Bill > H4703

This bill establishes the South Carolina Special Purpose District Accountability and Transparency Act, which creates a new Special District Accountability Office (SDAO) within the State Auditor's office to oversee the state's more than 250 special purpose districts. The SDAO will maintain a public statewide directory of these districts, which provide essential services like water, sewer, fire protection, and recreation, and will require them to submit annual financial reports, budgets, audits, and other financial information. Districts must electronically file comprehensive annual reports within six months of their fiscal year-end, including budget details, board member information, fees, debt obligations, and intergovernmental agreements. The office will create a public online transparency portal where all submitted documents will be accessible, and will classify districts as compliant, delinquent, or noncompliant. For districts that fail to submit required reports, penalties will escalate from withholding state funds to potential suspension of the governing board or even district dissolution. Additionally, district board members will be required to complete annual training on financial reporting, ethics, transparency, and open meetings laws. The bill aims to increase accountability, reduce the risk of financial mismanagement, and provide comprehensive oversight of special purpose districts, with implementation set to begin on July 1, 2026.

Budget and Finance

https://www.scstatehouse.gov/billsearch.php?billnumbers=4703&session=126&summary=B