SC H4703

Creates the Special District Accountability Office within the State Auditor's office to provide centralized oversight of South Carolina's 250+ special purpose districts (water, sewer, fire protection, recreation, hospital, etc.)

Requires districts to file annual budgets, financial reports, board member lists, fee schedules, and debt information electronically; districts receiving/expending over $250,000, levying property taxes, or maintaining debt must submit certified annual audits

Establishes a public online transparency portal with a searchable database of all districts, compliance status classifications, required filings, and 10-year historical records

Imposes escalating penalties for noncompliance: withholding state disbursements, suspension of debt authority, mandatory State Auditor review, and potential referral to Attorney General; continued noncompliance for 180 days may result in board suspension, appointment of temporary financial manager, or district dissolution

Requires annual training for all district board members on financial reporting, ethics, transparency obligations, and open meetings/records laws within one year of taking office; effective date July 1, 2026