UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-02790

Franklin California Tax-Free Income Fund

(Exact name of registrant as specified in charter)

_One Franklin Parkway, San Mateo, CA 94403-1906

(Address of principal executive offices) (Zip code)

_Craig S. Tyle, One Franklin Parkway, San Mateo, CA 94403-1906

(Name and address of agent for service)

Registrant's telephone number, including area code: 650 312-2000

Date of fiscal year end: 3/31

Date of reporting period: 3/31/21

Item 1. Reports to Stockholders.

a.)

The following is a copy of the report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1.)

b.)

A copy of the notice transmitted to shareholders in reliance on Rule 30e-3 under the 1940 Act that contains disclosures specified by paragraph (c)(3) of that rule is included in the Annual Report. Not Applicable.

ANNUAL

REPORT

AND

SHAREHOLDER

LETTER

Franklin

California

Tax-Free

Income

Fund

March

31,

2021

Sign

up

for

electronic

delivery

at

franklintempleton.com/edelivery

Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

franklintempleton.com

Not

part

of

the

annual

report

1

Shareholder

Letter

Dear

Shareholder:

During

the

12

months

ended

March

31,

2021,

the

novel

coronavirus

(COVID-19)

pandemic

caused

the

U.S.

economy

to

contract

in

2020’s

first

half.

For

the

remainder

of

2020,

the

economy

recovered

substantially

based

on

increased

business

and

residential

investment

and

consumer

spending.

The

U.S.

economy

also

showed

signs

of

strength

during

2021’s

first

quarter

as

federal

assistance

programs,

the

acceleration

of

COVID-19

vaccinations

and

robust

corporate

earnings

boosted

U.S.

equity

markets.

Before

the

reporting

period,

the

U.S.

Federal

Reserve,

in

its

efforts

to

support

U.S.

economic

activity,

lowered

the

federal

funds

rate

twice

in

March

2020

and

implemented

broad

quantitative

easing

measures

to

support

credit

markets.

During

the

reporting

period,

the

Federal

Reserve

held

its

key

rate

unchanged

at

0.25%,

but

it

continued

quantitative

easing

and

adjusted

its

policy

in

August

2020

to

allow

more

flexibility

to

keep

interest

rates

low,

while

maintaining

a

2%

average

inflation

target.

During

the

12-month

period,

municipal

bonds

delivered

positive

total

returns

as

investors

were

attracted

to

tax-free

income

in

a

declining

interest-rate

environment.

Factors

contributing

to

this

positive

investment

environment

for

municipals

included

relatively

low

inflation,

interest-rate

declines

and

actions

by

the

Federal

Reserve

to

support

the

municipal

bond

market.

Franklin

California

Tax-Free

Income

Fund’s

annual

report

includes

more

detail

about

municipal

bond

market

conditions

and

a

discussion

from

the

portfolio

managers.

In

addition,

on

our

website,

franklintempleton.com

,

you

can

find

updated

commentary

by

our

municipal

bond

experts.

Municipal

bonds

provide

tax-free

income

and

diversification

from

equities.

Despite

periods

of

volatility,

municipal

bonds

historically

have

had

a

solid

long-term

record

of

performance,

driven

mostly

by

their

compounding

tax-free

income

component.

As

you

know,

all

securities

markets

fluctuate,

as

do

mutual

fund

share

prices.

As

always,

we

recommend

investors

consult

their

financial

advisors

to

help

them

make

the

best

decisions

for

the

long

term.

In

a

constantly

changing

market

environment,

we

remain

committed

to

our

disciplined

strategy

as

we

manage

the

Fund,

keeping

in

mind

the

trust

you

have

placed

in

us.

We

appreciate

your

confidence

in

us

and

encourage

you

to

contact

us

or

your

financial

advisor

when

you

have

questions

about

your

Franklin

tax-free

investment.

Sincerely,

Rupert

H.

Johnson,

Jr.

Chairman

Franklin

California

Tax-Free

Income

Fund

Ben

Barber

Senior

Vice

President

Director

of

Municipal

Bonds

This

letter

reflects

our

analysis

and

opinions

as

of

March

31,

2021,

unless

otherwise

indicated.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

state,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

franklintempleton.com

Annual

Report

2

Contents

Annual

Report

Franklin

California

Tax-Free

Income

Fund

3

Performance

Summary

6

Your

Fund’s

Expenses

9

Financial

Highlights

and

Statement

of

Investments

10

Financial

Statements

34

Notes

to

Financial

Statements

38

Report

of

Independent

Registered

Public

Accounting

Firm

46

Tax

Information

47

Board

Members

and

Officers

48

Shareholder

Information

53

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Annual

Report

ANNUAL

REPORT

Franklin

California

Tax-Free

Income

Fund

This

annual

report

for

Franklin

California

Tax-Free

Income

Fund

covers

the

fiscal

year

ended

March

31,

2021

.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

to

provide

investors

with

as

high

a

level

of

income

exempt

from

federal

income

taxes,

including

alternative

minimum

tax,

and

exempt

from

California

personal

income

taxes

for

California

residents

as

is

consistent

with

prudent

investment

management

and

the

preservation

of

shareholders’

capital

by

normally

investing

at

least

80%

of

its

total

assets

in

investment-grade

municipal

securities

that

pay

interest

free

from

such

taxes.

1

Performance

Overview

The

Fund’s

Class

A

share

price,

as

measured

by

net

asset

value,

increased

from

$7.50

on

March

31,

2020,

to

$7.71

on

March

31,

2021.

The

Fund’s

Class

A

shares

paid

dividends

totaling

21.1649

cents

per

share

for

the

reporting

period.

2

The

Performance

Summary

beginning

on

page

6

shows

that

at

the

end

of

this

reporting

period

the

Fund’s

Class

A

shares’

distribution

rate

was

2.73%,

based

on

an

annualization

of

March’s

1.8234

cents

per

share

monthly

dividend

and

the

maximum

offering

price

of

$8.01

on

March

31,

2021.

An

investor

in

the

2021

maximum

combined

effective

federal

and

California

personal

income

tax

bracket

of

53.10%

(including

3.80%

Medicare

tax)

would

need

to

earn

a

distribution

rate

of

5.82%

from

a

taxable

investment

to

match

the

Fund’s

Class

A

tax-free

distribution

rate.

For

other

performance

data,

please

see

the

Performance

Summary.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Municipal

Bond

Market

Overview

During

the

12

months

ended

March

31,

2021,

the

novel

coronavirus

(COVID-19)

pandemic

had

a

severe

economic

impact

across

the

globe

and

in

the

U.S.

As

whole

states

enacted

strong

social

distancing

protocols

(including,

in

some

cases,

stay-at-home

orders),

there

were

record

numbers

of

jobs

lost

and

a

strong

contraction

of

gross

domestic

product

(GDP)

in

both

the

first

and

second

quarters

of

2020.

After

seeing

large

disruptions

in

March

2020,

fixed

income

market

sectors—including

municipal

(muni)

bonds—began

the

slow

process

of

recovery

following

swift

policy

responses

from

both

monetary

and

fiscal

authorities.

The

U.S.

Federal

Reserve

set

up

a

number

of

new

emergency

facilities

to

restore

investor

confidence

in

the

market.

Included

in

these

measures

were

programs

to

purchase

muni

bonds

in

the

secondary

market

and

to

provide

direct

loans

to

muni

bond

issuers.

Although

these

programs

were

ultimately

thinly

subscribed,

they

provided

a

backstop

to

the

muni

bond

market.

The

U.S.

federal

government

also

undertook

a

number

of

fiscal

spending

packages

in

2020—$2.9

trillion

in

April

and

an

additional

$900

billion

in

December—to

provide

much-needed

resources

to

individuals

and

businesses

in

an

attempt

to

provide

bridge

funding

and

lessen

the

potential

for

scarring

in

the

overall

economy.

Credit

Quality

Composition

*

3/31/21

Ratings

%

of

Total

Investments

AAA

6.88%

AA

51.62%

A

24.02%

BBB

2.45%

Below

Investment

Grade

0.87%

Refunded

12.04%

Not

Rated

0.89%

Cash

&

Cash

Equivalents

1.23%

*

Ratings

shown

are

assigned

by

one

or

more

Nationally

Recognized

Statistical

Rating

Organizations

(NRSRO),

such

as

Standard

&

Poor's,

Moody's

and

Fitch.

When

ratings

from

multiple

agencies

are

available,

the

highest

is

used,

consistent

with

the

portfolio

investment

process.

Ratings

reflect

an

NRSRO's

opinion

of

an

issuer's

creditworthiness

and

typically

range

from

AAA

(highest)

to

D

(lowest).

The

Refunded

category

consists

of

refunded

bonds

secured

by

U.S.

government

or

other

high-

quality

securities.

The

Not

Rated

category

consists

of

ratable

securities

that

have

not

been

rated

by

an

NRSRO.

The

Not

Applicable

category

consists

of

third-party

ETFs

and

securities

that

only

have

a

short-term

rating

and

are

not

cash

equivalents.

Cash

includes

equivalents,

which

may

be

rated.

1.

For

investors

subject

to

alternative

minimum

tax,

a

small

portion

of

Fund

dividends

may

be

taxable.

Distributions

of

capital

gains

are

generally

taxable.

To

avoid

imposition

of

28%

backup

withholding

on

all

Fund

distributions

and

redemption

proceeds,

U.S.

investors

must

be

properly

certified

on

Form

W-9

and

non-U.S.

investors

on

Form

W-8BEN.

2.

The

distribution

amount

is

the

sum

of

all

net

investment

income

distributions

for

the

period

shown.

Assumes

shares

were

purchased

and

held

for

the

entire

accrual

period.

Since

dividends

accrue

daily,

your

actual

distributions

will

vary

depending

on

the

date

you

purchased

your

shares

and

any

account

activity.

All

Fund

distributions

will

vary

depending

upon

current

market

conditions,

and

past

distributions

are

not

indicative

of

future

trends.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

15

.

Franklin

California

Tax-Free

Income

Fund

4

franklintempleton.com

Annual

Report

Through

the

summer

of

2020,

infection

rates

fell

across

the

U.S.,

allowing

some

states

to

begin

the

process

of

reopening

parts

of

their

economies.

However,

starting

in

the

fall,

new

cases

and

hospitalizations

increased

to

all-time

highs

as

the

virus

spread

to

areas

in

the

U.S.

that

had

not

seen

large

numbers

of

infections,

causing

some

states

to

slow

or

abandon

their

reopening

plans.

This

was

tempered

by

the

emergency

approval

of

COVID-19

vaccines

from

multiple

pharmaceutical

manufacturers

by

the

U.S.

Food

and

Drug

Administration

in

December

2020

with

plans

to

provide

mass

inoculations

in

the

first

half

of

2021.

As

the

vaccination

program

progressed

during

the

first

quarter

of

2021,

case

rates

and

hospitalizations

dropped

significantly,

allowing

the

resumption

of

the

reopening

process

including

a

return

to

in-person

schooling.

Valuations

in

the

muni

bond

market

improved

starting

in

April

2020

due

to

strong

technical

conditions.

After

seeing

record

outflows

in

March

and

April

of

2020,

funds

flowed

back

into

muni

bond

retail

vehicles,

creating

significant

demand

for

bonds.

These

flows

outstripped

new

issuance

of

tax-exempt

bonds

as

many

issuers

turned

to

the

taxable

muni

bond

market

for

refundings

and

new

issuance.

Ratios

of

muni

bond

yields

versus

duration-matched

U.S.

Treasuries

(USTs)

improved

from

their

all-time

highs

seen

in

March

2020

throughout

the

remainder

of

2020

and

into

2021.

Although

these

ratios

moved

higher

in

February

2021

as

UST

yields

rose

sharply,

they

more

than

recovered

in

March

2021,

moving

to

all-time

bests

by

the

end

of

the

month.

Starting

in

February

2021,

UST

yields

rose

sharply,

which

put

pressure

on

muni

bond

absolute

returns

given

the

longer-duration

profile

of

the

sector.

State

and

local

muni

bond

issuers

projected

severe

budget

deficits

for

2020

and

going

forward

as

they

anticipated

tax

receipts

and

usage

fees

falling

and

outlays

for

social

programs

such

as

health

care

and

unemployment

benefits

strongly

rising.

By

the

end

of

2020,

many

of

these

deficit

projection

fears

were

unfounded

as

consumer

spending

recovered

more

quickly

than

anticipated,

leading

to

higher

sales

tax

collections.

A

strong

U.S.

housing

market

also

provided

additional

support.

In

March

2021,

the

U.S.

federal

government

passed

a

$1.9

trillion

additional

fiscal

spending

bill,

providing

large

one-time

cash

payments

to

individuals

and

continuation

of

enhanced

unemployment

benefits.

Included

in

this

package

was

$350

billion

worth

of

grants

to

state

and

local

governments

intended

to

further

support

budgets

and

improve

the

credit

profile

of

the

muni

sector

as

a

whole.

The

Investment

Company

Institute

(ICI)

reported

net

inflows

of

approximately

$5

billion

into

muni

bond

retail

vehicles

in

March

2021.

For

the

12-month

period,

muni

bond

retail

vehicles

had

approximately

$85

billion

of

net

inflows,

according

to

the

ICI.

For

the

12-month

period,

U.S.

fixed

income

sectors

broadly

underperformed

relative

to

equities,

as

measured

by

the

Standard

&

Poor’s

®

500

Index,

which

posted

a

+56.35%

total

return

for

the

period.

1

Investment-grade

muni

bonds,

as

measured

by

the

Bloomberg

Barclays

Municipal

Bond

Index,

posted

a

+5.51%

total

return,

while

USTs,

as

measured

by

the

Bloomberg

Barclays

U.S.

Treasury

Index,

posted

a

-4.43%

total

return,

and

investment-grade

corporate

bonds,

as

measured

by

the

Bloomberg

Barclays

U.S.

Corporate

Bond

Index,

posted

a

+8.73%

total

return.

3

State

Update

During

the

12-month

period,

California’s

large,

diverse

economy,

which

was

strong

before

the

pandemic,

contracted

due

to

the

impact

of

COVID-19.

California’s

unemployment

rate

began

the

period

at

5.5%

and

ended

at

8.3%,

compared

with

the

6.0%

national

rate.

4

The

state’s

enacted

FY

2020

budget

increased

spending

while

maintaining

strong

reserves,

but

revenues

declined

amid

the

pandemic

during

the

period’s

first

half.

By

period-end,

the

state

had

a

budget

surplus

resulting

from

spending

cuts,

overall

increased

tax

revenue

and

federal

government

aid.

Consequently,

the

governor’s

fiscal

2022

executive

budget

proposal

projected

slightly

increased

fiscal

2021

general

fund

revenue

above

fiscal

year

2020.

California’s

net

tax-supported

debt

was

$2,147

per

capita

and

3.2%

of

personal

income,

compared

Portfolio

Composition

3/31/21

%

of

Total

Investments

Transportation

24.02%

Local

13.56%

Refunded

12.04%

Utilities

10.37%

Health

Care

9.32%

Education

8.56%

Industrial

Dev.

Revenue

and

Pollution

Control

6.15%

State

General

Obligation

4.36%

Lease

4.04%

Special

Tax

3.45%

Housing

2.12%

Cash

&

Cash

Equivalents

1.23%

Other

Revenue

Bonds

0.78%

3.

Source:

Morningstar.

Treasuries,

if

held

to

maturity,

offer

a

fixed

rate

of

return

and

a

fixed

principal

value;

their

interest

payments

and

principal

are

guaranteed.

4.

Source:

Bureau

of

Labor

Statistics.

Franklin

California

Tax-Free

Income

Fund

5

franklintempleton.com

Annual

Report

with

the

$1,071

and

2.0%

national

medians,

respectively.

5

Independent

credit

rating

agency

Standard

&

Poor’s

(S&P)

affirmed

California’s

general

obligations

bonds’

AA-

rating

with

a

stable

outlook.

6

The

rating

reflected

S&P’s

view

of

the

state’s

strong

economy,

strong

reserves

and

liquidity

going

into

the

current

recession,

as

well

as

California’s

moderately

high

but

stable

debt

ratios.

S&P

noted

challenges,

including

projections

of

declining

reserves

as

one-time

revenues

recede,

high

housing

costs

and

social

services

spending,

difficult-to-forecast

revenues

and

minimal

prefunding

of

retiree

health

care

benefits.

Investment

Strategy

We

select

securities

that

we

believe

will

provide

the

best

balance

between

risk

and

return

within

the

Fund’s

range

of

allowable

investments

and

typically

use

a

buy-and-hold

strategy.

This

means

we

generally

hold

securities

in

the

Fund’s

portfolio

for

income

purposes,

rather

than

trading

securities

for

capital

gains,

although

we

may

sell

a

security

at

any

time

if

we

believe

it

could

help

the

Fund

meet

its

goal.

Manager’s

Discussion

Based

on

the

combination

of

our

value-oriented

philosophy

of

investing

primarily

for

income

and

a

positive-sloping

municipal

yield

curve,

we

favored

the

use

of

longer-term

bonds.

Consistent

with

our

strategy,

we

sought

to

purchase

bonds

that

ranged

from

10

to

30

years

in

maturity

with

good

call

features.

We

believe

our

conservative,

buy-and-hold

investment

strategy

can

help

us

achieve

high,

current,

tax-

free

income

for

shareholders.

Thank

you

for

your

continued

participation

in

Franklin

California

Tax-Free

Income

Fund.

We

look

forward

to

serving

your

future

investment

needs.

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

March

31,

2021,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

state,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

5.

Source:

Moody’s

Investors

Service,

State

government

–

U.S.:

Medians

–

State

debt

declined

in

2019,

but

likely

to

grow

in

coming

years

,

5/12/20.

6.

This

does

not

indicate

S&P’s

rating

of

the

Fund.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Performance

Summary

as

of

March

31,

2021

Franklin

California

Tax-Free

Income

Fund

6

franklintempleton.com

Annual

Report

The

performance

tables

and

graphs

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

3/31/21

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

3.75%

and

the

minimum

is

0%.

Class

A:

3.75%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

1

Average

Annual

Total

Return

2

–

A

3,4

1-Year

+5.66%

+1.70%

5-Year

+19.62%

+2.86%

10-Year

+71.50%

+5.14%

Advisor

1-Year

+5.94%

+5.94%

5-Year

+20.56%

+3.81%

10-Year

+73.83%

+5.68%

Share

Class

Distribution

Rate

5

Taxable

Equivalent

Distribution

Rate

6

30-Day

Standardized

Yield

7

Taxable

Equivalent

30-Day

Standardized

Yield

6

A

2.73%

5.82%

1.42%

3.03%

Advisor

3.12%

6.65%

1.72%

3.67%

See

page

8

for

Performance

Summary

footnotes.

Franklin

California

Tax-Free

Income

Fund

Performance

Summary

7

franklintempleton.com

Annual

Report

Total

Return

Index

Comparison

for

a

Hypothetical

$10,000

Investment

1

Total

return

represents

the

change

in

value

of

an

investment

over

the

periods

shown.

It

includes

any

applicable

maximum

sales

charge,

Fund

expenses,

account

fees

and

reinvested

distributions.

The

unmanaged

index

includes

reinvestment

of

any

income

or

distributions.

It

differs

from

the

Fund

in

composition

and

does

not

pay

management

fees

or

expenses.

One

cannot

invest

directly

in

an

index.

Class

A

(4/1/11–3/31/21)

Advisor

Class

(4/1/11–3/31/21)

Franklin

California

Tax-Free

Income

Fund

Performance

Summary

8

franklintempleton.com

Annual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

Because

municipal

bonds

are

sensitive

to

interest

rate

movements,

the

Fund’s

yield

and

share

price

will

fluctuate

with

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

prices

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

The

price

of

debt

securities

generally

falls

as

inflation

increases,

and

debt

securities

that

pay

a

fixed

rather

than

variable

interest

rate

are

more

vulnerable

to

inflation

risk.

Because

the

Fund

invests

principally

in

a

single

state,

it

is

subject

to

greater

risk

of

adverse

economic

and

regulatory

changes

in

that

state

than

a

geographically

diversified

fund.

Puerto

Rico

municipal

bonds

have

been

impacted

by

recent

adverse

eco-

nomic

and

market

changes,

which

may

cause

the

Fund’s

share

price

to

decline.

Changes

in

the

credit

rating

of

a

bond,

or

in

the

credit

rating

or

financial

strength

of

a

bond’s

issuer,

insurer

or

guarantor,

may

affect

the

bond’s

value.

The

Fund

may

invest

a

significant

part

of

its

assets

in

municipal

securities

that

finance

similar

types

of

projects,

such

as

utilities,

hospitals,

higher

education

and

transportation.

A

change

that

affects

one

project

would

likely

affect

all

similar

projects,

thereby

increasing

market

risk.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

1.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

2.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

3.

Effective

9/10/18,

Class

A

shares

closed

to

new

investors,

were

renamed

Class

A1

shares,

and

a

new

Class

A

share

with

a

different

expense

structure

became

available.

Class

A

performance

shown

has

been

calculated

as

follows:

(a)

for

periods

prior

to

9/10/18,

a

restated

figure

is

used

based

on

the

Fund’s

Class

A1

performance

that

includes

any

Rule

12b-1

rate

differential

that

exists

between

Class

A1

and

Class

A;

and

(b)

for

periods

after

9/10/18,

actual

Class

A

performance

is

used,

reflecting

all

charges

and

fees

applicable

to

that

class.

4.

Prior

to

3/1/19,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

4.25%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

3.75%.

5.

Distribution

rate

is

based

on

an

annualization

of

the

respective

class’s

March

dividend

and

the

maximum

offering

price

(NAV

for

Advisor

Class)

per

share

on

3/31/21.

6.

Taxable

equivalent

distribution

rate

and

yield

assume

the

published

rates

as

of

12/17/20

for

the

maximum

combined

effective

federal

and

California

personal

income

tax

rate

of

53.10%,

based

on

the

federal

income

tax

rate

of

37.00%

plus

3.80%

Medicare

tax.

This

combined

rate

does

not

consider

the

impact

of

California’s

surcharge

on

taxable

income

in

excess

of

$1

million.

7.

The

Fund’s

30-day

standardized

yield

is

calculated

over

a

trailing

30-day

period

using

the

yield

to

maturity

on

bonds

and/or

the

dividends

accrued

on

stocks.

It

may

not

equal

the

Fund’s

actual

income

distribution

rate,

which

reflects

the

Fund’s

past

dividends

paid

to

shareholders.

8.

Source:

Morningstar.

The

Bloomberg

Barclays

Municipal

Bond

California

Exempt

Index

is

the

California

component

of

the

Bloomberg

Barclay

Municipal

Bond

Index,

a

mar-

ket

value-weighted

index

engineered

for

the

long-term

tax-exempt

bond

market.

To

be

included

in

the

index,

bonds

must

be

fixed

rate,

have

at

least

one

year

to

final

maturity

and

be

rated

investment

grade

(Baa3/BBB-

or

higher)

by

at

least

two

of

the

following

agencies:

Moody’s,

S&P

and

Fitch.

9.

Figures

are

as

stated

in

the

Fund’s

current

prospectus

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(4/1/20–3/31/21)

Share

Class

Net

Investment

Income

A

$0.211649

A1

$0.223487

C

$0.180832

R6

$0.233303

Advisor

$0.230668

Total

Annual

Operating

Expenses

9

Share

Class

A

0.76%

Advisor

0.51%

Your

Fund’s

Expenses

Franklin

California

Tax-Free

Income

Fund

9

franklintempleton.com

Annual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

182/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements,

for

Class

R6.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

10/1/20

Ending

Account

Value

3/31/21

Expenses

Paid

During

Period

10/1/20–3/31/21

1,2

Ending

Account

Value

3/31/21

Expenses

Paid

During

Period

10/1/20–3/31/21

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,014.71

$3.80

$1,021.16

$3.81

0.76%

A1

$1,000

$1,015.52

$3.02

$1,021.93

$3.03

0.60%

C

$1,000

$1,014.07

$5.82

$1,019.16

$5.83

1.16%

R6

$1,000

$1,016.18

$2.36

$1,022.59

$2.37

0.47%

Advisor

$1,000

$1,016.03

$2.56

$1,022.39

$2.57

0.51%

Franklin

California

Tax-Free

Income

Fund

Financial

Highlights

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

10

a

Year

Ended

March

31,

Year

Ended

March

31,

2019

a

2021

2020

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

............................................

$7.50

$7.44

$7.27

Income

from

investment

operations

b

:

Net

investment

income

c

..................................................

0.22

0.22

0.14

Net

realized

and

unrealized

gains

(losses)

....................................

0.20

0.08

0.15

Total

from

investment

operations

.............................................

0.42

0.30

0.29

Less

distributions

from:

Net

investment

income

...................................................

(0.21)

(0.24)

(0.12)

Net

asset

value,

end

of

year

................................................

$7.71

$7.50

$7.44

Total

return

d

............................................................

5.66%

3.98%

4.11%

Ratios

to

average

net

assets

e

Expenses

f

..............................................................

0.75%

0.76%

0.76%

Net

investment

income

....................................................

2.79%

2.97%

3.38%

Supplemental

data

Net

assets,

end

of

year

(000’s)

..............................................

$2,074,343

$1,395,165

$524,756

Portfolio

turnover

rate

.....................................................

14.41%

15.74%

14.12%

a

For

the

period

September

10,

2018

(effective

date)

to

March

31,

2019.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

California

Tax-Free

Income

Fund

Financial

Highlights

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

11

a

Year

Ended

March

31,

2021

2020

2019

2018

2017

Class

A1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$7.49

$7.43

$7.31

$7.38

$7.59

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.23

0.24

0.26

0.26

0.27

Net

realized

and

unrealized

gains

(losses)

...........

