Offshore Fairness Act

Summary: Offshore Fairness Act - Amends the Submerged Lands Act to extend the seaward boundaries of Alabama, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina, and Virginia to a line three marine leagues (currently, three geographic miles) distant from the coast line.  Directs the Secretary of the Interior to: (1) notify such states of the right to request a conveyance of the applicable interest of the United States in and to the expanded submerged land; and (2) at such a state's request, convey to the applicable state the interest of the United States in and to such land.  Prohibits states conveyed such land from imposing: (1) burdens or requirements on an interest owner that would be stricter than any federal burdens or requirements, and (2) administrative or judicial penalties or sanctions on an interest owner that are more severe than any federal administrative or judicial penalty or sanction.  Declares submerged land within the seaward boundaries of such states to be subject to federal oil and gas mineral rights and to be considered part of the federal outer continental shelf for purposes of the Outer Continental Shelf Lands Act, the Gulf of Mexico Energy Security Act of 2006, and other laws applicable to the leasing of the oil and gas resources.  Prohibits this Act from affecting any federal oil and gas lease in effect on the date of the land conveyance. Excludes from specified requirements and prohibitions any interest in the expanded submerged land that is granted by the state after the date on which the land is conveyed.  Authorizes such states to exercise their sovereign taxation powers within the entire extent of the extended seaward boundaries. Prohibits this Act from affecting a state's authority to tax any federal oil and gas lease in effect on the date of enactment of this Act.  Directs the Secretary of Commerce to grant such states exclusive fishery management authority over: (1) reef fish in the Gulf of Mexico and the Atlantic Ocean in the expanded submerged land, (2) red snapper fish in designated areas until the state's governor certifies that the stock assessments of the National Oceanic and Atmospheric Administration (NOAA) are accurate and based on sound science. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Offshore Fairness Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Coast line.--The term ``coast line'' means the line of 
        ordinary low water along the portion of the coast which is in 
        direct contact with the open sea and the line marking the 
        seaward limit of inland waters, as in existence on the day that 
        is 1 day before the date of enactment of this Act
            (2) Existing interest.--The term ``existing interest'' 
        means any lease, easement, right of use, or right-of-way on, or 
        for any natural resources or minerals, underlying, expanded 
        submerged land that is in existence on the date of conveyance 
        of the expanded submerged land.
            (3) Expanded seaward boundary.--The term ``expanded seaward 
        boundary'' means the boundary of a State that is 3 marine 
        leagues seaward of the coast line of the State.
            (4) Expanded submerged land.--The term ``expanded submerged 
        land'' means the area of the outer Continental Shelf that is 
        located between the point that is 3 miles seaward of the coast 
        line of a State and the point that is 3 marine leagues seaward 
        of the coast line of the State.
            (5) Interest owner.--The term ``interest owner'' means any 
        person holding an existing interest or a portion of an existing 
        interest.
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (7) State.--The term ``State'' means any of the States of 
        Alabama, Florida, Georgia, Louisiana, Mississippi, North 
        Carolina, South Carolina, and Virginia.

SEC. 3. SEAWARD BOUNDARIES OF CERTAIN STATES.

    (a) Seaward Boundaries.--Section 4 of the Submerged Lands Act (43 
U.S.C. 1312) is amended--
            (1) by striking ``The'' at the beginning and inserting the 
        following:
    ``(a) In General.--Except for the States described in subsection 
(b), the''; and
            (2) by adding at the end the following:
    ``(b) Seaward Boundaries of Certain Coastal States.--Subject to 
subsection (a), the seaward boundary of each of the following States 
shall be a line 3 marine leagues distant from the coast line of the 
State as of the date that is 1 day before the date of enactment of the 
Offshore Fairness Act:
            ``(1) Alabama.
            ``(2) Florida.
            ``(3) Georgia.
            ``(4) Louisiana.
            ``(5) Mississippi.
            ``(6) North Carolina.
            ``(7) South Carolina.
            ``(8) Virginia.''.
    (b) Conforming Amendments.--Section 2 of the Submerged Lands Act 
(43 U.S.C. 1301) is amended--
            (1) in subsection (a)(2), by inserting ``, or 3 marine 
        leagues distant from the coast line of a State described in 
        section 4(b),'' after ``the coast line of each such State''; 
        and
            (2) in subsection (b)--
                    (A) by striking ``from the coast line'';
                    (B) by inserting ``from the coast line of a State, 
                or more than 3 marine leagues from the coast line of a 
                State described in section 4(b),'' after ``three 
                geographical miles''; and
                    (C) by inserting ``from the coast line of a State, 
                or more than 3 marine leagues from the coast line of a 
                State described in section 4(b),'' after ``three marine 
                leagues''.

