ITEM 77M
Mergers

     (a)  California  Long-Term  Tax-Free  Fund,  a series of  American  Century
California Tax-Free and Municipal Funds.

     California  Tax-Free  Money  Market  Fund,  a series  of  American  Century
California Tax-Free and Municipal Funds.

     (b) At a  special  meeting  held on  August 2,  2002,  shareholders  of the
California  Insured  Tax-Free  Fund,  a series of  American  Century  California
Tax-Free  and  Municipal  Funds,  approved  a  proposed  Agreement  and  Plan of
Reorganization to combine the California Insured Tax-Free Fund with and into the
California   Long-Term   Tax-Free  Fund,  another  series  of  American  Century
California  Tax-Free and  Municipal  Funds,  effective  September  3, 2002.  The
proposal was recommended by the Board of Trustees of American Century California
Tax-Free and Municipal Funds. The reorganization  took the form of a transfer of
assets by the  California  Insured  Tax-Free  Fund in exchange for shares of the
California  Long-Term  Tax-Free Fund. The California  Insured Tax-Free Fund then
made a liquidating  distribution to its shareholders of the California Long-Term
Tax-Free  Fund  shares  received  in the  exchange.  The total  dollar  value of
California Insured Tax-Free  shareholders' accounts after the reorganization was
the same as the total dollar value of those accounts before the  reorganization.
As a result of the  reorganization,  the  California  Insured  Tax-Free Fund has
ceased to exist.

     At a special meeting held on August 2, 2002, shareholders of the California
Municipal Money Market Fund, a series of American  Century  California  Tax-Free
and Municipal Funds, approved a proposed Agreement and Plan of Reorganization to
combine the California  Municipal Money Market Fund with and into the California
Tax-Free  Money  Market  Fund,  another  series of American  Century  California
Tax-Free and  Municipal  Funds,  effective  September 3, 2002.  The proposal was
recommended by the Board of Trustees of American Century California Tax-Free and
Municipal Funds. The reorganization took the form of a transfer of assets by the
California  Municipal Money Market Fund in exchange for shares of the California
Tax-Free Money Market Fund. The California  Tax-Free Money Market Fund then made
a liquidating distribution to its shareholders of the California Municipal Money
Market  Fund  shares  received  in the  exchange.  The  total  dollar  value  of
California   Municipal   Money   Market   shareholders'   accounts   after   the
reorganization  was the same as the total dollar value of those accounts  before
the reorganization. As a result of the reorganization,  the California Municipal
Money Market Fund has ceased to exist.