0.20

0.07

0.12

(0.06)

(0.22)

Total

from

investment

operations

....................

0.43

0.31

0.38

0.20

0.05

Less

distributions

from:

Net

investment

income

..........................

(0.22)

(0.25)

(0.26)

(0.27)

(0.26)

Net

asset

value,

end

of

year

.......................

$7.70

$7.49

$7.43

$7.31

$7.38

Total

return

c

...................................

5.83%

4.14%

5.34%

2.66%

0.68%

Ratios

to

average

net

assets

Expenses

.....................................

0.60%

d

0.61%

d

0.60%

d

0.59%

0.59%

Net

investment

income

...........................

2.97%

3.12%

3.54%

3.53%

3.54%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$11,084,478

$11,448,334

$11,824,206

$12,154,752

$12,425,129

Portfolio

turnover

rate

............................

14.41%

15.74%

14.12%

13.05%

19.37%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

California

Tax-Free

Income

Fund

Financial

Highlights

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

12

a

Year

Ended

March

31,

2021

2020

2019

2018

2017

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$7.47

$7.41

$7.30

$7.36

$7.58

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.19

0.20

0.22

0.22

0.23

Net

realized

and

unrealized

gains

(losses)

...........

0.21

0.07

0.11

(0.06)

(0.23)

Total

from

investment

operations

....................

0.40

0.27

0.33

0.16

—

Less

distributions

from:

Net

investment

income

..........................

(0.18)

(0.21)

(0.22)

(0.22)

(0.22)

Net

asset

value,

end

of

year

.......................

$7.69

$7.47

$7.41

$7.30

$7.36

Total

return

c

...................................

5.40%

3.57%

4.63%

2.23%

(0.02)%

Ratios

to

average

net

assets

Expenses

.....................................

1.16%

d

1.16%

d

1.16%

d

1.15%

1.14%

Net

investment

income

...........................

2.42%

2.57%

2.98%

2.97%

2.99%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$1,018,197

$1,118,612

$1,124,954

$1,527,772

$1,659,070

Portfolio

turnover

rate

............................

14.41%

15.74%

14.12%

13.05%

19.37%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

California

Tax-Free

Income

Fund

Financial

Highlights

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

13

a

Year

Ended

March

31,

Year

Ended

March

31,

2018

a

2021

2020

2019

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

................................

$7.48

$7.42

$7.30

$7.46

Income

from

investment

operations

b

:

Net

investment

income

c

......................................

0.24

0.25

0.27

0.18

Net

realized

and

unrealized

gains

(losses)

........................

0.20

0.07

0.12

(0.18)

Total

from

investment

operations

.................................

0.44

0.32

0.39

—

Less

distributions

from:

Net

investment

income

.......................................

(0.23)

(0.26)

(0.27)

(0.16)

Net

asset

value,

end

of

year

....................................

$7.69

$7.48

$7.42

$7.30

Total

return

d

................................................

5.97%

4.28%

5.45%

(0.05)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

...................

0.47%

0.47%

0.47%

0.49%

Expenses

net

of

waiver

and

payments

by

affiliates

....................

0.47%

f,g

0.46%

f

0.46%

f

0.48%

Net

investment

income

........................................

3.08%

3.27%

3.68%

3.64%

Supplemental

data

Net

assets,

end

of

year

(000’s)

..................................

$281,038

$186,078

$103,760

$85,534

Portfolio

turnover

rate

.........................................

14.41%

15.74%

14.12%

13.05%

a

For

the

period

August

1,

2017

(effective

date)

to

March

31,

2018.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

California

Tax-Free

Income

Fund

Financial

Highlights

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

14

a

Year

Ended

March

31,

2021

2020

2019

2018

2017

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

year)

Net

asset

value,

beginning

of

year

...................

$7.48

$7.42

$7.30

$7.36

$7.58

Income

from

investment

operations

a

:

Net

investment

income

b

.........................

0.24

0.24

0.26

0.27

0.28

Net

realized

and

unrealized

gains

(losses)

...........

0.20

0.08

0.13

(0.06)

(0.23)

Total

from

investment

operations

....................

0.44

0.32

0.39

0.21

0.05

Less

distributions

from:

Net

investment

income

..........................

(0.23)

(0.26)

(0.27)

(0.27)

(0.27)

Net

asset

value,

end

of

year

.......................

$7.69

$7.48

$7.42

$7.30

$7.36

Total

return

....................................

5.94%

4.24%

5.44%

2.89%

0.65%

Ratios

to

average

net

assets

Expenses

.....................................

0.51%

c

0.51%

c

0.51%

c

0.50%

0.49%

Net

investment

income

...........................

3.06%

3.22%

3.63%

3.62%

3.64%

Supplemental

data

Net

assets,

end

of

year

(000’s)

.....................

$2,498,587

$1,888,402

$1,641,388

$1,572,721

$1,463,633

Portfolio

turnover

rate

............................

14.41

%

15.74%

14.12%

13.05%

19.37%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

California

Tax-Free

Income

Fund

Schedule

of

Investments,

March

31,

2021

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

15

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

97.7%

California

97.1%

ABAG

Finance

Authority

for

Nonprofit

Corp.

,

Eskaton

Properties,

Inc.

Obligated

Group

,

Revenue

,

2013

,

Refunding

,

5

%

,

11/15/35

................................

$

10,000,000

$

10,552,529

Alameda

Corridor

Transportation

Authority

,

Revenue,

Sub.

Lien,

2004

A,

Refunding,

AMBAC

Insured,

Zero

Cpn.,

10/01/29

....

20,000,000

17,365,604

Revenue,

Sub.

Lien,

2004

A,

Refunding,

AMBAC

Insured,

Zero

Cpn.,

10/01/30

....

41,665,000

35,254,444

Alameda

Unified

School

District

,

GO

,

2015A

,

5

%

,

8/01/39

.....................

18,000,000

21,097,631

Alhambra

City

Elementary

School

District

,

Alhambra

Unified

School

District

,

GO

,

2004

B

,

NATL

Insured

,

Zero

Cpn.,

9/01/27

...................................

3,035,000

2,791,447

Alisal

Union

School

District

,

GO,

2009B,

AGMC

Insured,

Zero

Cpn.,

8/01/32

...........................

3,355,000

2,681,270

GO,

2009B,

AGMC

Insured,

Zero

Cpn.,

8/01/33

...........................

3,610,000

2,799,162

GO,

2009B,

AGMC

Insured,

Zero

Cpn.,

2/01/34

...........................

3,345,000

2,548,612

Alvord

Unified

School

District

,

GO,

2011B,

AGMC

Insured,

Zero

Cpn.,

8/01/36

...........................

15,000,000

10,116,390

GO,

2011B,

AGMC

Insured,

Zero

Cpn.,

8/01/46

...........................

42,500,000

53,083,558

GO,

A,

Pre-Refunded,

AGMC

Insured,

5%,

8/01/42

........................

34,690,000

38,597,322

Anaheim

Public

Financing

Authority

,

City

of

Anaheim,

Revenue,

1997

C,

AGMC

Insured,

Zero

Cpn.,

9/01/24

.........

26,855,000

26,177,886

City

of

Anaheim,

Revenue,

1997

C,

AGMC

Insured,

Zero

Cpn.,

9/01/26

.........

29,430,000

27,759,771

City

of

Anaheim,

Revenue,

1997

C,

AGMC

Insured,

Zero

Cpn.,

9/01/27

.........

22,860,000

21,092,547

City

of

Anaheim,

Revenue,

1997

C,

AGMC

Insured,

Zero

Cpn.,

9/01/28

.........

14,425,000

12,968,824

City

of

Anaheim,

Revenue,

1997

C,

AGMC

Insured,

Zero

Cpn.,

9/01/29

.........

24,810,000

21,662,554

City

of

Anaheim,

Revenue,

1997

C,

AGMC

Insured,

Zero

Cpn.,

9/01/32

.........

13,665,000

10,921,731

City

of

Anaheim,

Revenue,

1997

C,

AGMC

Insured,

Zero

Cpn.,

9/01/33

.........

37,070,000

28,749,119

City

of

Anaheim,

Revenue,

1997

C,

AGMC

Insured,

Zero

Cpn.,

9/01/34

.........

24,970,000

18,785,695

City

of

Anaheim,

Revenue,

1997

C,

AGMC

Insured,

ETM,

Zero

Cpn.,

3/01/37

.....

15,080,000

11,268,883

Anaheim

Union

High

School

District

,

GO

,

2002

A

,

AGMC

Insured

,

Zero

Cpn.,

8/01/26

8,570,000

8,065,346

Antelope

Valley

Community

College

District

,

GO

,

2015

,

Pre-Refunded

,

5

%

,

8/01/39

..

11,750,000

13,823,735

Baldwin

Park

Unified

School

District

,

GO,

2013,

Pre-Refunded,

BAM

Insured,

5%,

8/01/43

.......................

5,000,000

5,556,986

GO,

2013,

Pre-Refunded,

BAM

Insured,

Zero

Cpn.,

8/01/48

..................

25,000,000

4,307,905

GO,

2013,

Pre-Refunded,

BAM

Insured,

Zero

Cpn.,

8/01/53

..................

60,000,000

7,034,856

Bay

Area

Toll

Authority

,

Revenue,

2013

S-4,

Pre-Refunded,

5%,

4/01/43

...........................

36,040,000

39,532,737

Revenue,

Pre-Refunded,

5.125%,

4/01/48

...............................

47,355,000

52,061,860

Revenue,

2013

S-4,

Pre-Refunded,

5.25%,

4/01/53

........................

33,000,000

36,361,961

Revenue,

2017

F-1,

Pre-Refunded,

5%,

4/01/56

...........................

60,000,000

75,266,142

Revenue,

2017

S-7,

Refunding,

4%,

4/01/42

.............................

84,260,000

96,307,503

Revenue,

2017

S-7,

Refunding,

4%,

4/01/47

.............................

72,000,000

81,714,622

Revenue,

2019

S-8,

Refunding,

5%,

4/01/56

.............................

25,000,000

30,287,585

a

Revenue,

2021

A,

Refunding,

Mandatory

Put,

2%,

4/01/28

...................

12,000,000

12,782,353

Beaumont

Public

Improvement

Authority

,

City

of

Beaumont

Wastewater

,

Revenue

,

2018

A

,

AGMC

Insured

,

5

%

,

9/01/49

...................................

10,000,000

12,027,850

Beaumont

Unified

School

District

,

GO

,

2011C

,

AGMC

Insured

,

Zero

Cpn.,

8/01/40

...

11,000,000

6,276,929

California

Affordable

Housing

Agency

,

Butte

County

Housing

Authority,

Revenue,

2020

A,

4%,

10/01/40

..............

1,580,000

1,795,466

Butte

County

Housing

Authority,

Revenue,

2020

A,

4%,

10/01/45

..............

1,930,000

2,163,987

Butte

County

Housing

Authority,

Revenue,

2020

A,

4%,

10/01/50

..............

1,855,000

2,068,197

California

Community

College

Financing

Authority

,

Revenue,

2001

A,

NATL

Insured,

5.125%,

4/01/31

.........................

880,000

899,554

Revenue,

2010A,

AGMC

Insured,

5%,

6/01/30

............................

770,000

772,522

Revenue,

2010A,

AGMC

Insured,

5.125%,

6/01/35

.........................

360,000

361,183

NCCD-Orange

Coast

Properties

LLC,

Revenue,

2018,

5.25%,

5/01/53

..........

8,150,000

8,663,535

Franklin

California

Tax-Free

Income

Fund

Schedule

of

Investments

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

16

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

California

(continued)

b

California

Community

Housing

Agency

,

Brio

Apartments

&

Next

on

Lex

Apartments

,

Revenue,

Senior

Lien

,

144A,

2021

A1

,

4

%

,

2/01/56

........................

$

25,000,000

$

26,813,700

California

County

Tobacco

Securitization

Agency

,

Revenue,

2020

B-1,

Refunding,

5%,

6/01/49

.............................

1,000,000

1,210,069

Revenue,

Senior

Lien,

2020

A,

Refunding,

4%,

6/01/49

.....................

3,525,000

4,048,475

Alameda

County

Tobacco

Asset

Securitization

Corp.,

Revenue,

2002,

5.875%,

6/01/35

........................................................

7,355,000

7,364,757

Gold

Country

Settlement

Funding

Corp.,

Revenue,

2020

A,

Refunding,

4%,

6/01/40

1,120,000

1,338,539

Gold

Country

Settlement

Funding

Corp.,

Revenue,

2020

A,

Refunding,

4%,

6/01/49

1,000,000

1,159,562

Gold

Country

Settlement

Funding

Corp.,

Revenue,

2020

B-1,

Refunding,

4%,

6/01/49

225,000

250,362

Kern

County

Tobacco

Funding

Corp.,

Revenue,

2014,

Refunding,

5%,

6/01/34

....

10,295,000

10,769,603

Kern

County

Tobacco

Funding

Corp.,

Revenue,

2014,

Refunding,

5%,

6/01/40

....

17,650,000

18,693,650

Merced

County

Tobacco

Funding

Corp.,

Revenue,

Senior

Lien,

2020

A,

Refunding,

4%,

6/01/36

....................................................

470,000

568,993

Merced

County

Tobacco

Funding

Corp.,

Revenue,

Senior

Lien,

2020

A,

Refunding,

4%,

6/01/38

....................................................

530,000

637,011

Merced

County

Tobacco

Funding

Corp.,

Revenue,

Senior

Lien,

2020

A,

Refunding,

4%,

6/01/40

....................................................

625,000

746,341

Merced

County

Tobacco

Funding

Corp.,

Revenue,

Senior

Lien,

2020

A,

Refunding,

4%,

6/01/42

....................................................

100,000

118,566

Sonoma

County

Securitization

Corp.,

Revenue,

2020

A,

Refunding,

4%,

6/01/35

..

350,000

425,810

Sonoma

County

Securitization

Corp.,

Revenue,

2020

A,

Refunding,

4%,

6/01/36

..

600,000

726,375

Sonoma

County

Securitization

Corp.,

Revenue,

2020

A,

Refunding,

4%,

6/01/37

..

530,000

639,113

Sonoma

County

Securitization

Corp.,

Revenue,

2020

A,

Refunding,

4%,

6/01/38

..

790,000

949,507

Sonoma

County

Securitization

Corp.,

Revenue,

2020

A,

Refunding,

4%,

6/01/39

..

620,000

742,926

Sonoma

County

Securitization

Corp.,

Revenue,

2020

A,

Refunding,

4%,

6/01/40

..

830,000

991,953

Sonoma

County

Securitization

Corp.,

Revenue,

2020

A,

Refunding,

4%,

6/01/49

..

1,120,000

1,294,484

Sonoma

County

Securitization

Corp.,

Revenue,

2020

B

1,

Refunding,

5%,

6/01/49

.

1,200,000

1,464,650

Stanislaus

County

Tobacco

Funding

Corp.,

Revenue,

2002

A,

5.875%,

6/01/43

...

7,665,000

7,675,191

California

Educational

Facilities

Authority

,

Chapman

University,

Revenue,

2015,

5%,

4/01/45

.........................

10,000,000

11,402,354

c

Chapman

University,

Revenue,

2021

A,

Refunding,

5%,

4/01/27

...............

475,000

592,845

c

Chapman

University,

Revenue,

2021

A,

Refunding,

5%,

4/01/28

...............

395,000

504,547

c

Chapman

University,

Revenue,

2021

A,

Refunding,

5%,

4/01/29

...............

400,000

520,094

c

Chapman

University,

Revenue,

2021

A,

Refunding,

5%,

4/01/30

...............

425,000

561,276

c

Chapman

University,

Revenue,

2021

A,

Refunding,

5%,

4/01/31

...............

475,000

637,842

Leland

Stanford

Junior

University

(The),

Revenue,

U-1,

5.25%,

4/01/40

.........

24,960,000

37,090,560

Leland

Stanford

Junior

University

(The),

Revenue,

U-3,

5%,

6/01/43

............

56,950,000

84,000,595

Leland

Stanford

Junior

University

(The),

Revenue,

U-4,

5%,

6/01/43

............

24,205,000

35,702,097

Leland

Stanford

Junior

University

(The),

Revenue,

U-6,

5%,

5/01/45

............

90,580,000

135,025,097

Leland

Stanford

Junior

University

(The),

Revenue,

V-1,

5%,

5/01/49

............

20,000,000

30,656,040

Loma

Linda

University,

Revenue,

2017A,

Refunding,

5%,

4/01/47

..............

11,000,000

12,815,736

Loyola

Marymount

University,

Revenue,

2001A,

NATL

Insured,

Zero

Cpn.,

10/01/26

7,620,000

7,184,918

Loyola

Marymount

University,

Revenue,

2001A,

NATL

Insured,

Zero

Cpn.,

10/01/27

7,365,000

6,792,396

Loyola

Marymount

University,

Revenue,

2001A,

NATL

Insured,

Zero

Cpn.,

10/01/28

4,120,000

3,702,140

Loyola

Marymount

University,

Revenue,

2001A,

NATL

Insured,

Zero

Cpn.,

10/01/30

5,685,000

4,814,836

Loyola

Marymount

University,

Revenue,

2001A,

NATL

Insured,

Zero

Cpn.,

10/01/31

7,615,000

6,275,721

Loyola

Marymount

University,

Revenue,

2001A,

NATL

Insured,

Zero

Cpn.,

10/01/32

7,615,000

6,100,772

Santa

Clara

University,

Revenue,

1999,

AMBAC

Insured,

Zero

Cpn.,

9/01/26

.....

4,500,000

3,813,091

Santa

Clara

University,

Revenue,

2015,

Refunding,

5%,

4/01/45

...............

15,495,000

17,967,847

University

of

San

Francisco,

Revenue,

2018A,

5%,

10/01/48

.................

10,000,000

12,057,213

University

of

San

Francisco,

Revenue,

2018A,

5%,

10/01/53

.................

10,000,000

12,019,781

California

Enterprise

Development

Authority

,

Provident

Group-SDSU

Properties

LLC,

Revenue,

First

Tier,

2020

A,

5%,

8/01/40

..

650,000

795,258

Provident

Group-SDSU

Properties

LLC,

Revenue,

First

Tier,

2020

A,

5%,

8/01/45

..

650,000

784,361

Provident

Group-SDSU

Properties

LLC,

Revenue,

First

Tier,

2020

A,

5%,

8/01/50

..

650,000

781,366

Provident

Group-SDSU

Properties

LLC,

Revenue,

First

Tier,

2020

A,

5%,

8/01/55

..

1,000,000

1,192,947

Franklin

California

Tax-Free

Income

Fund

Schedule

of

Investments

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

17

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

California

(continued)

California

Enterprise

Development

Authority,

(continued)

Provident

Group-SDSU

Properties

LLC,

Revenue,

First

Tier,

2020

A,

5%,

8/01/57

..

$

500,000

$

594,201

California

Health

Facilities

Financing

Authority

,

Revenue,

1992

A,

California

Mortgage

Insured,

6.5%,

12/01/22

...............

270,000

271,239

Revenue,

2014A,

Pre-Refunded,

5%,

10/01/38

............................

3,890,000

4,519,649

Revenue,

2014A,

5%,

10/01/38

.......................................

5,110,000

5,857,734

Revenue,

2016B,

Pre-Refunded,

5%,

11/15/46

............................

36,705,000

45,488,404

Revenue,

2016B,

5%,

11/15/46

.......................................

53,265,000

62,133,990

California-Nevada

Methodist

Homes,

Revenue,

2015,

Refunding,

California

Mortgage

Insured,

5%,

7/01/35

..............................................

1,000,000

1,155,918

Casa

Milagro

LLC,

Revenue,

2011A,

California

Mortgage

Insured,

6.25%,

2/01/26

.

5,000,000

5,021,018

Children's

Hospital

Los

Angeles

Obligated

Group,

Revenue,

2017A,

Refunding,

5%,

8/15/42

........................................................

7,750,000

9,062,989

Children's

Hospital

Los

Angeles

Obligated

Group,

Revenue,

2017A,

Refunding,

5%,

8/15/47

........................................................

10,370,000

12,077,633

Children's

Hospital

of

Orange

County

Obligated

Group,

Revenue,

2011

A,

5.25%,

11/01/41

.......................................................

10,000,000

10,224,541

City

of

Hope

Obligated

Group,

Revenue,

2019,

5%,

11/15/49

.................

37,000,000

43,980,505

CommonSpirit

Health

Obligated

Group,

Revenue,

2020

A,

Refunding,

4%,

4/01/38

.

8,950,000

10,378,569

CommonSpirit

Health

Obligated

Group,

Revenue,

2020

A,

Refunding,

4%,

4/01/40

.

7,500,000

8,651,157

El

Camino

Hospital,

Revenue,

2017,

4.125%,

2/01/47

......................

11,000,000

12,016,319

El

Camino

Hospital,

Revenue,

2017,

5%,

2/01/47

..........................

12,500,000

14,585,474

Kaiser

Foundation

Hospitals,

Revenue,

2017A-2,

4%,

11/01/38

...............

25,000,000

28,830,078

Kaiser

Foundation

Hospitals,

Revenue,

2017A-2,

4%,

11/01/44

...............

385,000,000

438,546,416

Kaiser

Foundation

Hospitals,

Revenue,

2017A-2,

5%,

11/01/47

...............

30,000,000

44,477,805

Lucile

Salter

Packard

Children's

Hospital

at

Stanford

Obligated

Group,

Revenue,

2012A,

5%,

8/15/51

..............................................

39,455,000

41,464,786

Lucile

Salter

Packard

Children's

Hospital

at

Stanford

Obligated

Group,

Revenue,

2016B,

5%,

8/15/55

..............................................

12,960,000

14,981,975

Lucile

Salter

Packard

Children's

Hospital

at

Stanford

Obligated

Group,

Revenue,

2017A,

5%,

11/15/56

..............................................

22,000,000

26,024,227

Marshall

Medical

Center,

Revenue,

2020A,

Refunding,

California

Mortgage

Insured,

4%,

11/01/40

...................................................

3,750,000

4,364,156

Marshall

Medical

Center,

Revenue,

2020A,

Refunding,

California

Mortgage

Insured,

5%,

11/01/50

...................................................

25,065,000

30,884,158

On

Lok

Senior

Health

Services

Obligated

Group,

Revenue,

2020,

Refunding,

5%,

8/01/40

........................................................

800,000

981,113

On

Lok

Senior

Health

Services

Obligated

Group,

Revenue,

2020,

Refunding,

5%,

8/01/50

........................................................

1,625,000

1,959,092

On

Lok

Senior

Health

Services

Obligated

Group,

Revenue,

2020,

Refunding,

5%,

8/01/55

........................................................

1,600,000

1,914,201

Rady

Children's

Hospital

Obligated

Group,

Revenue,

2011,

5.25%,

8/15/41

......

11,000,000

11,159,955

Sequoia

Living,

Inc.,

Revenue,

2015,

Refunding,

California

Mortgage

Insured,

5%,

7/01/34

........................................................

1,000,000

1,157,524

Sequoia

Living,

Inc.,

Revenue,

2015,

Refunding,

California

Mortgage

Insured,

5%,

7/01/39

........................................................

1,450,000

1,665,126

Sequoia

Living,

Inc.,

Revenue,

2015,

Refunding,

California

Mortgage

Insured,

5%,

7/01/44

........................................................

1,160,000

1,323,106

Stanford

Health

Care

Obligated

Group,

Revenue,

2020

A,

Refunding,

4%,

8/15/50

.

26,900,000

31,365,462

Sutter

Health

Obligated

Group,

Revenue,

2013A,

Pre-Refunded,

5%,

8/15/52

.....

89,990,000

100,068,970

Sutter

Health

Obligated

Group,

Revenue,

2015A,

Pre-Refunded,

5%,

8/15/43

.....

20,000,000

23,896,720

Sutter

Health

Obligated

Group,

Revenue,

2017

A,

Refunding,

4%,

11/15/48

......

36,810,000

40,966,935

Sutter

Health

Obligated

Group,

Revenue,

2018

A,

4%,

11/15/42

...............

11,680,000

13,216,448

Sutter

Health

Obligated

Group,

Revenue,

2018

A,

5%,

11/15/48

...............

34,500,000

40,907,982

California

Housing

Finance

,

Revenue,

2019-2,

A,

4%,

3/20/33

......................................

14,940,362

17,329,715

Revenue,

2021-1,

A,

3.5%,

11/20/35

...................................

5,000,000

5,709,136

Franklin

California

Tax-Free

Income

Fund

Schedule

of

Investments

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

18

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

California

(continued)

California

Housing

Finance,

(continued)

Lakeside

Drive

Senior

Housing

LP,

Revenue,

2019N,

FNMA

Insured,

2.35%,

12/01/35

.......................................................

$

9,803,454

$

10,090,614

Longshore

Cove

LP,

Revenue,

2020

E,

FNMA

Insured,

2.5%,

2/01/38

..........

9,857,793

10,325,406

California

Infrastructure

&

Economic

Development

Bank

,

Revenue,

2015A,

Pre-Refunded,

5%,

10/01/40

............................

4,015,000

4,829,878

Revenue,

2015A,

Pre-Refunded,

5%,

10/01/43

............................

1,900,000

2,285,621

Revenue,

2018,

5%,

10/01/48

........................................

