A bill to amend and supplement the Federal reclamation laws, and for other purposes.

(Measure passed Senate, amended, in lieu of S. 1867, roll call #228 (49-13))

Reduces acreage limitations for qualified and limited recipients for the delivery of irrigation water. Exempts from such limitation lands leased for one year or less for water management and conservation purposes. Allows the delivery of irrigation water to lands leased in excess of a landholding of a specified size only if full cost is paid for water delivery for the excess land.

Directs the Secretary of the Interior, in determining the extent of a landholding, to include landholdings held indirectly, as well as directly, by recipients.

Requires the Secretary, whenever an acreage limitation is imposed by Federal reclamation laws and upon the request of a contracting entity, to designate lands under the applicable limitation within a district having class I productive potential.

Declares that irrigation water from reclamation project facilities shall not be withheld from delivery to project lands because owners, lessees, or operators live on or near such lands.

Requires owners of excess lands to execute a recordable contract with the Secretary for the disposal of such lands before irrigation water may be made available to them. Requires the disposal of such lands within five years for contracts entered into after enactment of this Act.

Exempts Federal water resources projects constructed by the Army Corps of Engineers from acreage limitation requirements or other provisions of reclamation law, unless specifically made applicable by statute or pursuant to the authority of the Secretary. Declares that contractual repayment costs attributable to Corps of Engineers projects shall remain in effect.

States that acreage limitation provisions shall not apply to landholdings when construction costs applicable to such landholdings have been repaid. Authorizes the Secretary to provide a certificate to the owner of such landholding acknowledging that such land is free of acreage limitations.

Permits lump sum or accelerated repayments under certain circumstances.

Provides that individual religious or charitable organizations which are tax-exempt under the Internal Revenue Code of 1954 shall be treated as persons under the provisions of this Act.

Exempts from limitations and restrictions of reclamation laws: (1) lands held by a trustee in a fiduciary capacity for beneficiaries whose interest in such lands is within limits imposed by reclamation laws; (2) lands which receive a temporary supply of water; (3) lands acquired by involuntary foreclosure, bona fide conveyance in satisfaction of mortgage, inheritance, or devise, which are eligible for a temporary supply of water not exceeding ten years; (4) isolated tracts which are economically farmable only if included in a larger farming operation; and (5) certain lands served with a substitute supply of water.

Allows the use of excess project water for irrigation, municipal, or industrial purposes only to the extent covered by a contract requiring payment for the use of such water. Allows the release of flood waters to downstream users without requiring payment for such water.

Provides for the validation of any contract provision between the Secretary and any party pursuant to matters arising under reclamation laws and of written representations of acreage limitations at the request of any non-Federal party to such an agreement. Directs the Secretary to determine whether or not to validate the provision and to transmit the application, with the determination, to Congress within 90 days of its receipt. Makes the Secretary's determination final and binding unless the Congress disapproves by concurrent resolution.

Vests exclusive jurisdiction in the United States district court for the district in which a project facility is located for injunctive relief sought under contracts between any non-Federal party and the Secretary relative to water service.

Authorizes appropriations.

Directs the Secretary, upon the request of the other contractual party, to amend existing contracts to conform to provisions of this Act.

Provides that the Commissioner of Reclamation shall be appointed by the President, with the advice and consent of the Senate (currently, the President appoints the Commissioner without consulting the Senate).

Prohibits the leasing of lands which receive irrigation water unless the lease instrument is written and is for a term not in excess of ten years. Directs that the Secretary be provided with a certificate signed by the lessee which includes a legal description of the land, the lease term, and certification of the reasonableness of the rent. States that with prior approval of the Secretary, leases of lands for the production of perennial crops may be granted for a term equal to the average life of such crops, but not in excess of 25 years.

Allows any lease in effect on January 1, 1982, ten years within which to comply with its provisions.

Sets forth recordkeeping requirements for contracting entities subject to the acreage limitation of the Federal reclamation law.

Requires the Secretary to encourage prudent and responsible water conservation measures in irrigation districts.

Requires the Secretary of Agriculture, within one year of enactment of this Act, to report to Congress on the production of surplus crops on acreage served by irrigation water.