CA SB938

Authorizes local agency formation commissions (LAFCs) to initiate dissolution of districts based on documented chronic service deficiencies, unlawful spending, willful neglect of public records laws, or failure to meet minimum meeting requirements, with a mandatory 12-month remediation period before dissolution can be finalized.

Consolidates and reorganizes protest threshold procedures for various local government reorganization proposals (dissolution, consolidation, merger, annexation, detachment) into a new Chapter 4.5 (Sections 57091-57094), establishing lower protest thresholds (10% for commission-initiated proposals versus 25% for others).

Reduces protest requirements for commission-initiated dissolution under the new Section 56375.1 to match the 25% threshold in Section 57093, rather than the higher 25% threshold that would otherwise apply.

Removes obsolete provisions and makes conforming changes to Sections 56375, 56824.14, 57002, 57075, 57077.1-57077.4, and 57090, eliminating repealed Sections 57076, 57107, and 57113.

Amends Health and Safety Code Section 116687 regarding the Sativa-Los Angeles County Water District, exempting commission decisions on its dissolution or consolidation from protest proceedings and election requirements.