10,000,000

12,384,751

Academy

of

Motion

Picture

Arts

and

Sciences

Obligated

Group,

Revenue,

2015A,

Refunding,

5%,

11/01/41

...........................................

8,000,000

8,893,295

Academy

of

Motion

Picture

Arts

and

Sciences

Obligated

Group,

Revenue,

2020B,

Refunding,

5%,

11/01/29

...........................................

5,000,000

6,495,387

California

State

Teachers'

Retirement

System,

Revenue,

2019,

5%,

8/01/44

......

8,000,000

9,850,954

California

State

Teachers'

Retirement

System,

Revenue,

2019,

5%,

8/01/49

......

30,300,000

37,083,000

Equitable

School

Revolving

Fund

LLC

Obligated

Group,

Revenue,

2020

B,

4%,

11/01/45

.......................................................

850,000

978,665

Equitable

School

Revolving

Fund

LLC

Obligated

Group,

Revenue,

2020

B,

4%,

11/01/50

.......................................................

860,000

987,769

Equitable

School

Revolving

Fund

LLC

Obligated

Group,

Revenue,

2020

B,

4%,

11/01/55

.......................................................

915,000

1,048,378

Los

Angeles

County

Museum

of

Natural

History

Foundation,

Revenue,

2020,

Refunding,

3%,

7/01/50

............................................

18,995,000

19,692,291

Los

Angeles

County

Museum

of

Natural

History

Foundation,

Revenue,

2020,

Refunding,

4%,

7/01/50

............................................

10,000,000

11,379,579

a

Museum

Associates,

Revenue,

2021

A,

Refunding,

Mandatory

Put,

1.2%,

6/01/28

.

15,000,000

14,797,196

State

of

California

Department

of

Transportation

Seismic

Surcharge,

Revenue,

First

Lien,

2003

A,

Pre-Refunded,

FGIC

Insured,

5%,

7/01/29

...................

50,985,000

64,684,899

State

of

California

Department

of

Transportation

Seismic

Surcharge,

Revenue,

First

Lien,

2003

A,

Pre-Refunded,

AMBAC

Insured,

5%,

7/01/33

.................

13,460,000

17,161,391

California

Municipal

Finance

Authority

,

4.25%,

1/15/35

...................................................

49,110,666

58,569,645

Revenue,

Senior

Lien,

2017A,

Refunding,

4%,

8/15/52

......................

27,350,000

29,559,481

1717

University

Associates

LLC,

Revenue,

2020

A,

4.5%,

6/01/52

.............

11,413,000

11,461,641

1717

University

Associates

LLC,

Revenue,

2020A-T,

5.25%,

6/01/52

...........

3,407,000

3,410,645

Channing

House,

Revenue,

2017B,

California

Mortgage

Insured,

5%,

5/15/47

....

10,000,000

11,831,086

CHF-Davis

I

LLC,

Revenue,

2018,

5%,

5/15/51

...........................

10,000,000

11,654,848

Community

Hospitals

of

Central

California

Obligated

Group,

Revenue,

2015A,

Refunding,

5%,

2/01/46

............................................

15,000,000

17,037,333

Community

Hospitals

of

Central

California

Obligated

Group,

Revenue,

2017A,

Refunding,

5%,

2/01/42

............................................

5,500,000

6,314,893

Community

Hospitals

of

Central

California

Obligated

Group,

Revenue,

2017A,

Refunding,

5%,

2/01/47

............................................

20,750,000

23,659,795

Eisenhower

Medical

Center,

Revenue,

2017A,

Refunding,

5%,

7/01/42

..........

5,100,000

5,933,545

Eisenhower

Medical

Center,

Revenue,

2017A,

Refunding,

5%,

7/01/47

..........

4,000,000

4,621,944

Inland

Christian

Home,

Inc.,

Revenue,

2020,

California

Mortgage

Insured,

4%,

12/01/49

.......................................................

2,670,000

3,062,506

Inland

Counties

Regional

Center,

Inc.,

Revenue,

2015,

Refunding,

5%,

6/15/45

...

23,300,000

26,801,039

LAX

Integrated

Express

Solutions

LLC,

Revenue,

Senior

Lien,

2018

A,

5%,

12/31/37

5,000,000

6,006,748

LAX

Integrated

Express

Solutions

LLC,

Revenue,

Senior

Lien,

2018

A,

5%,

12/31/43

11,800,000

13,945,434

LAX

Integrated

Express

Solutions

LLC,

Revenue,

Senior

Lien,

2018

A,

5%,

12/31/47

61,850,000

72,721,739

Northbay

Healthcare

Group

Obligated

Group,

Revenue,

2017

A,

5.25%,

11/01/41

..

5,500,000

6,270,257

Northbay

Healthcare

Group

Obligated

Group,

Revenue,

2017

A,

5%,

11/01/47

....

8,650,000

9,605,283

Northern

California

Retired

Officers

Community,

Revenue,

2019

A,

California

Mortgage

Insured,

5%,

1/01/43

......................................

10,000,000

12,021,882

Northern

California

Retired

Officers

Community,

Revenue,

2019

A,

California

Mortgage

Insured,

5%,

1/01/49

......................................

18,990,000

22,677,797

Franklin

California

Tax-Free

Income

Fund

Schedule

of

Investments

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

19

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

California

(continued)

California

Municipal

Finance

Authority,

(continued)

South

Central

Los

Angeles

Regional

Center

for

Developmentally

Disabled

Persons,

Revenue,

2013,

5.75%,

12/01/43

....................................

$

33,895,000

$

36,835,835

University

of

La

Verne,

Revenue,

2017A,

Refunding,

4%,

6/01/47

..............

10,500,000

11,756,778

California

Pollution

Control

Financing

Authority

,

b

San

Diego

County

Water

Authority,

Revenue,

144A,

2019,

Refunding,

5%,

7/01/39

.

7,250,000

8,721,357

b

San

Diego

County

Water

Authority,

Revenue,

144A,

2019,

Refunding,

5%,

11/21/45

1,905,000

2,261,726

San

Jose

Water

Co.,

Revenue,

2016,

4.75%,

11/01/46

......................

15,000,000

17,028,934

California

Public

School

District

Financing

Authority

,

Southern

Kern

Unified

School

District

,

Revenue

,

1996B

,

AGMC

Insured

,

ETM,

5.9

%

,

9/01/26

................

1,165,000

1,345,717

b

California

School

Finance

Authority

,

Kipp

SoCal

Public

Schools

Obligated

Group

,

Revenue

,

144A,

2020

A

,

4

%

,

7/01/40

...................................

800,000

920,085

California

State

Public

Works

Board

,

Revenue,

2012

A,

5%,

4/01/31

........................................

48,070,000

50,291,007

Revenue,

2012

A,

5%,

4/01/32

........................................

17,885,000

18,711,351

Revenue,

2012

A,

5%,

4/01/37

........................................

29,000,000

30,333,983

Revenue,

2012G,

Refunding,

5%,

11/01/31

..............................

16,520,000

17,722,293

Revenue,

2013I,

5%,

11/01/38

........................................

40,000,000

44,575,416

c,d

Revenue,

2022

A,

Refunding,

5%,

8/01/32

...............................

6,500,000

8,209,774

c,d

Revenue,

2022

A,

Refunding,

5%,

8/01/36

...............................

7,500,000

9,344,344

Judicial

Council

of

California,

Revenue,

2011

D,

Refunding,

5%,

12/01/31

........

15,000,000

15,476,473

State

of

California

Department

of

Corrections

&

Rehabilitation,

Revenue,

2019C,

5%,

11/01/38

.......................................................

5,000,000

6,384,296

California

State

University

,

Revenue,

2014A,

Refunding,

5%,

11/01/39

...............................

23,000,000

26,346,355

Revenue,

2014A,

Refunding,

5%,

11/01/44

...............................

32,345,000

37,050,994

Revenue,

2015A,

Refunding,

5%,

11/01/43

...............................

11,000,000

12,976,412

Revenue,

2017A,

Refunding,

5%,

11/01/42

...............................

29,105,000

35,671,041

Revenue,

2017A,

Refunding,

5%,

11/01/47

...............................

63,000,000

77,216,794

Revenue,

2018

A,

Refunding,

5%,

11/01/39

..............................

19,920,000

25,032,952

Revenue,

2018

A,

Refunding,

5%,

11/01/43

..............................

16,870,000

21,073,179

Revenue,

2018

A,

Refunding,

5%,

11/01/50

..............................

17,385,000

21,535,815

Revenue,

2019

A,

5%,

11/01/44

.......................................

13,100,000

16,522,383

Revenue,

2019

A,

5%,

11/01/49

.......................................

90,295,000

113,130,921

Revenue,

2019

A,

5%,

11/01/51

.......................................

40,470,000

50,623,199

Revenue,

2020C,

4%,

11/01/45

.......................................

10,000,000

11,701,549

California

Statewide

Communities

Development

Authority

,

Revenue,

2004

A,

Pre-Refunded,

AGMC

Insured,

5.25%,

10/01/24

.............

225,000

225,815

Adventist

Health

System/West

Obligated

Group,

Revenue,

2015A,

Refunding,

5%,

3/01/35

........................................................

9,250,000

10,919,503

Adventist

Health

System/West

Obligated

Group,

Revenue,

2018

A,

Refunding,

5%,

3/01/48

........................................................

67,585,000

80,523,655

CHF-Irvine

LLC,

Revenue,

2011,

Refunding,

5.125%,

5/15/31

................

8,000,000

8,036,995

CHF-Irvine

LLC,

Revenue,

2011,

Refunding,

5.375%,

5/15/38

................

8,500,000

8,538,271

Collis

P

and

Howard

Huntington

Memorial

Hospital

Obligated

Group,

Revenue,

2018,

5%,

7/01/48

....................................................

7,980,000

9,402,422

Community

Church

Retirement

Center,

Revenue,

2013,

California

Mortgage

Insured,

5.125%,

11/15/35

................................................

2,000,000

2,193,997

Community

Church

Retirement

Center,

Revenue,

2013,

California

Mortgage

Insured,

5.375%,

11/15/44

................................................

7,250,000

7,989,837

Henry

Mayo

Newhall

Hospital

Obligated

Group,

Revenue,

2014,

Pre-Refunded,

AGMC

Insured,

5.25%,

10/01/43

.....................................

3,000,000

3,488,844

a

Kaiser

Foundation

Hospitals,

Revenue,

2004

L,

Mandatory

Put,

5%,

11/01/29

.....

26,025,000

34,278,517

a

Kaiser

Foundation

Hospitals,

Revenue,

2004M,

Mandatory

Put,

5%,

11/01/29

.....

12,245,000

16,128,355

a

Kaiser

Foundation

Hospitals,

Revenue,

2009

C-2,

Mandatory

Put,

5%,

11/01/29

...

10,000,000

13,171,380

a

Kaiser

Foundation

Hospitals,

Revenue,

2009

C-3,

Mandatory

Put,

5%,

11/01/29

...

6,720,000

8,851,167

Kaiser

Foundation

Hospitals,

Revenue,

2012

A,

5%,

4/01/42

.................

88,945,000

92,855,111

Franklin

California

Tax-Free

Income

Fund

Schedule

of

Investments

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

20

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

California

(continued)

California

Statewide

Communities

Development

Authority,

(continued)

Poway

RHF

Housing,

Inc.,

Revenue,

2013A,

California

Mortgage

Insured,

5.25%,

11/15/35

.......................................................

$

2,000,000

$

2,200,391

Campbell

Union

School

District

,

GO

,

1996B

,

NATL

Insured

,

Zero

Cpn.,

8/01/21

.....

6,280,000

6,273,389

Carlsbad

Unified

School

District

,

GO,

2009B,

Refunding,

6%,

5/01/34

....................................

14,000,000

16,353,928

GO,

2011C,

Zero

Cpn.,

8/01/35

.......................................

33,000,000

39,619,539

Castro

Valley

Unified

School

District

,

COP

,

2011

,

AGMC

Insured

,

5

%

,

9/01/32

......

2,620,000

2,672,039

Centinela

Valley

Union

High

School

District

,

GO,

2004

A,

Refunding,

NATL

Insured,

5.5%,

8/01/33

......................

15,630,000

19,833,348

GO,

2012

B,

Refunding,

AGMC

Insured,

5%,

8/01/50

.......................

3,850,000

4,087,527

Cerritos

Public

Financing

Authority

,

Tax

Allocation

,

2002

A

,

AMBAC

Insured

,

5

%

,

11/01/22

........................................................

1,675,000

1,679,995

Chaffey

Joint

Union

High

School

District

,

GO

,

B

,

5

%

,

8/01/44

..................

27,500,000

31,735,374

Charter

Oak

Unified

School

District

,

GO

,

2015A

,

AGMC

Insured

,

5

%

,

8/01/40

......

5,000,000

5,855,816

Chico

Unified

School

District

,

GO

,

2012

A

,

5

%

,

8/01/43

.......................

8,000,000

8,813,263

Chino

Valley

Unified

School

District

,

GO,

2020

B,

4%,

8/01/45

............................................

3,000,000

3,516,141

GO,

2020

B,

3.375%,

8/01/50

.........................................

20,500,000

22,443,572

GO,

2020

B,

5%,

8/01/55

............................................

12,500,000

15,719,976

City

&

County

of

San

Francisco

,

Eastern

Park

Apartments

LP

,

Revenue

,

2019J

,

FNMA

Insured

,

2.55

%

,

7/01/39

.............................................

56,506,000

57,723,444

City

of

Fontana

,

Community

Facilities

District

No.

85,

Special

Tax,

2020,

4%,

9/01/45

...........

850,000

941,298

Community

Facilities

District

No.

85,

Special

Tax,

2020,

4%,

9/01/50

...........

900,000

993,209

Community

Facilities

District

No.

88,

Special

Tax,

2020,

4%,

9/01/45

...........

1,100,000

1,219,537

Community

Facilities

District

No.

88,

Special

Tax,

2020,

4%,

9/01/51

...........

1,545,000

1,704,978

Community

Facilities

District

No.

89,

Special

Tax,

2020,

4%,

9/01/40

...........

750,000

830,537

Community

Facilities

District

No.

89,

Special

Tax,

2020,

4%,

9/01/51

...........

1,500,000

1,640,340

City

of

Lincoln

,

Community

Facilities

District

No.

2006-1,

Special

Tax,

2021,

Refunding,

4%,

9/01/39

290,000

322,305

Community

Facilities

District

No.

2006-1,

Special

Tax,

2021,

Refunding,

4%,

9/01/40

160,000

177,383

Community

Facilities

District

No.

2006-1,

Special

Tax,

2021,

Refunding,

4%,

9/01/43

320,000

353,192

City

of

Long

Beach

,

Harbor,

Revenue,

2017C,

Refunding,

5%,

5/15/47

.........................

12,210,000

14,666,587

Harbor,

Revenue,

2019A,

5%,

5/15/49

..................................

18,205,000

22,604,836

City

of

Los

Angeles

,

Revenue,

1993-1,

Refunding,

NATL,

FHA

Insured,

6.5%,

7/01/22

..............

120,000

120,484

Department

of

Airports,

Revenue,

2015D,

5%,

5/15/41

......................

14,500,000

16,648,087

Department

of

Airports,

Revenue,

2016B,

5%,

5/15/41

......................

12,500,000

14,471,087

Department

of

Airports,

Revenue,

2016B,

5%,

5/15/46

......................

53,000,000

61,264,110

Department

of

Airports,

Revenue,

2017A,

5%,

5/15/47

......................

50,350,000

59,289,980

Department

of

Airports,

Revenue,

2018

A,

5%,

5/15/44

......................

60,000,000

71,593,530

Department

of

Airports,

Revenue,

2018

C,

5%,

5/15/37

.....................

9,550,000

11,503,976

Department

of

Airports,

Revenue,

2018

E,

Refunding,

5%,

5/15/43

.............

15,005,000

18,612,390

Department

of

Airports,

Revenue,

2018

E,

Refunding,

5%,

5/15/48

.............

33,145,000

40,808,992

Department

of

Airports,

Revenue,

2019

A,

Refunding,

5%,

5/15/49

.............

10,000,000

12,064,592

Department

of

Airports,

Revenue,

2019

E,

5%,

5/15/44

......................

22,135,000

27,179,642

Department

of

Airports,

Revenue,

2019

E,

5%,

5/15/49

......................

62,940,000

76,975,009

Department

of

Airports,

Revenue,

2019

F,

5%,

5/15/44

......................

2,950,000

3,581,435

Department

of

Airports,

Revenue,

2020

A,

Refunding,

5%,

5/15/35

.............

10,500,000

13,547,714

Department

of

Airports,

Revenue,

2020

A,

Refunding,

5%,

5/15/37

.............

8,000,000

10,236,709

Department

of

Airports,

Revenue,

2020

A,

Refunding,

5%,

5/15/38

.............

9,925,000

12,655,176

Department

of

Airports,

Revenue,

2020

A,

Refunding,

5%,

5/15/39

.............

10,265,000

13,052,502

Department

of

Airports,

Revenue,

2020

A,

Refunding,

5%,

5/15/40

.............

10,000,000

12,687,189

Department

of

Airports,

Revenue,

2021

A,

Refunding,

5%,

5/15/36

.............

3,665,000

4,730,626

Franklin

California

Tax-Free

Income

Fund

Schedule

of

Investments

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

21

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

California

(continued)

City

of

Los

Angeles,

(continued)

Department

of

Airports,

Revenue,

2021

A,

Refunding,

5%,

5/15/41

.............

$

4,835,000

$

6,126,374

Department

of

Airports,

Revenue,

2021

A,

Refunding,

5%,

5/15/46

.............

5,000,000

6,240,615

Department

of

Airports,

Revenue,

2021B,

Refunding,

5%,

5/15/45

.............

17,245,000

22,055,681

Department

of

Airports,

Revenue,

Senior

Lien,

2020C,

5%,

5/15/45

............

50,000,000

61,980,225

Department

of

Airports,

Revenue,

Senior

Lien,

2020C,

4%,

5/15/50

............

15,000,000

16,966,442

Wastewater

System,

Revenue,

2015-A,

5%,

6/01/44

.......................

9,000,000

10,488,659

Wastewater

System,

Revenue,

2015-C,

Refunding,

5%,

6/01/45

...............

24,690,000

28,414,059

Wastewater

System,

Revenue,

2018A,

5%,

6/01/48

........................

11,275,000

13,865,666

City

of

Ontario

,

Community

Facilities

District

No.

45,

Special

Tax,

2020,

4%,

9/01/43

...........

410,000

456,145

Community

Facilities

District

No.

45,

Special

Tax,

2020,

4%,

9/01/51

...........

1,565,000

1,727,049

City

of

Pasadena

,

Electric

,

Revenue

,

2016A

,

Refunding

,

4

%

,

6/01/46

............

22,625,000

24,954,560

City

of

Perris

,

Revenue

,

1988A

,

GNMA

Insured

,

ETM,

Zero

Cpn.,

6/01/23

.........

19,095,000

18,833,798

City

of

Porterville

,

Water

,

COP

,

2021

,

AGMC

Insured

,

4

%

,

8/15/50

...............

1,000,000

1,155,859

City

of

Riverside

,

Electric,

Revenue,

2013A,

Refunding,

5%,

10/01/43

........................

11,535,000

12,769,713

Sewer,

Revenue,

2015A,

Refunding,

5%,

8/01/40

..........................

25,000,000

29,279,080

City

of

Roseville

,

Electric

System

,

COP

,

2004

,

AGMC

Insured

,

5

%

,

2/01/34

........

5,000

5,016

City

of

Sacramento

,

Transient

Occupancy

Tax,

Revenue,

2018

A,

5%,

6/01/43

....................

6,035,000

7,142,627

Transient

Occupancy

Tax,

Revenue,

2018

A,

5%,

6/01/48

....................

19,830,000

23,315,065

Transient

Occupancy

Tax,

Revenue,

2018

C,

5%,

6/01/48

...................

9,415,000

11,035,789

Water,

Revenue,

2013,

Pre-Refunded,

5%,

9/01/38

........................

21,630,000

24,153,600

City

of

San

Francisco

,

Public

Utilities

Commission

Water,

Revenue,

2012

A,

Pre-Refunded,

5%,

11/01/43

.

71,735,000

75,524,825

Public

Utilities

Commission

Water,

Revenue,

2020A,

5%,

11/01/50

.............

35,000,000

44,613,985

City

of

San

Jose

,

Hotel

Tax,

Special

Tax,

2011,

6.5%,

5/01/36

..............................

10,000,000

10,025,410

Hotel

Tax,

Special

Tax,

2011,

6.5%,

5/01/42

..............................

10,000,000

10,023,673

City

of

Santa

Rosa

,

Wastewater,

Revenue,

2020

A,

5%,

9/01/34

..............................

6,700,000

8,808,815

Wastewater,

Revenue,

2020

A,

5%,

9/01/35

..............................

3,000,000

3,923,222

City

of

Upland

,

San

Antonio

Regional

Hospital

Obligated

Group

,

COP

,

Refunding

,

5

%

,

1/01/47

.........................................................

14,400,000

16,207,730

Coachella

Valley

Unified

School

District

,

GO,

C,

AGMC

Insured,

Zero

Cpn.,

8/01/36

...............................

8,000,000

5,579,175

GO,

C,

AGMC

Insured,

Zero

Cpn.,

8/01/37

...............................

8,000,000

5,392,542

GO,

C,

AGMC

Insured,

Zero

Cpn.,

8/01/40

...............................

7,500,000

4,553,781

GO,

C,

AGMC

Insured,

Zero

Cpn.,

8/01/43

...............................

10,000,000

5,245,070

Coalinga-Huron

Joint

Unified

School

District

,

GO

,

B

,

BAM

Insured

,

5

%

,

8/01/48

.....

13,210,000

16,236,772

Colton

Joint

Unified

School

District

,

GO

,

2010B

,

AGMC

Insured

,

Zero

Cpn.,

8/01/42

.

16,365,000

8,778,760

Compton

Community

Redevelopment

Agency

,

Tax

Allocation,

Second

Lien,

2010B,

5.7%,

8/01/30

.........................

10,000,000

10,031,101

Tax

Allocation,

Second

Lien,

2010B,

6%,

8/01/35

..........................

11,160,000

11,193,035

Tax

Allocation,

Second

Lien,

2010B,

6%,

8/01/42

..........................

10,000,000

10,028,138

Contra

Costa

Community

College

District

,

GO,

2020

C,

4%,

8/01/33

............................................

1,500,000

1,859,640

GO,

2020

C,

4%,

8/01/34

............................................

1,375,000

1,697,008

Corona

Community

Facilities

District

,

Community

Facilities

District

No.

2018-1

Improvement

Area

No.

1,

Special

Tax,

2020,

4%,

9/01/45

....................................................

650,000

713,299

Community

Facilities

District

No.

2018-1

Improvement

Area

No.

1,

Special

Tax,

2020,

4%,

9/01/50

....................................................

1,500,000

1,640,370

Corona-Norco

Unified

School

District

,

GO,

1998

B,

AGMC

Insured,

Zero

Cpn.,

9/01/23

...........................

2,320,000

2,293,599

Franklin

California

Tax-Free

Income

Fund

Schedule

of

Investments

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

22

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

California

(continued)

Corona-Norco

Unified

School

District,

(continued)

GO,

1998

B,

AGMC

Insured,

Zero

Cpn.,

9/01/24

...........................

$

2,620,000

$

2,559,145

GO,

1998

B,

AGMC

Insured,

Zero

Cpn.,

3/01/25

...........................

1,400,000

1,356,789

GO,

1998

C,

NATL

Insured,

Zero

Cpn.,

9/01/25

...........................

4,655,000

4,471,197

GO,

1998

C,

NATL

Insured,

Zero

Cpn.,

9/01/26

...........................

6,080,000

5,738,029

GO,

A,

Pre-Refunded,

5%,

8/01/44

.....................................

20,000,000

23,909,740

County

of

Madera

,

Childrens

Hospital

Central

California

Obligated

Group,

COP,

1995,

NATL

Insured,

5.75%,

3/15/28

..................................................

27,500,000

27,589,760

Childrens

Hospital

Central

California

Obligated

Group,

COP,

1998,

NATL

Insured,

5%,

3/15/23

....................................................

3,650,000

3,678,210

County

of

Riverside

,

Revenue

,

1988

B

,

GNMA

Insured

,

ETM,

Zero

Cpn.,

6/01/23

...

26,160,000

25,885,480

County

of

Sacramento

,

Airport

System,

Revenue,

2016B,

Refunding,

5%,

7/01/41

...................

9,000,000

10,633,400

Airport

System,

Revenue,

Senior

Lien,

2016A,

Refunding,

5%,

7/01/41

..........

10,000,000

11,814,889

County

of

San

Bernardino

,

Revenue

,

1989

A

,

GNMA

Insured

,

ETM,

Zero

Cpn.,

5/01/22

4,445,000

4,266,415

b

CSCDA

Community

Improvement

Authority

,

Jefferson

Platinum

Triangle

Apartments

,

Revenue

,

144A,

2021A-1

,

2.875

%

,

8/01/41

..............................

3,125,000

3,028,687

Daly

City

Housing

Development

Finance

Agency

,

Franciscan

Park

LLC

,

Revenue

,

2007

A

,

Refunding

,

5

%

,

12/15/47

..........................................

17,870,000

17,915,066

Day

Creek

Square

Public

Facilities

,

Community

Facilities

District

No.

2018-1,

Special

Tax,

2020,

4%,

9/01/40

........

625,000

698,446

Community

Facilities

District

No.

