CA SB1205

Prohibits school districts and community college districts from issuing bonds at a discount exceeding 5 percent.

Allows local agencies to sell bonds at discounts below par value if authorized by law, subject to the new 5 percent cap for school and community college districts.

Permits bonds sold at a discount to yield an effective interest rate not exceeding 12 percent per year to the purchaser.

Removes previous ballot requirements regarding citizens' oversight committees and annual independent audits for school bond measures.