UNITED STATES
                                 SECURITIES AND EXCHANGE COMMISSION
                                        Washington, D.C. 20549

                                             FORM N-17f-2

                  Certificate of Accounting of Securities and Similar
                             Investments in the Custody of
                            Management Investment Companies
                       Pursuant to Rule 17f-2 [17 CFR 270.17F-2]

                  ----------------------------------------
                                OMB APPROVAL
                  ----------------------------------------
                  ----------------------------------------
                  OMB Number:               3235-0360
                  Expires:              July 31, 1994

                  Estimated average burden
                  hours per response            0.05
                  -----------------------------------------



- --------------------------------------------------------------------------------

1. Investment Company Act File Number:              Date examination completed:

811-3706                                                         May 23, 2002
- --------------------------------------------------------------------------------
2. State identification Number:
                                                                                              
        -------------------- -------------------- --------------------- --------------------- ---------------------- ---------------

        AL                    AK                   AZ                    AR                    CA                     CO
        -------------------- -------------------- --------------------- --------------------- ---------------------- ---------------

        CT                    DE                   DC                    FL                    GA                     HI
        -------------------- -------------------- --------------------- --------------------- ---------------------- ---------------

        ID                    IL                   IN                    IA                    KS                     KY
        -------------------- -------------------- --------------------- --------------------- ---------------------- ---------------

        LA                    ME                   MD                    MA                    MI                     MN
        -------------------- -------------------- --------------------- --------------------- ---------------------- ---------------

        MS                    MO                   MT                    NE                    NV                     NH
        -------------------- -------------------- --------------------- --------------------- ---------------------- ---------------

        NJ                    NM                   NY                    NC                    ND                     OH
        -------------------- -------------------- --------------------- --------------------- ---------------------- ---------------

        OK                    OR                   PA                    RI                    SC                     SD
        -------------------- -------------------- --------------------- --------------------- ---------------------- ---------------

        TN                    TX                   UT                    VT                    VA                     WA
        -------------------- -------------------- --------------------- ------------------------------------------------------------

        WV                    WI                   WY                    PUERTO RICO
        ----------------------------------------------------------------------------------------------------------------------------

        
        Other (specify):
- --------------------------------------------------------------------------------

3. Exact name of investment company as specified in registration statement:

American Century California Tax Free and Municipal Funds
- --------------------------------------------------------------------------------

5. Address of principal executive office (number, street, city, state, zip code)

Jami Waggoner, American Century Funds, 4500 Main Street, Kansas City, MO 64111
- --------------------------------------------------------------------------------

INSTRUCTIONS

This Form must be completed by investment companies that have custody of
securities or similar investments.

Investment Company

1.   All items must be completed by the investment company.

2.   Give this Form to the independent  public  accountant who, in compliance
     with Rule 17f-2 under the Act and applicable state law, examines securities
     and similar investments in the custody of the investment company.

Accountant

3.   Submit this Form to the Securities and Exchange Commission and appropriate
     state securities administrators when filing the certificate of accounting
     required by Rule 17f-2 under the Act and applicable state law. File the
     original and one copy with the Securities and Exchange  Commission's
     principal office in  Washington,  D.C., one copy with the regional office
     for the region in which the investment company's principal business
     operations are conducted, and one copy with the appropriate
     state administrator(s), if applicable.

           THIS FORM MUST BE GIVEN TO YOUR INDEPENDENT PUBLIC ACCOUNTANT
                                                            SEC 2198 (11-91)



      Management Statement Regarding Compliance with Certain Provisions of the
                  Investment Company Act of 1940



     We, as members of management of American  Century  California  Tax-Free and
Municipal Funds (the "Funds"), are  responsible for  complying  with  the
requirements of subsections (b) and (c) of rule 17f-2,  "Custody of Investments
by Registered Management Investment Companies," of the Investment Company Act of
1940.  We are  also  responsible  for  establishing  and  maintaining  effective
internal controls over compliance with those requirements.  We have performed an
evaluation of the Funds' compliance with the requirements of subsections (b) and
(c) of rule 17f-2 as of May 23, 2002, and from September 1, 2001 through May 23,
2002.

     Based on this evaluation,  we assert that the Funds were in compliance with
the  requirements of subsections (b) and (c) of rule 17f-2 of the  Investment
Company Act of 1940 as of May 23, 2002,  and from  September 1, 2001 through May
23, 2002, with respect to securities reflected in the investment accounts of the
Funds.


American Century Investment Management, Inc.


By:  /s/ Robert Leach
         Robert Leach
         Vice President, Director of Fund Accounting

       August 15, 2002



                         Report of Independent Accountants

To the Trustees of the American Century California Tax-Free and Municipal Funds:

     We have  examined  management's  assertions,  included in the  accompanying
Management  Statement  Regarding  Compliance  with  Certain  Provisions  of  the
Investment Company Act of 1940, about the American Century  California  Tax-Free
and  Municipal  Funds  (the  "Funds")   compliance  with  the   requirements  of
subsections  (b) and (c) of rule 17f-2 under the Investment  Company Act of 1940
(the  "Act")  as of May 23,  2002.  Management  is  responsible  for the  Funds'
compliance with those requirements.  Our responsibility is to express an opinion
on management's assertions about the Funds' compliance based on our examination.

     Our  examination  was conducted in accordance  with  attestation  standards
established  by the  American  Institute of Certified  Public  Accountants  and,
accordingly,  included  examining,  on a test  basis  evidence  about the Funds'
compliance with those  requirements  and performing such other  procedures as we
considered  necessary in the  circumstances.  Included among our procedures were
the following  tests  performed as of May 23, 2002 and with respect to agreement
of security  purchases and sales,  for the period from September 1, 2001 through
May 23, 2002:

     o Count and  inspection  of all  securities  located in the vault of The JP
Morgan Chase  Manhattan  Bank, New York (the  "Custodian")  at 4 New York Plaza,
11th Floor, NY, NY, 11245,

     o Confirmation  of all securities held in book entry form by the Depository
Trust Company;

     o Testing of securities and similar  investments  held in book entry by the
Depository Trust Company via evaluation of the reconciliation procedures used by
the Custodian and  disposition  of any  reconciling  items related to the Funds'
positions;

     o  Agreement  of four  security  purchases,  four  security  sales  and two
maturities  since our last  report  from the books and records of the Company to
broker confirmations;

     We  believe  that our  examination  provides  a  reasonable  basis  for our
opinion.  Our  examination  does not provide legal  determination  on the Funds'
compliance with specified requirements.

     In our opinion,  management's  assertion  that the Funds were in compliance
with the requirement of sub sections (b) and (c) of rule 17f-2 of the Investment
Company Act of 1940 as of May 23, 2002 with respect to  securities  reflected in
the  investment  accounts  of the  Funds  are  fairly  stated,  in all  material
respects.

     This report is intended  solely for the information and use of the Board of
Trustees,  management,  and the  Securities  and Exchange  Commission and is not
intended  to be and  should not be used by anyone  other  than  these  specified
parties.

August 15, 2002

/s/PRICEWATERHOUSECOOPERS LLP

PRICEWATERHOUSECOOPERS LLP