2018-1,

Special

Tax,

2020,

4%,

9/01/45

........

700,000

776,069

Delano

Joint

Union

High

School

District

,

GO

,

2003

A

,

Refunding

,

NATL

Insured

,

5.15

%

,

2/01/32

.........................................................

8,520,000

10,686,629

Delano

Union

School

District

,

COP

,

1999

,

NATL

Insured

,

5.125

%

,

1/01/22

.........

365,000

375,693

East

Bay

Municipal

Utility

District

,

Water

System,

Revenue,

2014A,

Refunding,

5%,

6/01/35

....................

10,000,000

11,388,539

Water

System,

Revenue,

2014C,

5%,

6/01/44

............................

14,000,000

15,830,951

Water

System,

Revenue,

2015A,

Refunding,

5%,

6/01/36

....................

7,355,000

8,673,722

Water

System,

Revenue,

2015C,

4%,

6/01/45

............................

9,070,000

10,163,856

Water

System,

Revenue,

2019

A,

5%,

6/01/44

............................

4,000,000

5,054,844

Water

System,

Revenue,

2019

A,

5%,

6/01/49

............................

11,700,000

14,692,859

Eastern

Municipal

Water

District

Financing

Authority

,

Revenue

,

2015B

,

5

%

,

7/01/46

.

30,705,000

35,872,409

El

Dorado

Irrigation

District

,

COP,

2020

A,

4%,

3/01/45

...........................................

5,000,000

5,806,634

COP,

2020

A,

4%,

3/01/50

...........................................

15,330,000

17,701,364

Elk

Grove

Finance

Authority

,

Special

Tax

,

2015

,

Refunding

,

BAM

Insured

,

5

%

,

9/01/38

1,500,000

1,761,030

Fairfax

Elementary

School

District

,

GO

,

2010

,

AGMC

Insured

,

Zero

Cpn.,

11/01/48

..

10,380,000

4,056,162

FHLMC,

Multi-family

ML

Pass-Through

Certificates

,

Revenue,

2019-ML06,

ACA,

2.493%,

7/25/35

.............................

52,141,885

54,630,054

Revenue,

2021-ML08,

ACA,

1.896%,

11/25/37

............................

3,497,511

3,480,602

Folsom

Cordova

Unified

School

District

School

Facilities

Improvement

Dist

No.

5

,

GO

,

C

,

4

%

,

10/01/43

...................................................

17,500,000

20,208,291

Foothill-Eastern

Transportation

Corridor

Agency

,

Revenue,

2013

A,

Refunding,

AGMC

Insured,

5%,

1/15/42

...................

10,000,000

11,079,364

Revenue,

2013

A,

Pre-Refunded,

6%,

1/15/49

............................

305,000,000

353,422,532

Revenue,

2013

A,

Pre-Refunded,

6%,

1/15/53

............................

190,000,000

220,164,856

Revenue,

2013

A,

Refunding,

AGMC

Insured,

Zero

Cpn.,

1/15/31

..............

35,000,000

41,048,238

Revenue,

2013

A,

Refunding,

AGMC

Insured,

Zero

Cpn.,

1/15/32

..............

37,260,000

43,797,643

Revenue,

2013

A,

Refunding,

AGMC

Insured,

Zero

Cpn.,

1/15/37

..............

41,250,000

27,664,412

Revenue,

2013

A,

Refunding,

AGMC

Insured,

Zero

Cpn.,

1/15/38

..............

77,650,000

50,266,976

Revenue,

2013

A,

Refunding,

AGMC

Insured,

Zero

Cpn.,

1/15/39

..............

56,100,000

35,021,171

Revenue,

Refunding,

Zero

Cpn.,

1/15/42

................................

228,000,000

186,985,679

Revenue,

Senior

Lien,

1995

A,

ETM,

Zero

Cpn.,

1/01/23

....................

5,765,000

5,734,031

Revenue,

Senior

Lien,

1995

A,

ETM,

Zero

Cpn.,

1/01/24

....................

72,045,000

71,163,479

Franklin

California

Tax-Free

Income

Fund

Schedule

of

Investments

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

23

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

California

(continued)

Foothill-Eastern

Transportation

Corridor

Agency,

(continued)

Revenue,

Senior

Lien,

1995

A,

ETM,

Zero

Cpn.,

1/01/25

....................

$

20,660,000

$

20,172,267

Revenue,

Senior

Lien,

1995

A,

ETM,

Zero

Cpn.,

1/01/26

....................

23,475,000

22,614,076

Revenue,

Senior

Lien,

1995

A,

ETM,

Zero

Cpn.,

1/01/27

....................

15,000,000

14,173,519

Revenue,

Senior

Lien,

1995

A,

ETM,

Zero

Cpn.,

1/01/28

....................

2,000,000

1,852,511

Revenue,

Senior

Lien,

1995

A,

ETM,

Zero

Cpn.,

1/01/29

....................

35,310,000

31,965,433

Revenue,

Senior

Lien,

2021

A,

Refunding,

4%,

1/15/46

.....................

235,820,000

273,020,322

Fowler

Unified

School

District

,

GO,

2010C,

AGMC

Insured,

Zero

Cpn.,

8/01/41

...........................

3,095,000

1,831,485

GO,

2010C,

AGMC

Insured,

Zero

Cpn.,

8/01/42

...........................

3,005,000

1,715,776

Franklin-Mckinley

School

District

,

GO

,

C

,

Pre-Refunded

,

BAM

Insured

,

5

%

,

8/01/44

.

5,000,000

5,563,177

Fresno

Unified

School

District

,

GO,

1999C,

Refunding,

NATL

Insured,

5.9%,

8/01/22

.......................

1,920,000

2,007,626

GO,

B,

Refunding,

Zero

Cpn.,

8/01/41

..................................

35,000,000

8,834,343

GO,

G,

Refunding,

Zero

Cpn.,

8/01/41

..................................

47,000,000

11,863,261

Fullerton

School

District

,

GO

,

2002

A

,

NATL

Insured

,

Zero

Cpn.,

8/01/23

..........

3,030,000

2,996,746

Fullerton

School

District

Financing

Authority

,

Special

Tax,

Senior

Lien

,

2013

A

,

Refunding

,

AGMC

Insured

,

5

%

,

9/01/31

.................................

2,500,000

2,765,608

Glendale

Community

College

District

,

GO,

2003

C,

NATL

Insured,

Zero

Cpn.,

8/01/28

...........................

15,000,000

12,032,934

GO,

2016B,

4%,

8/01/50

............................................

34,950,000

40,219,782

Glendora

Public

Finance

Authority

,

Glendora

Community

Redevelopment

Agency

,

Tax

Allocation

,

2003

A

,

NATL

Insured

,

5

%

,

9/01/24

............................

3,715,000

3,725,883

Golden

State

Tobacco

Securitization

Corp.

,

Revenue,

2015A,

Refunding,

5%,

6/01/35

...............................

25,000,000

29,181,655

Revenue,

2015A,

Refunding,

5%,

6/01/40

...............................

212,525,000

247,017,043

Revenue,

2015A,

Refunding,

5%,

6/01/45

...............................

308,395,000

357,828,251

Revenue,

2018A-1,

Refunding,

5%,

6/01/35

..............................

28,340,000

33,814,690

Grossmont

Union

High

School

District

,

GO

,

2004

,

AGMC

Insured

,

Zero

Cpn.,

8/01/24

5,110,000

5,017,754

Grossmont-Cuyamaca

Community

College

District

,

GO

,

2018

B

,

4

%

,

8/01/47

......

10,000,000

11,377,731

Hacienda

La

Puente

Unified

School

District

,

GO

,

2017A

,

4

%

,

8/01/47

............

655,000

738,649

Hartnell

Community

College

District

,

GO

,

2009C

,

Zero

Cpn.,

8/01/33

.............

20,000,000

26,809,414

Hawthorne

School

District

,

GO

,

2008-C

,

AGMC

Insured

,

Zero

Cpn.,

8/01/48

.......

37,665,000

14,769,584

Hayward

Unified

School

District

,

GO

,

2020

,

AGMC

Insured

,

4

%

,

8/01/45

..........

10,000,000

11,592,183

Huntington

Beach

City

School

District

,

GO

,

2003

A

,

NATL

Insured

,

Zero

Cpn.,

8/01/28

10,005,000

8,525,630

Huntington

Beach

Union

High

School

District

,

COP

,

2010

,

AGMC

Insured

,

5.25

%

,

9/01/39

.........................................................

2,000,000

2,004,935

b

Independent

Cities

Finance

Authority

,

City

of

Compton

Sales

Tax,

Revenue,

144A,

2021,

AGMC

Insured,

4%,

6/01/36

...

700,000

802,570

City

of

Compton

Sales

Tax,

Revenue,

144A,

2021,

AGMC

Insured,

4%,

6/01/41

...

900,000

1,015,078

City

of

Compton

Sales

Tax,

Revenue,

144A,

2021,

AGMC

Insured,

4%,

6/01/46

...

925,000

1,031,690

City

of

Compton

Sales

Tax,

Revenue,

144A,

2021,

AGMC

Insured,

4%,

6/01/51

...

1,250,000

1,389,846

Irvine

Unified

School

District

,

Special

Tax,

2020

A,

4%,

9/01/40

......................................

2,960,000

3,426,135

Special

Tax,

2020

A,

4%,

9/01/44

......................................

6,250,000

7,152,766

Special

Tax,

2020

A,

BAM

Insured,

4%,

9/01/50

...........................

8,000,000

9,296,283

Special

Tax,

2020

A,

BAM

Insured,

4%,

9/01/54

...........................

12,285,000

14,229,783

Community

Facilities

District

No.

01-1,

Special

Tax,

2015,

Refunding,

BAM

Insured,

5%,

9/01/38

....................................................

7,000,000

7,939,215

Community

Facilities

District

No.

09-1,

Special

Tax,

2017

D,

5%,

3/01/57

........

10,000,000

11,651,797

Jefferson

Union

High

School

District

,

GO,

2000A,

Refunding,

NATL

Insured,

6.45%,

8/01/25

......................

2,605,000

2,963,811

GO,

2000A,

Refunding,

NATL

Insured,

6.45%,

8/01/29

......................

3,075,000

4,010,578

Jurupa

Community

Services

District

,

Community

Facilities

District

No.

52,

Special

Tax,

2021A,

4%,

9/01/39

..........

135,000

150,895

Community

Facilities

District

No.

52,

Special

Tax,

2021A,

4%,

9/01/40

..........

140,000

156,096

Franklin

California

Tax-Free

Income

Fund

Schedule

of

Investments

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

24

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

California

(continued)

Jurupa

Community

Services

District,

(continued)

Community

Facilities

District

No.

52,

Special

Tax,

2021A,

4%,

9/01/50

..........

$

1,000,000

$

1,103,566

Jurupa

Public

Financing

Authority

,

Special

Tax,

2013

A,

AGMC

Insured,

5.125%,

9/01/37

......................

4,000,000

4,424,060

Special

Tax,

2013

A,

AGMC

Insured,

5.25%,

9/01/42

.......................

3,250,000

3,609,689

Jurupa

Unified

School

District

,

GO

,

2015A

,

5

%

,

8/01/39

......................

10,165,000

11,904,874

La

Mirada

Redevelopment

Agency

Successor

Agency

,

Tax

Allocation

,

2010A

,

Refunding

,

AGMC

Insured

,

5

%

,

8/15/28

.................................

1,855,000

1,860,468

La

Palma

Community

Development

Commission

,

Tax

Allocation

,

1993

,

Refunding

,

6.1

%

,

6/01/22

....................................................

145,000

145,733

Lakeside

Union

School

District

,

GO

,

2010B

,

Zero

Cpn.,

8/01/45

.................

11,540,000

5,801,549

Lammersville

Joint

Unified

School

District

,

GO

,

2016A

,

4

%

,

8/01/46

.............

41,340,000

45,898,868

Lancaster

School

District

,

GO,

1999,

NATL

Insured,

Zero

Cpn.,

8/01/25

.............................

5,495,000

5,243,132

GO,

1999,

NATL

Insured,

Zero

Cpn.,

7/01/26

.............................

5,965,000

5,592,863

Lawndale

Redevelopment

Agency

,

Tax

Allocation,

2009,

AGMC

Insured,

5.5%,

8/01/39

........................

10,280,000

10,313,766

Tax

Allocation,

2009,

AGMC

Insured,

5.5%,

8/01/44

........................

6,085,000

6,104,130

Lemon

Grove

School

District

,

GO

,

2010B

,

AGMC

Insured

,

Zero

Cpn.,

8/01/50

......

20,990,000

8,594,406

Lodi

Unified

School

District

,

GO

,

2017

,

4

%

,

8/01/41

..........................

15,000,000

17,304,033

Long

Beach

Bond

Finance

Authority

,

Revenue,

2007A,

5.5%,

11/15/28

......................................

8,000,000

10,380,452

Revenue,

2007A,

5%,

11/15/29

.......................................

17,465,000

22,294,373

Revenue,

2007A,

5.5%,

11/15/30

......................................

5,000,000

6,679,390

Revenue,

2007A,

5%,

11/15/35

.......................................

69,855,000

94,679,350

Revenue,

2007A,

5.5%,

11/15/37

......................................

35,000,000

50,616,955

Los

Angeles

Community

College

District

,

GO

,

2016

,

Refunding

,

5

%

,

8/01/38

.......

10,000,000

12,089,071

Los

Angeles

County

Metropolitan

Transportation

Authority

,

Revenue,

2016A,

Refunding,

5%,

6/01/35

...............................

17,655,000

21,230,994

Revenue,

2016A,

Refunding,

5%,

6/01/37

...............................

10,970,000

13,136,951

Revenue,

2016A,

Refunding,

5%,

6/01/38

...............................

28,160,000

33,691,280

Revenue,

2016A,

Refunding,

5%,

6/01/39

...............................

10,000,000

11,947,591

Revenue,

2019

A,

5%,

7/01/44

........................................

32,030,000

39,819,846

Revenue,

2020

A,

Refunding,

5%,

6/01/35

...............................

21,325,000

28,307,748

Revenue,

2020

A,

Refunding,

5%,

6/01/36

...............................

30,950,000

40,935,658

Revenue,

2020

A,

Refunding,

5%,

6/01/37

...............................

6,500,000

8,566,381

Los

Angeles

County

Sanitation

Districts

Financing

Authority

,

Revenue

,

2016

A

,

Refunding

,

4

%

,

10/01/42

............................................

16,430,000

17,959,311

Los

Angeles

Department

of

Water

,

Revenue,

2012A,

5%,

7/01/43

........................................

81,095,000

85,545,575

Revenue,

2014A,

5%,

7/01/44

........................................

50,000,000

56,688,565

Revenue,

2016

A,

Refunding,

5%,

7/01/46

...............................

62,660,000

73,631,735

Revenue,

2017A,

Refunding,

5%,

7/01/44

...............................

72,060,000

87,653,244

Revenue,

2018

A,

5%,

7/01/43

........................................

13,805,000

16,985,136

Revenue,

2018

A,

5%,

7/01/48

........................................

22,375,000

27,358,129

Revenue,

2018

B,

Refunding,

5%,

7/01/48

...............................

10,000,000

12,383,526

Revenue,

2020

C,

Refunding,

5%,

7/01/37

...............................

6,035,000

7,906,731

Revenue,

2020

C,

Refunding,

5%,

7/01/38

...............................

20,350,000

26,581,848

Revenue,

2020

C,

Refunding,

5%,

7/01/39

...............................

14,535,000

18,932,073

Revenue,

2020A,

Refunding,

5%,

7/01/41

...............................

15,000,000

19,370,868

Revenue,

2020A,

Refunding,

5%,

7/01/50

...............................

14,875,000

18,864,222

Los

Angeles

Department

of

Water

&

Power

,

Revenue,

2020

B,

Refunding,

5%,

7/01/39

...............................

16,420,000

21,321,518

Revenue,

2020

B,

Refunding,

5%,

7/01/40

...............................

40,520,000

52,324,708

Revenue,

2020

B,

Refunding,

5%,

7/01/45

...............................

10,775,000

13,729,965

Power

System,

Revenue,

2014

D,

5%,

7/01/44

............................

51,940,000

58,888,081

Franklin

California

Tax-Free

Income

Fund

Schedule

of

Investments

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

25

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

California

(continued)

Los

Angeles

Department

of

Water

&

Power,

(continued)

Power

System,

Revenue,

2014

E,

5%,

7/01/44

............................

$

34,000,000

$

38,548,224

Power

System,

Revenue,

2014B,

5%,

7/01/43

............................

62,000,000

69,149,821

Power

System,

Revenue,

2015A,

Refunding,

5%,

7/01/35

...................

15,105,000

17,461,297

Power

System,

Revenue,

2015A,

Refunding,

5%,

7/01/36

...................

17,795,000

20,542,411

Power

System,

Revenue,

2016

A,

Refunding,

5%,

7/01/46

...................

15,000,000

17,535,896

Power

System,

Revenue,

2016B,

5%,

7/01/35

............................

11,995,000

14,241,533

Power

System,

Revenue,

2017A,

5%,

7/01/42

............................

7,710,000

9,376,267

Power

System,

Revenue,

2017A,

5%,

7/01/47

............................

16,000,000

19,461,861

Power

System,

Revenue,

2019

D,

Refunding,

5%,

7/01/44

...................

8,450,000

10,593,527

Power

System,

Revenue,

2019A,

5%,

7/01/45

............................

18,980,000

23,660,681

Power

System,

Revenue,

2019A,

5%,

7/01/49

............................

9,185,000

11,315,847

Los

Angeles

Unified

School

District

,

GO,

2020

A,

Refunding,

5%,

7/01/32

...................................

18,480,000

24,480,242

GO,

2020

A,

Refunding,

5%,

7/01/33

...................................

16,520,000

21,756,219

GO,

2020

C,

4%,

7/01/33

............................................

2,000,000

2,441,263

GO,

2020

C,

4%,

7/01/36

............................................

11,885,000

14,266,761

GO,

2020

C,

4%,

7/01/37

............................................

15,000,000

17,940,805

GO,

2020

C,

4%,

7/01/38

............................................

7,500,000

8,928,884

GO,

2020

RYQ,

4%,

7/01/36

.........................................

4,800,000

5,761,923

GO,

2020

RYQ,

4%,

7/01/44

.........................................

28,200,000

32,913,153

Los

Gatos-Saratoga

Joint

High

School

District

,

GO,

A,

4%,

8/01/39

................................................

10,635,000

11,643,340

GO,

A,

4%,

8/01/44

................................................

16,090,000

17,623,633

McFarland

Public

Financing

Authority

,

Revenue

,

2010A

,

AGMC

Insured

,

5

%

,

10/01/40

5,115,000

5,131,248

Mendocino-Lake

Community

College

District

,

GO

,

2011B

,

AGMC

Insured

,

5.125

%

,

8/01/41

.........................................................

7,500,000

7,609,084

Metropolitan

Water

District

of

Southern

California

,

Revenue,

2015

A,

5%,

7/01/40

........................................

10,000,000

11,682,921

Revenue,

2020

A,

5%,

10/01/45

.......................................

16,665,000

21,308,187

Revenue,

2020

C,

Refunding,

5%,

7/01/39

...............................

25,245,000

33,059,943

Revenue,

2020

C,

Refunding,

5%,

7/01/40

...............................

20,000,000

26,126,692

Revenue,

2021

A,

5%,

10/01/37

.......................................

2,180,000

2,916,988

Revenue,

2021

A,

5%,

10/01/38

.......................................

5,220,000

6,962,294

Revenue,

2021

A,

5%,

10/01/39

.......................................

6,150,000

8,179,420

Revenue,

2021

A,

5%,

10/01/40

.......................................

5,240,000

6,955,144

Revenue,

2021

A,

5%,

10/01/41

.......................................

4,360,000

5,768,264

Revenue,

2021

A,

5%,

10/01/46

.......................................

11,000,000

14,382,015

Midpeninsula

Regional

Open

Space

District

,

GO

,

2018

,

4

%

,

9/01/48

.............

11,220,000

12,853,689

Milpitas

Redevelopment

Agency

Successor

Agency

,

Tax

Allocation

,

1997

,

NATL

Insured

,

ETM,

5.5

%

,

1/15/24

.........................................

5,595,000

6,061,175

Miracosta

Community

College

District

,

GO

,

B

,

4

%

,

8/01/45

....................

25,405,000

29,823,107

Modesto

High

School

District

,

GO,

2002

A,

NATL

Insured,

Zero

Cpn.,

8/01/21

...........................

9,660,000

9,651,073

GO,

2002

A,

NATL

Insured,

Zero

Cpn.,

8/01/23

...........................

10,815,000

10,671,563

GO,

2002

A,

NATL

Insured,

Zero

Cpn.,

5/01/27

...........................

12,770,000

11,813,560

Monterey

Peninsula

Unified

School

District

,

GO

,

2016C

,

Refunding

,

5

%

,

8/01/41

....

11,190,000

13,348,044

Moorpark

Unified

School

District

,

GO

,

2009A

,

AGMC

Insured

,

Zero

Cpn.,

8/01/32

...

5,870,000

4,644,140

Moreno

Valley

Unified

School

District

,

GO,

2004

A,

AGMC

Insured,

ETM,

Zero

Cpn.,

8/01/27

......................

6,315,000

5,929,044

GO,

2004

A,

AGMC

Insured,

ETM,

Zero

Cpn.,

8/01/28

......................

6,625,000

6,091,449

GO,

A,

AGMC

Insured,

5%,

8/01/44

....................................

29,220,000

34,221,389

Mount

San

Antonio

Community

College

District

,

GO

,

2013

A

,

Zero

Cpn.,

8/01/43

....

55,000,000

60,538,660

Mountain

House

Public

Financing

Authority

,

Mountain

House

Community

Services

District,

Revenue,

2020

A,

BAM

Insured,

4%,

12/01/45

.......................................................

3,250,000

3,699,930

Franklin

California

Tax-Free

Income

Fund

Schedule

of

Investments

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

26

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

California

(continued)

Mountain

House

Public

Financing

Authority,

(continued)

Mountain

House

Community

Services

District,

Revenue,

2020

A,

BAM

Insured,

4%,

12/01/50

.......................................................

$

6,000,000

$

6,792,107

Mountain

House

Community

Services

District,

Revenue,

2020

B,

BAM

Insured,

4%,

12/01/40

.......................................................

2,750,000

3,159,840

Mountain

House

Community

Services

District,

Revenue,

2020

B,

BAM

Insured,

4%,

12/01/43

.......................................................

4,000,000

4,556,421

M-S-R

Energy

Authority

,

Revenue

,

2009B

,

6.5

%

,

11/01/39

.....................

25,000,000

39,966,223

M-S-R

Public

Power

Agency

,

Revenue

,

E

,

NATL

Insured

,

ETM,

6

%

,

7/01/22

.......

3,730,000

3,891,192

Needles

Public

Financing

Authority

,

Revenue

,

1992-A

,

7.5

%

,

8/15/22

............

290,000

290,777

Newport

Mesa

Unified

School

District

,

GO

,

2011

,

Zero

Cpn.,

8/01/42

.............

20,000,000

28,119,862

Norman

Y

Mineta

San

Jose

International

Airport

SJC

,

Revenue,

2017A,

Refunding,

5%,

3/01/41

...............................

10,000,000

11,790,055

Revenue,

2017A,

Refunding,

5%,

3/01/47

...............................

20,000,000

23,441,388

Revenue,

2017B,

Refunding,

5%,

3/01/47

...............................

10,000,000

11,892,904

c,d

Revenue,

2021

A,

Refunding,

5%,

3/01/29

...............................

1,505,000

1,915,545

c,d

Revenue,

2021

A,

Refunding,

5%,

3/01/30

...............................

1,550,000

1,995,582

c,d

Revenue,

2021

A,

Refunding,

5%,

3/01/31

...............................

1,600,000

2,086,237

c,d

Revenue,

2021

A,

Refunding,

5%,

3/01/32

...............................

2,000,000

2,591,369

c,d

Revenue,

2021

A,

Refunding,

5%,

3/01/33

...............................

2,000,000

2,583,700

c,d

Revenue,

2021

A,

Refunding,

BAM

Insured,

4%,

3/01/34

....................

2,220,000

2,652,947

c,d

Revenue,

2021

B,

Refunding,

5%,

3/01/29

...............................

500,000

646,800

c,d

Revenue,

2021

B,

Refunding,

5%,

3/01/30

...............................

600,000

787,048

c,d

Revenue,

2021

B,

Refunding,

5%,

3/01/31

...............................

1,000,000

1,329,691

c,d

Revenue,

2021

B,

Refunding,

5%,

3/01/32

...............................

2,000,000

2,642,570

c,d

Revenue,

2021

B,

Refunding,

5%,

3/01/33

...............................

1,400,000

1,841,297

c,d

Revenue,

2021

B,

Refunding,

BAM

Insured,

4%,

3/01/34

....................

1,750,000

2,133,745

Oceanside

Unified

School

District

,

GO,

2010B,

AGMC

Insured,

Zero

Cpn.,

8/01/38

...........................

10,590,000

7,162,856

GO,

2010B,

AGMC

Insured,

Zero

Cpn.,

8/01/39

...........................

7,860,000

5,145,083

GO,

2015,

Refunding,

5%,

8/01/48

.....................................

12,000,000

14,053,958

Ontario

Montclair

School

District

,

GO

,

2017A

,

5

%

,

8/01/46

....................

11,765,000

14,497,897

Orange

Community

Facilities

District

,

Special

Tax

,

2015

,

Refunding

,

AGMC

Insured

,

5

%

,

10/01/40

.....................................................

