The state's five water management districts, which have spent $2 billion buying land often at prices far above its appraised value, from now on must receive state permission before inking land deals worth more than $500,000.

Guidelines issued by the Department of Environmental Protection in June require the districts not only to explain to the state agency how the land will enhance water supply, quality, flood control and restoration but also to justify the proposed price. That means providing DEP with appraisals, maps, aerial photographs and a statement verifying that no one at the district - from Governing Board members to the relatives of district employees - will benefit from the land buy. All conflicts of interest must be reported.

In the past, DEP reviewed land deals after a purchase, to determine if the district qualified for reimbursement from restoration programs. "We want to be smarter on the front end," said Greg Munson, DEP secretary for water policy and ecosystem restoration.

"What we've told them is, if you have questions, talk with us," said Munson, who oversaw the drafting of the guidelines. "We'll work through the whole process."

The guidelines will bring more transparency to the South Florida Water Management District, whose land purchasing practices have been plagued by complaints of cronyism and criticized by its own inspector general for years. A recent Palm Beach Post investigation revealed deals in which the district paid millions of dollars above the appraised value for one property owned by a close friend of a top administrator and another owned by the family of Agriculture Commissioner Adam Putnam, who was a congressman at the time. Neither property has been used for restoration or water storage projects.

The long-time head of the district's land acquisition program recently resigned and Executive Director Melissa Meeker called for investigation of a complaint that her No. 2. official, Bob Brown, accepted gifts and free hunting from two Okeechobee ranchers who had dealings with the district. Munson said the new requirements were not issued in response to those findings but were instead the product of a year-long review of the districts' land management practices that was initiated by Gov. Rick Scott shortly after he came into office in January 2011.

Tommy Strowd, the district's director of operations, maintenance and construction, said the district does not resent the additional oversight and he does not expect the guidelines will increase staff workloads. Most of the land needed for restoration and storage projects has already been purchased, he said.

"It's an opportunity for more oversight and to ask questions that need to be asked," Strowd said of the new requirements. "It's just a different format - more up-front."

In addition to oversight of purchasing practices, the new guidelines set down rules for how the districts can sell and exchange land they do not need.

Before selling land, the district must submit a cover letter from the executive director explaining why the land is no longer needed and stating that no one at the district will profit from the sale. The sale cannot reduce the public land available for hunting, eliminate links to conservation corridors or contain archaeological artifacts.

The South Florida Water Management District owns more than 1 million acres - making it the largest landowner in 16 counties from Orlando to Key West. The district, responsible for the restoration of the Everglades, has spent $1.6 billion on land, more than any other water district. Much of the land was also purchased during the land boom and the district routinely paid 20-30 percent above appraised value to avoid condemnation lawsuits and rising prices.

The district is currently auditing all of its land holdings to determine which can be sold, Strowd said. Although the DEP wants districts to get rid of unneeded land, it will will not force the districts to dump land for pennies on the dollar. "We just want them to make sound business decisions without sacrificing the environment," Munson said.

New state guidelines for buying land

All purchases require applications to the Department of Environmental Protection that explain the need and report conflicts of interest. Maps, aerial photographs and appraisals are also required. Purchases should not exceed 90 percent of appraised value. Before the guidelines, the state only reviewed district land deals after closing, to determine whether the district qualified for reimbursement.

Under $500,000

No state approval necessary if price is below 90 percent of appraised value.

Over $500,000

Division of State Lands reviews the application and supporting documents and makes recommendation to deputy secretary for land and recreation, who approves or denies request within two weeks. (Also applies to purchases under $500,000 but exceeding 90 percent of appraised value.)

A year after Gov. Rick Scott ordered a review of water management district real estate practices statewide, the Florida Department of Environmental Protection has implemented rules that require its approval for land purchases over $500,000 by districts. The rules were released amid Palm Beach Post reports of South Florida Water Management District land buys that netted a close friend of a district official and the family of Agriculture Secretary Adam Putnam millions of dollars more than the appraised value of their properties.