Amends the Federal judicial code to modify the application to States of the 12-year statute of limitations which applies to quiet title actions against the United States. Provides that no such action may be maintained during the time in which the disputed land is used or required for national defense purposes, if the State brings action more than 12 years after it should have known of the U.S. claims. Sets a 12-year statute of limitations for actions with respect to lands (other than tide or submerged lands) on which the United States or its lessee has made substantial improvements.
Provides that where a State is successful in an action involving tide or submerged lands on which such improvements were made, the State shall take title to the lands subject to any existing lease, easement, or right-of-way, even if the action was brought more than 12 years after the State learned of the Federal claims.
Requires any State to notify the applicable Federal agency at least 180 days before bringing any such action.