of Puerto Rico as a State of the Union would be detrimental to both Puerto Rico and the United States. (5) A majority of the voters rejected the continuation of territorial status in the referendum on the political status of Puerto Rico held in Puerto Rico on November 6, 2012. (6) The people of Puerto Rico should, through participation in a referendum vote on the future status of Puerto Rico, choose between independence or free association. (7) Congress should dispose of the territory of Puerto Rico, recognize its sovereign nationhood, and provide for an appropriate transition process to take place under independence or under a compact of free association with the United States, in harmony with the results of the vote expressed by the People of Puerto Rico in the referendum. 2. Referendum (a) In general The Legislative Assembly of Puerto Rico shall provide for a referendum to take place in Puerto Rico, in which eligible voters shall express their preference between the non-territorial options of either independence or free association, as herein provided. (b) Eligible voters An individual shall be eligible to vote in the referendum held under this Act if that individual— (1) was born in Puerto Rico