Reclamation Reform Act

Reclamation Reform Act - Limits the class of eligible recipients of Federal reclamation project water for irrigation of project lands to: (1) adult individuals who own and/or lease lands within a Federal reclamation project for agricultural purposes, and who are residents as such term is defined in this Act, and comply with the acreage and other requirements of this Act; (2) two adult individuals, related or unrelated, who own and/or lease jointly project lands for agricultural purposes and who are residents and comply with the acreage and other requirements of this Act; and (3) other legal entities such as corporations, trusts, or partnerships, representing the ownership interest of two or more adult individuals. Stipulates that each class of eligible participants must be substantially involved in the farming operation conducted on the applicable project land. States that a minor may beneficially own land served by project water so long as the acreage involved is counted against the ownership entitlement of an eligible adult.

Reaffirms the requirement set forth in the Reclamation Act of 1902 that a landowner be an actual bona fide resident of land or occupant thereof residing in the neighborhood of such land in order for such landowner to be eligible to purchase the right to use project water. Sets forth exceptions to the residency requirement in recognition of the lack of enforcement of such requirement for many years.

Requires each purchaser of project lands after January 1, 1978, to be a resident, or to make an affadavit indicating an intent to become a resident within three years and the establishment of residency within that time. Stipulates that non-resident land owners who owned land purchased prior to January 1, 1978, as individuals or in any form of multiple ownerships, may continue to receive water, but requires residency of their successors in interest to the land. Requires residency of current, non-resident lessees upon termination of valid, written leases or within five years of the enactment of this Act, whichever is greater.

Replaces the existing acreage limitation of 160 acres of project land per individual with a maximum farm size of 480 acres which may be owned or leased (provided the total area of owned land does not exceeed 320 acres). Imposes a 960 acre limitation on reclaimed land owned or leased in any combination by corporations, trusts, partnerships or joint tenancies, provided the area of owned land does not exceed 640 acres.

States that nothing in this Act shall repeal or amend existing statutory exemptions from acreage limitations of the reclamation laws. Stipulates that acreage limitations established by this Act shall apply to any purchase or lease of project lands occurring after January 1, 1978. Establishes procedures for the eventual compliance with such limitations of projects which now exceed the limits set forth in this Act.

Authorizes the Secretary of the Interior to establish appropriate increases in the acreage limitation on lands of lesser productive potential upon request of the membership of a reclamation district. States that existing equivalency determinations shall remain in effect unless a change is requested.

Provides for the exemption of lands covered by specified reclamation contracts from acreage limitations upon the repayment of construction charges by the water user organizations which entered into such contracts with the Secretary of the Interior.

Authorizes the Secretary to remove acreage limitations only upon full payment in regularly scheduled installments and upon a finding that a pattern of farming consistent with this Act has been established.

Prohibits the leasing of project water irrigated landholdings acquired after January 1, 1978, unless the lessor has derived income for ten years from agricultural production on such landholdings. Directs the Secretary to require public files of all outstanding leases within the reclamation districts.

Requires the Secretary to renegotiate every five years rates and assessments paid by organizations under water service contracts entered into after the date of enactment of this Act. Directs such payments to commence when regular, permanent water deliveries begin. States that no section of any system shall be used to deliver water for more than one year unless repayment for that section has commenced.

Amends the Reclamation Project Act of 1939 to declare that no contract for water supply or for repayment of project facilities may be entered into or modified unless: (1) notice is published in newspapers of general circulation in each region which may be affected by such action; (2) an opportunity for public hearing is given; (3) substantive comments are received; and (4) negotions for such contracts are open to the public.

Permits owners to dispose of excess lands prior to the expiration of the contract covering such lands upon price approval by the Secretary. Requires sale of such lands to either immediate family members of the owner, long-term tenants, employees, or adjoining neighbors. Vests power of attorney in the Secretary of the Interior to sell excess lands not sold to eligible purchasers prior to the end of the contract period. Directs the Secretary to sell such lands to eligible purchasers by impartial means.

Eliminates the requirement that one half the construction charges on excess lands be paid before the sale of such lands carries the right to receive water. Establishes that sale or resale of excess land within 15 years of its initial sale shall not carry the right to receive project water unless: (1) the purchase price is approved by the Secretary of the Interior; (2) the requirements of this section of this Act are in the sales documents; (3) the conditions of the Federal reclamation laws are met; and (4) the sales documents are recorded.

Authorizes the Secretary to continue delivery of water supplies to all project lands held by bona fide religious or charitable nonprofit organizations as of January 1, 1978, without regard to acreage and residency requirements established by this Act.