The Reclamation Management Reform Act of 1979

Reclamation Management Reform Act of 1979 - Declares that this Act specifically applies to any irrigation project which the courts have determined to be subject to the Reclamation Act.

States that no landholding exceeding 640 acres shall be eligible to receive irrigation water from Government projects except as provided in this Act. Requires lands exceeding such acreage limitation to be placed under a recordable contract within one year of enactment of this Act as a condition of continued water service. Requires that such contract provide for the sale of such excess lands within five years.

Repeals residency provisions of the Reclamation Act of 1902.

Authorizes the Secretary of the Interior to establish the acreage of nonclass 1 land held by a qualified recipient which may eligibly receive project water. Directs the Secretary, when determining such land classes, to take into account all factors which significantly affect the economic feasibility of irrigated agriculture. States that such acreage limitations for nonclass 1 lands shall apply only to a district or entity which is above 3,000 feet in elevation, or where the average frost-free growing season is less than 180 days.

Approves contracts allowing an exemption from acreage limitations upon repayment of construction charges in regularly scheduled installments. Authorizes the Secretary to grant an exemption from all acreage limitations after such repayment, if he is satisfied that a general pattern of family-sized farms has been established within the district or contracting entity. Directs the Secretary, upon request after such repayment, to provide a certificate acknowledging exemption from acreage limitations and operatorship requirements of Federal reclamation laws.

Prohibits qualified recipients acquiring a landholding after January 1, 1979, from leasing such landholding unless such owner has derived income from agricultural production on such landholding for at least ten years. Authorizes the Secretary to permit such leasing under specified circumstances. Directs each contracting entity to keep up-to-date files on each lease of lands served by Federal water.

Permits owners of excess lands to sell such lands to immediate lineal family members prior to the end of the term of a recordable contract. Vests power of attorney in the Secretary to sell such land, if not purchased by a family member, under procedures provided by this Act. Directs the Secretary to notify persons selected for land purchases of the availability of Federal financial assistance.

Repeals a provision of current reclamation law which included water delivery rights in the sale of excess land without the Secretary's approval of the purchase price.

Declares that in all contracts under reclamation laws, the price charged for water shall be at least equivalent to the cost of delivery of such water. Sets forth procedures and circumstances under which the Secretary may reduce the price of such water.

Directs the Secretary to recommend measures for water conservation to contracting entities receiving water under this Act. Forbids the Secretary from increasing the water supply to any contractor who fails to implement such recommendations.

Directs the Secretary to institute a ground water management program, no later than two years after enactment of this Act, to devise a method for controlling the overdrafting of ground water resources. Prohibits the Secretary from entering into, renegotiating, or extending any water service contract, unless the contracting entity has complied with such program.

Sets forth conditions under which the irrigation of new lands will be provided.

Provides procedures for public participation and congressional review of certain water service contracts.

Provides exemptions from acreage limitations for certain lands temporarily supplied with Federal water. Repeals the Act of July 11, 1956, which allows a temporary supply of water to certain lands for a period of five years.

Prohibits, after two years of enactment of this Act, the supply of water or other benefits to lands not owned entirely by U.S. citizens.

Amends any contract in existence upon enactment of this Act, to make such a contract comply with this Act.

Directs any contracting entity to make available to the Secretary such reports he deems necessary.

Sets forth penalties for violations of the Federal reclamation laws and this Act, and procedures for assessing such penalties.