Requires an islandwide referendum to be held in Puerto Rico in which voters will have a choice of negotiating one of three status options for Puerto Rico as follows: (1) statehood; (2) independence; or (3) commonwealth. Provides for a runoff referendum between the two status options which receive the largest number of votes if there is not a majority in favor of one of the options. Requires the Governor of Puerto Rico to certify to the President and the Congress the decision of the people.

Requires the representatives of the principal political party representing the status option selected to begin to develop implementing legislation. Requires such legislation to authorize a further referendum to approve or disapprove the selected status as defined in the legislation. Prohibits a change of status from becoming effective until approved in such a referendum.