SUB-ITEM 77I

Registrant Name:  American Century California Tax-Free & Municipal Funds

File Number: 811-3706

Registrant CIK Number: 0000717316

Terms of new or amended securities

(a)      N/A

(b) California High-Yield Municipal Fund, a series of the Registrant, began
offering C Class shares of the fund during the period.  The following  describes
all classes of the funds, including the C Class, as called for by the applicable
registration items:

Each fund votes  separately  on matters  affecting  that fund  exclusively.
Voting rights are not cumulative, so that investors holding more than 50% of the
Trust's (i.e.,  all funds')  outstanding  shares may be able to elect a Board of
Trustees.  The Trust undertakes  dollar-based voting, meaning that the number of
votes a  shareholder  is  entitled  to is based  upon the  dollar  amount of the
shareholder's  investment.  The election of trustees is  determined by the votes
received  from all Trust  shareholders  without  regard to whether a majority of
shares of any one fund voted in favor of a particular nominee or all nominees as
a group.

Each shareholder has rights to dividends and distributions  declared by the
fund he or she owns and to the net assets of such fund upon its  liquidation  or
dissolution proportionate to his or her share ownership interest in the fund.

Shareholders  of  a  Massachusetts  business  trust  could,  under  certain
circumstances,  be held  personally  liable for its  obligations.  However,  the
Declaration of Trust contains an express disclaimer of shareholder liability for
acts or  obligations  of the Trust.  The  Declaration of Trust also provides for
indemnification and reimbursement of expenses of any shareholder held personally
liable for obligations of the Trust.  The Declaration of Trust provides that the
Trust  will,  upon  request,  assume the  defense of any claim made  against any
shareholder  for any act or  obligation  of the Trust and satisfy  any  judgment
thereon.  The Declaration of Trust further  provides that the Trust may maintain
appropriate insurance (for example, fidelity,  bonding, and errors and omissions
insurance)  for  the  protection  of  the  Trust,  its  shareholders,  trustees,
officers,  employees and agents to cover  possible  tort and other  liabilities.
Thus,  the  risk  of a  shareholder  incurring  financial  loss as a  result  of
shareholder  liability  is limited  to  circumstances  in which both  inadequate
insurance exists and the Trust is unable to meet its obligations.

Redemption  proceeds  are  calculated  using the net asset value (NAV) next
determined after a transaction  request is received in good order.  Each time an
investment is made with American  Century,  there is a seven-day  holding period
before those shares may be redeemed,  unless satisfactory proof is provided that
the purchase funds have cleared.  This  seven-day  holding period begins the day
after your transaction is processed. However, redemptions by wire require only a
one-day holding period.

In  addition,  American  Century  reserves  the right to delay  delivery of
redemptions  proceeds - up to seven days - or to honor certain  redemptions with
securities rather than cash.

If, during any 90-day  period,  fund shares worth more than $250,000 (or 1%
of the value of the  fund's  assets if that  amount is less than  $250,000)  are
redeemed,  American  Century  reserves  the  right  to  pay  part  of all of the
redemption  proceeds in excess of this amount in readily  marketable  securities
instead of in cash.  The fund managers  would select these  securities  from the
fund's  portfolio.  A  payment  in  securities  can  help the  fund's  remaining
shareholders  avoid tax liabilities  that they might otherwise have incurred had
the fund sold  securities  prematurely  to pay the entire  redemption  amount in
cash.

American  Century will value these securities in the same manner as used in
computing  the  fund's net asset  value.  American  Century  may  provide  these
securities  in lieu of cash without  prior  notice.  Also, if payment is made in
securities,  brokerage or other transaction costs may be incurred to convert the
securities to cash.

If a shareholder's  redemption would exceed this limit and he would like to
avoid  being  paid  in  securities,  please  provide  American  Century  with an
unconditional  instruction to redeem at least 15 days prior to the date on which
the redemptions transaction is to occur. The instruction must specify the dollar
amount or number o shares to be redeemed and the date of the  transaction.  This
minimizes the effect of the redemption on the fund and its remaining investors.

If an account balance falls below the minimum initial investment amount for
any reason other than as a result of market  fluctuation,  American Century will
notify the account holder and allow 90 days to meet the minimum. If the deadline
is not met,  American  Century  reserves  the right to redeem  the shares in the
account and send the proceeds to the account holder's address of record.