7,500,000

8,826,471

Orange

County

Sanitation

District

,

Revenue

,

2015A

,

Refunding

,

5

%

,

2/01/36

.......

8,350,000

9,586,693

Orange

County

Water

District

,

COP,

2003

B,

NATL

Insured,

ETM,

5%,

8/15/28

...........................

13,740,000

16,875,702

COP,

2003

B,

Pre-Refunded,

NATL

Insured,

5%,

8/15/34

....................

4,140,000

5,758,244

COP,

2003

B,

NATL

Insured,

ETM,

5%,

8/15/34

...........................

3,305,000

4,393,820

Oxnard

School

District

,

GO

,

C

,

Pre-Refunded

,

BAM

Insured

,

4

%

,

8/01/44

.........

10,755,000

12,065,641

Palomar

Community

College

District

,

GO,

2010B,

Zero

Cpn.,

8/01/39

.......................................

69,410,000

88,080,672

GO,

C,

Pre-Refunded,

5%,

8/01/44

....................................

35,120,000

41,985,504

Palomar

Health

,

GO,

2009A,

AGMC

Insured,

7%,

8/01/38

................................

36,000,000

50,952,532

GO,

2010A,

6.75%,

8/01/40

..........................................

60,000,000

81,989,586

Obligated

Group,

Revenue,

2017,

Refunding,

AGMC

Insured,

5%,

11/01/47

......

35,000,000

42,316,361

Paramount

Unified

School

District

,

GO,

2013,

Pre-Refunded,

BAM

Insured,

5%,

8/01/48

.......................

2,450,000

2,725,957

GO,

2013,

Pre-Refunded,

BAM

Insured,

Zero

Cpn.,

8/01/43

..................

32,000,000

8,271,971

GO,

2013,

Pre-Refunded,

BAM

Insured,

Zero

Cpn.,

8/01/48

..................

28,000,000

4,865,563

Patterson

Joint

Unified

School

District

,

GO,

2001

A,

NATL

Insured,

Zero

Cpn.,

8/01/22

...........................

1,900,000

1,885,700

GO,

2001

A,

NATL

Insured,

Zero

Cpn.,

8/01/23

...........................

1,985,000

1,950,981

GO,

2001

A,

NATL

Insured,

Zero

Cpn.,

8/01/24

...........................

2,075,000

2,008,750

GO,

2001

A,

NATL

Insured,

Zero

Cpn.,

8/01/25

...........................

2,170,000

2,064,316

Franklin

California

Tax-Free

Income

Fund

Schedule

of

Investments

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

27

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

California

(continued)

Patterson

Joint

Unified

School

District,

(continued)

GO,

2001

A,

NATL

Insured,

Zero

Cpn.,

8/01/26

...........................

$

2,265,000

$

2,112,540

Perris

Joint

Powers

Authority

,

Community

Facilities

District

No.

2018-1

,

Special

Tax

,

2020

,

4

%

,

9/01/50

.................................................

1,125,000

1,237,285

Perris

Union

High

School

District

,

COP,

2019,

Refunding,

BAM

Insured,

5%,

10/01/48

........................

10,000,000

12,204,530

GO,

2013

A,

AGMC

Insured,

5%,

9/01/42

................................

5,000,000

5,512,406

Pittsburg

Unified

School

District

,

GO

,

2016

,

Refunding

,

4

%

,

8/01/44

.............

11,000,000

12,328,711

Placentia-Yorba

Linda

Unified

School

District

,

GO,

2008

D,

Zero

Cpn.,

8/01/43

.......................................

27,955,000

16,062,871

GO,

2008

D,

Zero

Cpn.,

8/01/46

.......................................

89,200,000

44,139,023

GO,

2008

D,

Zero

Cpn.,

8/01/49

.......................................

85,000,000

37,941,875

Pomona

Unified

School

District

,

GO

,

C

,

AGMC

Insured

,

5.25

%

,

8/01/40

..........

16,000,000

16,268,022

Port

of

Los

Angeles

,

Revenue

,

2014B

,

Refunding

,

5

%

,

8/01/44

.................

10,300,000

11,599,010

Poway

Redevelopment

Agency

Successor

Agency

,

Tax

Allocation,

2015A,

Refunding,

5%,

12/15/31

...........................

10,180,000

13,819,478

Tax

Allocation,

2015A,

Refunding,

5%,

12/15/32

...........................

11,215,000

15,441,950

Tax

Allocation,

2015A,

Refunding,

5%,

6/15/33

............................

5,835,000

8,104,263

Poway

Unified

School

District

,

Community

Facilities

District

No.

16,

Special

Tax,

2020,

AGMC

Insured,

4%,

9/01/50

7,500,000

8,570,705

Facilities

Improvement

District

No.

2007-1,

GO,

B,

Zero

Cpn.,

8/01/46

..........

45,000,000

21,612,285

Regents

of

the

University

of

California

,

Medical

Center,

Revenue,

2013J,

5%,

5/15/48

............................

75,000,000

81,400,230

Medical

Center,

Revenue,

2016L,

Refunding,

5%,

5/15/47

...................

49,575,000

58,166,695

Rialto

Unified

School

District

,

GO

,

2011A

,

AGMC

Insured

,

Zero

Cpn.,

8/01/41

......

27,000,000

34,553,231

Rio

Hondo

Community

College

District

,

GO

,

2010C

,

Zero

Cpn.,

8/01/35

..........

10,000,000

7,311,338

Ripon

Unified

School

District

,

GO,

2013

A,

Refunding,

BAM

Insured,

5%,

8/01/42

........................

2,315,000

2,554,636

GO,

2013

A,

Pre-Refunded,

BAM

Insured,

5%,

8/01/42

.....................

705,000

784,408

River

Islands

Public

Financing

Authority

,

Lathrop

Irrigation

District

Electric,

Revenue,

2020,

AGMC

Insured,

4%,

9/01/45

...

2,250,000

2,565,318

Lathrop

Irrigation

District

Electric,

Revenue,

2020,

AGMC

Insured,

4%,

9/01/50

...

3,155,000

3,576,865

Riverside

County

Asset

Leasing

Corp.

,

County

of

Riverside,

Revenue,

1997A,

NATL

Insured,

Zero

Cpn.,

6/01/23

........

14,160,000

13,976,921

County

of

Riverside,

Revenue,

1997A,

NATL

Insured,

Zero

Cpn.,

6/01/24

........

13,005,000

12,667,607

Riverside

County

Transportation

Commission

,

Revenue,

2013

A,

Pre-Refunded,

5.25%,

6/01/39

..........................

11,000,000

12,199,257

Revenue,

Senior

Lien,

2013A,

5.75%,

6/01/48

............................

10,000,000

10,893,506

RNR

School

Financing

Authority

,

Community

Facilities

District

No.

92-1

,

Special

Tax

,

2015A

,

Refunding

,

BAM

Insured

,

5

%

,

9/01/36

............................

11,145,000

12,894,567

Rocklin

Unified

School

District

,

GO,

2003,

NATL

Insured,

Zero

Cpn.,

8/01/25

.............................

8,160,000

7,832,995

GO,

2003,

NATL

Insured,

Zero

Cpn.,

8/01/26

.............................

8,695,000

8,200,327

GO,

2003,

NATL

Insured,

Zero

Cpn.,

8/01/27

.............................

9,080,000

8,382,001

GO,

2003,

NATL

Insured,

Zero

Cpn.,

8/01/28

.............................

16,615,000

14,945,852

Community

Facilities

District

No.

3,

Special

Tax,

2019,

BAM

Insured,

4%,

9/15/49

..

11,825,000

13,320,400

Rohnert

Park

Community

Development

Commission

Successor

Agency

,

Tax

Allocation

,

2007R

,

NATL

Insured

,

ETM,

5

%

,

8/01/37

................................

1,380,000

1,441,610

Roseville

Natural

Gas

Financing

Authority

,

Revenue

,

2007

,

5

%

,

2/15/26

..........

5,000,000

5,964,703

Sacramento

Area

Flood

Control

Agency

,

Special

Assessment

,

2020

,

4

%

,

10/01/47

..

10,620,000

12,237,570

Sacramento

City

Unified

School

District

,

GO

,

2017E

,

4

%

,

5/01/47

...............

20,000,000

21,795,978

Sacramento

County

Sanitation

Districts

Financing

Authority

,

Revenue,

2014A,

Refunding,

5%,

12/01/44

..............................

25,000,000

28,269,555

Sacramento

Regional

County

Sanitation

District,

Revenue,

2020

A,

Refunding,

5%,

12/01/45

.......................................................

9,000,000

11,628,716

Franklin

California

Tax-Free

Income

Fund

Schedule

of

Investments

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

28

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

California

(continued)

Sacramento

County

Sanitation

Districts

Financing

Authority,

(continued)

Sacramento

Regional

County

Sanitation

District,

Revenue,

2020

A,

Refunding,

5%,

12/01/50

.......................................................

$

10,000,000

$

12,849,268

Sacramento

Regional

County

Sanitation

District,

Revenue,

2021,

Refunding,

5%,

12/01/29

.......................................................

4,100,000

5,432,030

Sacramento

Regional

County

Sanitation

District,

Revenue,

2021,

Refunding,

5%,

12/01/30

.......................................................

3,755,000

5,072,333

Sacramento

Regional

County

Sanitation

District,

Revenue,

2021,

Refunding,

5%,

12/01/31

.......................................................

11,700,000

16,117,448

Sacramento

Regional

County

Sanitation

District,

Revenue,

2021,

Refunding,

5%,

12/01/32

.......................................................

20,300,000

28,376,205

Sacramento

Regional

County

Sanitation

District,

Revenue,

2021,

Refunding,

5%,

12/01/33

.......................................................

11,200,000

15,346,873

Sacramento

Municipal

Utility

District

,

Revenue,

2019

G,

5%,

8/15/39

.......................................

3,135,000

4,000,550

Revenue,

2019

G,

5%,

8/15/41

.......................................

2,500,000

3,173,866

Electric

System,

Revenue,

2020

H,

5%,

8/15/50

...........................

51,700,000

66,033,567

San

Bernardino

Community

College

District

,

GO

,

2009B

,

Zero

Cpn.,

8/01/48

.......

66,390,000

30,033,356

San

Buenaventura

Public

Facilities

Financing

Authority

,

Revenue,

2014

C,

Pre-Refunded,

5%,

1/01/39

............................

8,500,000

9,597,443

Revenue,

Pre-Refunded,

5%,

1/01/44

..................................

19,395,000

21,899,108

San

Diego

Community

College

District

,

GO

,

2009B

,

6

%

,

8/01/33

................

26,880,000

35,199,156

San

Diego

County

Regional

Airport

Authority

,

Revenue,

2019

A,

Refunding,

5%,

7/01/44

...............................

9,000,000

11,042,310

Revenue,

2019

A,

Refunding,

5%,

7/01/49

...............................

5,000,000

6,096,815

Revenue,

2019

B,

Refunding,

4%,

7/01/44

...............................

3,000,000

3,395,474

Revenue,

2019

B,

Refunding,

5%,

7/01/49

...............................

5,000,000

6,012,919

Special

Facilities,

Revenue,

2014A,

5%,

7/01/44

..........................

5,645,000

6,303,914

San

Diego

County

Regional

Transportation

Commission

,

Revenue,

2014A,

Pre-Refunded,

5%,

4/01/44

.............................

54,915,000

62,695,192

Revenue,

2014A,

Pre-Refunded,

5%,

4/01/48

.............................

20,000,000

22,833,540

Revenue,

2016A,

5%,

4/01/48

........................................

25,000,000

29,756,875

San

Diego

County

Water

Authority

,

Revenue,

2021

A,

Refunding,

5%,

5/01/29

...............................

2,335,000

3,087,431

Revenue,

2021

A,

Refunding,

5%,

5/01/30

...............................

1,800,000

2,423,246

Revenue,

2021

A,

Refunding,

5%,

5/01/31

...............................

1,530,000

2,102,814

c

Revenue,

Sub.

Lien,

2021

S-1,

Refunding,

5%,

5/01/28

.....................

44,020,000

56,760,801

San

Diego

Public

Facilities

Financing

Authority

,

City

of

San

Diego

Water

Utility

,

Revenue

,

2020

A

,

4

%

,

8/01/45

........................................

4,500,000

5,345,854

San

Diego

Unified

School

District

,

GO,

1999

A,

NATL

Insured,

Zero

Cpn.,

7/01/21

...........................

12,160,000

12,156,019

GO,

1999

A,

NATL

Insured,

Zero

Cpn.,

7/01/22

...........................

8,440,000

8,419,299

GO,

1999

A,

NATL

Insured,

Zero

Cpn.,

7/01/23

...........................

11,120,000

11,041,862

GO,

2009-1,

Pre-Refunded,

6%,

7/01/33

................................

104,505,000

123,690,028

GO,

2010C,

Zero

Cpn.,

7/01/48

.......................................

29,840,000

31,943,034

GO,

2012

E,

Zero

Cpn.,

7/01/47

.......................................

74,270,000

68,935,082

GO,

2019

L,

4%,

7/01/49

............................................

30,000

34,690

GO,

F,

5%,

7/01/40

................................................

56,510,000

66,380,686

GO,

F,

5%,

7/01/45

................................................

34,370,000

40,216,701

GO,

G,

5%,

7/01/40

................................................

13,000,000

15,270,730

GO,

R-2,

Refunding,

Zero

Cpn.,

7/01/40

.................................

79,760,000

90,830,257

San

Francisco

Bay

Area

Rapid

Transit

District

,

GO

,

2020

C-1

,

4

%

,

8/01/45

........

35,295,000

41,388,565

San

Francisco

City

&

County

Airport

Comm-San

Francisco

International

Airport

,

Revenue,

2016B,

5%,

5/01/46

........................................

28,040,000

32,440,390

Revenue,

2019

A,

Refunding,

5%,

5/01/49

...............................

25,000,000

29,976,635

Revenue,

Second

Series,

2014B,

5%,

5/01/44

............................

31,000,000

34,910,467

Revenue,

Second

Series,

2017A,

5%,

5/01/42

............................

20,910,000

24,692,454

Franklin

California

Tax-Free

Income

Fund

Schedule

of

Investments

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

29

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

California

(continued)

San

Francisco

City

&

County

Airport

Comm-San

Francisco

International

Airport,

(continued)

Revenue,

Second

Series,

2017A,

5%,

5/01/47

............................

$

49,090,000

$

57,571,083

Revenue,

Second

Series,

2017B,

5%,

5/01/47

............................

70,725,000

84,417,692

Revenue,

Second

Series,

2018,

5.25%,

5/01/48

...........................

120,000,000

144,910,116

Revenue,

Second

Series,

2018

D,

5%,

5/01/48

...........................

117,910,000

140,030,435

Revenue,

Second

Series,

2018E,

5%,

5/01/48

............................

44,650,000

53,545,352

Revenue,

Second

Series,

2019E,

5%,

5/01/50

............................

6,500,000

7,786,404

San

Francisco

City

&

County

Redevelopment

Agency

Successor

Agency

,

Tax

Allocation,

Third

Lien

,

2017B

,

AGMC

Insured

,

5

%

,

8/01/46

...................

10,000,000

12,058,877

San

Francisco

Community

College

District

,

GO

,

A

,

4

%

,

6/15/45

.................

7,000,000

8,177,756

San

Francisco

Municipal

Transportation

Agency

,

Revenue

,

2021

C

,

5

%

,

3/01/51

....

10,250,000

12,991,930

San

Gabriel

Unified

School

District

,

GO,

2002

A,

AGMC

Insured,

Zero

Cpn.,

8/01/26

...........................

3,530,000

3,327,411

GO,

2002

A,

AGMC

Insured,

Zero

Cpn.,

2/01/27

...........................

1,850,000

1,723,046

San

Joaquin

Hills

Transportation

Corridor

Agency

,

Revenue,

1997

A,

Refunding,

NATL

Insured,

Zero

Cpn.,

1/15/26

...............

13,155,000

12,114,246

Revenue,

Refunding,

Zero

Cpn.,

1/15/38

................................

245,085,000

338,867,401

Revenue,

1997

A,

Refunding,

Zero

Cpn.,

1/15/40

..........................

158,655,000

224,721,132

Revenue,

1997

A,

Refunding,

Zero

Cpn.,

1/15/41

..........................

141,024,000

201,186,728

Revenue,

1997

A,

Refunding,

Zero

Cpn.,

1/15/42

..........................

141,024,000

202,394,260

Revenue,

Senior

Lien,

1993,

ETM,

Zero

Cpn.,

1/01/25

......................

5,700,000

5,596,649

Revenue,

Senior

Lien,

1993,

ETM,

Zero

Cpn.,

1/01/28

......................

33,545,000

31,071,241

Revenue,

Senior

Lien,

1993,

ETM,

Zero

Cpn.,

1/01/29

......................

37,050,000

33,540,620

Revenue,

Senior

Lien,

2014A,

Refunding,

5%,

1/15/44

......................

125,000,000

139,528,375

Revenue,

Senior

Lien,

2014A,

Refunding,

5%,

1/15/50

......................

430,000,000

477,105,640

San

Jose

Unified

School

District

,

COP,

2002,

AGMC

Insured,

ETM,

Zero

Cpn.,

1/01/27

.......................

7,105,000

6,694,385

COP,

2002,

AGMC

Insured,

ETM,

Zero

Cpn.,

1/01/29

.......................

7,105,000

6,382,758

San

Juan

Unified

School

District

,

GO,

2003

B,

NATL

Insured,

Zero

Cpn.,

8/01/26

...........................

15,825,000

13,992,612

GO,

2003

B,

NATL

Insured,

Zero

Cpn.,

8/01/27

...........................

18,605,000

17,283,059

GO,

2003

B,

NATL

Insured,

Zero

Cpn.,

8/01/28

...........................

19,470,000

17,641,853

San

Luis

Obispo

County

Financing

Authority

,

Revenue

,

2015A

,

Refunding

,

BAM

Insured

,

5

%

,

9/01/37

...............................................

10,000,000

11,740,201

San

Marcos

Public

Financing

Authority

,

Revenue

,

1994

A

,

ETM,

6.25

%

,

9/02/22

....

15,000,000

16,284,524

San

Marino

Unified

School

District

,

GO

,

2000

A

,

NATL

Insured

,

Zero

Cpn.,

7/01/25

..

6,080,000

5,845,398

San

Mateo

Foster

City

Public

Financing

Authority

,

City

of

San

Mateo

Sewer

,

Revenue

,

2019

,

5

%

,

8/01/49

.................................................

29,000,000

36,450,799

San

Mateo

Union

High

School

District

,

COP,

2007,

Pre-Refunded,

AMBAC

Insured,

5%,

12/15/43

...................

11,535,000

13,465,005

GO,

2002

B,

NATL

Insured,

Zero

Cpn.,

9/01/22

...........................

5,000,000

4,985,545

San

Rafael

City

High

School

District

,

GO

,

2018

B

,

4

%

,

8/01/47

.................

17,060,000

19,535,592

Sanger

Public

Financing

Authority

,

Revenue,

2013,

AGMC

Insured,

5%,

6/15/35

.............................

2,360,000

2,584,392

Revenue,

2013,

AGMC

Insured,

5%,

6/15/43

.............................

6,155,000

6,734,553

Sanger

Unified

School

District

,

GO

,

A

,

BAM

Insured

,

4

%

,

8/01/41

...............

10,000,000

11,316,289

Santa

Ana

Unified

School

District

,

COP

,

1999

,

AGMC

Insured

,

Zero

Cpn.,

4/01/24

...

11,225,000

10,143,378

Santa

Clara

Valley

Water

District

,

Revenue,

2020

A,

Refunding,

5%,

6/01/45

...............................

5,000,000

6,341,155

Revenue,

2020

A,

Refunding,

5%,

6/01/50

...............................

5,000,000

6,315,811

Santa

Cruz

County

Redevelopment

Successor

Agency

,

Tax

Allocation

,

2015A

,

Refunding

,

AGMC

Insured

,

5

%

,

9/01/35

.................................

20,000,000

23,202,588

Santa

Maria

Joint

Union

High

School

District

,

GO

,

2014

,

4

%

,

8/01/37

............

14,230,000

15,358,687

Santa

Paula

Utility

Authority

,

Revenue,

2015A,

Pre-Refunded,

5%,

2/01/45

.............................

16,495,000

19,308,455

Franklin

California

Tax-Free

Income

Fund

Schedule

of

Investments

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

30

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

California

(continued)

Santa

Paula

Utility

Authority,

(continued)

Revenue,

2015A,

Pre-Refunded,

5%,

2/01/50

.............................

$

21,050,000

$

24,640,374

School

Facilities

Financing

Authority

,

Twin

Rivers

Unified

School

District

,

Revenue

,

A

,

AGMC

Insured

,

Zero

Cpn.,

8/01/42

....................................

49,000,000

25,980,197

Semitropic

Improvement

District

of

the

Semitropic

Water

Storage

District

,

Revenue,

Second

Lien

,

2015A

,

Refunding

,

AGMC

Insured

,

5

%

,

12/01/45

................

10,000,000

11,824,677

Sonoma

Community

Development

Agency

Successor

Agency

,

Tax

Allocation

,

2011

,

7.125

%

,

12/01/36

..................................................

10,775,000

11,156,137

Southern

California

Public

Power

Authority

,

Revenue

,

2007A

,

5

%

,

11/01/33

........

17,500,000

23,451,915

Southern

Mono

Health

Care

District

,

GO,

A,

NATL

Insured,

Zero

Cpn.,

8/01/28

................................

2,340,000

2,067,038

GO,

A,

NATL

Insured,

Zero

Cpn.,

8/01/29

................................

2,440,000

2,088,101

GO,

A,

NATL

Insured,

Zero

Cpn.,

8/01/30

................................

2,550,000

2,111,108

GO,

A,

NATL

Insured,

Zero

Cpn.,

8/01/31

................................

2,660,000

2,136,755

Southwestern

Community

College

District

,

GO

,

D

,

Pre-Refunded

,

5

%

,

8/01/44

.....

10,000,000

11,931,157

State

of

California

,

GO,

6%,

5/01/24

..................................................

2,565,000

2,651,445

GO,

NATL

Insured,

6%,

8/01/24

.......................................

990,000

1,008,788

GO,

5.625%,

9/01/24

...............................................

255,000

260,703

GO,

AMBAC

Insured,

5.9%,

3/01/25

....................................

140,000

143,287

GO,

Refunding,

5%,

11/01/28

.........................................

10,000,000

12,965,668

GO,

Refunding,

5%,

12/01/28

.........................................

24,000,000

31,170,434

GO,

5%,

11/01/29

.................................................

10,000,000

13,219,308

GO,

Refunding,

5%,

11/01/29

.........................................

17,000,000

22,472,824

GO,

Refunding,

5%,

12/01/29

.........................................

3,015,000

3,991,604

GO,

Refunding,

5%,

12/01/30

.........................................

4,000,000

5,381,625

GO,

Refunding,

5%,

4/01/31

.........................................

10,295,000

13,927,476

GO,

Refunding,

5%,

12/01/31

.........................................

1,500,000

2,055,555

GO,

Refunding,

5%,

4/01/32

.........................................

15,045,000

20,707,997

GO,

5%,

12/01/34

.................................................

23,255,000

30,859,629

GO,

Refunding,

5%,

3/01/35

.........................................

51,980,000

67,696,304

GO,

5%,

12/01/35

.................................................

9,745,000

12,888,236

GO,

Refunding,

4%,

3/01/36

.........................................

10,000,000

12,025,032

GO,

5%,

12/01/36

.................................................

16,560,000

21,817,470

GO,

5%,

10/01/39

.................................................

15,000,000

17,854,125

GO,

5%,

10/01/41

.................................................

15,250,000

15,603,931

GO,

5%,

4/01/43

..................................................

44,745,000

48,749,606

GO,

5%,

10/01/44

.................................................

25,000,000

28,760,918

GO,

5%,

8/01/45

..................................................

22,500,000

26,351,172

GO,

4%,

3/01/46

..................................................

6,750,000

7,900,151

GO,

5%,

8/01/46

..................................................

20,000,000

23,971,178

GO,

5%,

10/01/47

.................................................

81,000,000

96,022,422

GO,

5%,

4/01/49

..................................................

5,000,000

6,192,306

GO,

1992,

NATL

Insured,

6%,

10/01/21

.................................

35,000

36,014

GO,

1996,

Pre-Refunded,

FGIC

Insured,

5.375%,

6/01/26

...................

1,335,000

1,345,934

GO,

1997,

NATL,

FGIC

Insured,

5.625%,

10/01/26

.........................

5,005,000

5,139,949

GO,

2004,

5.125%,

4/01/24

..........................................

5,000

5,018

GO,

2004,

5.2%,

4/01/26

............................................

20,000

20,074

GO,

2007,

Refunding,

AGMC

Insured,

5.25%,

8/01/32

......................

55,140,000

76,709,252

GO,

2012,

5%,

4/01/42

.............................................

85,000,000

88,901,270

GO,

2017,

5%,

11/01/47

.............................................

10,000,000

12,194,861

State

of

California

Department

of

Water

Resources

,

Revenue,

BB,

Refunding,

5%,

12/01/32

.................................

17,110,000

23,228,079

Revenue,

BB,

Refunding,

5%,

12/01/33

.................................

21,785,000

29,445,314

Revenue,

BB,

Refunding,

5%,

12/01/35

.................................