SEC. 4. CONVEYANCE.

    (a) In General.--Subject to subsections (b) and (c) and section 5, 
the Secretary shall, by not later than 120 days after the date of 
enactment of this Act--
            (1) notify each State of the right to request a conveyance 
        of the applicable interest of the United States in and to the 
        expanded submerged land; and
            (2) at the request of a State, convey to the applicable 
        State the interest of the United States in and to the expanded 
        submerged land.
    (b) Administration.--On conveyance under subsection (a), the 
Secretary shall transfer to the Governor of the State the authority to 
exercise the powers and duties of the Secretary under the terms of any 
existing interest, subject to the condition that the State--
            (1) shall not impose any burdens or requirements on an 
        interest owner that would be stricter than any burdens or 
        requirements imposed under Federal law; and
            (2) shall not impose any administrative or judicial penalty 
        or sanction on an interest owner that is more severe than any 
        administrative or judicial penalty or sanction under current 
        Federal law.
    (c) Liability.--As a condition of accepting the conveyance, the 
State shall agree to indemnify the United States from any liability to 
any interest owner for the taking of a property interest or breach of 
contract arising from--
            (1) the conveyance of the expanded submerged land to the 
        State; or
            (2) the administration by the State of any existing 
        interest on or underlying the expanded submerged land.

SEC. 5. EFFECT.

    (a) In General.--Subject to subsections (b) through (e), this Act 
and the amendments made by this Act shall not affect any valid existing 
right in and to the expanded submerged land.
    (b) Submerged Land.--Submerged land within the seaward boundaries 
of a State (as extended by the amendments made by this Act) shall be--
            (1) subject to Federal oil and gas mineral rights to the 
        extent provided by law;
            (2) considered to be part of the Federal outer Continental 
        Shelf for purposes of the Outer Continental Shelf Lands Act (43 
        U.S.C. 1331 et seq.); and
            (3) subject to--
                    (A) leasing under the authority of that Act;
                    (B) the distribution of revenues under section 
                8(g)(2) of that Act (43 U.S.C. 1337(g)(2)); and
                    (C) any other laws applicable to the leasing of the 
                oil and gas resources of the Federal outer Continental 
                Shelf, including the Gulf of Mexico Energy Security Act 
                of 2006 (43 U.S.C. 1331 note; Public Law 109-432).
    (c) Existing Leases.--
            (1) In general.--The amendments made by this Act shall not 
        affect any Federal oil and gas lease in effect on the date of 
        conveyance under section 4.
            (2) Divided leases.--If the conveyance under section 4 
        results in a division of a Federal oil and gas lease that is in 
        existence on the date of conveyance, the conveyance of the 
        portion of the expanded submerged land that is covered by the 
        lease shall not take effect until the date that is 1 day after 
        the date that the lease expires or terminates.
    (d) Future Interests.--This section shall not apply to any interest 
in the expanded submerged land that is granted by the State after the 
date on which the land is conveyed to the State under section 4.
    (e) Taxation.--
            (1) In general.--Subject to paragraph (2), a State may 
        exercise all of the sovereign powers of taxation of the State 
        within the entire extent of the seaward boundaries of the State 
        (as extended by the amendments made by this Act).
            (2) Limitation.--Nothing in this subsection affects the 
        authority of a State to tax any Federal oil and gas lease in 
        effect on the date of enactment of this Act.

SEC. 6. FISHERY MANAGEMENT RIGHTS.

    (a) In General.--The Secretary of Commerce shall grant to each 
State exclusive fishery management authority over reef fish in the Gulf 
of Mexico and the Atlantic Ocean in the expanded submerged land.
    (b) Temporary Additional Authority.--
            (1) In general.--In addition to the authority granted under 
        subsection (a) and subject to paragraph (2), the Secretary of 
        Commerce shall grant to each State exclusive fishery management 
        authority over the red snapper fish (lutjanus campechanus), in 
        the Gulf of Mexico and the Atlantic Ocean in the area of the 
        outer Continental Shelf that is located between the expanded 
        seaward boundary of a State and the point that is 200 miles 
        seaward of the coast line of the State, consistent with the 
        jurisdictional limit of the exclusive economic zone.
            (2) Term.--The authority under paragraph (1) shall remain 
        in effect for any State until the date on which the Governor of 
        that State has certified to the Secretary of Commerce, in 
        writing, that the Governor is confident that the stock 
        assessments of the National Oceanic and Atmospheric 
        Administration for the red snapper fish (lutjanus campechanus) 
        within the authority of the State, as established by this Act, 
        are--
                    (A) accurate; and
                    (B) based on sound science.