Federal Assistance Reform and Small Community Act of 1979

Federal Assistance Reform and Small Community Act of 1979 - Defines a "small community" as used in this Act as a local government which has a population of less than 50,000.

Title I: Standardization of Requirements Generally Applicable to Federal Assistance - Adds a new title to the Intergovernmental Cooperation Act of 1968. Directs the President to designate Federal agencies to establish standardized requirements which condition Federal assistance in the areas of: (1) labor practices; (2) public employee standards; (3) equal employment opportunity; (4) equal services; (5) access to Government information; (6) citizen participation; (7) environmental protection; (8) relocation; (9) real property acquisition; and (10) procurement standards. Requires such requirements to be submitted for review by the President and published for comment in the Federal Register. Requires each designated agency to issue final requirements not later than one year following enactment of this title. Directs Federal departments and agencies to conform their program requirements with such standard requirements within 180 days after such standard requirements are issued.

Requires that each designated agency: (1) secure compliance with such requirements by State and local governments; (2) monitor affected Federal agencies; and (3) report annually to the President and Congress on the standardization process.

Directs the Director of the Office of Management and Budget (hereinafter referred to as the "Director") to oversee the administration of this title.

Title II: Consolidation of Federal Assistance Programs - Directs the President to: (1) examine Federal assistance programs; and (2) prepare and transmit to Congress a plan for consolidating functionally related programs upon determining that such consolidation would improve the administration or efficiency of such programs. Requires that such a plan: (1) designate one agency to administer a consolidated program; (2) expire no later than six years after becoming effective; and (3) be transmitted to Congress before December 31, 1984. States that any such plan shall become effective upon approval by the President of a congressional resolution approving such plan. Sets forth House and Senate procedure for considering such a resolution.

Title III: Financial Management and Audit of Federal Assistance Programs - Requires the Director to establish standard accounting, auditing, and financial management procedures to be used by all Federal agencies in the administration of Federal assistance to State and local governments.

Requires an independent audit of State and local governments receiving Federal assistance to be conducted at least once every two years to determine whether such governments are: (1) conducting their financial operations properly; and (2) using Federal funds for intended purposes. Stipulates that any such government which receives less than $50,000 per year in Federal assistance shall be subjected to such an audit at least once every five years but not more than once every three years. Permits such governments to assume responsibility for such audits.

Makes the Federal Government responsible for other specified audits. Directs the Director to establish a quality review process to assure the proper performance of audits. Requires the Federal Government to reimburse State and local governments for the costs of conducting audits for the Federal Government.

Title IV: Advance Appropriations - Amends the Congressional Budget Act of 1974, and the Budget and Accounting Act, 1921 to establish procedures for multi- year funding of Federal assistance programs.

Title V: Advisory Committee on Intergovernmental Relations - Increases from 26 to 29 the membership of the Advisory Commission on Intergovernmental Relations. Stipulates that such additional members shall be three elected officials from small communities.

Title VI: Set-Asides for Small Communities - States that at least ten percent of the funds available for making grants to local governments under Federal assistance programs shall be available only for making grants to small communities. Requires the head of each agency which makes grants to local governments to report to Congress the amount of such grants made to small communities.

Title VII: Option for Small Communities to Receive Payments in lieu of Grants - Authorizes any small community which has received grants under Federal assistance programs for two fiscal years to elect to receive cash payments in lieu of such grants during a fiscal year. States that the payments shall be equal to 90 percent of such averaged grants, and shall be subject to the terms and conditions for payments under the State and Local Fiscal Assistance Act of 1972.

Title VIII: Waiver of Regulations - Permits the Director, after consulting with the head of the affected agency, to waive any agency rule which conditions Federal assistance to State and local governments.

Title IX: Authorizations of Appropriations - Authorizes the appropriation of such sums as may be necessary to carry out this Act.