3,100,000

4,166,173

Sulphur

Springs

Union

School

District

,

COP,

2010,

AGMC

Insured,

ETM,

6.5%,

12/01/37

..........................

1,725,000

1,912,220

Franklin

California

Tax-Free

Income

Fund

Schedule

of

Investments

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

31

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

California

(continued)

Sulphur

Springs

Union

School

District,

(continued)

COP,

2010,

AGMC

Insured,

6.5%,

12/01/37

..............................

$

11,390,000

$

14,255,731

Temple

City

Unified

School

District

,

GO

,

A

,

Pre-Refunded

,

5

%

,

8/01/43

...........

10,000,000

11,126,354

Tobacco

Securitization

Authority

of

Northern

California

,

Sacramento

County

Tobacco

Securitization

Corp.,

Revenue,

Senior

Lien,

2021A,

1,

Refunding,

5%,

6/01/29

............................................

1,500,000

1,946,232

Sacramento

County

Tobacco

Securitization

Corp.,

Revenue,

Senior

Lien,

2021A,

1,

Refunding,

5%,

6/01/31

............................................

1,290,000

1,709,779

Sacramento

County

Tobacco

Securitization

Corp.,

Revenue,

Senior

Lien,

2021A,

1,

Refunding,

5%,

6/01/33

............................................

1,520,000

1,990,520

Sacramento

County

Tobacco

Securitization

Corp.,

Revenue,

Senior

Lien,

2021A,

1,

Refunding,

4%,

6/01/35

............................................

1,020,000

1,231,721

Sacramento

County

Tobacco

Securitization

Corp.,

Revenue,

Senior

Lien,

2021A,

1,

Refunding,

4%,

6/01/49

............................................

5,500,000

6,346,499

Sacramento

County

Tobacco

Securitization

Corp.,

Revenue,

Senior

Lien,

2021

B,

2,

Refunding,

4%,

6/01/49

............................................

1,500,000

1,691,919

Transbay

Joint

Powers

Authority

,

Transbay

Redevelopment

Project

Tax

Increment

Re-Development

Project,

Tax

Allocation,

Senior

Lien,

2020

A,

5%,

10/01/45

...........................

10,410,000

12,743,944

Transbay

Redevelopment

Project

Tax

Increment

Re-Development

Project,

Tax

Allocation,

Senior

Lien,

2020

A,

5%,

10/01/49

...........................

7,985,000

9,733,030

Tulare

County

Board

of

Education

,

COP,

Pre-Refunded,

BAM

Insured,

5.375%,

5/01/33

........................

3,185,000

3,527,074

COP,

Pre-Refunded,

BAM

Insured,

5.5%,

5/01/38

.........................

8,305,000

9,218,434

COP,

Pre-Refunded,

BAM

Insured,

5.5%,

5/01/43

.........................

10,855,000

12,048,898

Turlock

Irrigation

District

,

Revenue,

2020,

Refunding,

5%,

1/01/37

.................................

2,090,000

2,701,597

Revenue,

2020,

Refunding,

5%,

1/01/38

.................................

940,000

1,211,415

Revenue,

2020,

Refunding,

5%,

1/01/39

.................................

2,250,000

2,891,314

Revenue,

2020,

Refunding,

5%,

1/01/41

.................................

3,500,000

4,468,358

Union

Elementary

School

District

,

GO,

1999-A,

NATL

Insured,

Zero

Cpn.,

9/01/24

...........................

2,000,000

1,958,193

GO,

2001B,

NATL

Insured,

Zero

Cpn.,

9/01/25

............................

5,500,000

5,310,715

GO,

2001B,

NATL

Insured,

Zero

Cpn.,

9/01/26

............................

5,850,000

5,556,712

University

of

California

,

Revenue,

2015

I,

Refunding,

5%,

5/15/40

................................

22,990,000

26,757,043

Revenue,

2015

I,

Refunding,

5%,

5/15/50

................................

25,420,000

29,585,212

Revenue,

2016AR,

Refunding,

5%,

5/15/41

..............................

13,760,000

16,391,239

Revenue,

2016K,

4%,

5/15/46

........................................

19,850,000

22,082,565

Revenue,

2017M,

5%,

5/15/37

........................................

15,410,000

18,959,504

Revenue,

2018

AZ,

Refunding,

5%,

5/15/48

..............................

72,325,000

89,068,628

Revenue,

2018

O,

Refunding,

5%,

5/15/39

...............................

14,400,000

17,952,232

Revenue,

2018

O,

Refunding,

5%,

5/15/43

...............................

30,120,000

37,226,151

Revenue,

2018

O,

Refunding,

5%,

5/15/48

...............................

20,000,000

24,554,550

Revenue,

2018

O,

Refunding,

5%,

5/15/58

...............................

10,000,000

12,209,577

Revenue,

2020

BE,

Refunding,

5%,

5/15/41

..............................

20,000,000

25,821,832

Revenue,

2020

BE,

Refunding,

5%,

5/15/42

..............................

26,250,000

33,790,759

Revenue,

2020

BE,

Refunding,

4%,

5/15/47

..............................

13,000,000

15,205,468

Revenue,

2020

BE,

Refunding,

4%,

5/15/50

..............................

13,000,000

15,120,437

Revenue,

2021

BH,

Refunding,

4%,

5/15/39

..............................

9,375,000

11,341,218

Revenue,

2021

Q,

Refunding,

5%,

5/15/32

...............................

3,210,000

4,350,756

Revenue,

2021

Q,

Refunding,

5%,

5/15/33

...............................

9,540,000

12,859,217

Revenue,

2021

Q,

Refunding,

5%,

5/15/34

...............................

8,205,000

11,012,952

Revenue,

2021

Q,

Refunding,

4%,

5/15/36

...............................

8,000,000

9,797,570

Revenue,

2021

Q,

Refunding,

4%,

5/15/37

...............................

8,360,000

10,197,285

Revenue,

2021

Q,

Refunding,

4%,

5/15/39

...............................

7,050,000

8,492,331

Franklin

California

Tax-Free

Income

Fund

Schedule

of

Investments

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

32

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

California

(continued)

Upland

Community

Facilities

District

,

City

of

Upland

Community

Facilities

District

No.

2016-1,

Special

Tax,

2021

A,

4%,

9/01/40

........................................................

$

260,000

$

287,399

City

of

Upland

Community

Facilities

District

No.

2016-1,

Special

Tax,

2021

A,

4%,

9/01/45

........................................................

165,000

180,245

City

of

Upland

Community

Facilities

District

No.

2016-1,

Special

Tax,

2021

A,

4%,

9/01/51

........................................................

260,000

282,424

Upland

Unified

School

District

,

GO

,

2011C

,

Zero

Cpn.,

8/01/45

.................

62,900,000

30,162,663

Vacaville

Unified

School

District

,

GO

,

D

,

4

%

,

8/01/45

.........................

2,000,000

2,294,566

Val

Verde

Unified

School

District

,

GO,

2010B,

AGMC

Insured,

Zero

Cpn.,

8/01/34

...........................

1,000,000

1,322,852

GO,

2015B,

Refunding,

BAM

Insured,

5%,

8/01/44

.........................

15,000,000

17,567,448

GO,

2020A,

BAM

Insured,

4%,

8/01/46

.................................

1,450,000

1,653,325

Vallejo

Public

Financing

Authority

,

Vallejo

CA-Hiddenbrooke

Improvement

District

No.

1

,

Revenue

,

2004-A

,

5.8

%

,

9/01/31

....................................

3,495,000

3,535,576

Vista

Redevelopment

Agency

Successor

Agency

,

Tax

Allocation

,

2015B-1

,

Refunding

,

AGMC

Insured

,

5

%

,

9/01/37

..........................................

3,020,000

3,503,321

Vista

Unified

School

District

,

GO,

2002A,

AGMC

Insured,

Zero

Cpn.,

8/01/26

...........................

7,150,000

6,761,097

GO,

2002A,

AGMC

Insured,

Zero

Cpn.,

2/01/27

...........................

4,795,000

4,478,892

Washington

Township

Health

Care

District

,

GO

,

2015B

,

5

%

,

8/01/45

.............

15,000,000

17,156,091

West

Sacramento

Area

Flood

Control

Agency

,

Special

Assessment,

2015,

AGMC

Insured,

5%,

9/01/40

.....................

3,000,000

3,522,060

Special

Assessment,

2015,

AGMC

Insured,

5%,

9/01/45

.....................

7,500,000

8,805,151

West

Sacramento

Financing

Authority

,

Special

Tax

,

A

,

AGMC

Insured

,

5

%

,

9/01/34

..

4,940,000

6,727,811

Western

Placer

Unified

School

District

,

COP

,

2011

,

AGMC

Insured

,

ETM,

5.2

%

,

11/01/41

........................................................

1,000,000

1,029,167

Western

Riverside

Water

&

Wastewater

Financing

Authority

,

Revenue,

2009,

AGMC

Insured,

5.5%,

9/01/34

............................

1,750,000

1,756,513

Revenue,

2009,

AGMC

Insured,

5.625%,

9/01/39

..........................

2,500,000

2,509,104

16,463,504,354

U.S.

Territories

0.6%

Puerto

Rico

0.6%

Children's

Trust

Fund

,

Revenue,

5.5%,

5/15/39

.............................................

6,210,000

6,357,146

Revenue,

2002,

5.625%,

5/15/43

......................................

16,000,000

16,080,296

e

Puerto

Rico

Electric

Power

Authority

,

Revenue,

2012A-RSA-1

2012A,

5%,

7/01/29

.............................

20,000,000

18,150,000

Revenue,

2012A-RSA-1

2013A,

7%,

7/01/33

.............................

50,000,000

46,625,000

Revenue,

WW-RSA-1,

5%,

7/01/28

....................................

12,030,000

10,917,225

Puerto

Rico

Industrial

Tourist

Educational

Medical

&

Environmental

Control

Facilities

Financing

Authority

,

AES

Puerto

Rico

LP

,

Revenue

,

2000A

,

6.625

%

,

6/01/26

.....

5,800,000

6,003,000

104,132,667

Total

U.S.

Territories

....................................................................

104,132,667

Total

Municipal

Bonds

(Cost

$14,237,417,585)

..................................

16,567,637,021

a

a

a

a

Franklin

California

Tax-Free

Income

Fund

Schedule

of

Investments

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

33

s

See

Abbreviations

on

page

45

.

Short

Term

Investments

1.2%

a

a

Principal

Amount

a

Value

Municipal

Bonds

1.2%

California

1.2%

f

California

Statewide

Communities

Development

Authority

,

Rady

Children's

Hospital

Obligated

Group

,

Revenue

,

2008B

,

LOC

Wells

Fargo

Bank

NA

,

Daily

VRDN

and

Put

,

0.04

%

,

8/15/47

...................................................

$

2,900,000

$

2,900,000

f

Irvine

Ranch

Water

District

,

Special

Assessment

,

2009B

,

LOC

Bank

of

America

NA

,

Daily

VRDN

and

Put

,

0.04

%

,

10/01/41

..................................

41,165,000

41,165,000

f

Santa

Clara

Valley

Transportation

Authority

,

2000

Measure

A

Sales

Tax,

Revenue,

2008C,

Refunding,

SPA

TD

Bank

NA,

Daily

VRDN

and

Put,

0.03%,

4/01/36

......................................

7,500,000

7,500,000

2000

Measure

A

Sales

Tax,

Revenue,

2008D,

Refunding,

SPA

TD

Bank

NA,

Daily

VRDN

and

Put,

0.04%,

4/01/36

......................................

3,590,000

3,590,000

f

Southern

California

Public

Power

Authority

,

Revenue

,

2020-3

,

Refunding

,

LOC

US

Bank

NA

,

Daily

VRDN

and

Put

,

0.04

%

,

7/01/36

...........................

11,300,000

11,300,000

f

State

of

California

,

GO,

2003A-2,

Refunding,

LOC

Bank

of

Montreal,

Daily

VRDN

and

Put,

0.01%,

5/01/33

........................................................

24,120,000

24,120,000

GO,

2003A-3,

Refunding,

LOC

Bank

of

Montreal,

Daily

VRDN

and

Put,

0.02%,

5/01/33

........................................................

27,745,000

27,745,000

GO,

2003C-4,

LOC

US

Bank

NA,

Daily

VRDN

and

Put,

0.02%,

5/01/33

.........

27,900,000

27,900,000

f

University

of

California

,

Revenue,

2013

AL-1,

Daily

VRDN

and

Put,

0.03%,

5/15/48

..................

30,420,000

30,420,000

Revenue,

2013

AL-3,

Refunding,

Daily

VRDN

and

Put,

0.03%,

5/15/48

..........

13,605,000

13,605,000

Revenue,

2013

AL-4,

Refunding,

Daily

VRDN

and

Put,

0.03%,

5/15/48

..........

9,300,000

9,300,000

199,545,000

Total

Municipal

Bonds

(Cost

$199,545,000)

.....................................

199,545,000

Total

Short

Term

Investments

(Cost

$199,545,000

)

...............................

199,545,000

a

Total

Investments

(Cost

$14,436,962,585)

98.9%

................................

$16,767,182,021

Other

Assets,

less

Liabilities

1.1%

.............................................

189,460,943

Net

Assets

100.0%

...........................................................

$16,956,642,964

a

The

maturity

date

shown

represents

the

mandatory

put

date.

b

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

March

31,

2021,

the

aggregate

value

of

these

securities

was

$45,984,739,

representing

0.3%

of

net

assets.

c

A

portion

or

all

of

the

security

purchased

on

a

delayed

delivery

basis.

See

Note

1(b).

d

Security

purchased

on

a

when-issued

basis.

See

Note

1(b).

e

See

Note

7

regarding

defaulted

securities.

f

Variable

rate

demand

notes

(VRDNs)

are

obligations

which

contain

a

floating

or

variable

interest

rate

adjustment

formula

and

an

unconditional

right

of

demand

to

receive

payment

of

the

principal

balance

plus

accrued

interest

at

specified

dates.

Unless

otherwise

noted,

the

coupon

rate

is

determined

based

on

factors

including

supply

and

demand,

underlying

credit,

tax

treatment,

and

current

short

term

rates.

The

coupon

rate

shown

represents

the

rate

at

period

end.

Franklin

California

Tax-Free

Income

Fund

Financial

Statements

Statement

of

Assets

and

Liabilities

March

31,

2021

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

34

Franklin

California

Tax-

Free

Income

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$14,436,962,585

Value

-

Unaffiliated

issuers

..................................................................

$16,767,182,021

Cash

....................................................................................

133,779,675

Receivables:

Investment

securities

sold

...................................................................

42,260,305

Capital

shares

sold

........................................................................

11,042,435

Interest

.................................................................................

164,513,462

Total

assets

..........................................................................

17,118,777,898

Liabilities:

Payables:

Investment

securities

purchased

..............................................................

115,927,241

Capital

shares

redeemed

...................................................................

29,950,201

Management

fees

.........................................................................

6,166,721

Distribution

fees

..........................................................................

1,895,983

Transfer

agent

fees

........................................................................

1,776,214

Distributions

to

shareholders

.................................................................

5,958,939

Accrued

expenses

and

other

liabilities

...........................................................

459,635

Total

liabilities

.........................................................................

162,134,934

Net

assets,

at

value

.................................................................

$16,956,642,964

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$15,505,532,354

Total

distributable

earnings

(losses)

.............................................................

1,451,110,610

Net

assets,

at

value

.................................................................

$16,956,642,964

Franklin

California

Tax-Free

Income

Fund

Financial

Statements

Statement

of

Assets

and

Liabilities

(continued)

March

31,

2021

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

35

Franklin

California

Tax-

Free

Income

Fund

Class

A:

Net

assets,

at

value

.......................................................................

$2,074,343,108

Shares

outstanding

........................................................................

268,914,304

Net

asset

value

per

share

a

..................................................................

$7.71

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

96.25%)

................................

$8.01

Class

A1:

Net

assets,

at

value

.......................................................................

$11,084,477,615

Shares

outstanding

........................................................................

1,439,047,954

Net

asset

value

per

share

a

..................................................................

$7.70

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

96.25%)

................................

$8.00

Class

C:

Net

assets,

at

value

.......................................................................

$1,018,197,153

Shares

outstanding

........................................................................

132,467,081

Net

asset

value

and

maximum

offering

price

per

share

a

.............................................

$7.69

Class

R6:

Net

assets,

at

value

.......................................................................

$281,037,724

Shares

outstanding

........................................................................

36,527,318

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$7.69

Advisor

Class:

Net

assets,

at

value

.......................................................................

$2,498,587,364

Shares

outstanding

........................................................................

324,964,103

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$7.69

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

California

Tax-Free

Income

Fund

Financial

Statements

Statement

of

Operations

for

the

year

ended

March

31,

2021

franklintempleton.com

Annual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

36

Franklin

California

Tax-

Free

Income

Fund

Investment

income:

Interest:

Unaffiliated

issuers

........................................................................

$596,640,838

Expenses:

Management

fees

(Not

e

3a)

...................................................................

73,226,889

Distribution

fees:

(Note

3c)

    Class

A

................................................................................

4,427,399

    Class

A1

...............................................................................

10,684,582

    Class

C

................................................................................

6,992,870

Transfer

agent

fees:

(Note

3e)

    Class

A

................................................................................

1,019,430

    Class

A1

...............................................................................

6,519,159

    Class

C

................................................................................

622,735

    Class

R6

...............................................................................

59,561

    Advisor

Class

............................................................................

1,362,248

Custodian

fees

(Not

e

4)

......................................................................

90,366

Reports

to

shareholders

......................................................................

205,088

Registration

and

filing

fees

....................................................................

154,289

Professional

fees

...........................................................................

351,756

Trustees'

fees

and

expenses

..................................................................

144,949

Other

....................................................................................

701,315

Total

expenses

.........................................................................

106,562,636

Expense

reductions

(Not

e

4)

...............................................................

(144,564)

Expenses

waived/paid

by

affiliates

(Not

e

3f)

....................................................

(13,123)

Net

expenses

.........................................................................

106,404,949

Net

investment

income

................................................................

490,235,889

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

......................................................................

22,797,752

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

421,902,497

Net

realized

and

unrealized

gain

(loss)

............................................................

444,700,249

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$934,936,138

Franklin

California

Tax-Free

Income

Fund

Financial

Statements

Statements

of

Changes

in

Net

Assets

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Annual

Report

37

Franklin

California

Tax-Free

Income

Fund

Year

Ended

March

31,

2021

Year

Ended

March

31,

2020

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$490,235,889

$500,037,492

Net

realized

gain

(loss)

.................................................

22,797,752

(134,416,400)

Net

change

in

unrealized

appreciation

(depreciation)

...........................

421,902,497

237,530,082

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

934,936,138

603,151,174

Distributions

to

shareholders:

Class

A

.............................................................

(48,518,935)

(31,341,778)

Class

A1

............................................................

(328,240,709)

(390,859,950)

Class

C

.............................................................

(25,424,832)

(31,683,409)

Class

R6

............................................................

(6,958,278)

(4,986,690)

Advisor

Class

........................................................

(70,956,814)

(62,073,101)

Total

distributions

to

shareholders

..........................................

(480,099,568)

(520,944,928)

Capital

share

transactions:

(Note

2

)

Class

A

.............................................................

639,600,509

889,240,042

Class

A1

............................................................

(679,834,875)

(467,749,607)

Class

C

.............................................................

(132,618,274)

(12,029,852)

Class

R6

............................................................

90,043,567

83,819,528

Advisor

Class

........................................................

548,024,489

242,039,708

Total

capital

share

transactions

............................................

465,215,416

735,319,819

Net

increase

(decrease)

in

net

assets

...................................

920,051,986

817,526,065

Net

assets:

Beginning

of

year

.......................................................

16,036,590,978

15,219,064,913

End

of

year

...........................................................

$16,956,642,964

$16,036,590,978

Franklin

California

Tax-Free

Income

Fund

Notes

to

Financial

Statements

38

franklintempleton.com

Annual

Report

1.

Organization

and

Significant

Accounting

Policies

Franklin

California

Tax-Free

Income

Fund (Fund)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

The

Fund

offers

five

classes

of

shares:

Class

A,

Class

A1,

Class

C,

Class

R6

and

Advisor

Class.

Class

C

shares

automatically

convert

to

Class

A

shares

after

they

have

been

held

for

10

years.

Each

class

of

shares

may

differ

by

its

initial

sales

load,

contingent

deferred

sales

charges,

voting

rights

on

matters

affecting

a

single

class,

its

exchange

privilege

and

fees

due

to

differing

arrangements

for

distribution

and

transfer

agent

fees. 

The

following

summarizes

the

Fund's

significant

accounting

policies.

a.

Financial

Instrument

Valuation 

The

Fund’s

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The

Fund

calculates

the

net

asset

value

(NAV)

per

share

each business

day as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Fund's

Board

of

Trustees

(the

Board),

the

Fund's

administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Fund

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Debt

securities

generally

trade

in

the

over-the-counter

market

rather

than

on

a

securities

exchange.

The

Fund's

pricing

services

use

multiple

valuation

techniques

to

determine

fair

value.

In

instances

where

sufficient

market

activity

exists,

the

pricing

services

may

utilize

a

market-

based

approach

through

which

quotes

from

market

makers

are

used

to

determine

fair

value.

In

instances

where

sufficient

market

activity

may

not

exist

or

is

limited,

the

pricing

services

also

utilize

proprietary

valuation

models

which

may

consider

market

characteristics

such

as

benchmark

yield

curves,

credit

spreads,

estimated

default

rates,

anticipated

market

interest

rate

volatility,

coupon

rates,

anticipated

timing

of

principal

repayments,

underlying

collateral,

and

other

unique

security

features

in

order

to

estimate

the

relevant

cash

flows,

which

are

then

discounted

to

calculate

the

fair

value.

The

Fund

has

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the Fund

primarily

employs

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

book

values,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

b.

Securities

Purchased

on

a

When-Issued

or

Delayed

Delivery

The

Fund

purchases

securities

on

a

when-issued

or

delayed

delivery

basis,

with

payment

and

delivery

scheduled

for

a

future

date.

These

transactions

are

subject

to

market

fluctuations

and

are

subject

to

the

risk

that

the

value

at

delivery

may

be

more

or

less

than

the

trade

date

purchase

price.

Although

the

Fund

will

generally

purchase

these

securities

with

the

intention

of

holding

the

securities,

it

may

sell

the

securities

before

the

settlement

date.

Sufficient

assets

have

been

segregated

for

these

securities.

c.

Income

Taxes

It

is the

Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. The

Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

income

and

net

realized

gains

to

relieve

it

from

federal

income

and excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

March

31,

2021,

the

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

Franklin

California

Tax-Free

Income

Fund

Notes

to

Financial

Statements

39

franklintempleton.com

Annual

Report

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests. 

d.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Amortization

of

premium

and

accretion

of

discount

on

debt

securities

are

included

in

interest

income.

Dividends

from

net

investment

income

are

normally

declared

daily;

these

dividends

may

be

reinvested

or

paid

monthly

to

shareholders.

Distributions

from

net

realized

capital

gains

and

other

distributions,

if

any,

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

e.

Insurance

The

scheduled

payments

of

interest

and

principal

for

each

insured

municipal

security

in

the

Fund

are

insured

by

either

a

new

issue

insurance

policy

or

a

secondary

insurance

policy.

Some

municipal

securities

in

the

Fund

are

secured

by

collateral

guaranteed

by

an

agency

of

the

U.S.

government.

Depending

on

the

type

of

coverage,

premiums

for

insurance

are

either

added

to

the

cost

basis

of

the

security

or

paid

by

a

third

party.

Insurance

companies

typically

insure

municipal

bonds

that

tend

to

be

of

very

high

quality,

with

the

majority

of

underlying

municipal

bonds

rated

A

or

better.

However,

an

event

involving

an

insurer

could

have

an

adverse

effect

on

the

value

of

the

securities

insured

by

that

insurance

company.

There

can

be

no

assurance

the

insurer

will

be

able

to

fulfill

its

obligations

under

the

terms

of

the

policy.

f.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

g.

Guarantees

and

Indemnifications

Under

the

Fund’s

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Fund

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Fund.

Additionally,

in

the

normal

course

of

business,

the

Fund

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Fund’s

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Fund

that

have

not

yet

occurred.

Currently,

the

Fund

expects

the

risk

of

loss

to

be

remote.

1.

Organization

and

Significant

Accounting

Policies

(continued)

c.

Income

Taxes

(continued)

Franklin

California

Tax-Free

Income

Fund

Notes

to

Financial

Statements

40

franklintempleton.com

Annual

Report

2.

Shares

of

Beneficial

Interest

At

March

31,

2021,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund’s

shares

were

as

follows:

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Fund

are

also

officers

and/or

directors

of

the

following

subsidiaries:

Year

Ended

March

31,

2021

Year

Ended

March

31,

2020

Shares

Amount

Shares

Amount

Class

A

Shares:

Shares

sold

a

...................................

116,764,837

$900,106,033

147,850,300

$1,129,226,407

Shares

issued

in

reinvestment

of

distributions

..........

5,649,675

43,540,099

3,713,022

28,452,283

Shares

redeemed

...............................

(39,521,104)

(304,045,623)

(36,071,424)

(268,438,648)

Net

increase

(decrease)

..........................

82,893,408

$639,600,509

115,491,898

$889,240,042

Class

A1

Shares:

Shares

sold

...................................

38,448,447

$295,862,358

63,767,239

$484,727,281

Shares

issued

in

reinvestment

of

distributions

..........

35,578,222

273,460,524

42,461,763

323,900,166

Shares

redeemed

...............................

