Puerto Rico Democracy Act of 2007 - Directs the Puerto Rico State Elections Commission to conduct a plebiscite in Puerto Rico no later than December 31, 2009, giving voters the option to vote to continue Puerto Rico's present territorial status and relationship with the United States or to pursue a constitutionally-viable permanent non-territorial status.
Recognizes the authority of the people of Puerto Rico, if a majority of the ballots favor pursuing a non-territorial status, to: (1) call a Constitutional Convention for the purpose of proposing to the people of Puerto Rico a self-determination option which, if approved in a referendum, would be presented to Congress; or (2) conduct a plebiscite administered by the Commission to consider a self-determination option, with the results presented to Congress.
Prescribes the eligibility requirements for voting in the plebiscite. Requires the Commission to certify plebiscite results to the President and Congress.
Authorizes the Secretary of the Treasury to allocate certain funds for the self-determination process.