We derive the low-energy theory of semi-quantized quantum Hall states, a recently observed class of gapless bilayer fractional quantum Hall states. Our theory shows these states to feature gapless quasiparticles of fractional charge coupled to an emergent Chern-Simons gauge field. These gapless quasiparticles can be understood as composites of electrons and Laughlin-like quasiparticles. We show that semi-quantized quantum Hall states exhibit perfect interlayer drag, host non-Fermi liquid physics, and serve as versatile parent states for fully gapped topological phases hosting anyonic excitations.