(163,644,176)

(1,249,157,757)

(168,900,892)

(1,276,377,054)

Net

increase

(decrease)

..........................

(89,617,507)

$(679,834,875)

(62,671,890)

$(467,749,607)

Class

C

Shares:

Shares

sold

...................................

21,886,128

$168,140,968

43,981,976

$335,147,952

Shares

issued

in

reinvestment

of

distributions

..........

3,102,271

23,791,412

3,752,742

28,558,209

Shares

redeemed

a

..............................

(42,202,150)

(324,550,654)

(49,771,041)

(375,736,013)

Net

increase

(decrease)

..........................

(17,213,751)

$(132,618,274)

(2,036,323)

$(12,029,852)

Class

R6

Shares:

Shares

sold

...................................

18,408,171

$141,741,350

15,488,743

$118,031,661

Shares

issued

in

reinvestment

of

distributions

..........

897,010

6,895,210

646,831

4,937,451

Shares

redeemed

...............................

(7,653,152)

(58,592,993)

(5,240,812)

(39,149,584)

Net

increase

(decrease)

..........................

11,652,029

$90,043,567

10,894,762

$83,819,528

Advisor

Class

Shares:

Shares

sold

...................................

129,992,816

$988,998,367

92,321,947

$701,556,237

Shares

issued

in

reinvestment

of

distributions

..........

8,037,135

61,706,862

6,874,739

52,369,097

Shares

redeemed

...............................

(65,656,687)

(502,680,740)

(67,887,140)

(511,885,626)

Net

increase

(decrease)

..........................

72,373,264

$548,024,489

31,309,546

$242,039,708

a

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A.

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Templeton

Distributors,

Inc.

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

Franklin

California

Tax-Free

Income

Fund

Notes

to

Financial

Statements

41

franklintempleton.com

Annual

Report

a.

Management

Fees

The

Fund

pays

an

investment

management

fee

to

Advisers

based

on

the

month-end

net

assets

of

the

Fund

as

follows:

For

the

year

ended

March

31,

2021,

the

gross

effective

investment

management

fee

rate

was

0.438%

of

the

Fund’s

average

daily

net

assets. 

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Fund.

The

fee

is

paid

by

Advisers

based

on

the

Fund's

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Fund.

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

each

share

class,

with

the

exception

of

Class

R6

and

Advisor

Class

shares,

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Fund’s

Class

A

and

A1

reimbursement

distribution

plans,

the

Fund

reimburses

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

the

maximum

annual

plan

rates

for

each

class.

Under

the

Class

A

and

A1

reimbursement

distribution

plans,

costs

exceeding

the

maximum

for

the

current

plan

year

cannot

be

reimbursed

in

subsequent

periods.

In

addition,

under

the

Fund’s

Class

C

compensation

distribution

plan,

the

Fund

pays

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

the

maximum

annual

plan

rate.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31.

 The

maximum

annual

plan

rates,

based

on

the

average

daily

net

assets,

for

each

class,

are

as

follows:

d.

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

do

not

represent

expenses

of

the

Fund.

These

charges

are

deducted

from

the

proceeds

of

sales

of

Fund

shares

prior

to

investment

or

from

redemption

proceeds

prior

to

remittance,

as

applicable.

Distributors

has

advised

the

Fund

of

the

following

commission

transactions

related

to

the

sales

and

redemptions

of

the

Fund's

shares

for

the

year:

Annualized

Fee

Rate

Net

Assets

0.625%

Up

to

and

including

$100

million

0.500%

Over

$100

million,

up

to

and

including

$250

million

0.450%

Over

$250

million,

up

to

and

including

$7.5

billion

0.440%

Over

$7.5

billion,

up

to

and

including

$10

billion

0.430%

Over

$10

billion,

up

to

and

including

$12.5

billion

0.420%

Over

$12.5

billion,

up

to

and

including

$15

billion

0.400%

Over

$15

billion,

up

to

and

including

$17.5

billion

0.380%

Over

$17.5

billion,

up

to

and

including

$20

billion

0.360%

In

excess

of

$20

billion

Class

A

....................................................................................

0.25%

Class

A1

...................................................................................

0.10%

Class

C

....................................................................................

0.65%

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..............................

$171,490

CDSC

retained

..............................................................................

$511,704

3.

Transactions

with

Affiliates

(continued)

Franklin

California

Tax-Free

Income

Fund

Notes

to

Financial

Statements

42

franklintempleton.com

Annual

Report

e.

Transfer

Agent

Fees

Each

class

of

shares pays

transfer

agent

fees

to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations.

The

fees

are

based

on

an

annualized

asset

based

fee

of

0.02%

plus

a

transaction

based

fee.

In

addition,

each

class reimburses

Investor

Services

for

out

of

pocket

expenses

incurred

and,

except

for

Class

R6,

reimburses

shareholder

servicing

fees

paid

to

third

parties.

These

fees

are

allocated

daily

based

upon

their

relative

proportion

of

such

classes'

aggregate

net

assets.

Class

R6

pays

Investor

Services

transfer

agent

fees

specific

to

that

class. 

For

the

year

ended

March

31,

2021,

the

Fund

paid

transfer

agent

fees

of

$9,583,133,

of

which $4,301,429

was

retained

by

Investor

Services.

f.

Waiver

and

Expense

Reimbursements

Investor

Services

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

so

that

the

Class

R6

transfer

agent

fees

do

not

exceed

0.02%

based

on

the

average

net

assets

of

the

class

until

July

31,

2021.

g.

Interfund

Transactions

The

Fund

engaged

in

purchases

and

sales

of

investments

with

funds

or

other

accounts

that

have

common

investment

managers

(or

affiliated

investment

managers),

directors,

trustees

or

officers.

During

the

year

ended

March

31,

2021,

these

purchase

and

sale

transactions

aggregated

$261,330,000

and

$281,970,000,

respectively.

4.

Expense

Offset

Arrangement

The Fund has

entered

into

an

arrangement

with

its

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Fund's

custodian

expenses.

During

the

year

ended

March

31,

2021,

the

custodian

fees

were

reduced

as

noted

in

the

Statement

of

Operations. 

5.

Income

Taxes

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains.

At

March

31,

2021,

the

capital

loss

carryforwards

were

as

follows:

During

the

year

ended March

31,

2021,

the

Fund

utilized

$23,059,587

of

capital

loss

carryforwards.

The

tax

character

of

distributions

paid

during

the

years

ended

March

31,

2021

and

2020,

was

as

follows:

At

March

31,

2021,

the

cost

of

investments,

net

unrealized

appreciation

(depreciation),

undistributed

tax

exempt

income

and

undistributed

ordinary

income

for

income

tax

purposes

were

as

follows:

Capital

loss

carryforwards

not

subject

to

expiration:

Short

term

................................................................................

$460,332,105

Long

term

................................................................................

433,219,537

Total

capital

loss

carryforwards

...............................................................

$893,551,642

2021

2020

Distributions

paid

from:

Tax

exempt

income

........................................................

$480,099,568

$520,944,928

3.

Transactions

with

Affiliates

(continued)

Franklin

California

Tax-Free

Income

Fund

Notes

to

Financial

Statements

43

franklintempleton.com

Annual

Report

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatment

of

bond

discounts.

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

year

ended

March

31,

2021,

aggregated

$3,325,398,873

and

$2,341,999,151,

respectively.

7.

Defaulted

Securities

The

Fund

held

defaulted

securities

and/or

other

securities

for

which

the

income

has

been

deemed

uncollectible.

At

March

31,

2021,

the

aggregate

value

of

these

securities

was

$75,692,225,

representing

0.4%

of

the

Fund's

net

assets.

The

Fund

discontinues

accruing

income

on

securities

for

which

income

has

been

deemed

uncollectible

and

provides

an

estimate

for

losses

on

interest

receivable.

The

securities

have

been

identified

in

the

accompanying

Statement

of

Investments.

8.

Concentration

of

Risk

The

Fund

invests

a

large

percentage

of

its total

assets

in

obligations

of

issuers

within

its

California

and

U.S.

territories.

Such

concentration

may

subject

the

Fund

to

risks

associated

with

industrial

or

regional

matters,

and

economic,

political

or

legal

developments

occurring

within

California

and

U.S.

territories.

Investing

in

Puerto

Rico

securities

may

expose

the

Fund

to

heightened

risks

due

to

recent

adverse

economic

and

market

changes,

credit

downgrades

and

ongoing

restructuring

discussions.

In

addition,

investments

in

these

securities

are

sensitive

to

interest

rate

changes

and

credit

risk

of

the

issuer

and

may

subject

the

Fund

to

increased

market

volatility.

The

market

for

these

investments

may

be

limited,

which

may

make

them

difficult

to

buy

or

sell.

9. Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the Fund, its ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and its ability

to

achieve its investment

objectives.

Cost

of

investments

..........................................................................

$14,442,136,232

Unrealized

appreciation

........................................................................

$2,358,336,456

Unrealized

depreciation

........................................................................

(33,290,667)

Net

unrealized

appreciation

(depreciation)

..........................................................

$2,325,045,789

Distributable

earnings:

Undistributed

ordinary

income

...................................................................

$87,588

Undistributed

tax

exempt

income

.................................................................

$25,487,820

Total

distributable

earnings

.....................................................................

$25,575,408

5.

Income

Taxes

(continued)

Franklin

California

Tax-Free

Income

Fund

Notes

to

Financial

Statements

44

franklintempleton.com

Annual

Report

10.

Credit

Facility

The

Fund,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matures

on

February

4,

2022.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Under

the

terms

of

the

Global

Credit

Facility,

the

Fund

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Fund

and

other

costs

incurred

by

the

Fund,

pay

its

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

its

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statement

of

Operations.

During

the

year

ended

March

31,

2021,

the Fund

did

not

use

the

Global

Credit

Facility.

11.

Fair

Value

Measurements

The

Fund

follows

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Fund's

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the

Fund’s

financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the

Fund’s

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

At

March

31,

2021,

all

of

the

Fund’s

investments

in

financial

instruments

carried

at

fair

value

were

valued

using

Level

2

inputs.

12.

New

Accounting

Pronouncements

In

March

2020,

the

Financial

Accounting

Standards

Board

issued

Accounting

Standards

Update

(ASU)

No.

2020-04,

Reference

Rate

Reform

(Topic

848)

–

Facilitation

of

the

Effects

of

Reference

Rate

Reform

on

Financial

Reporting.

The

amendments

in

the

ASU

provides

optional

temporary

financial

reporting

relief

from

the

effect

of

certain

types

of

contract

modifications

due

to

the

planned

discontinuation

of

the

London

Interbank

Offered

Rate

(LIBOR)

and

other

interbank-offered

based

reference

rates

as

of

the

end

of

2021.

The

ASU

is

effective

for

certain

reference

rate-related

contract

modifications

that

occur

during

the

period

March

12,

2020

through

December

31,

2022.

Management

has

reviewed

the

requirements

and

believes

the

adoption

of

this

ASU

will

not

have

a

material

impact

on

the

financial

statements.

13.

Subsequent

Events

The

Fund

has

evaluated

subsequent

events

through

the

issuance

of

the

financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure.

Franklin

California

Tax-Free

Income

Fund

Notes

to

Financial

Statements

45

franklintempleton.com

Annual

Report

Abbreviations

Selected

Portfolio

ABAG

Association

of

Bay

Area

Governments

AGMC

Assured

Guaranty

Municipal

Corp.

AMBAC

American

Municipal

Bond

Assurance

Corp.

BAM

Build

America

Mutual

Assurance

Co.

COP

Certificate

of

Participation

ETM

Escrowed

to

Maturity

FGIC

Financial

Guaranty

Insurance

Co..

FHA

Federal

Housing

Administration

FHLMC

Federal

Home

Loan

Mortgage

Corp.

FNMA

Federal

National

Mortgage

Association

GNMA

Government

National

Mortgage

Association

GO

General

Obligation

LOC

Letter

of

Credit

NATL

National

Reinsurance

Corp.

SPA

Standby

Purchase

Agreement

Franklin

California

Tax-Free

Income

Fund

Report

of

Independent

Registered

Public

Accounting

Firm

46

franklintempleton.com

Annual

Report

To

the

Board

of

Trustees

and

Shareholders

of

Franklin

California

Tax-Free

Income

Fund

Opinion

on

the

Financial

Statements

We

have

audited

the

accompanying

statement

of

assets

and

liabilities,

including

the

statement

of

investments,

of

Franklin

California

Tax-Free

Income

Fund

(constituting

Franklin

California

Tax-Free

Income

Fund,

hereafter

collectively

referred

to

as

the

"Fund")

as

of

March

31,

2021,

the

related

statement

of

operations

for

the

year

ended

March

31,

2021,

the

statement

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

March

31,

2021,

including

the

related

notes,

and

the

financial

highlights

for

each

of

the

periods

indicated

therein

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

the

Fund

as

of

March

31,

2021,

the

results

of

its

operations

for

the

year

then

ended,

the

changes

in

its

net

assets

for

each

of

the

two

years

in

the

period

ended

March

31,

2021

and

the

financial

highlights

for

each

of

the

periods

indicated

therein

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinion

These

financial

statements

are

the

responsibility

of

the

Fund’s

management.

Our

responsibility

is

to

express

an

opinion

on

the

Fund’s

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(“PCAOB”)

and

are

required

to

be

independent

with

respect

to

the

Fund

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

of

these

financial

statements

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

March

31,

2021

by

correspondence

with

the

custodian

and

broker;

when

replies

were

not

received

from

the

broker,

we

performed

other

auditing

procedures.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinion.

PricewaterhouseCoopers

LLP

San

Francisco,

California

May

20,

2021

We

have

served

as

the

auditor

of

one

or

more

investment

companies

in

the

Franklin

Templeton

funds

since

1948.

Franklin

California

Tax-Free

Income

Fund

47

franklintempleton.com

Annual

Report

Tax

Information

(unaudited)

Under

Section

852(b)(5)(A)

of

the

Internal

Revenue

Code,

the

Fund

hereby

report

100%

of

the

distributions

paid

from

net

investment

income

as

exempt-interest

dividends

for

the

fiscal

year

ended

March

31,

2021.

A

portion

of

the

Funds'

exempt-

interest

dividends

may

be

subject

to

the

federal

alternative

minimum

tax.

By

mid-February

2022,

shareholders

will

be

notified

of

amounts

for

use

in

preparing

their

2021

income

tax

returns.

Franklin

California

Tax-Free

Income

Fund

Board

Members

and

Officers

48

franklintempleton.com

Annual

Report

The

name,

year

of

birth

and

address

of

the

officers

and

board

members,

as

well

as

their

affiliations,

positions

held

with

the

Fund,

principal

occupations

during

at

least

the

past

five

years

and

number

of

U.S.

registered

portfolios

overseen

in

the

Franklin

Templeton

fund

complex,

are

shown

below.

Generally,

each

board

member

serves

until

that

person’s

successor

is

elected

and

qualified.

Independent

Board

Members

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Harris

J.

Ashton

(1932)

Trustee

Since

1977

126

Bar-S

Foods

(meat

packing

company)

(1981-2010).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Director,

RBC

Holdings,

Inc.

(bank

holding

company)

(until

2002);

and

President,

Chief

Executive

Officer

and

Chairman

of

the

Board,

General

Host

Corporation

(nursery

and

craft

centers)

(until

1998).

Terrence

J.

Checki

(1945)

Trustee

Since

2017

107

Hess

Corporation

(exploration

of

oil

and

gas)

(2014-present).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Member

of

the

Council

on

Foreign

Relations

(1996-present);

Member

of

the

National

Committee

on

U.S.-China

Relations

(1999-present);

member

of

the

board

of

trustees

of

the

Economic

Club

of

New

York

(2013-present);

member

of

the

board

of

trustees

of

the

Foreign

Policy

Association

(2005-present);

member

of

the

board

of

directors

of

Council

of

the

Americas

(2007-present)

and

the

Tallberg

Foundation

(2018-present);

and

formerly

,

Executive

Vice

President

of

the

Federal

Reserve

Bank

of

New

York

and

Head

of

its

Emerging

Markets

and

Internal

Affairs

Group

and

Member

of

Management

Committee

(1995-2014);

and

Visiting

Fellow

at

the

Council

on

Foreign

Relations

(2014).

Mary

C.

Choksi

(1950)

Trustee

Since

2014

126

Omnicom

Group

Inc.

(advertising

and

marketing

communications

services)

(2011-present)

and

White

Mountains

Insurance

Group,

Ltd.

(holding

company)

(2017-present);

and

formerly

,

Avis

Budget

Group

Inc.

(car

rental)

(2007-2020).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

and

formerly

,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(investment

management

group)

(2015-2017);

Founding

Partner

and

Senior

Managing

Director,

Strategic

Investment

Group

(1987-2015);

Founding

Partner

and

Managing

Director,

Emerging

Markets

Management

LLC

(investment

management

firm)

(1987-2011);

and

Loan

Officer/Senior

Loan

Officer/Senior

Pension

Investment

Officer,

World

Bank

Group

(international

financial

institution)

(1977-1987).

Franklin

California

Tax-Free

Income

Fund

49

franklintempleton.com

Annual

Report

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Edith

E.

Holiday

(1952)

Lead

Independent

Trustee

Trustee

since

1998

and

Lead

Independent

Trustee

since

2019

126

Hess

Corporation

(exploration

of

oil

and

gas)

(1993-present),

Canadian

National

Railway

(railroad)

(2001-present),

White

Mountains

Insurance

Group,

Ltd.

(holding

company)

(2004-present),

Santander

Consumer

USA

Holdings,

Inc.

(consumer

finance)

(2016-present);

Santander

Holdings

USA

(holding

company)

(2019-present);

and

formerly

,

RTI

International

Metals,

Inc.

(manufacture

and

distribution

of

titanium)

(1999-2015)

and

H.J.

Heinz

Company

(processed

foods

and

allied

products)

(1994-2013).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

or

Trustee

of

various

companies

and

trusts;

and

formerly

,

Assistant

to

the

President

of

the

United

States

and

Secretary

of

the

Cabinet

(1990-1993);

General

Counsel

to

the

United

States

Treasury

Department

(1989-1990);

and

Counselor

to

the

Secretary

and

Assistant

Secretary

for

Public

Affairs

and

Public

Liaison-United

States

Treasury

Department

(1988-1989).

J.

Michael

Luttig

(1954)

Trustee

Since

2009

126

Boeing

Capital

Corporation

(aircraft

financing)

(2006-2010).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Private

investor;

and

formerly

,

Counselor

and

Senior

Advisor

to

the

Chairman,

CEO,

and

Board

of

Directors,

of

The

Boeing

Company

(aerospace

company),

and

member

of

the

Executive

Council

(May

2019-January

1,

2020);

Executive

Vice

President,

General

Counsel

and

member

of

the

Executive

Council,

The

Boeing

Company

(2006-2019);

and

Federal

Appeals

Court

Judge,

United

States

Court

of

Appeals

for

the

Fourth

Circuit

(1991-2006).

Larry

D.

Thompson

(1945)

Trustee

Since

2007

126

Graham

Holdings

Company

(education

and

media

organization)

(2011-present);

and

formerly

,

The

Southern

Company

(energy

company)

(2014-2020;

previously

2010-2012)

and

Cbeyond,

Inc.

(business

communications

provider)

(2010-2012).

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

of

various

companies;

Counsel,

Finch

McCranie,

LLP

(law

firm)

(2015-present);

John

A.

Sibley

Professor

of

Corporate

and

Business

Law,

University

of

Georgia

School

of

Law

(2015-present;

previously

2011-2012);

and

formerly

,

Independent

Compliance

Monitor

and

Auditor,

Volkswagen

AG

(manufacturer

of

automobiles

and

commercial

vehicles)

(2017-2020);

Executive

Vice

President

-

Government

Affairs,

General

Counsel

and

Corporate

Secretary,

PepsiCo,

Inc.

(consumer

products)

(2012-2014);

Senior

Vice

President

-

Government

Affairs,

General

Counsel

and

Secretary,

PepsiCo,

Inc.

(2004-2011);

Senior

Fellow

of

The

Brookings

Institution

(2003-2004);

Visiting

Professor,

University

of

Georgia

School

of

Law

(2004);

and

Deputy

Attorney

General,

U.S.

Department

of

Justice

(2001-2003).

Independent

Board

Members

(continued)

Franklin

California

Tax-Free

Income

Fund

50

franklintempleton.com

Annual

Report

Interested

Board

Members

and

Officers

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

**Gregory

E.

Johnson

(1961)

Trustee

Since

2013

137

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Executive

Chairman,

Chairman

of

the

Board

and

Director,

Franklin

Resources,

Inc.;

officer

and/or

director

or

trustee,

as

the

case

may

be,

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

39

of

the

investment

companies

in

Franklin

Templeton;

Vice

Chairman,

Investment

Company

Institute;

and

formerly

,

Chief

Executive

Officer

(2013-2020)

and

President

(1994-2015),

Franklin

Resources,

Inc.

**Rupert

H.

Johnson,

Jr.

(1940)

Chairman

of

the

Board,

Trustee

and

Vice

President

Chairman

of

the

Board

since

2013,

Trustee

since

1983

and

Vice

President

since

1982

126

None

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

(Vice

Chairman),

Franklin

Resources,

Inc.;

Director,

Franklin

Advisers,

Inc.;

and

officer

and/or

director

or

trustee,

as

the

case

may

be,

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

37

of

the

investment

companies

in

Franklin

Templeton.

Ben

Barber

(1969)

Vice

President

Since

July

2020

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Vice

President,

Franklin

Advisers,

Inc.;

Director,

Municipal

Bonds;

officer

of

seven

of

the

investment

companies

in

Franklin

Templeton;

and

formerly

,

Co-Head

of

Municipal

Bonds,

Goldman

Sachs

Asset

Management

(1999-2020).

Alison

E.

Baur

(1964)

Vice

President

Since

2012

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Deputy

General

Counsel,

Franklin

Templeton;

and

officer

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

42

of

the

investment

companies

in

Franklin

Templeton.

Breda

M.

Beckerle

(1958)

Chief

Compliance

Officer

Since

October

2020

Not

Applicable

Not

Applicable

280

Park

Avenue

New

York,

NY

10017

Principal

Occupation

During

at

Least

the

Past

5

Years:

Chief

Compliance

Officer,

Fiduciary

Investment

Management

International,

Inc.,

Franklin

Advisers,

Inc.,

Franklin

Advisory

Services,

LLC,

Franklin

Mutual

Advisers,

LLC,

Franklin

Templeton

Institutional,

LLC;

and

officer

of

42

of

the

investment

companies

in

Franklin

Templeton.

Sonal

Desai,

Ph.D.

(1963)

President

and

Chief

Executive

Officer

–

Investment

Management

Since

2018

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Director

and

Executive

Vice

President,

Franklin

Advisers,

Inc.;

Executive

Vice

President,

Franklin

Templeton

Institutional,

LLC;

and

officer

of

17

of

the

investment

companies

in

Franklin

Templeton.

Franklin

California

Tax-Free

Income

Fund

51

franklintempleton.com

Annual

Report

*We

base

the

number

of

portfolios

on

each

separate

series

of

the

U.S.

registered

investment

companies

within

the

Franklin

Templeton

fund

complex.

These

portfolios

have

a

common

investment

manager

or

affiliated

investment

managers.

Name,

Year

of

Birth

and

Address

Position

Length

of

Time

Served

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member*

Other

Directorships

Held

During

at

Least

the

Past

5

Years

Steven

J.

Gray

(1955)

Vice

President

and

Co-Secretary

Vice

President

since

2009

and

Co-Secretary

since

2019

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Associate

General

Counsel,

Franklin

Templeton;

Vice

President,

Franklin

Templeton

Distributors,

Inc.

and

FASA,

LLC;

and

officer

of

42

of

the

investment

companies

in

Franklin

Templeton.

Matthew

T.

Hinkle

(1971)

Chief

Executive

Officer

–

Finance

and

Administration

Since

2017

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Vice

President,

Franklin

Templeton

Services,

LLC;

officer

of

42

of

the

investment

companies

in

Franklin

Templeton;

and

formerly

,

Vice

President,

Global

Tax

(2012-April

2017)

and

Treasurer/Assistant

Treasurer,

Franklin

Templeton

(2009-2017).

Robert

G.

Kubilis

(1973)

Chief

Financial

Officer,

Chief

Accounting

Officer

and

Treasurer

Since

December

2020

Not

Applicable

Not

Applicable

300

S.E.

2nd

Street

Fort

Lauderdale,

FL

33301-

1923

Principal

Occupation

During

at

Least

the

Past

5

Years:

Treasurer,

U.S.

Fund

Administration

&

Reporting

and

officer

of

39

of

the

investment

companies

in

Franklin

Templeton.

Robert

Lim

(1948)

Vice

President

–

AML

Compliance

Since

2016

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Vice

President,

Franklin

Templeton

Companies,

LLC;

Chief

Compliance

Officer,

Franklin

Templeton

Distributors,

Inc.

and

Franklin

Templeton

Investor

Services,

LLC;

and

officer

of

42

of

the

investment

companies

in

Franklin

Templeton.

Navid

J.

Tofigh

(1972)

Vice

President

Since

2015

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

Associate

General

Counsel

and

officer

of

42

of

the

investment

companies

in

Franklin

Templeton.

Craig

S.

