The "South Carolina Special Purpose District Accountability and Transparency Act" aims to enhance oversight and accountability for the over 250 special purpose districts in South Carolina, which provide essential governmental services and are funded through public means. The bill establishes the Special Purpose District Accountability Office (SDAO) within the Office of the State Auditor, which will be responsible for maintaining a public directory of these districts, collecting and publishing financial reports, and ensuring compliance with reporting requirements. The SDAO will also provide training and guidance for district officials and will have the authority to monitor compliance and enforce penalties for noncompliance.

Key provisions of the bill include mandatory annual electronic filings by each district, such as budgets, financial reports, and audits, with a public transparency portal to facilitate access to this information. The SDAO will classify districts as compliant or noncompliant based on their adherence to reporting requirements, with consequences for continued noncompliance, including potential suspension of governing boards or dissolution of districts. The act will take effect on July 1, 2026, and existing sections of Chapter 7, Title 11 will be designated as "General Provisions."