Tyle

(1960)

Vice

President

Since

2005

Not

Applicable

Not

Applicable

One

Franklin

Parkway

San

Mateo,

CA

94403-1906

Principal

Occupation

During

at

Least

the

Past

5

Years:

General

Counsel

and

Executive

Vice

President,

Franklin

Resources,

Inc.;

and

officer

of

some

of

the

other

subsidiaries

of

Franklin

Resources,

Inc.

and

of

42

of

the

investment

companies

in

Franklin

Templeton.

Lori

A.

Weber

(1964)

Vice

President

and

Co-Secretary

Vice

President

since

2011

and

Co-Secretary

since

2019

Not

Applicable

Not

Applicable

300

S.E.

2nd

Street

Fort

Lauderdale,

FL

33301-

1923

Principal

Occupation

During

at

Least

the

Past

5

Years:

Senior

Associate

General

Counsel,

Franklin

Templeton;

Assistant

Secretary,

Franklin

Resources,

Inc.;

Vice

President

and

Secretary,

Templeton

Investment

Counsel,

LLC;

and

officer

of

42

of

the

investment

companies

in

Franklin

Templeton.

Interested

Board

Members

and

Officers

(continued)

Franklin

California

Tax-Free

Income

Fund

52

franklintempleton.com

Annual

Report

**Gregory

E.

Johnson

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

of

Franklin

Resources,

Inc.

(Resources),

which

is

the

parent

company

of

the

Fund’s

investment

manager

and

distributor.

Rupert

H.

Johnson,

Jr.

is

considered

to

be

an

interested

person

of

the

Fund

under

the

federal

securities

laws

due

to

his

position

as

an

officer

and

director

and

major

shareholder

of

Resources.

Note

1:

Rupert

H.

Johnson,

Jr.

is

the

uncle

of

Gregory

E.

Johnson.

Note

2:

Officer

information

is

current

as

of

the

date

of

this

report.

It

is

possible

that

after

this

date,

information

about

officers

may

change.

The

Sarbanes-Oxley

Act

of

2002

and

Rules

adopted

by

the

Securities

and

Exchange

Commission

require

the

Fund

to

disclose

whether

the

Fund’s

Audit

Committee

includes

at

least

one

member

who

is

an

audit

committee

financial

expert

within

the

meaning

of

such

Act

and

Rules.

The

Fund’s

Board

has

determined

that

there

is

at

least

one

such

financial

expert

on

the

Audit

Committee

and

has

designated

Mary

C.

Choksi

as

its

audit

committee

financial

expert.

The

Board

believes

that

Ms.

Choksi

qualifies

as

such

an

expert

in

view

of

her

extensive

business

background

and

experience.

She

served

as

a

director

of

Avis

Budget

Group,

Inc.

(2007-May

2020)

and

formerly,

Founder

and

Senior

Advisor,

Strategic

Investment

Group

(1987

to

2017).

Ms.

Choksi

has

been

a

Member

of

the

Fund’s

Audit

Committee

since

2014.

As

a

result

of

such

background

and

experience,

the

Board

believes

that

Ms.

Choksi

has

acquired

an

understanding

of

generally

accepted

accounting

principles

and

financial

statements,

the

general

application

of

such

principles

in

connection

with

the

accounting

estimates,

accruals

and

reserves,

and

analyzing

and

evaluating

financial

statements

that

present

a

breadth

and

level

of

complexity

of

accounting

issues

generally

comparable

to

those

of

the

Fund,

as

well

as

an

understanding

of

internal

controls

and

procedures

for

financial

reporting

and

an

understanding

of

audit

committee

functions.

Ms.

Choksi

is

an

independent

Board

member

as

that

term

is

defined

under

the

relevant

Securities

and

Exchange

Commission

Rules

and

Releases.

The

Statement

of

Additional

Information

(SAI)

includes

additional

information

about

the

board

members

and

is

available,

without

charge,

upon

request.

Shareholders

may

call

(800)

DIAL

BEN/342-5236

to

request

the

SAI.

Interested

Board

Members

and

Officers

(continued)

Franklin

California

Tax-Free

Income

Fund

Shareholder

Information

53

franklintempleton.com

Annual

Report

Board

Approval

of

Investment

Management

Agreements

FRANKLIN

CALIFORNIA

TAX-FREE

INCOME

FUND

(Fund)

At

a

meeting

held

on

February

23,

2021

(Meeting),

the

Board

of

Trustees

(Board)

of

the

Fund,

including

a

majority

of

the

trustees

who

are

not

“interested

persons”

as

defined

in

the

Investment

Company

Act

of

1940

(Independent

Trustees),

reviewed

and

approved

the

continuance

of

the

investment

management

agreement

between

Franklin

Advisers,

Inc.

(Manager)

and

the

Fund

(Management

Agreement)

for

an

additional

one-year

period.

The

Independent

Trustees

received

advice

from

and

met

separately

with

Independent

Trustee

counsel

in

considering

whether

to

approve

the

continuation

of

the

Management

Agreement.

In

considering

the

continuation

of

the

Management

Agreement,

the

Board

reviewed

and

considered

information

provided

by

the

Manager

at

the

Meeting

and

throughout

the

year

at

meetings

of

the

Board

and

its

committees.

The

Board

also

reviewed

and

considered

information

provided

in

response

to

a

detailed

set

of

requests

for

information

submitted

to

the

Manager

by

Independent

Trustee

counsel

on

behalf

of

the

Independent

Trustees

in

connection

with

the

annual

contract

renewal

process.

In

addition,

prior

to

the

Meeting,

the

Independent

Trustees

held

a

telephonic

contract

renewal

meeting

at

which

the

Independent

Trustees

conferred

amongst

themselves

and

Independent

Trustee

counsel

about

contract

renewal

matters

and,

in

some

cases,

requested

additional

information

from

the

Manager

relating

to

the

contract.

The

Board

reviewed

and

considered

all

of

the

factors

it

deemed

relevant

in

approving

the

continuance

of

the

Management

Agreement,

including,

but

not

limited

to:

(i)

the

nature,

extent

and

quality

of

the

services

provided

by

the

Manager;

(ii)

the

investment

performance

of

the

Fund;

(iii)

the

costs

of

the

services

provided

and

profits

realized

by

the

Manager

and

its

affiliates

from

the

relationship

with

the

Fund;

(iv)

the

extent

to

which

economies

of

scale

are

realized

as

the

Fund

grows;

and

(v)

whether

fee

levels

reflect

these

economies

of

scale

for

the

benefit

of

Fund

investors.

In

approving

the

continuance

of

the

Management

Agreement,

the

Board,

including

a

majority

of

the

Independent

Trustees,

determined

that

the

terms

of

the

Management

Agreement

are

fair

and

reasonable

and

that

the

continuance

of

such

Management

Agreement

is

in

the

best

interests

of

the

Fund

and

its

shareholders.

While

attention

was

given

to

all

information

furnished,

the

following

discusses

some

primary

factors

relevant

to

the

Board’s

determination.

Nature,

Extent

and

Quality

of

Services

The

Board

reviewed

and

considered

information

regarding

the

nature,

extent

and

quality

of

investment

management

services

provided

by

the

Manager

and

its

affiliates

to

the

Fund

and

its

shareholders.

This

information

included,

among

other

things,

the

qualifications,

background

and

experience

of

the

senior

management

and

investment

personnel

of

the

Manager,

as

well

as

information

on

succession

planning

where

appropriate;

the

structure

of

investment

personnel

compensation;

oversight

of

third-

party

service

providers;

investment

performance

reports

and

related

financial

information

for

the

Fund;

reports

on

expenses

and

shareholder

services;

legal

and

compliance

matters;

risk

controls;

pricing

and

other

services

provided

by

the

Manager

and

its

affiliates;

and

management

fees

charged

by

the

Manager

and

its

affiliates

to

US

funds

and

other

accounts,

including

management’s

explanation

of

differences

among

accounts

where

relevant.

The

Board

also

reviewed

and

considered

an

annual

report

on

payments

made

by

Franklin

Templeton

(FT)

or

the

Fund

to

financial

intermediaries,

as

well

as

a

memorandum

relating

to

third-

party

servicing

arrangements,

which

included

discussion

of

the

changing

distribution

landscape

for

the

Fund.

The

Board

noted

management’s

continuing

efforts

and

expenditures

in

establishing

effective

business

continuity

plans

and

developing

strategies

to

address

areas

of

heightened

concern

in

the

mutual

fund

industry,

such

as

cybersecurity

in

the

current

work-from-home

environment

and

liquidity

risk

management.

The

Board

also

reviewed

and

considered

the

benefits

provided

to

Fund

shareholders

of

investing

in

a

fund

that

is

part

of

the

FT

family

of

funds.

The

Board

noted

the

financial

position

of

Franklin

Resources,

Inc.

(FRI),

the

Manager’s

parent,

and

its

commitment

to

the

mutual

fund

business

as

evidenced

by

its

reassessment

of

the

fund

offerings

in

response

to

the

market

environment

and

project

initiatives

and

capital

investments

relating

to

the

services

provided

to

the

Fund

by

the

FT

organization.

The

Board

specifically

noted

FT’s

commitment

to

enhancing

services

and

controlling

costs,

as

reflected

in

its

outsourcing

of

certain

administrative

functions,

and

growth

opportunities,

Franklin

California

Tax-Free

Income

Fund

Shareholder

Information

54

franklintempleton.com

Annual

Report

as

evidenced

by

its

recent

acquisition

of

the

Legg

Mason

companies.

The

Board

also

noted

FT’s

attention

focused

on

expanding

the

distribution

opportunities

for

all

funds

in

the

FT

family

of

funds.

Following

consideration

of

such

information,

the

Board

was

satisfied

with

the

nature,

extent

and

quality

of

services

provided

by

the

Manager

and

its

affiliates

to

the

Fund

and

its

shareholders.

Fund

Performance

The

Board

reviewed

and

considered

the

performance

results

of

the

Fund

over

various

time

periods

ended

November

30,

2020.

The

Board

considered

the

performance

returns

for

the

Fund

in

comparison

to

the

performance

returns

of

mutual

funds

deemed

comparable

to

the

Fund

included

in

a

universe

(Performance

Universe)

selected

by

Broadridge

Financial

Solutions,

Inc.

(Broadridge),

an

independent

provider

of

investment

company

data.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

a

Performance

Universe.

The

Board

also

reviewed

and

considered

Fund

performance

reports

provided

and

discussions

that

occurred

with

portfolio

managers

at

Board

meetings

throughout

the

year.

A

summary

of

the

Fund’s

performance

results

is

below.

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

California

municipal

debt

funds.

The

Board

noted

that

the

Fund’s

annualized

income

return

and

annualized

total

return

for

the

one-,

three-,

five-

and

10-

year

periods

were

above

the

medians

and

in

the

first

(best)

and

second

quintiles

of

its

Performance

Universe.

The

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Comparative

Fees

and

Expenses

The

Board

reviewed

and

considered

information

regarding

the

Fund’s

actual

total

expense

ratio

and

its

various

components,

including,

as

applicable,

management

fees;

transfer

agent

expenses;

underlying

fund

expenses;

Rule

12b-1

and

non-Rule

12b-1

service

fees;

and

other

non-

management

fees.

The

Board

also

noted

the

quarterly

and

annual

reports

it

receives

on

all

marketing

support

payments

made

by

FT

to

financial

intermediaries.

The

Board

considered

the

actual

total

expense

ratio

and,

separately,

the

contractual

management

fee

rate,

without

the

effect

of

fee

waivers,

if

any

(Management

Rate)

of

the

Fund

in

comparison

to

the

median

expense

ratio

and

median

Management

Rate,

respectively,

of

other

mutual

funds

deemed

comparable

to

and

with

a

similar

expense

structure

to

the

Fund

selected

by

Broadridge

(Expense

Group).

Broadridge

fee

and

expense

data

is

based

upon

information

taken

from

each

fund’s

most

recent

annual

report,

which

reflects

historical

asset

levels

that

may

be

quite

different

from

those

currently

existing,

particularly

in

a

period

of

market

volatility.

While

recognizing

such

inherent

limitation

and

the

fact

that

expense

ratios

and

Management

Rates

generally

increase

as

assets

decline

and

decrease

as

assets

grow,

the

Board

believed

the

independent

analysis

conducted

by

Broadridge

to

be

an

appropriate

measure

of

comparative

fees

and

expenses.

The

Broadridge

Management

Rate

includes

administrative

charges,

and

the

actual

total

expense

ratio,

for

comparative

consistency,

was

shown

for

Class

A1

shares

for

the

Fund

and

for

Class

A

shares

or

Class

M

shares

for

each

other

fund

in

the

Expense

Group.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

an

Expense

Group.

The

Expense

Group

for

the

Fund

included

the

Fund

and

nine

other

California

municipal

debt

funds.

The

Board

noted

that

the

Management

Rate

for

the

Fund

was

slightly

above

the

median

of

its

Expense

Group,

but

its

actual

total

expense

ratio

was

below

the

median

and

in

the

first

quintile

(least

expensive)

of

its

Expense

Group.

The

Board

concluded

that

the

Management

Rate

charged

to

the

Fund

is

reasonable.

Profitability

The

Board

reviewed

and

considered

information

regarding

the

profits

realized

by

the

Manager

and

its

affiliates

in

connection

with

the

operation

of

the

Fund.

In

this

respect,

the

Board

considered

the

Fund

profitability

analysis

provided

by

the

Manager

that

addresses

the

overall

profitability

of

FT’s

US

fund

business,

as

well

as

its

profits

in

providing

investment

management

and

other

services

to

each

of

the

individual

funds

during

the

12-month

period

ended

September

30,

2020,

being

the

most

recent

fiscal

year-

end

for

FRI.

The

Board

noted

that

although

management

continually

makes

refinements

to

its

methodologies

used

in

calculating

profitability

in

response

to

organizational

and

product-related

changes,

the

overall

methodology

has

remained

consistent

with

that

used

in

the

Fund’s

profitability

report

presentations

from

prior

years.

The

Board

further

noted

management’s

representation

that

the

profitability

analysis

excluded

the

impact

of

the

recent

acquisition

of

the

Legg

Mason

companies

and

that

management

expects

to

incorporate

the

legacy

Legg

Mason

companies

into

the

profitability

analysis

beginning

next

year.

Additionally,

PricewaterhouseCoopers

LLP,

auditor

to

FRI

and

certain

FT

funds,

has

been

engaged

by

the

Manager

to

periodically

review

and

assess

the

allocation

methodologies

to

be

used

solely

by

the

Fund’s

Board

with

respect

to

the

profitability

analysis.

Franklin

California

Tax-Free

Income

Fund

Shareholder

Information

55

franklintempleton.com

Annual

Report

The

Board

noted

management’s

belief

that

costs

incurred

in

establishing

the

infrastructure

necessary

for

the

type

of

mutual

fund

operations

conducted

by

the

Manager

and

its

affiliates

may

not

be

fully

reflected

in

the

expenses

allocated

to

the

Fund

in

determining

its

profitability,

as

well

as

the

fact

that

the

level

of

profits,

to

a

certain

extent,

reflected

operational

cost

savings

and

efficiencies

initiated

by

management.

As

part

of

this

evaluation,

the

Board

considered

management’s

outsourcing

certain

operations,

which

effort

has

required

considerable

up

front

expenditures

by

the

Manager

but,

over

the

long

run

is

expected

to

result

in

greater

efficiencies.

The

Board

also

noted

management’s

expenditures

in

improving

shareholder

services

provided

to

the

Fund,

as

well

as

the

need

to

implement

systems

and

meet

additional

regulatory

and

compliance

requirements

resulting

from

recent

US

Securities

and

Exchange

Commission

and

other

regulatory

requirements.

The

Board

also

considered

the

extent

to

which

the

Manager

and

its

affiliates

might

derive

ancillary

benefits

from

fund

operations,

including

revenues

generated

from

transfer

agent

services,

potential

benefits

resulting

from

personnel

and

systems

enhancements

necessitated

by

fund

growth,

as

well

as

increased

leverage

with

service

providers

and

counterparties.

Based

upon

its

consideration

of

all

these

factors,

the

Board

concluded

that

the

level

of

profits

realized

by

the

Manager

and

its

affiliates

from

providing

services

to

the

Fund

was

not

excessive

in

view

of

the

nature,

extent

and

quality

of

services

provided

to

the

Fund.

Economies

of

Scale

The

Board

reviewed

and

considered

the

extent

to

which

the

Manager

may

realize

economies

of

scale,

if

any,

as

the

Fund

grows

larger

and

whether

the

Fund’s

management

fee

structure

reflects

any

economies

of

scale

for

the

benefit

of

shareholders.

With

respect

to

possible

economies

of

scale,

the

Board

noted

the

existence

of

management

fee

breakpoints,

which

operate

generally

to

share

any

economies

of

scale

with

the

Fund’s

shareholders

by

reducing

the

Fund’s

effective

management

fees

as

the

Fund

grows

in

size.

The

Board

considered

the

Manager’s

view

that

any

analyses

of

potential

economies

of

scale

in

managing

a

particular

fund

are

inherently

limited

in

light

of

the

joint

and

common

costs

and

investments

the

Manager

incurs

across

the

FT

family

of

funds

as

a

whole.

The

Board

concluded

that,

to

the

extent

economies

of

scale

may

be

realized

by

the

Manager

and

its

affiliates,

the

Fund’s

management

fee

structure

provided

a

sharing

of

benefits

with

the

Fund

and

its

shareholders

as

the

Fund

grows.

Conclusion

Based

on

its

review,

consideration

and

evaluation

of

all

factors

it

believed

relevant,

including

the

above-described

factors

and

conclusions,

the

Board

unanimously

approved

the

continuation

of

the

Management

Agreement

for

an

additional

one-year

period.

Proxy

Voting

Policies

and

Procedures

The

Fund’s

investment

manager

has

established

Proxy

Voting

Policies

and

Procedures

(Policies)

that

the

Fund

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities.

Shareholders

may

view

the

Fund’s

complete

Policies

online

at

franklintempleton.com.

Alternatively,

shareholders

may

request

copies

of

the

Policies

free

of

charge

by

calling

the

Proxy

Group

collect

at

(954)

527-

7678

or

by

sending

a

written

request

to:

Franklin

Templeton

Companies,

LLC,

300

S.E.

2nd

Street,

Fort

Lauderdale,

FL

33301,

Attention:

Proxy

Group.

Copies

of

the

Fund’s

proxy

voting

records

are

also

made

available

online

at

franklintempleton.com

and

posted

on

the

U.S.

Securities

and

Exchange

Commission’s

website

at

sec.gov

and

reflect

the

most

recent

12-month

period

ended

June

30.

Quarterly

Statement

of

Investments

The

Fund

files

a

complete

statement

of

investments

with

the

U.S.

Securities

and

Exchange

Commission

for

the

first

and

third

quarters

for

each

fiscal

year

as

an

exhibit

to

its

report

on

Form

N-PORT.

Shareholders

may

view

the

filed

Form

N-PORT

by

visiting

the

Commission’s

website

at

sec.

gov.

The

filed

form

may

also

be

viewed

and

copied

at

the

Commission’s

Public

Reference

Room

in

Washington,

DC.

Information

regarding

the

operations

of

the

Public

Reference

Room

may

be

obtained

by

calling

(800)

SEC-0330.

Householding

of

Reports

and

Prospectuses

You

will

receive,

or

receive

notice

of

the

availability

of,

the

Fund’s

financial

reports

every

six

months.

In

addition,

you

will

receive

an

annual

updated

summary

prospectus

(detail

prospectus

available

upon

request).

To

reduce

Fund

expenses,

we

try

to

identify

related

shareholders

in

a

household

and

send

only

one

copy

of

the

financial

reports

(to

the

extent

received

by

mail)

and

summary

prospectus.

This

process,

called

“householding,”

will

continue

indefinitely

unless

you

instruct

us

otherwise.

If

you

prefer

not

to

have

these

documents

householded,

please

call

us

at

(800)

632-2301.

At

any

time

you

may

view

current

prospectuses/

summary

prospectuses

and

financial

reports

on

our

website.

If

you

choose,

you

may

receive

these

documents

through

electronic

delivery.

1112

A

05/21

©

2021

Franklin

Templeton

Investments.

All

rights

reserved.

Authorized

for

distribution

only

when

accompanied

or

preceded

by

a

summary

prospectus

and/or

prospectus.

Investors

should

carefully

consider

a

fund’s

investment

goals,

risks,

charges

and

expenses

before

investing.

A

prospectus

contains

this

and

other

information;

please

read

it

carefully

before

investing.

To

help

ensure

we

provide

you

with

quality

service,

all

calls

to

and

from

our

service

areas

are

monitored

and/or

recorded.

Annual

Report

and

Shareholder

Letter

Franklin

California

Tax-Free

Income

Fund

Investment

Manager

Distributor

Shareholder

Services

Franklin

Advisers,

Inc.

Franklin

Templeton

Distributors,

Inc.

(800)

DIAL

BEN

®

/

342-5236

franklintempleton.com

(800)

632-2301

Item 2. Code of Ethics.

(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer.

(c) N/A

(d) N/A

(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.

Item 3. Audit Committee Financial Expert.

(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.

(2) The audit committee financial expert is Mary C. Choksi and she is "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.

Item 4. Principal Accountant Fees and Services.

(a)      Audit Fees

The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or for services that are normally provided by the principal accountant in connection with statutory and regulatory filings or engagements were $109,217 for the fiscal year ended March 31, 2021 and $95,734 for the fiscal year ended March 31, 2020.

(b)      Audit-Related Fees

There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of Item 4.

There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant's investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant that are reasonably related to the performance of the audit of their financial statements.  

(c)      Tax Fees

There were no fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant for tax compliance, tax advice and tax planning.

The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant for tax compliance, tax advice and tax planning were $0 for the fiscal year ended March 31, 2021 and $10,000 for the fiscal year ended March 31, 2020.  The services for which these fees were paid included professional fees in connection with tax treatment of equipment lease transactions.

(d)      All Other Fees

The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant not reported in paragraphs (a)-(c) of Item 4 were $0 for the fiscal year ended March 31, 2021 and $6,593 for the fiscal year ended March 31, 2020.  The services for which these fees were paid included review of materials provided to the fund Board in connection with the investment management contract renewal process.

The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant not reported in paragraphs (a)-(c) of Item 4 were $36,800 for the fiscal year ended March 31, 2021 and $190,144 for the fiscal year ended March 31, 2020. The services for which these fees were paid included professional fees in connection with determining the feasibility of a U.S. direct lending structure, valuation services related to a fair value engagement, the issuance of an Auditor’s Certificate for South Korean regulatory shareholders disclosures, benchmarking services in connection with the ICI TA Survey and assets under management certification.

(e) (1) The registrant’s audit committee is directly responsible for approving the services to be provided by the auditors, including:

      (i)   pre-approval of all audit and audit related services;

      (ii)  pre-approval of all non-audit related services to be provided to the Fund by the auditors;

      (iii) pre-approval of all non-audit related services to be provided to the registrant by the auditors to the registrant’s investment adviser or to any entity that controls, is controlled by or is under common control with the registrant’s investment adviser and that provides ongoing services to the registrant where the non-audit services relate directly to the operations or financial reporting of the registrant; and

      (iv)  establishment by the audit committee, if deemed necessary or appropriate, as an alternative to committee pre-approval of services to be provided by the auditors, as required by paragraphs (ii) and (iii) above, of policies and procedures to permit such services to be pre-approved by other means, such as through establishment of guidelines or by action of a designated member or members of the committee; provided the policies and procedures are detailed as to the particular service and the committee is informed of each service and such policies and procedures do not include delegation of audit committee responsibilities, as contemplated under the Securities Exchange Act of 1934, to management; subject, in the case of (ii) through (iv), to any waivers, exceptions or exemptions that may be available under applicable law or rules.

(e) (2) None of the services provided to the registrant described in paragraphs (b)-(d) of Item 4 were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of regulation S-X.

(f) No disclosures are required by this Item 4(f).

(g) The aggregate non-audit fees paid to the principal accountant for services rendered by the principal accountant to the registrant and the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant were $36,800 for the fiscal year ended March 31, 2021 and $206,737 for the fiscal year ended March 31, 2020.

(h) The registrant’s audit committee of the board has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

Item 5. Audit Committee of Listed Registrants.        N/A            

Item 6. Schedule of Investments.                      N/A

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.               N/A

Item 8. Portfolio Managers of Closed-End Management Investment Companies.                                               N/A

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and

Affiliated Purchasers.        N/A

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.

Item 11. Controls and Procedures.

(a) Evaluation of Disclosure Controls and Procedures.

The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.

(b) Changes in Internal Controls.

There have been no changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect the internal control over financial reporting

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Company.                             N/A

Item 13. Exhibits.

(a) (1) Code of Ethics

codeofethics

(a) (2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of

Matthew T. Hinkle

, Chief Executive Officer - Finance and Administration, and Robert G. Kubilis, Chief Financial Officer and Chief Accounting Officer

section302

(b)   Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of

Matthew T. Hinkle

, Chief Executive Officer - Finance and Administration, and Robert G. Kubilis, Chief Financial Officer and Chief Accounting Officer

section906

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

FRANKLIN CALIFORNIA TAX-FREE INCOME FUND

By ___S\Matthew T. Hinkle ____

      Matthew T. Hinkle

      Chief Executive Officer - Finance and Administration

Date  May 26, 2021

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By ___S\Matthew T. Hinkle ____

      Matthew T. Hinkle

      Chief Executive Officer - Finance and Administration

Date  May 26, 2021

By ___S\Robert G. Kubilis _____

      Robert G. Kubilis

      Chief Financial Officer and Chief Accounting Officer

Date  May 26, 2021